Harwinder Sandhu just qualified for MLA pension despite losing Vernon-Lumby seat

Former Vernon—Lumby MLA Harwinder Sandhu may have lost her seat in the legislature, but just managed to serve enough time as a politician to qualify for a pension.

First elected in 2020, Sandhu made it over the six-year mark, making her eligible for an MLA pension that will net her roughly $25,000 a year once she hits 65.

Provincial politicians pay 11% pension contributions and earn a minimum of $122,000 for backbenchers up to $230,000 for the premier. A minister, along with the leader of the opposition make just shy of $185,000. 

Sandhu’s $25,000-a-year pension is the bare minimum an eligible politician will collect in retirement, but some senior long term MLAs will collect a maximum of 70% of their wage come age 65.

MLAs who spend 20 years in the legislature will collect pensions of more than $100,000 a year.

In the 1990s under the NDP the pension plan worked out that for ever dollar an MLA put into their pension, the taxpayer contributed $1 as well. However, in 2007 the BC Liberals changed the term so for every $1 an MLA puts in the taxpayer puts in $4.

It’s a far cry from standard BC public service employers which contribute just under 10% for ordinary public servants, whereas MLAs receive a contribution just shy of 39%.

On top of Sandhu’s pension, she’ll also receive a guaranteed minimum four months severance pay of $37,500. The severance could continue for up to 15 months, netting her $152,500 if the former MLA doesn’t return to work. She could also apply for $9,000 towards retraining.

Sandhu had to win two elections to qualify for her pension, but the severance pay is open to any MLA regardless of whether they chose not to run or lost the election.

While she only spent two years in the legislator former Kelowna-Lake Country-Coldstream MLA Tara Amrstrong will also be eligible for four months severance, followed by about 50% of the regular severance because the election was called two years early. 

Armstrong can also claim back the two years of 11% pension contributions she made.

News from © iNFOnews.ca, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Ben Bulmer

After a decade of globetrotting, U.K. native Ben Bulmer ended up settling in Canada in 2009. Calling Vancouver home he headed back to school and studied journalism at Langara College. From there he headed to Ottawa before winding up in a small anglophone village in Quebec, where he worked for three years at a feisty English language newspaper. Ben is always on the hunt for a good story, an interesting tale and to dig up what really matters to the community.