Public Sector and MPs to Pay their Fair Share of Pension Contributions

OTTAWA, ONTARIO--(Marketwire - Oct. 18, 2012) - The Honourable Tony Clement, President of the Treasury Board and Minister responsible for FedNor, today announced pension reforms that will bring public sector and Members of Parliament (MPs) contribution rates more fairly in line with the private sector, resulting in substantial savings for Canadian taxpayers.

"Under changes announced today, for the first time in Canadian history, public servants and MPs will pay their fair share of their pension contributions," said Minister Clement.

"Today's reforms mark a sea change in public pension management and underscore our Government's commitment to keeping taxes low, returning to balanced budgets and respecting taxpayers' money," said Minister Clement.

The reforms, introduced in the Jobs and Growth 2012 Act, will see contribution rates for public service employees and MPs moving to a 50-50 cost-sharing model by 2017.

Over the next five years these measures will save taxpayers $2.6 billion.

The age at which MPs, and newly hired public servants will begin collecting their pensions will increase to 65.

Once the changes are fully implemented, MPs' annual contribution to their pension will increase from $11,060 to $38,769 a year.

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