Report on the Administration of the Members of Parliament Retiring Allowances Act for the Fiscal Year Ended March 31, 2018
The Members of Parliament Pension Plan is a contributory defined benefit pension plan that serves more than 1,000 active and retired senators and members of the House of Commons. The plan offers eligible plan members a lifetime pension benefit when they retire. The plan was established in 1952 and is governed by the Members of Parliament Retiring Allowances Act (MPRAA).
In this report, “members of Parliament” refers to senators and members of the House of Commons, and “plan members” refers to both active and retired members of Parliament. Where necessary, senators and members of the House of Commons are referred to separately.
On this page
- Members of Parliament Pension Plan: year at a glance
- Pension objective
- Membership
- Highlights
- Membership statistics
- Summary of plan benefits
- Plan provisions for the prime minister
- Financial overview
- Roles and responsibilities
- Further information
- Account transaction statements
- Statistical tables
- Glossary of terms
Her Excellency the Right Honourable Julie Payette, C.C., C.M.M., C.O.M., C.Q., C.D.,
Governor General of Canada
Excellency:
I have the honour to submit to Your Excellency, the Report on the Administration of the Members of Parliament Retiring Allowances Act for the Fiscal Year Ended .
Respectfully submitted,
Original signed by
The Honourable Joyce Murray, P.C., M.P.
President of the Treasury Board and Minister of Digital Government
Members of Parliament Pension Plan: year at a glance
Plan member and employer contributions
Benefits paid to retirees and survivors
Average retirement allowance for senators and members of the
House of Commons
Pension objective
The objective of the MPRAA is to provide a source of lifetime retirement income for retired and disabled members of Parliament. Upon a plan member’s death, the plan provides an income for eligible survivors and dependants.
Membership
All members of Parliament must contribute to the plan. Membership has been mandatory since 1965 for senators, and since 2000 for members of the House of Commons.
Highlights
- The employer-member cost-sharing ratio of 50:50, which is required under the Pension Reform Act, was reached in 2017. Since , plan member contribution rates have been set by the Chief Actuary of Canada.
- The age at which a retirement allowance may be paid without a reduction has been raised from 55 to 65 for pensionable service accrued on or after . A plan member can elect to receive a retirement allowance at age 55, but the allowance will be reduced by 1% for each year the plan member is under age 65.
- Since , contributions and benefits for pensionable service accrued on or after , have been coordinated with the Canada Pension Plan (CPP) and the Québec Pension Plan (QPP). As a result, plan members’ benefits are reduced at age 60 by a formulated amount.
- For service accrued on or after , average annual pensionable earnings used to calculate the retirement allowance include sessional indemnities, allowances and salaries received during the 5 consecutive years of highest-paid pensionable service. For service accrued before that date, only the average annual sessional indemnities are included.
Membership statistics
Figure 1 shows the number of contributors relative to the number of pensioners from 2009 to 2018.
Figure 1 - Text version
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Contributors | 413 | 413 | 410 | 410 | 411 | 401 | 393 | 418 | 432 | 429 |
| Pensioners | 500 | 503 | 501 | 547 | 549 | 553 | 555 | 594 | 580 | 590 |
The 10-year average annual growth rateFootnote 1 for contributors was 0.9% (0.8% in 2017) and 2.3% for pensioners (2.2% in 2017).
| Membership type | Number of members 2014 | Percentage of total 2014 | Number of members 2018 | Percentage of total 2018 | Percentage change from 2014 to 2018 |
|---|---|---|---|---|---|
Table 1 Notes
|
|||||
| Senate contributors | 96 | 8.6 | 93table 1 note * | 7.8 | -3.1 |
| House of Commons contributors | 305 | 27.3 | 337 | 28.4 | 10.5 |
| Senate pensioners | 78 | 7.0 | 92 | 7.8 | 17.9 |
| House of Commons pensioners | 475 | 42.4 | 498 | 42.0 | 4.8 |
| Survivors | 157 | 14.0 | 163 | 13.7 | 3.8 |
| Children | 8 | 0.7 | 3 | 0.3 | -62.5 |
| Total | 1,119 | 100.0 | 1,186 | 100.0 | 6.0 |
Summary of plan benefits
The following is an overview of the main benefits offered under the Members of Parliament Pension Plan. If there is a discrepancy between this information and the Members of Parliament Retiring Allowances Act or other applicable laws, the legislation will prevail at all times.
