Member’s Benefits are a Long-Term Concern

"It’s great that you have that pension, isn’t it?"

How many times have you been asked that question in the last few years? For members or former members elected since 1995 the answer is simple - "Actually we don’t have any pension." Instead, these former MPPs get about $ 4000/ year invested in the RRSP investment of their choice - an amount that has shrunk for many, and simply does not replace a defined benefit pension. The truth is that employers are not lined up to hire middle-aged former politicians, and most former members and many current MPPs feel this was a mistake. Anyone that serves a day under five years is disqualified from benefits entirely. Yet no one can even remember what is magic about five years.

Why do we do this to ourselves? The vast majority of elected officials I’ve met, regardless of party, are there for the right reasons - better government. When we as a society ask people to stand up in pubic and say what no one else wants to say, to work very long hours, to be away from spouse and family for long periods, and to place themselves and their families in the limelight for media scrutiny and public comment, we should ensure they have a dignified bridge back to private life, and that they and their families don’t suffer financially because of their public service. Our Association has members right now in their fifties and sixties who are unemployed (or underemployed) and are cashing in the last of RRSP savings to pay their bills. What does the future hold for them? We also have members that will not be able to afford critical physiotherapy if they have a stroke or need to have their teeth fixed in their seventies and eighties. What does it say about us if we allow this to stand?

Changing member’s pension and benefits is in the public interest because Ontario must attract talented, dedicated people to the Assembly from all walks of life - not just the wealthy. Those who lose an election now or are eliminated by changes in the ridings face upheaval in their personal and working lives. Increasingly, good people will refuse to enter public life unless they can rely on having a dignified exit.

Some will argue we did it to ourselves. Agreed. All parties have been guilty of playing the game of attacking MPP pay and benefits at one time or another. But that doesn’t mean we shouldn’t act to establish an appropriate pay and benefits plan now.

I raise this issue now for two primary reasons: First because it appears that despite recent record profits, the insurance industry is looking for ways to decrease benefits coverage in employee plans across the board. Second, with seniors being a rising portion of our society and employers looking to control costs, defined benefit pension plans are starting to disappear. So decision makers at The Legislative Assembly will face increasing financial and political pressure to reduce or eliminate both. That would be a mistake.

The Integrity Commissioner is to report to Premier McGuinty on member’s pensions and benefits in 2005. Hopefully his report will be an opportunity to act on these important matters The time is long overdue to stop playing political football with MPP pay, benefits and pensions. Your executive is monitoring this matter but your opinion is important. If you feel inclined, why not send your thoughts now on this subject to us and to any current MPPs you know, so they can be more aware of the realities of life after ’the ledge’.

Terence H. Young, Vice Chair