12 outgoing MLAs entitled to $722K in severance packages

Island taxpayers may be on the hook for more than $700,000 in severance packages for a dozen former MLAs who either chose not to run in last month's provincial election or went down to defeat.

Under P.E.I.'s Legislative Assembly Act, outgoing MLAs are entitled to one month's salary for every year of service, to a maximum of one year's base salary — $73,295.

According to CBC's calculations, severance packages for the 12 outgoing MLAs — 11 Liberals and one independent, a former Liberal — add up to nearly $722,000.

• $73,295 (maximum): Paula Biggar, Richard Brown, Kathleen Casey, Alan McIsaac, Pat Murphy, Buck Watts.
• $72,700: Bush Dumville.
• $50,600: Wade MacLauchlan.
• $50,300: Allen Roach.
• $41,200: Jordan Brown, Tina Mundy.
• $26,100: Chris Palmer.

MLAs are eligible for the payments regardless of how they leave office — whether they resign, choose not to run again or are defeated on election day. The severance payments are in addition to benefits under the province's two separate pension plans for MLAs.

"In the real world, it's hard to find or imagine a job where you're paid for quitting, or given a bonus of up to an entire year's salary just for retiring," said Paige MacPherson, Atlantic director with the Canadian Taxpayers Federation.

"If the current government is looking for savings, which it should be, this golden handshake is an obvious target."

Promised review never materialized

The government of Wade MacLauchlan committed in two different throne speeches in 2015 and 2016 to review the payments, but no changes were ever made.

In November 2017, Green Leader Peter Bevan-Baker took MacLauchlan to task over those unfulfilled commitments during question period.

"This is part of a disappointing trend with this government," said Bevan-Baker at the time.

"Promises are dropped when they conflict with interests of the Liberal Party or Liberal MLAs. A question to the premier: why has government not yet tabled a bill to reduce MLA severance packages?"

"This is something that concerns all members of the House," MacLauchlan responded.

"It's something that we should be undertaking in a more collaborative manner, and that will be done."

Still needs review, say Greens

No party made mention of severance packages in their election platforms. But in a statement provided to CBC Thursday Bevan-Baker said, "I still think that MLA severance packages need to be reviewed. The Indemnities and Allowances Commission is the right body to conduct this review and make recommendations on how we should proceed moving forward."

There was no response from the PCs when asked about the issue.

Outgoing MLAs in New Brunswick receive one month's salary for every session they served, to a maximum of six month's salary. But if they leave after resigning their seat or if they're entitled to receive a pension when they leave the maximum is one month's severance.

In Nova Scotia outgoing MLAs receive a transition allowance similar to the severance available to Island MLAs, but if a Nova Scotia MLA qualifies to start receiving a pension when they leave office they're not eligible for a transition allowance.

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