Few answers on how N.S. will handle massive teacher’s pension plan deficit
Posted Oct 5, 2017 05:16:37 AM.
This article is more than 5 years old.
HALIFAX – A bail out is off the table.
In Wednesday’s report, Auditor General Michael Pickup identified a $1.4 billion deficit in the teacher’s pension plan. He said that means teachers who have recently retired or will soon retire should not expect an increase to their pensions for the “foreseeable future”.
“I don’t quickly hear answers as to why or how teachers and the rest of Nova Scotians are getting out of this on a go-forward basis,” said Pickup.
The deficit is being blamed on long-time under funding. The province and teachers are each responsible for 50 per cent of the cost, $700 million.
Premier Stephen McNeil said Wednesday a bail out is not an option for dealing with the huge deficit.
“I believe there are other ways we can deal with this whole issue, but it will take our partners wanting to look at those other option,” McNeil told Global News. “We’ll come up to an option that we believe is fair to teachers and fair to taxpayers.”
The AG report said teachers who retired after Aug. 1, 2006 last saw an increase to indexing of their annual pension in 2008
