Setting bad example: Business group blasts MHA pension decision

The Canadian Federation of Independent Business is blasting Newfoundland and Labrador's House of Assembly Management Commission for hanging on to a lucrative pension plan.

"The most unfortunate implication of this decision is the lack of leadership being shown collectively by MHAs," said Vaughn Hammond, the CFIB'sdirectorin thisprovince.

• $3.6M cost as new MHAs grandfathered into more lucrative pension plan

The controversial decision means that MHAs elected in November 2015 will be grandfathered into the existing pension plan, at an estimated cost of $3.6 million.

Under the rules now in place, an MHA has to sit for two terms to qualify for a pension. Changes thatincrease the qualifying time, and have politicians wait until they are 60 to collect a pension will be enacted, but not until after the next provincial election.

One more chance to 'do the right thing'

The CFIB, which represents 2,000 members in Newfoundland and Labrador, said waiting to change the pension plan will make it even less sustainable that it is now.

In a news release Friday, Hammond said the timing is also bad, since the government is trying to reduce its spending.

The CFIB has argued for a defined contribution plan for elected members.

Itis asking individual MHAs to take a stand against extending the benefits to new memberswhen it comes to a vote in the legislature.

"There is an opportunity for you to do the right thing," Hammond said.

Labour groups have also criticized the pension decision, with the Newfoundland and Labrador Association of Public and Private Employees saying it may affect ongoing contract talks.

• NAPE 'shocked and appalled' by MHA pension decision