OTTAWA - The new Conservative majority government has reaffirmed its commitment to trimming government spending and finding new efficiencies. It is remarkable timing, then, that mere days after this years' budget was tabled taxpayers have now learned that we are on the hook for nearly a billion dollars in MP pension obligations this year.

The MP pension scheme is well-known for its 'gold-plated' benefits, offering outrageous payouts to MPs after only six years of service. If MPs do not hit this six year mark, do not weep for them as they are entitled to a severance package in the neighbourhood of $70,000 - a total that dwarfs similar provisions in the private sector.

One of the unadvertised elements of this pension scheme is that there is no 'pension fund' that MPs pensions draw upon. Rather, these payouts come directly from general government revenues - meaning these pension payouts are covered directly by taxpayers. Whereas other public employees may contribute to a pension fund, which is carefully managed to maximize growth, our MPs do not.

This scheme is are poignant example of the dangers of granting MPs control over their own salaries and pension system. As you can plainly see, this abdication of financial responsibility now causes $804-million in damage.

As this entire pension system does not draw upon a dedicated pension fund, our economy is also an unintended victim. Pension funds can be major economic players with a variety of financial instruments available to them. Yet, the MP pension system funded directly by tax dollars does not have the same opportunities available. This is the equivalent of scooping nearly a billion dollars out of our economy.

MP pensions are also generously indexed for inflation - gouging even more money from taxpayers. Our tax-dollars now pay $5.50 for every $1 contributed by MPs to their own pensions.

As you might imagine, MPs have downplayed their own outrageous compensation packages, seeking to limit taxpayers' desire to open the debate. Indeed, prominent MPs have declared that these issues do not really matter to taxpayers, and that such concerns are merely a distraction.

Perhaps it is not surprising that MPs from all parties have become a little entitled to their entitlements. After all, when any professional group (fire, police, teachers, etc.) feels that their entitlements are in danger they will defend them. No group would ever opt pay themselves less generously without overwhelming, vehement public outcry.

Politicians are no different when it comes to these basic, knee-jerk responses. Several MPs, such as Liberal Wayne Easter have sought to spin the debate to be about ensuring stronger pension protection for taxpayers in general. This is a short-sighted and somewhat offensive stance.

The problem is not that MPs receive a pension, the problem is that it is disproportionate and unreasonable. Our MPs pension system is the exception, not the norm. It defies economic sense, and cannot be the model for the private sector. If this pension system made economic sense or was in any way sustainable similar provisions would have already been embraced by the private sector.

Private sector pensions, however, are backed up by real assets contributed by workers throughout their careers. With even a slight economic downturn our pensions can be threatened or impacted - this is the harsh reality of the real world. Fiscal sense has never been abundant in Canadian politics, but surely these MPs recognize that their entire pension system is built on 'funny money.'

Denying this fact in the face of overwhelming evidence is an insult to this unhappy taxpayer.