Finance Minister Dwight Duncan will not run to succeed Premier Dalton McGuinty as Ontario Liberal leader, the Star has learned.

Duncan will announce his decision Wednesday, paving the way for former minister Sandra Pupatello, his close friend and fellow Windsor native, to return to politics and contest the Grit leadership.

As the right-hand man for the departing McGuinty — and deputy premier — he was the automatic front-runner among the potential contenders in the Jan. 25-27 race.

But Liberal sources say Duncan, 53, did not relish the prospect of another decade in politics.

The minister alluded to that in a news conference on Tuesday, where he announced agreements with three major public-sector pension plans to freeze contribution rates for five years, saving taxpayers up to $1.5 billion.

“I think the biggest question any of us has to ask ourselves is you’re looking at, probably, a five- to 10-year commitment of your life. That’s the one that’s kind of front-and-centre for me,” the father of a 22-year-old son told reporters.

“The key factor for me is the time. You know, I’m getting toward . . . middle age. I’ve been in elective office for 25 years now,” said the former Windsor city councillor, who has been an MPP since 1995 and lost a Liberal leadership bid in 1996 to McGuinty.

Duncan, who will make it official in a news conference at Queen’s Park on Wednesday, should be a hot commodity for a Bay Street post if, as expected, he does not seek re-election.

With the minority Liberal government expected to fall next spring, triggering an election, his Windsor—Tecumseh riding would open up for Pupatello, 50.

She represented neighbouring Windsor West for 16 years until retiring shortly before the Oct. 6, 2011, provincial election.

Now the PricewaterhouseCoopers LLP director of business development and global markets, Pupatello was deputy Liberal leader in opposition until 2003.

In government, she served as minister of economic development, education, and community and social services.

A political firebrand, observers say she would inject some enthusiasm and passion back into a Liberal government that even McGuinty admitted needs “renewal.”

Unlike most other potential candidates, she is untainted by controversies now plaguing the governing party, such as the Mississauga and Oakville gas plant debacles, the ORNGE air ambulance scandal and problems with teachers’ unions who have turned on their former Liberal allies.

Duncan’s move means he can continue to work on the budget until the Liberal leadership.

McGuinty, premier since 2003 and Liberal chief for 16 years, has instructed ministers that they must quit cabinet if they wish to run for leader.

With a $14.4 billion deficit that is steadily going down — and is supposed to be eliminated by 2017-18 — some Liberals are relieved Duncan is remaining at the treasury helm.

On Tuesday he announced deals with the jointly sponsored pension plans — Healthcare of Ontario Pension Plan, Ontario Public Service Employees Union Pension Plan, and Colleges of Applied Arts and Technology Pension Plan, with about $70 billion in combined assets — will save taxpayers as much as $1.5 billion between 2014 and 2017.

“This is a very large piece on a very large item,” he said, noting the plans would have to curb benefits for future retirees if there are funding shortfalls.

Current retirees are not affected by the changes, which in the case of the Healthcare plan must still be approved by the Canadian Union of Public Employees. Union spokesman Michael Hurley called Duncan’s pension announcement “hasty.”

The treasurer’s decision not to seek the Liberals’ top job will jolt the race to succeed McGuinty, whose resignation Oct. 15 stunned the province.

Also considering leadership bids are Energy Minister Chris Bentley; Education Minister Laurel Broten; Economic Development Minister Brad Duguid; Children and Youth Services Minister Eric Hoskins; Health Minister Deb Matthews; Training Colleges and Universities Minister Glen Murray; Citizenship and Immigration Minister Charles Sousa; and Municipal Affairs Minister Kathleen Wynne.

Outside government, former ministers Gerard Kennedy and George Smitherman are mulling comebacks.

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Matthews, who made a cancer-screening announcement at St. Michael’s Hospital on Tuesday, denied her blitz of campaign-style events since McGuinty quit is a signal of her leadership ambitions.

“I’m not going to stop doing my job as health minister,” said Matthews, who told reporters she has an online chat booked for Nov. 19 and “I look forward to being there as health minister.”

Candidates, who can spend up to $500,000 on the race and must pay a $50,000 entry fee to run, have until Nov. 23 to decide.

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