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Bill portends end to MPs' pension parachute

In the future, lawmakers will get adjustment allowances for three years after leaving office. Ex-MPs have claimed the benefit until they reach retirement.

Eduskuntatalon istuntosali.
Eight political parties, excluding the Finns Party, submitted proposals for reforming parliamentarians’ pensions. Image: Martti Kainulainen / Lehtikuva

On Friday, parliamentary speaker Paula Risikko unveiled a bill that could put an end to 'adjustment pensions' -- a perk unemployed former lawmakers could claim until they reach retirement age.

Risikko said the change should satisfy constituents as the bill grew out of a citizen’s initiative to end pension parachutes, which have come under fire from the public.

Former MP Suvi Lindén who left Parliament in 2011 has been claiming between 5,000 and 6,000 euros per month as adjustment pension despite her multiple business interests.

MPs in Finland have been entitled to adjustment pensions if they were elected to Parliament before 2011 and have served for at least seven years. On average, adjustment pensions have amounted to about 3,000 euros per month.

Eight political parties excluding the Finns Party submitted proposals for reforming parliamentarians' pensions.

The bill, which will set the minimum adjustment pension at 2,100 euros, is expected to be ratified next March ahead of parliamentary elections in April.

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