The Members of Parliament Pension Plan provides benefits that are calculated using a defined formula. The formula is based on a plan member’s pensionable service and their annual pensionable earnings over the 5 consecutive years of highest-paid pensionable service.
Since , benefits under the plan for pensionable service accrued on or after , have been coordinated with the CPP and QPP. As a result, a plan member’s retirement allowance now consists of 2 separate components: a lifetime pension benefit, payable until the plan member’s death; and a temporary bridge benefit, payable until the plan member reaches age 60.
The retirement allowance of a plan member who reaches age 60 (or who starts receiving a retirement allowance after age 60) is reduced by a percentage of the average maximum pensionable earnings (AMPE) for CPP and QPP purposes, multiplied by the years of pensionable service.
Table 2 shows how a plan member’s retirement allowance is calculated.
Table 2 Notes
|
||||
| Lifetime pension benefit (maximum 75% accrualtable 2 note *) | ||||
|---|---|---|---|---|
| For pensionable service accrued before | ||||
| 3% (or applicable rate) | x | Highest average sessional indemnity | x | Years of credited pre-2016 service |
| For pensionable service accrued after | ||||
|
2.6% up to AMPE 3% above AMPE |
x | Highest average pensionable earnings | x | Years of credited post-2015 service |
| Bridge benefit: payable on post-2015 service until age 60 | ||||
| 0.4% | x | Average pensionable earnings up to AMPE | x | Years of credited post-2015 service |
Table 2 - Text version
For pensionable service accrued before , the lifetime pension benefit is equal to 3% (or the applicable rate) of the member's highest average sessional indemnity, multiplied by the member's years of credited pre-2016 service.
For pensionable service accrued after , the lifetime pension benefit is equal to 2.6% of the portion of the member's highest average pensionable earnings up to the average maximum pensionable earnings and 3% of the portion of the member's highest average pensionable earnings above the average maximum pensionable earnings, multiplied by the member's years of credited post-2015 service.
The benefit accrual rate is 3% per year of service, up to a maximum of 75%. This maximum accrual rate does not include additional service credits prior to .
The bridge benefit is payable on post-2015 service until the plan member reaches age 60. The bridge benefit is equal to 0.4% multiplied by the member's average pensionable earnings up to the average maximum pensionable earnings, multiplied by the member's years of credited post-2015 service.
Benefit accrual rate
The benefit accrual rate is the rate at which a plan member’s retirement allowance for the year is accumulated.
The current benefit accrual rate for senators and members of the House of Commons is 3% per year of service, to a maximum of 75% of average annual pensionable earnings.
For service prior to , the benefit accrual rate for senators is 3% per year of service, to a maximum of 75% of the average sessional indemnity; and the benefit accrual rate for members of the House of Commons, to a maximum of 75% of the average sessional indemnity, is as follows:
- 3% per year of service effective
- 4% per year of service from , to
- 5% per year of service up to and including
The age at which a retirement allowance may be paid without a reduction has been raised from age 55 to age 65 for pensionable service accrued on or after . A plan member can elect to receive a retirement allowance at age 55, but the allowance will be reduced by 1% for each year the plan member is under age 65.
Retirement allowance
- A plan member’s retirement allowance is based on their average pensionable earnings for the best 5 consecutive years of pensionable earnings.
- For service prior to , the retirement allowance is based on the plan member’s average sessional indemnity for the best 5 consecutive years of pensionable earnings.
- Before 2001, the average sessional indemnity was based on the best 6 consecutive years of pensionable earnings.
Table 3 shows when benefit options are available to plan members who have 6 or more years of pensionable service. The availability of a benefit depends on when the pensionable service is accrued and at what age the pension benefit is taken.
| If the pensionable service is accrued… | the benefit option is… | payable at… |
|---|---|---|
| on or before | an immediate unreduced retirement allowance | any age |
| from , to | an immediate unreduced retirement allowance | age 55 |
| on or after | an immediate and permanently reduced retirement allowance | age 55 |
| or an immediate unreduced retirement allowance |
age 65 |
Table 3 - Text version
If the pensionable service is accrued on or before , the benefit option is an immediate unreduced retirement allowance payable at any age.
