 Fixing MP Pensions: Parliamentarians Must Lead Canada's Move to Fairer, and Better-Funded RetirementsC.D. Howe Institute Backgrounder, 2012, issue 146 Abstract: The pension plans of federal government employees are relatively generous and badly underfunded, with the Pension Plan for Members of Parliament (MPs), which covers members of the House of Commons and the Senate, standing out on both counts. The MP plan promises much higher retirement incomes than most Canadians can dream of: the implied accumulation of wealth in these plans amounts to more than 50 percent of pay – with today’s very low yields on sovereign-grade securities, arguably closer to 70 percent. In addition, the plan has set aside essentially no assets to pay future benefits: a realistic appraisal of its financial condition would show, not the ‘actuarial excess’ of $176 million that appears in the latest actuarial report on the plans, but a deficit as large as $1 billion. This plan subjects taxpayers to financial risks few appreciate, and undermines the federal government’s authority to lead Canada’s search for a better retirement income system. Keywords: Pension Papers; Canada; pension reform; Pension Plan for Members of Parliament (MPs); federal employee pension plan (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cdh:backgr:146 Access Statistics for this article More articles in C.D. Howe Institute Backgrounder from C.D. Howe Institute Contact information at EDIRC. |
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