$25 billion in pension liabilities on the books, says MP

A report released by the Canadian Taxpayers Federation (CTF) a few weeks ago has asked Members of Parliament to shut down the current pension scheme that has been creating hoopla in Ottawa. Last week, local MP Brian Storseth said the pensions are only part of a much bigger issue.

In its report, the CTF revealed taxpayers contribute $23.30 for every $1 contributed by an MP to an MP’s pension account, after the government adds hidden “interest” at a rate of 10.4 per cent. The CTF is calling on MPs to join the new Pooled Registered Pension Plan “like any other Canadian worker.”

“That's what the Canadian Taxpayers Federation has been calling on forever and I applaud that we have organizations like that who are looking for accountability to voters,” Storseth said regarding the report.

“This is a serious issue that goes beyond what they're talking about right now in my opinion with these kinds of articles. The real issue here is the $25 billion worth of pension liabilities that are on the books of the Government of Canada through civil service pensions, which includes MPs pensions and senators’ pension. We are in a time when the world is in a debt crisis. The problems in Italy and Greece, a large part of those problems are pension problems.”

A report released in December by the C.D. Howe Institute, a Canadian public policy think tank, indicates Canada could experience the same fate as other European economies if it doesn’t scale back its civil service pensions.

Storseth said simply cutting MPs’ pensions, which the CTF claims in its report costs taxpayers $248,668 each year in interest, will not solve the bigger problems concerning pensions for civil servants in Canada.

“These cheap shot articles about just MP pensions, that's not the real issue here,” he said. “The real issue is making a better balance sheet for Canadians with their government by looking after the entire civil service pension scheme and MPs should be included in that.”

There are over 200,000 civil servants in Canada. Storseth believes MPs need to be leaders in creating pension reform.

“If this government is serious about pension reform in this county, then yes as members of parliament we need to lead the way,” he said. “We need do something to ourselves before we go out and invoke things on other people. I agree with that 110 per cent.”

“We also deserve the credit when we say we want to cut back on civil service salaries, we froze our salaries first,” he added.

“My salary has been frozen for three years … because that's the responsible thing to do as a leader in this community. My members' operating budget has been frozen and will probably face a decrease because if we're going to ask the rest of the government to decrease their spending, we as members of parliament should be willing to do the same.”

According to Storseth and his budget consultations with the prime minister, everything is being looked at ahead of the release of the federal budget, which will be tabled in February or March. He also said people need to be engaged on a national level about this issue.

“I said this to some people in pre-budget consultations, you need to be engaged about these things,” he said.

"If the only thing we did was cut MPs pensions, that may look good politically, but it doesn't better our country at the end of the day.”

“The larger issue is the $25 billion that are on the books, we need to do something about that."