Latest news with #pensionplan
National Post
2 days ago
- Business
- National Post
Ontario MPPs to get raises after 16-year freeze and access to new pension plan
Ontario members of provincial parliament are getting big raises and access to a pension plan, under legislation introduced by Finance Minister Peter Bethlenfalvy and passed with the support of all parties at breakneck speed. Article content Article content Shortly after members sent the pay raise bill barrelling through the legislative process — it spent about 13 minutes from tabling to passage — representatives from all parties stood shoulder-to-shoulder outside the chamber in rare agreement. Article content 'When we're looking for other candidates, qualified people, to actually direct the future of this province, for most of them, they have to take a huge pay cut to come here and give up, in many cases, pensions,' said NDP Opposition house leader John Vanthof. Article content Article content 'We're not going to build the future of this province by excluding the people who have the qualifications and have the knowledge to move us forward. So we're fully in support and I'd like to thank Premier (Doug) Ford and his government for, quite frankly, having the guts to do this.' Article content The base pay for Ontario's elected officials has been frozen since 2009 at $116,550, and the changes would boost the salary to $157,350, which is 75 per cent of what federal MPs make. That will still be less than what city councillors in Toronto earn. Premier Doug Ford's salary would rise from about $209,000 to about $282,000 and cabinet ministers would see their pay increase from about $166,000 to about $224,000. Article content The bill would also resurrect a pension plan for the members of provincial parliament, 30 years after the previous one was abolished by former premier Mike Harris' government. Article content Article content The new plan would see members enrolled in the existing Public Service Pension Plan, and they would then be entitled to supplemental benefits for MPPs who serve at least six years. Article content Article content Representatives of the Liberals, Greens and the lone Independent member also said it was time for the pay freeze to end. 'I want to thank the premier,' said Bobbi Ann Brady, who represents Haldimand-Norfolk as an Independent. Article content 'I want to thank the minister and the government house leader for righting what I feel is almost a 16-year wrong,' she said. 'I continually talk about the spirit of co-operation amongst us all and I think today there is a nice spirit of co-operation here.' Bethlenfalvy said it is the right thing to do. Article content 'I know that many people across the province work tirelessly each day to put food on the table and pay the rent,' he said. 'It's fair and reasonable. It'll be at 75 per cent of the federal compensation. It's still less than a Toronto city councillor will be paid or a Mississauga city councillor and we're going to work tirelessly each and every day, sometimes in different ways, to help all Ontarians.' Article content
CTV News
3 days ago
- Business
- CTV News
Premier Doug Ford and Ontario MPPs are poised to get a raise. Here is how much their salaries could be going up
Ontario MPPs are about to get a nearly $41,000 raise and will also be eligible to participate in a pension plan for the first time in decades. The salary for MPPs has been frozen at $116,500 since 2009, with successive governments on either end of the political spectrum opting to keep the measure in place. But legislation that was tabled at Queen's Park on Thursday afternoon proposes lifting the freeze and setting MPP pay at 75 per cent of the salary awarded to Members of Parliament—currently $209,800. That would, in turn, see MPP salaries increased by 35 per cent to $157,350 with the change retroactive to the day of the most recent Ontario election. The premier's salary will increase from $208,974 to $282,129 while cabinet ministers will see their salaries hiked from $165,851 to $223,909. The Leader of the Official Opposition will now be paid $244,207, up from $180,866. Officials say the salary increases will add $6 million in payroll costs in 2025-2026, but will only represent 0.06 per cent of the total compensation awarded to Ontario's public servants. The legislation, once approved, would also give MPPs access to Ontario's public service pension plan, which was previously abolished by the Mike Harris PC government in 1995. Under the legislation, MPPs would join and contribute to the plan on the 'same terms' as other members who serve elsewhere in Ontario's public service. But officials say that due to the 'unique nature' of their work, MPPs would also be eligible for a 'supplementary benefit' that would allow them to receive pension benefits after six years of service. They could begin collecting their full pension benefits at age 65 or receive a reduced pension by the age of 55. Officials say current MPPs will be given credit for the years of service they have already logged but must still be on the job at the end of this current session of Parliament to be eligible. The pension will eventually replace a benefit, which saw the government contribute the equivalent of 10 per cent of an MPPs salary to a retirement savings account each year. The cost of the pension plan to the government is expected to total $6.8 million in 2026-2027. The new legislation comes after Premier Doug Ford hinted he would lift the pay freeze for MPPs during his first news conference following his re-election this past winter. At the time, he said it was 'not fair' that MPPs had not received a pay increase since 2008. 'I don't want to sound like a bleeding heart for politicians but come on folks, these guys work their backs off,' Ford previously said. Officials say the eligibility for a pension after six years of service was set to mirror the rule for federal Members of Parliament. The new salary structure, once approved, will still result in MPPs earning less than Toronto City Councillors ($170,558). Ford will now make more than Toronto Mayor Olivia Chow, who previously had a higher salary at $225,304.
