Calgary’s council pension eclipses Edmonton’s
The Canadian Taxpayers Federation (CTF) released a freedom of information document on Feb 09, 2018 that shows the City of Calgary’s city council pension costs were approximately five times that of Edmonton’s council retirement benefits from 2007-2016.
The City of Edmonton indicated in a freedom of information response that it spent $1.3 million for costs related to retirement benefits for its council over the ten-year period. City of Calgary documents show taxpayers paid approximately $6.1 million for their city’s council pension benefits over the same period.
“Calgary’s city council needs to scale back its golden pension,” said CTF Alberta Director Colin Craig. “When you add up all the costs, the figures are off the charts. Plain and simple, Calgary should copy Edmonton’s approach as it’s much more fair for taxpayers.”
The CTF noted that while it’s true that Calgary’s city council is slightly larger – 15 council members versus 13 in Edmonton – that doesn’t explain the enormous gap.
“Edmonton’s council retirement benefits are structured so that taxpayers are protected from having to bail out council’s benefits with higher payments,” added Craig. “Unless Calgary’s council fundamentally changes the structure of its pension plan, we could see large bailouts in the future.”
Edmonton offers its council the option of an 11 per cent contribution towards their retirement planning or a 12 per cent contribution towards the Alberta Urban Municipalities Association’s (AUMA) defined-contribution pension plan.
Conversely, the City of Calgary provides its council members (including the mayor) with a contribution equal to 18.64 per cent of pensionable earnings towards a defined-benefit pension (a plan that provides guaranteed payouts throughout their retirement). These types of plans often require additional bailouts from taxpayers. A second council plan, which only the mayor qualifies for, provides additional benefits that are 100 per cent paid for by taxpayers.
Source:Canadian Taxpayers Federation
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