If the pensionable service is accrued from , to , the benefit option is an immediate unreduced retirement allowance payable at age 55.
If the pensionable service is accrued on or after , the benefit option is either an immediate and permanently reduced retirement allowance payable at age 55, or an immediate unreduced retirement allowance payable at age 65.
Figure 2 presents the average retirement allowance, including indexation, paid to retired plan members from 2014 to 2018. As at , the average retirement allowance paid to retired plan members was $66,960 ($65,668 in 2017).
Figure 2 - Text version
| 2014 | 2015 | 2016 | 2017 | 2018 | |
|---|---|---|---|---|---|
| Average retirement allowance | $61,378 | $62,985 | $64,202 | $65,668 | $66,960 |
The retirement allowance of a retired plan member is suspended if that person is re-employed as a senator or a member of the House of Commons. If the retired plan member receives remuneration of at least $5,000 in any 1-year period as a federal public service employee or pursuant to a federal service contract, retirement allowances paid under the MPRAA to that retired plan member in that year will be reduced by $1 for each dollar of remuneration received in that year.
Withdrawal allowance
If a plan member ceases to be a member prior to completing 6 years of contributory service, or if the plan member is disqualified from the Senate or expelled from the House of Commons, the plan member becomes entitled to a withdrawal allowance (also known as a return of contributions). The withdrawal allowance is a reimbursement of all the plan member’s contributions, plus interest, calculated at the rate of 4%, compounded annually.
Survivor allowance
Upon a plan member’s death, eligible survivors and children may receive an allowance.
| At the time of death, if the member had... | the pension plan may pay... | the benefit is... |
|---|---|---|
| a spouse or common-law partner | a survivor allowance | a monthly allowance equal to 60% of the plan member’s unreduced basic retirement allowance, payable immediately, for the lifetime of the spouse or common-law partner. |
| dependent children | a child allowance | a monthly allowance equal to 10% of the plan member’s unreduced retirement allowance, payable to each child until age 18, or until age 25 if the child is a full-time student. |
| dependent children, but no spouse or common-law partner | a child allowance | a monthly allowance equal to 20% of the plan member’s unreduced retirement allowance, payable to each child until age 18, or until age 25 if the child is a full-time student. |
| no eligible survivor or dependent children | a lump-sum payment | a minimum benefit, payable to the plan member’s estate, equal to the return of contributions (plus interest) exceeding any allowances already paid. |
Table 4 - Text version
If, at the time of death, the member had a spouse or common-law partner, the pension plan may pay a survivor allowance. This is a monthly allowance equal to 60% of the plan member's unreduced basic retirement allowance. It is payable immediately, for the lifetime of the spouse or common-law partner.
If, at the time of death, the member had dependent children, the pension plan may pay a child allowance. This is a monthly allowance equal to 10% of the plan member's unreduced retirement allowance. It is payable to each child until age 18, or until age 25 if the child is a full-time student.
If, at the time of death, the member had dependent children but no spouse or common-law partner, the pension plan may pay a child allowance. This is a monthly allowance equal to 20% of the plan member's unreduced retirement allowance. It is payable to each child until age 18, or until age 25 if the child is a full-time student.
If, at the time of death, the member had no eligible survivor or dependent children, the pension plan may pay a lump-sum payment to the plan member's estate. This benefit is a minimum benefit equal to the return of contributions (plus interest) exceeding any allowances already paid.
If the plan member did not have 6 years of pensionable service and was therefore not eligible for a retirement allowance, a withdrawal allowance is paid to the estate. This lump-sum payment is equal to the total of the plan member’s contributions, plus interest, calculated at the rate of 4%, compounded annually.
Protection from inflation
Retirement allowances, survivor allowances and disability pensions under the Members of Parliament Pension Plan are indexed annually to take into account the cost of living, which is based on increases in the Consumer Price Index. In 2018, the indexation rate was 1.6% (1.3% in 2017).
