The Canadian Taxpayers Federation is calling on party leaders to put an end to a second taxpayer-funded pension for prime ministers, arguing it’s an unnecessary burden on Canadians.
“Taxpayers can’t afford to keep covering Ottawa’s perks, and scrapping the prime minister’s second pension would be a good place to start saving money,” said Franco Terrazzano, Federal Director of the CTF.
“Prime ministers already earn nearly six times more than the average Canadian and receive a generous MP pension — there’s no reason for taxpayers to foot the bill for a second one.”
According to CTF estimates, Prime Minister Justin Trudeau will receive a total of $8.4 million in retirement through two government pensions. His MP pension alone will start at $141,000 per year when he turns 55, amounting to roughly $6.5 million if he lives to 90.
In addition, Trudeau will collect a second pension specifically for serving as prime minister.
The government states that any prime minister who holds office for at least four years qualifies for this additional retirement allowance.
Trudeau’s payments will begin at $73,000 per year at age 67, totaling around $1.9 million by age 90.
With both pensions combined, Trudeau’s estimated lifetime payout reaches $8.4 million. His current annual salary is $406,200.
Reforms introduced in 2012 reduced pension benefits, raised the retirement age, and increased MPs’ contributions to their own pensions. Before these changes, MPs contributed just $1 for every $24 spent by taxpayers and federal funds.
Former prime minister Stephen Harper forfeited between $1 million and $2 million in potential pension payouts by implementing these reforms. Despite that, the CTF estimates Harper’s total lifetime pension will still amount to approximately $7 million.
“Prime ministers already collect millions through their first pension. They shouldn’t be billing taxpayers for a second one,” said Terrazzano. “Canadians need to see leadership at the top, and all party leaders should commit to ending this extra pension for future prime ministers.”
