Retiring N.B. MLAs profit from pension boost
Last Updated: Saturday, April 17, 2010 | 5:40 PM AT
CBC News
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The handful of New Brunswick MLAs who are retiring from provincial politics this year will benefit from a generous boost in their pension plans, even if those increases are later rolled back.
Six MLAs are leaving politics before the Sept. 27 election but they will cash in from the 85 per cent hike in their pensions.
Two years ago New Brunswick MLAs voted unanimously to adopt a pay change that resulted in MLA pension benefits jumping, but then the provincial politicians stalled on a recommended review of that pension increase.
In March public anger finally forced MLAs to promise the pension review after all.
But Progressive Conservative MLA Bev Harrison said even if a report recommends slashing benefits it won't apply to anyone retiring this year.
"We have no idea what that report would do. It could be retroactive. They certainly wouldn't be affecting the people who left today," Harrison said.
Liberal MLA Roly MacIntyre, Progressive Conservative MLA Jeannot Volpé and Tory-turned-Liberal MLA Joan MacAlpine-Stiles all said goodbye to the legislative assembly on Friday.
Charlotte-Campobello Tory MLA Tony Huntjens, a former cabinet minister, Grand Lake-Gagetown Liberal MLA Eugene McGinley, a former legislature Speaker, and Saint John-Fundy MLA Stuart Jamieson, who left the Liberal cabinet during the NB Power controversy, weren't in the house on Friday but have also said they will not be on the Sept. 27 ballot.
In 2008, MLAs increased their base salary to $85,000 from $45,757. But, they also terminated two tax-free allowances that previously were used to supplement their incomes.
As a result, MLA pension accounts were flooded with millions of dollars because the expense allowances had not been part of the pension plan, prior to being converted into salary.
The New Brunswick plan now pays a $30,000-a-year pension after eight years of service, up from $16,500. And those who retire after 20 years will receive $76,000, almost double the $41,000 under the old guidelines. All pension amounts are fully indexed to inflation, up to six per cent.
New Brunswick MLAs now have one of the richest retirement packages in the country.
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