Retirement allowances are not indexed until the plan member reaches age 60. However, once indexing begins, payments reflect the cumulative increase in the Consumer Price Index since the plan member left Parliament.
Survivor allowances and disability pensions are indexed as soon as they start to be paid.
Plan provisions for the prime minister
-
In this section
Retirement allowance
A prime minister who holds office for at least 4 years is entitled to a special retirement allowance in addition to their Members of Parliament Pension Plan benefit. As of February 6, 2006, former prime ministers can receive a retirement allowance at age 67 or upon ceasing to hold office, whichever is later.
Table 5 shows the basic formula for calculating a prime minister’s retirement allowance.
Table 5 Notes
|
|
3% x Prime minister's salary when payment of the allowance begins (age 67 or later) x Years of service as prime minister |
Table 5 - Text version
A prime minister's retirement allowance is equal to 3% multiplied by their salary when payment of the allowance begins, which is at age 67 or later, multiplied by their number of years of service as prime minister. The retirement allowance cannot exceed two thirds of the prime minister's salary at the time the payment of the retirement allowance begins.
Prior to , payment of the retirement allowance began when the prime minister reached age 65 or ceased to be a plan member, whichever was later. The retirement allowance was equal to two thirds of the prime minister’s salary at the time the payment of the allowance began.
Survivor allowance
An eligible survivor receives a survivor allowance equal to 50% of the retirement allowance payable to the former prime minister for service as prime minister. The survivor allowance is paid to a spouse only; there is no child’s allowance payable.
Financial overview
Accounts
Two accounts are maintained in the Public Accounts of Canada to record transactions under the plan: the Members of Parliament Retiring Allowances (MPRA) Account and the Members of Parliament Retirement Compensation Arrangements (MPRCA) Account.
The MPRA Account records the transactions related to the benefits payable under the plan when these benefits are permitted under the Income Tax Act for registered pension plans. The MPRCA Account records the transactions related to the benefits payable under the plan when the benefits exceed the limits established by the Income Tax Act.
The MPRCA Account is registered with the Canada Revenue Agency. Transactions are recorded annually between the MPRCA Account and the Canada Revenue Agency either to remit a 50% refundable tax in respect of the net contributions and interest credits or to credit a reimbursement based on the net benefit payments. For the fiscal year ended , the MPRCA Account recorded a refundable tax credit of $3.5 million and remitted $4.7 million to the Canada Revenue Agency ($6.3 million for the fiscal year ended ).
The “Account transaction statements”Footnote 2 section of this report presents the data on the MPRA and MPRCA accounts for the fiscal years ended , and .
Actuarial funding valuation
As required by the Public Pensions Reporting Act, the President of the Treasury Board directs the Chief Actuary of Canada to conduct an actuarial funding valuation of the pension arrangements established under the MPRAA at least every 3 years. The President tables the actuarial valuation in Parliament. This valuation presents an estimate of the balance sheet on an actuarial basis, which means that it presents the account balances and liabilities and any resulting excess or shortfall. The actuarial valuation also projects the current service cost for each of the 3 years following the valuation date. The most recent actuarial funding valuation for the Members of Parliament Pension Plan, which has a valuation date of , was tabled in Parliament on .
Members’ contributions
Plan members are required to make regular monthly contributions to the Members of Parliament Pension Plan for as long as they remain members of Parliament. To ensure the sustainability of the plan, contribution rates continue to be maintained at the 50:50 employer-member cost-sharing ratio. The targeted ratio was reached in 2017. Since , contribution rates have been set by the Chief Actuary of Canada.
The coordination of benefits with the CPP and QPP, which started in 2016, means that plan members pay different contribution rates on different portions of their pensionable earnings. They pay one rate on the portion that is below the year’s maximum pensionable earnings (YMPE), another rate on the portion that is at or above the YMPE up to the maximum pensionable earnings (MPE), and another rate on the portion that is above the MPE.
The YMPE is the maximum earnings for which contributions can be made to the CPP or QPP during a calendar year. The MPE is the maximum earnings for which pension benefits can be accrued during a calendar year, as defined by the Income Tax Act.
