OTTAWA, ON: The Canadian Taxpayers Federation is calling on all party leaders to commit to ending the second pension for prime ministers.
“Taxpayers can’t afford to pay for all of the perks in Ottawa and the government should start saving money by ending the prime minister’s second taxpayer-funded pension,” said Franco Terrazzano, CTF Federal Director. “Prime ministers already take a salary nearly six times more than the average Canadian and they already get a lucrative MP pension, so taxpayers shouldn’t be on the hook for a second pension for prime ministers.”
Trudeau will collect two taxpayer-funded pensions in retirement. Combined, those pensions total $8.4 million, according to CTF estimates.
First, there’s the MP pension.
The payouts for Trudeau’s MP pension will begin at $141,000 per year when he turns 55 years old. It will total an estimated $6.5 million should he live to the age of 90.
Then there’s the prime minister’s pension.
“A prime minister who holds the Office of the Prime Minister for at least four years is entitled to receive a special retirement allowance in addition to their members of Parliament pension benefit,” according to the government of Canada.
The payouts for Trudeau’s prime minister pension will begin at $73,000 per year when he turns 67 years old. It will total an estimated $1.9 million should he live to the age of 90.
Add the $6.5-million MP pension to the $1.9-million prime minister’s pension and Trudeau will collect a total of about $8.4 million.
The prime minister’s current annual salary is $406,200.
Trudeau’s pension payouts would be even higher if not for reforms implemented in 2012, which increased the retirement age, cut benefits and saw MPs increase their own contributions. Prior to the reforms, MPs contributed just $1 for every $24 of taxpayer and federal monies invested in their pensions.
Former prime minister Stephen Harper forfeited an estimated $1 million to $2 million in additional payouts by implementing the reforms. Nevertheless, the CTF estimates Harper’s lifetime pensions will total about $7 million.
“A prime minister already takes millions through their first pension, they shouldn’t be billing taxpayers more for their second pension,” Terrazzano said. “Taxpayers need to see leadership at the top and all party leaders should commit to ending the second pension for future prime ministers.”
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