HELLO,
BERMUDA

The following commentary is
from "Let’s Talk Taxes”, a weekly
feature distributed by the Cana-
dian Taxpayers’ Federation. The
author is Kevin Avram, an ac-
countant, .

If you want to be really set for
life in a financial way, my friend
Harry says there’s three ways to

do it. According to Harry, you can .
win a lottery, you can be born:

with a silver spoon in your mouth,
or you can become an MLA or
MP.

What Harry means when he
says such things is that most
MLAs and MPs get pension bene-
fits that the average person could
never qualify for. That’s probably
because ordinary citizens have to

pay for their own pensions, while .

the shortfall in the overly-
generous pension schemes for
politicians is paid for by
taxpayers. --
An Alberta Cabinet Minister
is eligible to receive the largest
maximum first year pension of all
politicians in the country, yet they
pay one of the lowest contribution
rates. Those who end up as long
term Alberta Cabinet Ministers
are eligible for first year pension

benefits, based’ on 20 years of ©

service, of $83,600. A federal
Cabinet Minister with the same
amount of service would receive
$78,827, a British Columbia Cabi-
net Minister would receive
$67,847, and a Nova Scotia Cabi-
net Minister would collect an
annual pension of $60,234.

The most taxpayer-friendly
pension scheme in the country is
in Saskatchewan. That's because
in Saskatchewan the MLA pen-
sion scheme is based on an annu-
ity, purchased on behalf of the
politician. Since 1979, the pension
benefits for MLAs have been
based solely on their contribu-
tions, which are then matched by
the taxpayer. When the politician

quits or retires, these contribu-
tions are rolled into the annuity,
and the benefits are paid accord-
ingly. However, Saskatchewan
still has a $19 million shortfall
due to the fact that those who
were elected’ prior to 1979, con-
tinue to receive benefits that
exceed their contributions.
British Columbia politicians
placed very high on the political
pension scale with a Cabinet
Minister collecting an annual
maximum pension of $67,847, and
an MLA collecting $36,648. When
the Canadian Taxpayers Feder-
ation approached the B.C. govern-
ment requesting information as to
what the taxpayer obligation is
for any shortfall, the government
refused to divulge the total. So
much for honest Mike Harcourt
and his open government policy.
Manitoba legislators have one

' of the lowest pensions available to

a politician, but so far as their
contributions are concerned, they
still get too much. That's because
their pension fund for MLAs has
a shortfall of $20 million already,
and on top of that, Manitoba
MLAs, along with those from
Newfoundland, contribute the
least amount to their plans.

-_ At the federal level. the pen-
sion shortfall is in the neighbour-
hood of $140 million. That's
because our MPs have voted
themselves pension benefits that
are in no way related to their
plans’ ability to pay. Instead,
these people reach into the
pockets of people like you and me
to cover the losses. Each MP
begins to collect a pension as soon

as they leave. office. The only

condition is that they’ve been
there for a period of at least six
years. Then, whether they're 28 or
58, the pension cheques start
rolling in.

In the case of political pen-
sions, Saskatchewan is setting the |

example. In other provincial capi-

tals and in Ottawa, politicians are .

regularly reaching into taxpayers’
pockets, getting the cash they
need, to pay for the generous
benefits they provide themselves.

The Dr. R.E.M. Lee
Hospital Foundation
4720 Haughland
-Ave., Terrace, B.C.
V8G 2W7
A thoughtful way to
remember is with an In
Memoriam gift to the Dr.
R.E.M. Lee Hospital
Foundation. Donations are]
gratefully accepted at the
above address, the Terrace
Fire Department on Eby 5t.,
or by contacting Mrs.
Helene McRae at 635-
5320.Income tax receipts

are available.

IMPROVING .
YOUR ODDS.
AGAINST —
wosmox. | CANADA'S
Sermon | #1 KILLER

A thoughtful way to
remember is with an In
Memoriam gift to the Heart
and Stroke Foundation of
B.C. and Yukon. Please
mail your donation to the
above address, as well as
the name and address of
next-of-kin for an
acknowledgement card.

Maggie Park
#209-4526 Park Ave.,
Terrace, B.C.

638-1167

Terrace Review — March 13, 1992