Finance
December 14, 2009
Amendments Proposed for MHA
Retiring Allowances Act
The Honourable Tom Marshall, Minister of Finance and
President of Treasury Board, provided information in the
House of Assembly today on proposed amendments to the
Members of the House of Assembly Retiring Allowances
Act. These amendments, once implemented, will create new
pension arrangements for future MHAs.
�Changes to the Members of the House of Assembly
Retiring Act were initially recommended by the
Honourable Chief Justice Derek Green in his report
Rebuilding Confidence: Report of the Review Commission
on Constituency Allowances and Related Matters,� said
Minister Marshall. �The Members� Compensation Review
Committee that was appointed by the House of Assembly
under the House of Assembly Accountability, Integrity
and Administration Act reviewed the plan and brought
forward recommendations. Our government is carrying out
that direction in bringing forward these recommendations
which will result in a change in pension benefits for
future members of the House of Assembly.�
The Members� Compensation Review Committee recommended
that the benefit accrual rate under the plan be changed
from five per cent per year for the first 10 years and
2.5 per cent per year for the next 10 years to 3.5 per
cent over a 20-year period of service in the House of
Assembly. This will result in a 70 per cent benefit
being provided after 20 years of service, as compared to
the current 75 per cent benefit. Before qualifying, a
member of the House of Assembly must have a minimum of
five years of service under the plan and service in two
general assemblies.
The committee also recommended that members only be
eligible for an unreduced pension from age 55.
Currently, members are eligible for an unreduced pension
when their age plus years of service total 60 years. In
addition to these proposed changes, an amendment to the
definition of salaries for Members of the House of
Assembly is also under consideration.
These proposed changes will affect MHAs elected for the
first time following December 31, 2009.
For further information on the report and
recommendations from the Members� Compensation Review
Committee, go to the following link:
www.assembly.nl.ca/pdf/MCRCReport2009.pdf.
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Media contact:
Ronalda Walsh
Director of Communications
Department of Finance
709-729-6830, 685-1741
ronaldawalsh@gov.nl.ca
2009 12 14
3:20 p.m.