Table 6 shows plan members’ contribution rates to the MPRA Account for the calendar years from 2017 to 2019.
| Calendar year | Under Age 71 | Age 71 and above | ||
|---|---|---|---|---|
| Below YMPE | YMPE to MPE | Above MPE | ||
| 2017 | 11.15% | 14.24% | 0.00% | 0.00% |
| 2018 | 11.13% | 14.22% | 0.00% | 0.00% |
| 2019 | 11.19% | 14.29% | 0.00% | 0.00% |
Table 6 - Text version
Table 6 shows plan members' contribution rates to the Members of Parliament Retiring Allowances Account for calendar years from 2017 to 2019, expressed as a percentage of their total pensionable earnings.
For plan members under age 71, the contribution rates are as follows.
| Calendar year | Rate for portion of pensionable earnings below the YMPE | Rate for portion of pensionable earnings above the YMPE up to the MPE | Rate for portion of pensionable earnings above the MPE |
|---|---|---|---|
| 2017 | 11.15% | 14.24% | 0.00% |
| 2018 | 11.13% | 14.22% | 0.00% |
| 2019 | 11.19% | 14.29% | 0.00% |
For plan members age 71 and above, the contribution rates are as follows.
| Calendar year | Age 71 and above |
|---|---|
| 2017 | 0.00% |
| 2018 | 0.00% |
| 2019 | 0.00% |
Plan members make contributions on their sessional indemnities at the rates shown above, until they reach the maximum benefit accrual rate of 75%. Once they have reached that maximum, the contribution rate drops to 1% of salary for the remainder of their service.
Some plan members, such as the speakers, Cabinet ministers, leaders of the opposition and parliamentary secretaries, receive additional allowances and salaries. They make contributions on these additional amounts at the rates indicated.
Prime ministers must contribute at the applicable contribution rate of their salary received as prime minister, in addition to their contributions as a member of the House of Commons.
If eligible, a plan member can elect to make contributions on prior service in Parliament, in which case the member must pay interest on past service contributions.
Retirement compensation arrangement
Retirement compensation arrangements provide benefits that exceed the allowable limits for a registered pension plan under the Income Tax Act. The Income Tax Act defines the maximum pensionable earnings for which benefits can be accrued during a calendar year. On , the earnings limit formula was revised to reflect the coordination with the CPP and QPP. The earnings limit for 2018 is $154,700 and for 2019, $159,000 ($153,100 for 2017).
Plan members who have not reached the age of 71 contribute to the MPRA and MPRCA accounts a portion of their sessional indemnity up to the earnings limit for that year, until they have accrued a retirement allowance equal to 75% of the average sessional indemnity. Once a plan member has reached the earnings limit for the calendar year, the member contributes a certain percentage to the MPRCA Account as established under the MPRAA.
Table 7 shows plan members’ contribution rates to the MPRCA Account for the calendar years from 2017 to 2019.
| Calendar year | Under Age 71 | Age 71 and above | |
|---|---|---|---|
| Below MPE | Above MPE | ||
| 2017 | 6.36% | 19.48% | 19.48% |
| 2018 | 6.31% | 19.41% | 19.41% |
| 2019 | 6.35% | 19.52% | 19.52% |
Table 7 - Text version
For plan members under age 71, the contribution rates are as follows.
| Calendar year | Rate for portion of pensionable earnings at or below the MPE | Rate for portion of pensionable earnings above the MPE |
|---|---|---|
| 2017 | 6.36% | 19.48% |
| 2018 | 6.31% | 19.41% |
| 2019 | 6.35% | 19.52% |
For plan members age 71 and above, the contribution rates are as follows.
| Calendar year | Contribution rate |
|---|---|
| 2017 | 19.48% |
| 2018 | 19.41% |
| 2019 | 19.52% |
Government contributions
Every month, the government is required to contribute an amount to the MPRA and MPRCA accounts, after taking into account plan members’ contributions, to fund the costs of all future benefits that members have earned during that month. The government’s contributions, which match plan members’ contributions, for each account vary from year to year and can be expressed as a percentage of the pensionable payroll.
