OTTAWA, ONTARIO--(Marketwire - Nov. 1, 2012) - A historic bill to reform the MP pension plan received Royal Assent today, underscoring the Government of Canada's commitment to respecting taxpayers' dollars and increased accountability.
"Our Government moved quickly to implement MP pension reform because we believe it is important to lead by example," said the Honourable Tony Clement, President of the Treasury Board and Minister responsible for FedNor. "These reforms underscore our Government's commitment to keeping taxes low, returning to balanced budgets and respecting taxpayers' money."
The Pension Reform Act amends the Members of Parliament Retiring Allowances Act so that MPs will pay 50 per cent of the pension plan's cost, up from the current 14 per cent. Once fully implemented, MPs' contributions will nearly quadruple from $11,060 to $38,796 a year.
"We are paying our fair share," said Minister Clement. "Our Government is proud to be the first government in history to introduce such a significant change to the system."
The age at which MPs can retire with an unreduced pension will also rise from 55 to 65, as of January 1, 2016. The reforms are expected to save taxpayers approximately $29 million by 2017.
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