New pension rules will almost double benefits of veteran MLAs

New Brunswick's political stalwarts are among the biggest winners under the new pension rules for MLAs.

A CBC News review of the changes unanimously passed by the legislative assembly shows some of the longest-serving provincial politicians will soon see pensions almost double what they would have been under the old rules.

MLAs who have served more than 19 years in the legislature will see their annual pensions rise to $72,675 from $38,772. Conservative MLA Percy Mockler and Liberal MLA Larry Kennedy have each served about two decades in the assembly, while Tory Bev Harrison may soon reach that benchmark, as he's been elected for a total of 18 years.

The only thing New Brunswick MLAs need to do to fully qualify for this new pension is serve for 36 months under the new pay structure and they are already at month nine.

In total, the politicians voted themselves about $6 million in retroactive pension benefit increases over the next three years. The legislative assembly approved the new pension rules quietly earlier this year.

New Brunswick politicians increased their base salary to $85,000 from $45,347. In exchange, the MLAs terminated two tax-free allowances that previously were used to supplement their incomes.

MLAs pensions are based on their salary and the increase in the total wage package flowed directly through to their retirement accounts.

At the time, MLAs said the changes reflected an independent report written by Justice Patrick Ryan, the province's conflict-of-interest commissioner. However, one aspect that did not get included in the legislation is an immediate review of the pension plan to avoid a situation where politicians added to their retirement plans.

Overhauling politicians' pay is an issue that many legislatures have been grappling with in recent years. In June 2007, Derek Green, chief justice of the Newfoundland and Labrador Supreme Court's trial division, handed out copies of his 1,300-page report into the province's pay package for politicians.

Among other things, the report criticized the pension plan Newfoundland politicians enjoy as being far too lucrative and called for it to be cut virtually in half to match other public sector pension plans.

Unlike Newfoundland, where basic politicians' pensions are capped at about $58,000, and Nova Scotia, where they can't exceed $55,000, New Brunswick's plan has no ceiling.

One MLA who will not benefit from the revamped scheme is Liberal MLA Abel LeBlanc, who is not included because he is 73.

LeBlanc voted for the increase MLAs got in their pension plan last April. He said there was strong support for the changes among all MLAs.

The Saint John MLA said there was never any discussion of capping pensions when MLAs voted on the plan last spring.

"It doesn't affect me, but it would affect those guys and it would be real interesting to see how they stood up to be counted," LeBlanc said.