An issue with low pay is that you won't attract people who are earlier in their careers. For someone who is advancing in their career it is a huge loss to take 5 years out to run for political office.
I am not sure that they should make more money but less might be tough.
As for the pension, I don't understand why they breakout the portion that tax payers pay from the portion they pay. Would it really change things if they reduced the taxpayer portion, raised their portion and gave them a raise?
The total compensation should be looked at and singling out one aspect is ignoring the whole picture.
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