Table 8 shows the government’s current service contribution rates for the calendar years from 2017 to 2019.
| Account | 2017 | 2018 | 2019 |
|---|---|---|---|
| MPRA Account | 10.37% | 10.69% | 10.81% |
| MPRCA Account | 9.11% | 8.72% | 8.71% |
Interest
Every quarter, the government credits interest on the balance of each account at a rate set under the Members of Parliament Retiring Allowances Regulations. Effective , the interest rate to be credited to the MPRA and the MPRCA accounts is the effective quarterly rate derived from the valuation interest rate used in the most recently tabled valuation report from the Chief Actuary of Canada. For the fiscal year ended , interest was credited quarterly at a rate of 0.59%.
Credits and debits to the accounts
If there is an unfunded actuarial liability in either the MPRA Account or the MPRCA Account, the MPRA Account or the MPRCA Account must be credited with such amounts that, in the opinion of the President of the Treasury Board, on the basis of actuarial advice, would be necessary to meet the total costs of all the allowances and other benefits payable under the plan. Conversely, if there is an excess of the balance of the accounts over the actuarial liability, the President of the Treasury Board has the authority, on the basis of actuarial advice, to debit amounts from the MPRA Account or the MPRCA Account.
For the fiscal year ended , to meet the total cost of all allowances and other benefits payable and to ensure that the account balances are aligned with the actuarial liability, the MPRA Account was credited with $40.7 million and the MPRCA Account was debited by $118.9 million.
Roles and responsibilities
On behalf of the Government of Canada, the overall responsibility for the Members of Parliament Pension Plan lies with the President of the Treasury Board, supported by the Treasury Board of Canada Secretariat (as the administrative arm of the Treasury Board), Public Services and Procurement Canada and the Senate of Canada.
The roles and responsibilities of each organization are as follows.
Treasury Board of Canada Secretariat
The President of the Treasury Board is responsible for the overall management of the Members of Parliament Pension Plan on behalf of the Government of Canada, the plan’s sponsor. The Secretariat helps the Treasury Board carry out its role by developing policy for the funding, design and governance of the plan and of retirement allowances for members of Parliament. In addition, the Secretariat provides strategic direction, program advice and interpretation; develops legislation; liaises with stakeholders; communicates with plan members; and prepares an annual report on the administration of the Members of Parliament Retiring Allowances Act.
Public Services and Procurement Canada and the Senate of Canada
Public Services and Procurement Canada and the Senate of Canada are responsible for the day-to-day administration of the plan. This includes developing and maintaining the plan’s pension systems, books of accounts, records, and internal controls, as well as preparing account transaction statements for reporting in the Public Accounts of Canada.
Office of the Chief Actuary
The Office of the Chief Actuary, an independent unit within the Office of the Superintendent of Financial Institutions Canada, provides a range of actuarial services and advice to the Government of Canada on the Members of Parliament Pension Plan. The Office of the Chief Actuary is responsible for conducting an annual actuarial valuation of the plan for accounting purposes, and for performing a funding valuation once every 3 years. It also sets contribution rates and coordination factors for the plan, and recommends credits and debits to the accounts.
Further information
Additional information concerning the Members of Parliament Pension Plan is available at the following sites:
Account transaction statements
| 2018 | 2017 | |
|---|---|---|
| Opening balance (A) | 509,482 | 502,299 |
| Receipts and other credits | ||
Plan members' contributions, current |
7,964 | 5,560 |
Government contributions, current |
7,952 | 7,871 |
Plan members' contributions, arrears on principal, interest, and mortality insurance |
22 | 40 |
