Pension changes needed to keep plan alive: official
Posted Apr 8, 2010 06:30:19 AM.
This article is more than 5 years old.
A pension watchdog in the province says government did what it had to do in this week’s budget.
The pension changes announced in the budget may not be popular among government employees, but the province’s pension superintendent says they’re necessary.
Nancy MacNeil-Smith says government had to do something to dig out of the
$1.6 billion pension plan hole.
She says it’s fair to reduce the cost-of-living increases for members and reduce benefits.
“First things that plan sponsors look to are the indexation, they look to bridging benefits, any early retirement benefits,” she said “Those are the costly benefits and that’s generally where you can make changes that are necessary.”
MacNeil-Smith says that’s just how pensions work.
“That is the way it is. You can’t get something for nothing,” she said. “In order to receive benefits you have to pay for it and if you’re not willing to pay more then you get less benefits.”
She says she’d like to see more change from government, with regard to pension legislation.
She supports Maritime-wide legislation, to increase the selling power of the plan, and increase participation.
