Pension tension is brewing.
For three decades, Ontario MPPs didn’t have a full pension plan. But now that Premier Doug Ford has
restored what then-premier Mike Harris axed in 1995 in a populist move to signal fiscal restraint, a push is on to provide more retirement support for a few hundred legislators who served in the interim.
It is fuelled in part by the plight of former Scarborough MPP
Lorenzo Berardinetti, who ended up
homeless for a time, but also by the belief that people who leave careers to serve the public in elected office should not be left behind financially.
“For the biggest province in the country not to have it, that’s an embarrassment,” Peter Shurman, a Progressive Conservative and longtime broadcaster who represented Thornhill from 2007 to 2013, says of retirement aid for a generation of one-time MPPs now in their senior years.
Shurman notes he has approached Ford on the issue but says he didn’t get far.
“There has been created a unique divide between the haves and the have-nots,” George Smitherman, who served as health minister and deputy premier under Dalton McGuinty until 2010, says of the new pension plan — which he fully supports.
“I had an extraordinary opportunity over a 10-year period that doesn’t need a pension to make it worthwhile and valuable, but you can’t help contrasting yourself with people that do the same work and have a different scenario now,” says the 61-year-old who represented Toronto Centre.
The pension gap is under consideration by the Ontario Association of Former Parliamentarians, which has an office in the legislative precinct at Queen’s Park and works to advance the interests of past MPPs of all political stripes and tracks their well-being. Leaving politics can be abrupt.
“There has always been strong support, crossing all party lines, for the reinstatement of a pension plan, including a provision that would let former members ‘buy back’ their service time,” says Steve Gilchrist, a Conservative MPP for Scarborough East from 1995 to 2003 — including most of the Harris years — and one of several directors on the association’s board.
“Our intention is to put the question about the possible incorporation of former members into the reconstituted pension plan at our upcoming annual general meeting on Oct. 3,” Gilchrist added in an emailed statement.
The next steps would be to make a formal approach the legislature’s all-party board of internal economy and from there to pension regulators. Questions remain as to whether former MPPs could be somehow included or allowed to buy back time, or whether buy-backs could only be open to current MPPs elected in the no-pension era.
“When you do exit politics, it seems like you’ve got to double your efforts to get some level of stability,” says Taras Natyshak, who was the New Democrat MPP for Essex from 2011 until he decided not to seek re-election in 2022. He now works as a government relations consultant and
opened the a spa and event venue called The Lodge at Lakeshore near Windsor with his wife two years ago.
He calls the move by the Harris government to scrap pensions “bottom-of-the-barrel optics.”
Instead of pensions, the province had contributed 10 per cent of an MPP’s salary to retirement savings accounts since 1995.
But following years of pressure in the wake of a 2009 pay freeze for legislators amid the global financial crisis, Ford decided this spring to loosen the purse strings. MPPs were given a 35 per cent raise to $157,350 and made eligible for a defined-benefit pension after six years of service starting next January. That means they will have to be re-elected in the 2029 provincial election to qualify.
The plan, which is part of the public service pension system for bureaucrats, does not credit previous years served. A qualifying retiree would get an initial pension of $33,435 a year at age 65 after serving six years in office.
“After examining a range of options, the new pension plan represents a fair and reasonable path forward that allows sitting members to pay into the new program while former MPPs can utilize the retirement savings arrangement that was previously in place,” says Colin Blachar, director of media for Finance Minister Peter Bethlenfalvy.
The pensions and raises were passed quickly fanfare by all parties with no public backlash, surprising some politicos who had long feared such a move would be “political suicide.” It didn’t hurt that Ford’s popularity was high after
winning a third consecutive majority government in February.
“It was forgotten in one day, and the reason was people said, ‘Well, I thought they had pensions. They deserve pensions’” says Shurman.
Given that members of Parliament in Ottawa have long enjoyed pensions and higher wages than Ontario MPPs, Smitherman says he’s lost count of the times he’s heard, “‘I guess you’re living pretty large on your fat public pension.’ And I’m like, ‘No, not so much.’”