SNOBELEN: Doing away with gold-plated pensions has unintended consequences

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When Mike Harris killed the “gold plated” pensions for Ontario politicians bask in 1995 he was fulfilling a campaign pledge. Back in the day it was just common sense to eliminate a better pension for politicians than the average taxpayer enjoyed. To be clear, I fully supported that policy.

Whatever else my eight years in provincial politics was about, it was never a quest for a pension, gold plated or otherwise. But, as always, eliminating MPP pensions had some unintended consequences. Those consequences are now shaping the capacity and complexion of the Ontario government.



Pay for politicians isn’t a particularly sexy topic. Most people figure the less you pay politicians the better. Which is why political leaders never take a comprehensive look at compensation for the folks who toil in politics.

No one wants to be caught increasing the pay and perks for the country’s politicians. The compensation scheme for politicians is devoid of strategy. In the private sector compensation plans are shaped to attract and retain talent.

Heck, they even have succession plans. By comparison, the underlying assumption of political parties is that there will always be an inexhaustible horde of qualified people ready to run for office regardless of the sacrifices required. That is not a safe assumption.

Federal MP’s pay is adjusted annually based on an average of wage increases across Canada in the previous year. The formula doesn’t require any action (or thought) from party leaders. It just happens.

MPs now earn about $200,000 a year. The Prime Minister makes about $400,000, and senators take home about $180,000. Provincial MPPs and MLAs don’t fare so well.

Generally, they make about half of what their federal counterparts make. Should a premier make more than a big city mayor? Should a minister of education make more than a high school principal? It depends on who you want to fill those roles. No one is going to cry over pay for politicians.

Nor should they. Serving the people of your community is a privilege and an honour. But the way we compensate politicians should reflect the kind of government we want now and in the future.

Good government depends on a strong cadre of people from diverse backgrounds and experiences working together in a tough environment. Political parties need the energy of new members and the experience of old hands. To achieve those ends pay needs to be robust enough to encourage people to leave good careers to enter political life.

Equally important, leaving public office when the time comes should not be onerous. Increasingly it appears the strategy-free compensation plan for politicians is failing at both ends of the spectrum. Being a good representative requires a little fire in the belly.

When that fire grows dim it is time to leave. But, absent a retirement plan, some members in safe ridings stick around long after their best before date. That doesn’t serve anyone well.

On the other end of the spectrum, some good leaders have left politics early to secure their families future. In the private sector those folks would be considered regrettable losses. All of this comes to mind with the recent resignation of a good politician (and great person), former Ontario minister of education Todd Smith.

I wish Todd well. But I wonder if we shouldn’t put a little more effort into keeping people like Todd in politics. It would hurt to try.

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