Finance Minister Jim Flaherty put on his best poker face yesterday as he insisted the Conservative government’s next budget implementation bill wouldn’t contain any unexpected surprises. Flaherty’s second budget bill, to be introduced today, is believed to contain measures to reform MP and public sector pensions, as well as a host of tax changes. But that’s it, the minister insisted.
“The budget was published in the spring, everybody’s had months and months to read it,” he said after question period. “There are no surprises.”
Read: Budget 2012: Reaching for balance
The fact that changes to MP pensions will be included in the implementation bill will require a political balancing act for opposition parties who could be seen as protecting their own pocketbooks if they refuse to vote in favour.
Read: New bill next week to address MP pensions
“We’re quite happy to see members paying more into their pension plan, quite happy to see changes that make the pension plan more fiscally sustainable and more responsible,” said interim Liberal leader Bob Rae. “How we vote on the whole legislation will obviously depend on the whole legislation.”
Despite requests from the opposition, Finance Minister Jim Flaherty says he’s not going to split the pension changes from the bill because they were all part of his last budget.
The bill will see the pension contributions from public servants, MPs and senators move toward a 50-50 split. While MPs can still take their pension at age 55, there will be reductions for every year before age 65.
Flaherty says planned changes to the pension plan for members of Parliament won’t take effect until after the next election. He says it would not be fair to change the rules for pensions during the current term.