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Extra pension approved

MLAs fatten their retirement benefits

Richard Gleeson
Northern News Services

Yellowknife (Mar 11/02) - MLAs have revived a pension plan put on hold during the hard times of the last assembly, effectively doubling their pension benefits.

Ironically, the long debate on the move last Wednesday prevented members from attending a poverty presentation a few metres away.

In the Great Hall, a coalition of community groups had hoped to draw members' attention to the difference between what a family of four on income support can buy with the monthly $535 the government provides for food and the $900 a federal study recommended.

'Close to an abuse of power'

Range Lake MLA Sandy Lee set the tone for a lively debate when she called the move to re-establish the extra pension "close to an abuse of power -- this is the kind of thing people hate politicians for."

Lee pointed out the existing pension is similar to the one provided the public service.

Other MLAs said the demands of the job justify the extra pension.

"When I came here in the 13th assembly, I don't think I had one gray hair and I'm almost looking like Jake Ootes now," said Mackenzie Delta MLA David Krutko.

Though he did not vote for or against the new pension Wednesday, on Thursday Krutko urged MLAs to go one step further. He introduced a motion that would have given him and the other eight MLAs who were also part of the last assembly the right to get the pension for those four years of service as well.

Krutko was the only member who supported the change.

After admitting he was not in the habit of turning down money, Michael McLeod said he knew going into the job there was no supplementary pension.

"What really seals my decision to vote against this bill, is when I look into my riding and see the economic conditions and social conditions that my communities are in, I certainly can't accept it," said the Deh Cho MLA.

Slippery slope?

Leon Lafferty was among a number of MLAs who took offence to Lee's criticism of supporters of the extra pension. Lafferty said the nature of the job limits MLAs career prospects.

"Being here, I've burned a lot of bridges," said the MLA for North Slave. "I've stood up for the little guys against the big guys. Those are the big guys who might employ me one day."

Seeded with $3.6 million in public money when it was established in 1990, the supplementary pension fund has been sitting idle since 1996.

That year, aiming to lead by example in a time of austerity, the 13th assembly opted out (also shortening the amount of service required to be eligible for benefits under the existing plan from six to four years.)

In terms of its impact on the government's financial situation, the move proved purely symbolic.

Removing all or some of the money in the fund would have left the government vulnerable to a class action law suit from MLAs who stood to collect on the pension, said clerk of the assembly David Hamilton.

The MLA for Weledeh said it is a philosophical as well as a legal issue. "Is it appropriate for a government to dip into pension plans?" asked Joe Handley.

The fund is now worth $22.2 million. Actuaries project it has enough of a surplus -- $8.4 million -- to cover benefit entitlements for the next eight to 10 years without infusing any additional money from government coffers.

Great Slave MLA Bill Braden said it presented a "legitimate and cost-free way to attract people to public life."