Wednesday, May 9, 2007

Seniors and MPPs

On April 18, 2007 it was announced the Ontario MPPs received a 2% increase in wages on top of the 25% increase the MPPs voted themselves last December that was opposed by all members of the NDP party. Apparently this 2% represents a Consumer Price Index(CPI) increase, an increase enjoyed by both the MPPs and the MPs per annum every April. This last increase raised the MPPs salaries from $111,000.00 per year to $112,990.00, a 2 thousand dollar increase.
Most seniors depend on their Canada Pension(CPP) and Old Age Security(OAS) cheques every month hoping there will be a CPI increase to cover their rising cost of living. Regrettably those increase are few and far between needless to say as seniors are not blessed with the yearly guaranteed hand out.
Based on the maximum for both CPP and OAS a 65 year plus senior receives $1355.00 per month subject to income tax. The CPP is $863.75 per month and the OAS is $491.00 per month.
Seniors are told they can anticipate an increase in their CPP cheques every January and an increase in their OAS cheques every quarter but only if there is an increase in the CPI if over a certain level. Seniors have not received an OAS increase since October 2006.There were no increases in January and April of 2007 as according to CPI there were no increase in those quarters. From January 2006 to December 2006 the seniors received the sum total of $17.36., starting at $411.94 and ending at $418.15. Our MPPS got 2 thousand. Why are seniors not permitted the same privilege enjoyed by the MPPs instead of doling out a minute allowance?
I came across the following government statement: "The CPI increase to the MPPs and MPs was viewed as a reasonable assessment of the erosion of salaries caused by inflation"
Seniors do not fit into this assessment.
It is obvious the MPPs and MPs are not limited to a certain level before realizing an increase as their increases dating back to 1991 and up to 2006 were as low as 0.2% to a high of 5.6%, an average increase of 2.13%.
Seniors are lucky if they even get 1%.
I welcome your comments.

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