In accordance with recommendations of Justice Derek Green�s Report of the Review Commission on Constituency Allowances and Related Matters, the Honourable Tom Marshall, Minister of Finance and President of Treasury Board, tabled an amendment to the Members of the House Assembly Retiring Allowances Act in the House of Assembly. The amendment was passed yesterday.

Under the Members of the House of Assembly Pension Plan, a member�s pension is based on a percentage of the average of the best three years pensionable salary. Until July 2007, a member�s pensionable salary included a sessional amount plus the tax free allowance and totaled approximately $74, 000. Based on the recommendation 56 of the Green Report, the annual salary was converted to an equivalent taxable amount of $92,580.

However, using the higher taxable amount in the average for pension calculation purposes would inflate the pension payable at retirement. As a result, recommendation 57 of the Green Report proposes that the pensionable portion of salary be limited to 81.2 per cent of the new salary. Therefore, Minister Marshall indicated, the legislation amendment will adopt recommendation 57. The minister also noted that this amendment will only affect members elected prior to the last general election as new pension arrangements will be developed for newly elected Members of the House of Assembly as recommended by the Green Report.

-30-

Media contact:
Bill Hickey
Director of Communications
Department of Finance
709-729-6830, 691-6390
billyhickey@gov.nl.ca 

2008 04 11                                                 3:45 p.m.