To the editor,

I would like to clarify some assertions made in the Letter to the Editor “We pay for MP’s mistakes, pensions” (July 19th) which may have misinformed constituents regarding the Board of Internal Economy and MP pensions.

Your reader’s suggestion that the House of Commons’ Board of Internal Economy (BOIE) is represented only by members of the governing party is incorrect.  In fact, the Board consists of the Speaker, who acts as Chair, two members of the Privy Council (appointed to the Board by the Government), the Leader of the Opposition or his or her representative, and additional Members appointed in numbers so that the total results in an overall equality of government and opposition representatives (apart from the Speaker).

As the governing body of the House of Commons, the Board is authorized to make by-laws pertaining to Members’ use of the funds, goods, services and premises required to perform their parliamentary functions. 

The BOIE is authorized to do so under the authority of the Parliament of Canada Act, the Standing Orders of the House of Commons, and the Parliamentary Employment and Staff Relations Act.

Regarding the MP pension plan, it long ago ceased to be a “golden” pension plan, as it was often characterized.   Changes were successfully made to bring MPs pensions in line with other public sector pension plans due to pressure from the public and the Reform Party of Canada.  

Today, a retirement allowance is paid to a former Member who has made contributions for at least six (6) years but cannot be collected until the Member is at least 55 years of age. A Member’s annual retirement allowance is based on the number of years the Member paid into his or her pension and is calculated based on their average annual sessional allowance over the best five consecutive years of service (five consecutive years of highest-paid pensionable service). 

At age 60, a Member’s Retiring Allowance is indexed annually to reflect changes in the cost of living.  
Thank you for the opportunity to clarify these points.

Sincerely,
Ron Cannan, MP
Kelowna-Lake Country