So-called ‘Platinum severance packages’ for MLAs could be coming to an end, vowed Alison Redford last week.
But MLAs who are retiring now, like Highwood’s George Groeneveld, will still see their parting money, which reaches into the hundreds of thousands for many.
Redford announced on March 29 she will suspend the transition allowances paid to MLAs when they retire and she will review legislator’s salaries.
Stephen Carter, PC Party campaign strategist, said it’s something a PC government would look to put into place after the election.
“Most Albertans get one pay cheque and it tells you exactly what the pay cheque is for and it’s one number,” he said. “We’re going to do that with MLA compensation as well.”
Redford called in former Supreme Court Justice John Major earlier this year to review MLA salaries.
Alberta MLAs do not receive a pension, but they receive a transition allowance that provides them with one month’s pay for every three months in office.
Carter said any MLAs retiring this year, including outgoing Highwood MLA George Groeneveld, will still receive the transition allowance. He said it could be based on Groeneveld’s salary as agriculture minister.
“George is stepping down, he’s earned his transition allowance,” he said.
Groeneveld has been in office since November 2004. If calculated based on an MLA’s base salary of $78,138, he could receive a severance in the area of $195,000. He could be eligible to receive as high a transition allowance of upwards of 350,000 if calculated based on his cabinet salary of around $143,000 a year.
Groeneveld doesn’t know how much he will receive, but he insisted it would not be as high as $350,000. He said the transition allowance should be reviewed, but he defends the practice of providing MLAs a severance.
“I think you would’ve seen quite an uproar if you took the pensions away and didn’t replace them with something,” said Groeneveld. “I’m not so sure you’d have an awful lot of people running for election without some form of transitional pay or pension.”
He said he doesn’t know what is a fair severance for MLAs. He said he’s willing to leave it up to former justice Major’s review. Groeneveld said the allowance is taxed in its entirety.
“Most of us will have to hand back in the high 30s to the low 40 per cent,” he said.
Groeneveld agrees the MLA pay system needs to change.
“I agree with Alison right off bat with that one, let’s get on with that,” he said.
The Premier has also called on any MLAs who receive $1,000 a month pay for sitting on the so-called “do nothing committee” to repay the money in full, which could amount to as $40,000. She said any who won’t pay up will not have a place in her caucus.
The Tories have been under fire after it was revealed members of the standing committee on privileges and elections, standing orders and printing (which includes representatives from every party in the legislature) were paid $1,000 a month for 40 months, despite the committee only meeting once in that time. Some members of the committee have repaid what they earned for sitting on the committee. Prior to the start of the election campaign, PC committee members had said they would repay six months of pay for work on the committee, essentially back until Premier Redford took over the reins in the province.
Groeneveld was not a member of the controversial committee. He said the committee is essential for government work, but MLA’s shouldn’t be paid when it’s not sitting. However, he said MLAs typically sit on as many as five committees, but only get paid for a maximum of three.
Wildrose Leader Danielle Smith said MLA severance needed to change years ago.
“One of the things that [former premier Ralph] Klein did when he ran in 1993 was he got rid of the gold plated pensions, but what people didn’t realize is he brought in a platinum plated severance package,” she said.
Smith said the Wildrose would make across the board changes to MLA pay. The party would roll back recent pay increases to MLAs, eliminate committee pay and make salaries fully taxable. As well, she said the party would also change severance packages to a rate of one month’s for every year in office to a maximum of 12 months.
Smith said Redford’s demand MLAs to repay committee pay is too little too late.
“Making a decision four days into a campaign, that should’ve been made four weeks ago, people are going to see through it,” she said. “I think it’s quite clear that the PCs have lost the gauge of what’s right and wrong.”
