Mr. Speaker, if this is all intended to get me upset, ruffled and riled it will not work. I will continue along pointing out and showing the double standard of the government, the double standard with which it holds itself in much higher esteem than the rest of the Canadian public.
I was trying to point out all of the double standards contained within Bill C-85 and it should be made the same as the private sector. I pointed out the full indexation which protects the amount of money politicians get against inflation and not available in the private sector.
Former members are not touched by this legislation who are double dipping. It is only if they get reappointed at the end of this term. That is another double standard. Why leave them alone? Why leave them untouched? They are the ones who started all this. They are the ones who started giving themselves
these generous benefits. Why is the government protecting them?
The accrual rate has been reduced from 5 per cent to 4 per cent. That is admirable. It is a reduction. It will reflect in savings. There is no question about that. It still is double that of the private sector. The private sector is 2 per cent limited by the Income Tax Act. This defies the Income Tax Act and it goes to 4 per cent. The Liberal government is bragging now that this will increase to 19 years before members get 75 per cent of their six best years. In the private sector at 2 per cent it will take 35 years to get 70 per cent of their salary. It is a double standard; one for a cut above the rest and the other for the ordinary Canadian.
Pension income in the private sector is limited to 70 per cent of an individual's three best years, but for those in Ottawa who are a cut above the rest it is 75 per cent. It is a 5 per cent difference, but it is still a difference. It is a double standard.
The maximum contribution in the private sector is between 5 per cent and 7 per cent of an individual's salary, which is matched by the employer. Here in the House it is 9 per cent, in the Senate it is 9 per cent, and it is matched three and a half times. It has been reduced from six to one to about three and a half to one. That reduction is good. It is headed in the right direction. Come down another 2.5 and I think the government might have a plan which would be acceptable to the Canadian public. Once again, there is a double standard.
Bill C-85 reduces the six-year eligibility rule, which was ridiculous. No one should qualify for a pension for life after only six years of service. I commend and compliment the government for that. In its place it introduced the requirement of the age of 55 for a fully indexed pension; once again, another example of the double standard. In the private sector the age for retirement is 65. If a person chooses to collect their pension before age 65 they receive a reduced amount. That is not so with politicians. They are fully indexed at age 55 with no penalties, away we go. It is 10 years better than the private sector and that should not be. Cabinet ministers have no cap on the level they can contribute from their salaries to the pension plan.
We now have a three tier plan. We have the trough regular plan for all those members of Parliament who were here prior to 1988, such as the Deputy Prime Minister and the Prime Minister. We have the trough light plan, which applies to all the rookies in the House, the class of `93. If they are dumb enough to take it, if they are dumb enough not to force the rest of their veterans to follow along with them, then that is the way it is. Then there is the trough stout plan. If a member has higher responsibilities and makes a little extra money there is no cap. We have trough regular, trough light and trough stout. Those are three plans for politicians, who are a cut above the rest. There is only one plan in the private sector. It is another example of the double standard.
Why not cut out the previous members' generous plans, or the previous members who are untouched? Why have this trough stout? Why not reduce it by even 5 per cent to 10 per cent, or buy them out rather than paying them $1 million, $1.5 million or $2 million over 20 or 30 years? Buy them out for $.5 million and be done with it. Let us clean it up and fix it properly once and for all. It is time to cut our losses.
Ministers receive a bonus on top of their salaries; not a bonus, it is extra remuneration for their extra workload. There is no limit on how big their pensions can become. They are not limited to the 75 per cent of the six best years. The Prime Minister and people who have been here for 30 years could end up getting 110 per cent of their salary when they are finished. That is not so in the private sector. That is not so for the rookies of the class of `93. That is not so if a member remains a backbencher, a parliamentary secretary or chairs a standing committee. That is a double standard.
I do not understand why the Liberal rookies did not squawk more. They do have a chance to lead by example. They also have a chance to opt out. I hope they do because Canadians will be looking at whether people opt out and try to have a sensible plan. They might be voted out if they do not opt out.
The bill sends a message that politicians are not ordinary people but a cut above the rest. That is why people do not like politicians. That is what politicians have come to represent: self-serving interests rather than serving the interests of the Canadian public.
Reformers would end full indexation of pensions. We would postpone eligibility for benefits until at least age 65, with accessibility at a reduced rate. Eligibility would be further postponed by the amount of time in which the person was already paid prior to age 65. We would subject the MP pension plan to a tax back according to a formula identical to that of the old age security program.
The Reform caucus has already approved the concept of privately purchased pensions under which future RRSP contributions for sitting MPs would be matched by the government up to the legal limit for contributions.
After eliminating the current gold plated pension plan the House could agree to a proper and balanced compensation package which would be more palatable and compatible with Canadian taxpayers.
Here is my personal recommendation which is certainly debatable but which should satisfy our critics. Whereas individual citizens from time to time wish to enter the public sector to help shape legislation and help make a contribution to Canadian society, whereas it is desirable to attract individual citizens from all walks of life to Parliament regardless of income, a reasonable compensation package should be offered to have this
great institution in the hands of members of Parliament more interested in serving their country rather than for the pay, perks and privileges without inflicting undue financial hardships.
This is an important job. Only 295 people in Canada have it at one time and they must balance personal sacrifices with the public interest. Given the current job description and people's expectations, let us get rid of the impression that somehow MPs are special or deserve something better than the private sector.
What politicians do is freeze their salaries so they can stand up in front of Canadians and say: "We too have made sacrifices". Then they overcompensate with this high gold plated pension plan.
Everyone in the House would agree that if we are truly to address the pension plan we have to talk about our salaries. That option is not open because our salaries are frozen. The government has conveniently blocked real pension reform from all possible angles.
I know that except for Ottawa and area MPs all of us need to spend extra money on a second residence and extra transportation. Therefore let us come clean with Canadian taxpayers and say: "Here are the costs of being an MP. We need a second set of everything. If you want somebody to represent you, it has to be paid for or very few will be willing to serve".
The job with its responsibilities compared with the private sector is at least at a senior executive level and is deserving of a $12,000 per month salary perhaps. Why not get rid of the MP pension plan and the tax free living allowance, the tax free expense allowance, limit members to two terms and offer a taxable salary at $12,000 per month wherein members look after their own expenses. These are my personal points of view and do not reflect the party's point of view whatsoever. MPs should be paid more but once they are removed from office Canadians should not be on the hook for about a million dollars per member. They should be given a private sector pension plan into which they pay 5 per cent matched by the government on a one to one basis.
What is so hard to understand about that? Why this six to one, three and a half to one, 11 per cent, 9 per cent? This is confusing. Upon departure, I would get a one time, one-year severance to help re-enter the workforce and reintegrate into my previous life.
This is no different from the private sector and would make the voters and politicians happy. It is an honest, clean, simple, visible, understandable and, most important, above board recommendation. The rookies in the House have to understand it is not so much politicians' basic pay that angers Canadians, it is the gold plated pensions, the tax free allowance, the junkets, the things unavailable and in some cases illegal for those in the private sector.
The days of pomp and pageantry are over and it is time to start paying politicians what they are worth, no more and no less; no golden handshakes, no fancy accounting and no more double talk. Rookies of the House, it is up to you, it is up to us.