I’m not getting very far. A few lucky corporate executives may be able to cash out to a similar extent, but most would have spent many more years slugging their way to the top than MacKay did. And most work in the private sector, so their cushy golden years would be funded by shareholders rather than taxpayers.
MacKay was first elected in 1997. He served on the opposition benches until the Conservative victory in 2006, and has had nine years in Stephen Harper’s cabinet. During that time he held some of the top non-finance positions, including as minister of foreign affairs, defence, and, lately justice. He was also leader of the Progressive Conservative party just long enough to agree to a merger with the Conservatives.
Not a bad resume, but hardly earth-shaking. He’s still only 49, with plenty of time – and, no doubt, excellent connections – to build a new, prosperous career for his young family.
So, $120,000? A year? For life?
The calculation comes from the Canadian Taxpayers Federation, and is somewhat less than the $128,000 a year the CBC reported. Aaron Wudrick of the CTF says the difference relates to how MacKay’s cabinet premium is calculated, and is certain the lower figure is the correct one. Even so, MacKay could collect more than $6 million in total, allowing for inflation, since the average MP lives to age 90.
Under new regulations, which kick in on Jan. 1, 2016, MPs will have to contribute far more to their own pensions and wait longer to collect it all. So there shouldn’t be any more examples like MacKay to upset those of us among the great unwashed who have to get along on our own savings and lesser pension plans. Still, if people who run for office think they’re smart enough to run the country, why don’t they feel smart enough to save for their retirement like the rest of us?
According to a report from the Fraser Institute, employment in the public sector remains a far cushier situation than private sector workers can expect. Even after nine years of the Harper government supposedly making life miserable for civil servants, public employees across all levels earn almost 10% more, on average, than those in the private sphere.
The report calculates that 88% have pension plans, compared to 24% in the private sector, and 95% of those plans are defined benefit plans guaranteeing a fixed amount, compared to 48% outside the public service.
Public employees have better job security, retire earlier and take more sick days. They also tend to be unionized and complain a lot about the stress they face. The unions would no doubt argue that the rich deals they enjoy demonstrate the value of union membership, which is true enough as long as you believe governments have a bottomless purse, and can just resort to deficits to pay the bills when the money runs out. Private employers can’t do that.
Maybe it’s churlish to begrudge MacKay his pay-off. He just took advantage of the rules as he found them (though written by fellow politicians for their own benefit). He also says he hasn’t ruled out a return to politics at some level, after a stint in the private sector. He can certainly afford to take his time. Thanks to the taxpayers who can’t hope for anything like the deal they’re affording him.
Original Article
Source: news.nationalpost.com/
Author: Kelly McParland
No comments:
Post a Comment