The panel will review the pension plan and retirement benefits for politicians, along with the cost of administration.
It will report back with non-binding recommendations to legislature Speaker Gordie Gosse within six months.
Under the terms of reference, the panel has been asked to consider that the pensions should not be so minimal that they may discourage people from running for public office, or so large that they act as an inducement.
The pension review was announced in January.
Premier Darrell Dexter said he was open to examining pensions after the Canadian Taxpayers Federation said last fall that the plan was too rich.