MLAs are currently receiving payouts that would make anyone think twice about staying at their job.
The so-called transitional allowance replaced MLA pensions in 1993 when Ralph Klein was in government. Rather than give MLA’s a lifelong pension for what could have been only a few years of service up to several decades of service, a new type of payout was introduced. They are called a transitional allowance because the idea is MLAs need money to get them through to their next job. It transitions them from their job of public service back into the private sector.
For some, it’s an overly generous payout with outgoing speaker of the assembly Ken Kowalski receiving $1.2 million for sitting in the legislature since November 1979. Highwood MLA George Groeneveld is retiring from his post after eight years on the job and will receive a transitional allowance that could range as high as $350,000. He said he’s not quite sure how much he will receive, but he defended the practice of providing some kind of severance. Groeneveld argues the severance packages are needed to attract top candidates for MLA jobs.
Its hard to believe that the only way to get people to run for public office is by sweetening the pot to get out of it. It seems that these transitional allowances offer a pretty good reason to retire early, rather than serve out as many terms as possible.
Groeneveld is not the only one retiring from government. Twenty-two MLAs have retired in the past year and more than $10 million will be paid out in transitional allowances. The only place one can find similar severances are with CEOs of multi-million dollar companies. Admittedly MLAs have a huge responsibility particularly those with a portfolio, when it comes to managing the tax money of Alberta’s citizens. However, isn’t part of that responsibility spending taxpayers dollars responsibly and in line with the expectations of those handing over the cash?
Most people don’t receive large severances when they leave their job and if they do have a pension, often the employee pays a portion and the employer matches a percentage of their contribution.
The Tories launched a review of the transitional allowances in February and have put Justice John Major, a former Supreme Court judge and the man who oversaw the Air India bombing public inquiry and trials. Hopefully, Justice Major can put in perspective the valuable jobs that MLAs carry out, but balance it with a reality that most of us face and that is there is no gold-plated cheque when you say your farewells.
