Ontario Premier and MPPs give themselves a 35% pay raise and restart the pension plan!

The Ontario Legislature submitted a new bill Thursday afternoon to lift the salary freeze and set the MPPs' salaries at 75% of the federal MPs' salaries (currently $209,800 CAD).

This means that the annual salary for MPPs will increase by 35%, reaching $157,350 CAD, and will be retroactive to the day of the last Ontario general election.

Among them:

· The Premier's salary will rise from $208,974 CAD to $282,129 CAD;

· Cabinet ministers' salaries will increase from $165,851 CAD to $223,909 CAD;

· The leader of the official opposition will see their salary rise from $180,866 CAD to $244,207 CAD.

Government officials stated that this round of raises will increase spending by $6 million in the 2025-2026 fiscal year, but only accounts for 0.06% of the total compensation for Ontario public servants.

Since 2009, MPPs' salaries have remained at $116,500 CAD, with all parties choosing to maintain the freeze regardless of which party is in power.

In addition, the bill will also allow MPPs to rejoin the Ontario Public Service Pension Plan. This plan was canceled by Progressive Conservative Premier Mike Harris in 1995.

According to the bill, MPPs will join the pension plan under the "same terms" as other Ontario public servants. However, due to the "special nature" of their work, MPPs will also receive an "additional benefit mechanism," allowing them to qualify for a pension after six years of service:

· Full pension can be collected at age 65;

· Reduced pensions can be collected starting at age 55.

Current MPPs will receive credit for their previous terms of service, but must still be in office at the end of the current parliamentary session to qualify.

The new pension plan will gradually replace the existing system, where the government previously contributed 10% of MPPs' salaries into retirement savings accounts annually.

It is estimated that the new pension plan will cost $6.8 million in the 2026-2027 fiscal year.

Original source: https://www.toutiao.com/article/1833487760701452/

Disclaimer: The article solely represents the author's personal views.