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‘Gold-plated’ MP pensions finally get clawed back in new omnibus legislation

Pigs must be flying, hell is probably frozen over and cats everywhere got to be chasing dogs.

On a day that many of us thought would never come, a government -- the Harper government -- has introduced legislation that significantly alters the way MPs, senators and the public sector earn pensions.

For MPs, the new rules — unveiled in the Conservatives' Jobs and Growth Act on Thursday — include changing the age to collect to 65 from 55 and making MPs pay a 50-50 cost-sharing ratio.

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By no means is the legislation perfect, and the pensions are still generous relative to the private sector.

The Canadian Taxpayers Federation has done the new math:

The CTF estimates that once all the reforms are in place, a new MP elected after 2017 would be eligible for a $101,000 pension after three-terms. That same hypothetical MP would have contributed nearly $589,000 towards their pension.

When you factor in spousal benefits and cost of living increases, a regular Canadian would have to save $1.55 million to purchase the same pension. In other words, taxpayers will have contributed $1.62 for every $1 contributed by the MP.

"To suggest this is a $1 to $1 matching pension contribution is incorrect, but it's a vast improvement," continued [CTF-Atlantic Director Kevin] Lacey.

The other disappointing thing about the new contribution rules is that they're not fully phased-in to 50 per cent until 2017, which is clearly a move to appease current MPs.

And there are some — like the NDP — who will argue that the new pension guidelines are purposely included in an omnibus bill so that it overshadows less popular aspects of the budget legislation. Among other things, this bill limits reviews under the Navigable Waters Protection Act, makes changes to the Indian Act on approvals for the leasing of reserve lands and phases out tax advantages for the natural resources sector.

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But for most Canadians, this bill is about clawing back MP gold-plated pensions and nothing else matters.

For most Canadians, this is a good day.