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Governor General Benefits Tied to Five Years

Full Title: An Act to amend the Governor General’s Act (retiring annuity and other benefits)

Summary#

This bill changes the Governor General’s Act to tie retirement pay and other benefits to time served. A Governor General must serve at least five consecutive years to qualify, unless they are medically unable to do so. It also ends administrative support and expense reimbursements for former Governors General who served less than five years. A transitional clause stops current annuity payments to any former Governor General who served less than five years, while keeping payments to survivors.

  • Sets a five-year consecutive service requirement for the retiring annuity (Clause 1).
  • Creates a medical exception when the Governor in Council finds a Governor General could not complete five years for medical reasons (new s.6(1.1)) (Clause 2).
  • Bars administrative support and expense reimbursements for former Governors General with under five years of service (new s.11.1) (Clause 2).
  • Immediately stops annuity payments to any former Governor General who served under five years; survivor annuities continue (Clause 3).
  • Retitles Part II of the Act to cover “Retiring Annuity and Other Benefits” (Title change).

What it means for you#

  • Households and taxpayers

    • The bill aims to reduce federal spending on retirement annuities and office/expense support for any Governor General who leaves before five years without a medical exception (Clauses 1–2). Actual savings are not stated. Timing depends on future appointments and resignations. Data unavailable.
  • Current and future Governors General

    • If you serve at least five consecutive years, you remain eligible for the retiring annuity as defined in the Act (Clause 1).
    • If you leave before five years for non-medical reasons, you will not receive the annuity or administrative support/expense reimbursements (Clauses 1–2).
    • If you cannot complete five years for medical reasons, and the Governor in Council agrees, you are treated as having met the five-year rule (new s.6(1.1)) (Clause 2).
  • Former Governors General (already left office)

    • If you served less than five consecutive years, your annuity stops when the Act comes into force (Clause 3(1)).
    • If you served five years or more, your entitlements are unchanged by this bill. Data unavailable on further details in the Act.
  • Survivors of former Governors General

    • If you are receiving a survivor annuity, your payments continue for life (Clause 3(2)).
  • Federal government operations

    • The government must stop paying administrative support and reimbursing expenses to former Governors General with less than five years of service (new s.11.1) (Clause 2).
    • The Governor in Council must assess medical exceptions when claimed (new s.6(1.1)) (Clause 2).

Expenses#

  • Estimated net fiscal impact: Data unavailable.

  • Key points

    • No official fiscal note identified. Data unavailable.
    • The bill contains no new appropriations or fees (Clauses 1–3).
    • It restricts spending by:
      • Denying the retiring annuity to those who served under five consecutive years, except for approved medical cases (Clauses 1–2).
      • Ending administrative support and expense reimbursements for former Governors General who served under five years (Clause 2).
      • Immediately stopping annuity payments to any current former office holder with less than five years of service (Clause 3(1)), while keeping survivor annuities (Clause 3(2)).
    • Magnitude and timing of savings depend on the number of affected office holders and the value of annuities and benefits. Data unavailable.

Proponents' View#

  • Aligns benefits with service length by requiring five consecutive years before any annuity is paid (Clause 1), which supporters say prevents full lifetime benefits after brief service. Assumes reduced long-term costs.
  • Protects fairness and compassion through a medical exception decided by the Governor in Council (new s.6(1.1)) (Clause 2), avoiding hardship when early departure is due to health.
  • Stops administrative support and expense reimbursements for short service, which proponents argue improves accountability and transparency (new s.11.1) (Clause 2).
  • Applies changes immediately by ending annuities for any current former office holder under five years (Clause 3(1)), which proponents say ensures timely savings and consistent rules.
  • Preserves survivor annuities (Clause 3(2)), which supporters view as safeguarding dependents from sudden loss of income.

Opponents' View#

  • The five-year threshold may be seen as arbitrary and could penalize legitimate early departures for non-medical reasons (Clause 1). Assumes some cases fall outside the medical exception.
  • The medical exception relies on a discretionary decision by the Governor in Council (new s.6(1.1)) (Clause 2), raising concerns about consistency, transparency, and potential politicization.
  • The transitional clause ends current annuities for those under five years (Clause 3(1)), which critics may view as retroactive and potentially subject to legal or constitutional challenge. Data unavailable on legal risk.
  • Removing administrative support and expense reimbursements for short-serving former office holders (Clause 2) could reduce their capacity to fulfill public or ceremonial roles after leaving office. Assumes such roles continue to be requested.
  • Implementation risks include clarifying what evidence meets the “medical reasons” standard and managing immediate payment changes without error (Clauses 2–3).

Timeline

Nov 24, 2021 • Senate

First reading

Apr 7, 2022 • Senate

Second reading

Economics