Newfoundland and Labrador's government announced Monday that it will reduce pension benefits for elected members of the house of assembly.
Under changes that come into effect the end of December, the maximum percentage of the salary MHAs will be eligible to receive when they retire will be cut from 75 per cent to 70 per cent, according to Finance Minister Tom Marshall.
Under the proposed amendments to the Members of the House of Assembly Retiring Allowances Act, a MHA must now have a minimum of five years of service in two general assemblies.
In addition, MHAs were able to collect their pensions earlier when their age plus their years of service equal 60, now they will only be able to collect a pension after the age of 55.
These amendments will only affect MHA's elected for the first time after Dec. 31, 2009.
The changes come after a sweeping review of MHA compensation that was initiated after it was revealed in 2006 that some MHAs were making fraudulent constituency allowance claims.