The Parliamentary Compensation Commission Report

May 29, 2001

Minister Don Boudria today tabled the report of the Parliamentary Compensation Commission in the House of Commons. The Commission is an independent body required under the Parliament of Canada Act to review parliamentary compensation after each election.

The Commission consulted with parliamentarians and compensation experts. We will study its recommendations. And any action in this area will be based on fairness for parliamentarians and for Canadians.

The Commission recommends:

• Changing the Tax Free Allowance into an equivalent Taxable Allowance. This would be added to the Base Salary of parliamentarians, and would be pensionable.
• A 20% increase in the Base Salary of parliamentarians.
• A new allowance for Committee Chairs and Vice Chairs.
• Adjusting the pension plan so that these compensation changes do not have a major impact on pension costs. Pension benefits for retiring Members would increase substantially because of higher Base Salaries, but contribution costs to Members and the Crown would be limited by reducing the accrual and contribution rates.

The Commission’s recommendation to add the Taxable Allowance to Base Salary, with a 20% increase, would result in the following parliamentary compensation:

• Base Salary for House Member and Senator $106,000
• House Member’s Representational Allowance $ 25,000
• Total House Member’s Compensation $131,000

The House Member’s Representational Allowance would be payable to Members of the House to account for the difference between the current House and Senate Tax Free Allowance, and to reflect constituency and related costs.

Members currently receive a $69,100 Base Salary and a $22,800 Tax Free Allowance (equal to a $40,400 Taxable Allowance), for total taxable-equivalent compensation of $109,500.

Senators receive a $69,100 Base Salary and a $10,800 Tax Free Allowance (equal to a $19,100 Taxable Allowance), for total taxable compensation of $88,200.

The Commission also recommends that the salary of parliamentarians be linked to that of the Chief Justice of the Supreme Court:

• The Prime Minister would receive the same salary as a Supreme Court Chief Justice, or $263,000.
• Ministers would receive 75%;
• Secretaries of State 67%;
• Parliamentary Secretaries 55%; and,
• Members of the House 50%.

Future increases parliamentarians will also be pegged to those for the Supreme Court Chief Justice.