Alberta Votes 2008

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$5M golden handshake for outgoing MLAs

Last Updated: Friday, February 29, 2008 | 10:14 AM MT

It will cost Alberta taxpayers more than $5 million to say goodbye to 20 MLAs who are not running in the provincial election.

Former premier Ralph Klein scrapped a costly pension plan in 1993 and replaced it with a transition allowance that gives members of the legislative assembly three months' pay for every year they were in office.

Most of the 20 MLAs leaving provincial politics are Progressive Conservatives, but there is one Liberal (Maurice Tougas in Edmonton-Meadowlark) and one New Democrat (Raj Pannu in Edmonton-Strathcona).

Almost half have been in office for 15 years, which boosts the price of the payouts. Some former cabinet ministers such as Victor Doerksen, who represented Red Deer-South for four terms, stand to receive almost $500,000.

"People will complain on one hand, look at the amount of money they make and look at the severances they get and then criticize the pool of candidates that are out there, saying why don't we have better people?" said political scientist Duane Bratt.

He said the payments are a way to attract quality candidates to politics, considering that they must give up their careers and privacy.

"It is truly a balancing act, and I think the transition allowance is the right platform. I think there could be some tweaking of the numbers."

Bratt suggested capping the maximum allowance that could be paid to an outgoing incumbent, but pointed out the payouts are still lower than if the pension plan was still in place.

"Because the pensions just go on and on until you die and then there are survivors' benefits and those can reach extremely high numbers so the transition allowance is a reasonable compromise," he said.

Any incumbent who is defeated in Monday's provincial election will also receive a transition allowance.

When the election was called, the Progressive Conservatives had 60 seats in the legislature, the Liberals 16, the NDP four and the Wildrose Alliance one, with one Independent and one vacant seat.

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