Former Richmond MP to receive $1.6 million pension over lifetime

The Canadian Taxpayers Federation has released estimated pension and severance amounts for 94 MPs who will not be returning to Ottawa, including Liberal Joe Peschisolido | Richmond News file photo

The Canadian Taxpayers Federation has released its calculations of estimated pension and severance payments for the 94 MPs who will not be returning to Ottawa after last month’s election, including Liberal Joe Peschisolido.

The former Steveston-Richmond East MP will receive $38,000 in annual pension, amounting to nearly $1.6 million over a lifetime, and no severance pay, according to the federation.

Under Canadian law, severance packages are given to MPs who have less than six years of service, or who retired or lost their re-election bid with six years in office but are under 55.

Members with more than six years of service only receive a pension at age 55. Pensions are calculated based on an MPs time in office and salary.

Peschisolido was elected Liberal MP for Steveston-Richmond East in 2015 but was ousted by Conservative Kenny Chiu in the Oct. 21 election.  Peschisolido also served as MP for Richmond (now Richmond-Centre) from 2000 to 2004.

Overall, the 94 MPs – who were either defeated in their ridings or did not seek re-election – will collectively receive $3 million in annual pension payments.

By age 90, this will reach a cumulative total of $104 million, according to the federation.

“Losing an election can be tough, but most MPs will have a soft financial landing,” said federation director Aaron Wudrick.

But due to pension reforms that took effect in 2016, MPs and Senators now pay more towards their own pensions – which means taxpayers shoulder less of this financial burden than they used to, according to the federation.

Before the reforms, taxpayers had to pay approximately $17 for every $1 contributed by an MP or Senator towards their own pension.

Since 2016, that amount has been gradually shifting towards $1.60 in taxpayer contributions for every $1 put in by an MP or Senator.

Richmond News