Election 2015: Local MP’s pension should soften loss

Cannan will get a Severence of $83,700 and an annual pension $46,632, up to a maximum of $2,348,810.

  • Oct. 20, 2015 1:00 p.m.

Outgoing Kelowna Lake Country MP Ron Cannan will walk away from politics with more than a pat on the back for a job well done.

According to the Canadian Taxpayers federation,  Cannan will get a Severence of $83,700 and an annual pension $46,632, up to a maximum of  $2,348,810.

“Losing an election can be tough, but most MPs will have a soft financial landing,” said CTF Federal Director Aaron Wudrick. “The good news is that thanks to the hard-fought pension reforms that take effect on Jan. 1, 2016, taxpayers will not have to shoulder as much of the burden in the future.”

For MPs who retired or were defeated on Monday, taxpayers contributed $17 for every $1 put into the plan by an MP towards their pension. After January 1, 2016, the ratio will gradually shift to a ratio of $1.60 in taxpayer contributions for every $1 put in by an MP or Senator.

Wudrick noted that eight former MPs will gather more than $100,000-plus a year in pension income including outgoing Conservative cabinet ministers John Duncan ($132,394), Peter MacKay ($117,746) and Bernard Valcourt ($116,987). In terms of lifetime estimated benefits to age 90, 21 MPs are projected to collect more than $3 million, including MacKay ($5.9 million), Liberal Gerry Byrne ($5.2 million) and Conservative Rob Anders ($4.7 million).

“These pension changes are a welcome step towards broader public sector pension reform,” added Wudrick. “We encourage the new government to take the necessary steps to ensure government employee pensions are more in line with what the vast majority of Canadians working in the private sector expect to receive.”

Kelowna Capital News