Government contributions on amounts payable (elections) |
0 | 0 |
Interest |
20,997 | 22,844 |
Transfer from the Supplementary Retirement Benefits Account |
0 | 0 |
Actuarial liability adjustment |
40,700 | 0 |
| Total receipts (B) | 77,635 | 36,315 |
| Payments and other charges | ||
Retirement allowances |
29,347 | 28,496 |
Withdrawal allowances including interest |
103 | 231 |
Pension division payments |
108 | 405 |
Transfers to the Public Service Superannuation Account |
0 | 0 |
Actuarial adjustment |
0 | 0 |
| Total payments (C) | 29,558 | 29,132 |
| Excess of receipts over payments (B - C) = (D) | 48,077 | 7,183 |
| Closing balance (A + D) | 557,559 | 509,482 |
| 2018 | 2017 | |
|---|---|---|
Table 10 Notes
|
||
| Opening balance (A) | 254,930 | 248,635 |
| Receipts and other credits | ||
Plan members' contributions, current |
6,689 | 6,570 |
Government contributions, current |
6,718 | 10,949 |
Plan members' contributions, arrears on principal, interest, and mortality insurance |
42 | 80 |
Interest |
10,866 | 11,471 |
Refundable taxtable 10 note 1 |
3,500 | 0 |
| Total receipts (B) | 27,815 | 29,070 |
| Payments and other charges | ||
Retirement allowances |
16,041 | 15,499 |
Withdrawal allowances, including interest |
138 | 340 |
Pension division payments |
106 | 592 |
Transfer to other pension funds |
0 | 0 |
Refundable taxtable 10 note 1 |
4,730 | 6,344 |
Actuarial adjustment |
118,900 | 0 |
| Total payments (C) | 139,915 | 22,775 |
| Excess of receipts over payments (B - C) = (D) | (112,100) | 6,295 |
| Closing balance (A + D) | 142,830 | 254,930 |
Statistical tables
Statistical table 1
New and past retirement allowances
Fiscal year ended
The following 22 new retirement allowances became payable:
- 12 to former senators
- 3 to survivors of former senators
- 7 to former members of the House of Commons
Retirement allowances ceased to be payable to the following 17 members, who died during the fiscal year:
- 6 former senators
- 1 survivor of a former senator
- 4 former members of the House of Commons
- 6 survivors of former members of the House of Commons
The following retirement allowances ceased to be payable for other reasons:
- 4 student allowances suspended
Withdrawal allowances (returns of plan members’ contributions, plus interest) were paid in respect of 1 senator and 3 members of Parliament.
Since the MPRAA came into force on , a total of 1,715 retirement allowances and 1,056 withdrawal allowances have been authorized.
| Amount of allowance ($) | Former plan members | Survivors | Dependent children or students | Total 2018 | Total 2017 |
|---|---|---|---|---|---|
| Totals | 590 | 163 | 3 | 756 | 754 |
| 90,000 and over | 94 | 1 | 0 | 95 | 92 |
| 85,000 to 89,999 | 10 | 0 | 0 | 10 | 7 |
| 80,000 to 84,999 | 20 | 2 | 0 | 22 | 21 |
| 75,000 to 79,999 | 23 | 0 | 0 | 23 | 25 |
| 70,000 to 74,999 | 12 | 2 | 0 | 14 | 12 |
| 65,000 to 69,999 | 35 | 4 | 0 | 39 | 31 |
| 60,000 to 64,999 | 25 | 3 | 0 | 28 | 28 |
| 55,000 to 59,999 | 18 | 6 | 0 | 24 | 25 |
| 50,000 to 54,999 | 10 | 2 | 0 | 12 | 10 |
| 45,000 to 49,999 | 66 | 6 | 0 | 72 | 70 |
| 40,000 to 44,999 | 33 | 10 | 0 | 43 | 48 |
| 35,000 to 39,999 | 33 | 6 | 0 | 39 | 36 |
| 30,000 to 34,999 | 68 | 11 | 0 | 79 | 79 |
| 25,000 to 29,999 | 69 | 27 | 0 | 96 | 95 |
| 20,000 to 24,999 | 19 | 10 | 0 | 29 | 29 |
| 15,000 to 19,999 | 27 | 24 | 0 | 51 | 51 |
| Up to 14,999 | 28 | 49 | 3 | 80 | 95 |
Glossary of terms
- accrued pension benefits
- Benefits earned by plan members under the Members of Parliament Pension Plan for pensionable service to date.
- actuarial valuation
- An actuarial analysis that provides information on the financial condition of a pension plan.
- additional allowances and salary
- The additional remuneration of, and salaries payable to, members of Parliament who occupy certain offices or positions, such as the prime minister, Cabinet ministers, speakers, and leaders of the opposition.
- average maximum pensionable earnings
- The average of the year’s maximum pensionable earnings as set by the Canada Pension Plan and the Québec Pension Plan for the year of retirement and the 4 preceding years.
- benefit accrual rate
- The rate at which a plan member’s retirement benefits for the year are accumulated in a defined benefit plan.
