Skip to content

Pay report recommends MLA pensions, one salary

St. Albert MLAs Stephen Khan and Doug Horner say salary isn't a big issue for them, no matter what retired Supreme Court Justice John Major recommended they get paid.

St. Albert MLAs Stephen Khan and Doug Horner say salary isn't a big issue for them, no matter what retired Supreme Court Justice John Major recommended they get paid.

With a string of new MLAs set to be sworn in next week, Major's independent report is recommending a new base salary, a return of MLA pensions and a big boost to the premier's salary. Major released his report into MLA pay this week, recommending MLAs get a flat salary of $134,000 per year. Unlike the current system, that would not include any additional payments for committee work.

Cabinet ministers would get an additional $67,000, as would the leader of the official opposition. Other party leaders, house leaders and government and opposition whips would also see bonuses.

Major's more contentious recommendations include keeping a portion of MLA salary tax-free and bringing an MLA pension plan back to Alberta.

With the report now out, local MLAs said compensation was not what was driving them to run.

"Salary is not a motivation for me to do this, it is not a driver for me," said newly elected St. Albert MLA Steve Khan.

In his fourth race, Spruce Grove-St. Albert MLA Doug Horner said he wasn't running for a paycheque.

"In this campaign, I ran knowing that I had no idea what I was going to get paid at the end of it."

In his report, Major noted that with MLA pay $17 million of a $40-billion Alberta budget it is surprising the issue gets as much attention as it does, but Khan argued the total isn't the point.

"It is the taxpayers' dollars and the taxpayers are entitled to understand what they are spending it on."

The proposed pension plan and some of the other elements still need review Horner said, but he argued the whole idea of Major's report was to take politicians out of the decisions regarding their own pay.

"We don't want to be the ones dickering around with our pay," he said. "If you are going to have a third party do an analysis and make a recommendation you probably should accept the third party's recommendation."

No raise for premier

Though she pledged to accept Major's recommendation during the campaign, Premier Alison Redford did reject one of his recommendations. Major has suggested that over the next three years, Redford's salary should climb to $335,000 from $201,000 today.

"I could not take that. I would not take that, that is not something Albertans want," said Redford.

Major defended his recommendation at a Thursday news conference.

"She is responsible for a budget of $40 billion a year, she is answerable to the province, she is responsible for cabinet decisions. The job carries a tremendous amount of responsibility."

The federal income tax act allows for a portion of MLA salary to be tax-free. Major said unless the law changes there is no reason the province shouldn't take the exemption.

"Is there any doubt that there is some advantage of saving $2 million a year?"

Opposition parties and the Canadian Taxpayers' Federation said having MLA salaries fully taxed is an important principle worth the cost.

"It is absolutely ridiculous that we have anyone in this country who is collecting money and not paying taxes on it," said federation spokesperson Scott Hennig.

Major also recommends an end to transition allowances that have led to heavy payouts for retiring MLAs and, if the province accepts his pension recommendation, an end to RRSP payments to MLAs.

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks