Former Canadian Prime Minister Justin Trudeau is set to receive substantial retirement benefits, including dual pension plans and severance pay totaling more than $8 million, according to recent calculations released by the Canadian Taxpayers Federation (CTF).
The compensation package includes two separate pension streams: one for his nearly 17-year tenure as a Member of Parliament and another for his decade-long service as Prime Minister. Upon reaching age 55, Trudeau will begin collecting an annual MP pension of $141,000, with an additional $73,000 yearly payment from his Prime Minister pension becoming available at age 67. He will also receive a one-time severance payment of approximately $105,000.
CTF National Director Franco Terrazzano has raised concerns about the substantial cost to taxpayers, particularly regarding the dual pension system for former prime ministers. “When Canadians see some of these numbers, the clear takeaway is that these political pensions are costing taxpayers too much money,” Terrazzano stated. He specifically called for the elimination of the second pension for future prime ministers as a first step in reducing political perks.
The retirement benefits extend beyond Trudeau, with 110 former Members of Parliament qualifying for either pensions, severance, or both. Those who served less than six years in office are eligible for severance payments equivalent to half their salary, amounting to $104,900. Several prominent political figures, including Niki Ashton, Rachel Blaney, Jagmeet Singh, and Seamus O’Regan, are among those entitled to both pension and severance benefits.
In contrast to many of his colleagues, Conservative Leader Pierre Poilievre has publicly declared his intention to decline his severance payment. This decision comes amid growing scrutiny of political retirement benefits, particularly given that thirteen former MPs will receive annual starting pensions exceeding $100,000.
Terrazzano highlighted the disparity between political pensions and private sector retirement benefits, noting that “the vast majority of private sector workers don’t even get a workplace pension.” He emphasized the need for fundamental changes in Ottawa’s political culture, beginning with elected officials.
The generous retirement package has sparked debate about the appropriateness of such benefits, especially considering the current economic climate and the retirement situations faced by ordinary Canadians. The CTF’s analysis suggests that these political pension arrangements may require reform to better align with public sector norms and taxpayer expectations.
The pension benefits are calculated based on length of service and the rules in effect during the politician’s term, resulting in significant variations in retirement compensation among former parliamentarians. The comprehensive retirement package for high-ranking officials like former prime ministers has drawn particular attention, with critics questioning the necessity of multiple pension streams for a single public service career.
As discussions continue about political compensation and retirement benefits, the CTF’s revelations have intensified calls for a review of the current system. The organization advocates for more modest retirement packages for political figures, suggesting that reforms could help restore public confidence in political institutions while better serving taxpayer interests.