- Canada Pension Plan
- A mandatory earnings-related pension plan, implemented on , to provide basic retirement income to Canadians who work in all the provinces and territories except Quebec. Quebec operates the Québec Pension Plan for persons who work in that province; it is similar to the Canada Pension Plan.
- child
- A dependant who may be entitled to a children’s allowance under the Members of Parliament Pension Plan, in the event of a plan member’s death. To be eligible for an allowance, a child must be under 18 years of age. Children between 18 and 25 may receive allowances if they are enrolled in school or another educational institution full-time and have attended continuously since the age of 18 or the date of the plan member’s death, whichever occurs later.
- Consumer Price Index
- A measure of price changes published by Statistics Canada on a monthly basis. The Consumer Price Index measures the retail prices of a “shopping basket” of about 300 goods and services, including food, housing, transportation, clothing and recreation. The index is weighted, meaning that it gives greater importance to price changes for some products than others (for example, more to housing, for example, than to entertainment) in an effort to reflect typical spending patterns. Increases in the Consumer Price Index are also referred to as increases in the cost of living.
- contributions
- Sums credited or paid by the employer (the Government of Canada, in the case of Members of Parliament Pension Plan) and plan members to finance future pension benefits. Each year, the employer contributes amounts sufficient to fund the future benefits earned by plan members in respect of that year, as determined by the President of the Treasury Board and the Office of Chief Actuary.
- defined benefit pension plan
- A type of pension plan that promises a certain level of pension, which is usually based on the plan member’s salary and years of service. The Members of Parliament Pension Plan is a defined benefit pension plan.
- indexation
- The automatic adjustment of pensions in pay or accrued pension benefits (deferred annuities) in accordance with changes in the Consumer Price Index. Under the Members of Parliament Pension Plan, pensions are indexed in January of each year in order to maintain their purchasing power.
- maximum pensionable earnings
- The maximum earnings for which pension benefits can be accrued during a calendar year, as defined by the Income Tax Act.
- Members of Parliament Pension Plan
- A pension plan, established in 1952, that governs pension arrangements for members of Parliament and provides benefits to their survivors and children payable after death. This plan is defined by the Members of Parliament Retiring Allowances Act and the Members of Parliament Retiring Allowances Regulations.
- Members of Parliament Retiring Allowances Account
- An account established by the Members of Parliament Retiring Allowances Act to record pension transactions relating to benefits payable under the plan.
- Members of Parliament Retiring Allowances Act
- An act to provide pension benefits to eligible members of Parliament.
- minimum benefit
- A benefit that is equal to the withdrawal allowance plus interest paid on prior service contributions that exceed allowances already paid to a plan member. It is payable to their estate.
- pensionable earnings
- The cumulative total of the sessional indemnity, annual allowances and any salary payable during the calendar year.
- pensionable service
- Periods of service credited to a member of the Members of Parliament Pension Plan. This service includes any complete or partial periods of purchased service (for example, service buyback or elective service).
- Québec Pension Plan
- A pension plan similar to the Canada Pension Plan that covers individuals working in the province of Quebec. It is administered by the Régie des rentes du Québec.
- retirement allowance
- A benefit payable on a periodic basis to a plan member until the member’s death, unless payment of the benefit is suspended.
- sessional indemnity
- An annual amount, equivalent to a salary, payable monthly.
- survivor
- The person who, at the time of the plan member's death, was married to the plan member before their retirement, or was cohabiting with the plan member in a relationship of a conjugal nature prior to retirement and for at least 1 year prior to the date of death.
- survivor allowance
- A pension benefit paid to the survivor upon a plan member’s death.
- withdrawal allowance
- A benefit that is available to contributors who have less than 6 years of pensionable service under the Members of Parliament Pension Plan when they cease to be a plan member. It includes plan member’s contributions plus interest, if applicable.
- year's maximum pensionable earnings
- The maximum earnings for which contributions can be made to the Canada Pension Plan and the Québec Pension Plan (earnings ceiling) during the year.
© Her Majesty the Queen in Right of Canada, represented by the President of the Treasury Board, 2019,
Catalogue No. BT1-11E-PDF, ISSN: 1487-1815
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