Wellington-Halton Hills MP Michael Chong has supported his Conservative government’s plan to reform MP pensions although he admits it hasn’t been a priority in his schedule.
The House approved pension reform set out in a bill by the Conservative government that will see elected officials split pension contributions 50-50 with the public. Under the current system MPs pay about $1 compared to the public contribution of about $26 for pensions.
MPs make about $147,000 annually and under the current system can collect their pensions upon retiring at age 55. The new plan allows MPs to only collect their full pensions at age 65. They can take it earlier, but receive lower payments when they collect the remaining pension at 65.
The new plan means MPs start paying more into their pension plans as of the beginning of 2013 which will eventually move up to the 50 per cent mark.
The plan is being phased in over the next several years until the beginning of 2016. That means an MP who retires prior to the next election will collect a pension based on the current regulations.
An MP elected in the next election for the first time won’t collect a pension until 65. Again if they decide to retire earlier, the MP will take a hit on their pension.
Chong said the plan will save the government about $20 million on MP pensions and $2.6 billion on civil servant pensions for which it also applies.
“I think these are good commitments,” he said, referring to the government’s overall push to reduce debt.
Perth-Wellington MP Gary Schellenberger agreed the changes are “a good move.
“I have no problem with anteing up and seeing, going foward, that our pension plan and the public service pension plan is paid into on a 50-50 basis,” Schellenberger added.
Schellenberger also said moving the eligibility age to 65 would end what many see as “double-dipping” by members elected to the house at a young age who end up collecting a pension at 55, while moving on to other employment.
With files from Patrick Raftis
