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N.L. cabinet quietly approved new cash benefit for departing ministers
N.L. cabinet quietly approved new cash benefit for departing ministers

Yahoo

time18-07-2025

  • Business
  • Yahoo

N.L. cabinet quietly approved new cash benefit for departing ministers

Newfoundland and Labrador cabinet ministers are now eligible for extra money on their way out the door, CBC News has learned. The provincial cabinet has approved a new transitional allowance policy for ministers, which came into effect April 1 — just months before a scheduled provincial election. There has been no public disclosure of the decision before now. Executive Council — which is responsible for the overall operations of the provincial government — confirmed the existence of the new policy in response to inquiries from CBC News. The decision could put tens of thousands of dollars in the pockets of some departing ministers. Since the beginning of April, eight cabinet ministers have either already left or signalled their intentions to not run again when voters go to the polls this fall. According to Executive Council, the transitional allowance policy is designed to provide financial support when a minister leaves office due to resignation, retirement, death or losing an election. It applies only to the ministerial portion of their salary. That's currently $48,664 per year. The premier is paid more: $65,168. WATCH | N.L. cabinet approves new benefit for outgoing ministers: The new policy provides one month's salary for each year of service in cabinet, on a prorated basis, for a minimum of three months and a maximum of 12 months. For ministers, that's a minimum payout of around $12,000, up to the full annual salary of $48,664. Ministers eligible for allowance and severance pay Executive Council won't say when the decision was made, noting that it was a decision of cabinet and those deliberations are protected. Officials indicated it aligns with the new MHA transitional allowance, which has similar terms and applies to the $95,357-a-year salary for members of the House of Assembly. All current cabinet ministers are also MHAs. But there are key differences between the two policies. The new MHA transitional allowance policy for departing members replaces the previous severance allowance. However, the new ministerial policy is an additional benefit stacked on top of the existing severance policy for ministers. The existing severance policy sees them continue receiving their salary up to the end of the month in which they depart, plus one additional month's pay. Premier's office says Hogan wasn't involved in decision Premier John Hogan was not made available for an interview this week. Spokesperson Ben Murphy sent an emailed statement Thursday evening. "Premier Hogan was not in cabinet when the decision was made, and he was not involved in the decision," the statement said. Hogan stepped aside from his cabinet portfolio after announcing his ultimately-successful run for the Liberal leadership in March. He was sworn in as premier in May. Meanwhile, there were no replies to a CBC News message sent to the legislative email addresses of every current cabinet minister. Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Sign up for our daily headlines newsletter here. Click here to visit our landing page.

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