The Conservative Government came to confirm, in his second omnibus budget bill proposal filed Thursday, as deputies and Senators should more than triple contributions that they pay into their pension plan. And officials also will be charged more, while all will have to wait until 65 to receive the benefits.
The intention was announced in the March budget, but now, Ottawa said its reform of the pension of the elect, many denounced for a long time as being ‘repos in gold.
Rather than assume 14% of their retirement, deputies and Senators shall by 2017 to pay 50%. The annual fee will therefore ultimately from $11,000 to nearly $39,000. Contributions will begin to increase as early as January.
In addition, parliamentarians will have to wait 65 to reach retirement, unless the claim from 55 as provided up to now act. But in this case, they will be penalized at the start, and gradually they will be able to receive their full benefits at 65. At the time of the tabling of the budget, officials on the spot had instead indicated that only future parliamentarians would be affected.
‘These changes closer the pension scheme of the politicians of what is being done in the private sector and several public sectors’, argued the Minister of finance, Jim Flaherty.
However, under the Canada pension plan, Canadians who are demanding early retirement receive payments lower, and this, for the rest of their lives. But Mr. Flaherty argued that politicians were launched “based on some assumptions” about their pension plan. The reform does not change the fact that members of Parliament will be entitled to a pension after six years of service in the Commons.
Since the reform was announced, some media reported it had raised tensions among the Conservatives and the NDP. In the camp of the Government, the president of the Treasury Board, Tony Clement, said that all of his colleagues were in agreement. The NDP side, a sign that tensions remain, the party refused to rule simply by pounding it would have wished to see an independent Committee decide on the amendments. “We are in a perfect conflict of interest to decide on our own salaries,” reiterated the leader Thomas Mulcair. Impossible to know if he is in agreement with the details.
The Liberals offer for their support, like the Bloc Québécois, who say they agree with the principle. The interim liberal leader, Bob Rae, has even proposed to the Government to extract these clauses of the omnibus Bill, to make it not to adopt. The Prime Minister replied that he would take “this suggestion into consideration.
Same scenario for the public service
Changes are similar to public servants: contributions will reach 50% by 2017 (vs. 36% at present), and the age of eligibility goes 60years at 65 for all new hires from 2013.
Changes were badly welcomed to the Alliance of the public service of Canada (PSAC), who calls them “attack against the rising generations. “This change will create a system at two levels, creating inequalities between younger workers and their colleagues,” lamented President, Robyn Benson.
Mr. Clement to defended himself poorly to act by not negotiating this change with the employees of the State.
With these two reforms, Ottawa provides save 2.6 billion over five years. However, these are some 420 000 employees who will be responsible for the bulk of these savings since only 29 million will be cleared through the imposed changes to parliamentarians.