By Bill Ayer, Co-Chair Pension Coalition NB
When is a contract not a contract? When it is a contract with the Government of New Brunswick!
As pensioners, we are appalled by government’s intention to break its long-standing contract with us – public servants, teachers, UNB staff and NB Power employees. We paid into our pension fund in good faith through payroll deductions to make sure of an income - and we planned our retirement relying on that pension.
Ne vous laissez pas bercer par les paroles apaisantes de la consultante concernant les pensions des enseignants et des employés des services publics
Ancien sous-ministre responsable des pensions du gouvernement provincial et premier administrateur en chef de la direction de la Société de gestion des placements du Nouveau-Brunswick
Dans un article paru récemment dans le Telegraph Journal, Susan Rowland, la consultante principale en matière de pensions du gouvernement Alward, présente une analyse toute en douceur et des paroles apaisantes à l'intention des participants aux régimes de pension des enseignants et des employés des services publics.
Don’t find comfort in Consultant’s soothing words on Teacher’s and Public Service pensions
Former Deputy Minister responsible for Provincial Government Pensions
First CEO of the New Brunswick Investment Management Corporation (NBIMC)
(Published in the Daily Gleaner, Fredericton, March 15, 2013)
In a recent Telegraph Journal OP-ED piece Susan Rowland, the Alward Government’s Chief Pension Consultant, offers a very benign analysis and soothing words aimed at teachers and public service pension plan members.
Plan members of the teachers and public service plans, both working and retired, had better beware of the results of her advice to government. What this government is doing with that advice is going to be anything but soothing.
The following are the reflections of an everyday pensioner on the changes being proposed to Your Pension Plan by the Government
- When I was hired by the Province, my offer of employment included a mandatory contribution to the superannuation pension fund which was automatically taken out of my pay cheque. It was my understanding that my employer would also be making contributions on a regular basis as well.
- I didn't mind the fact that I did not have a choice in this matter because I knew it was going into a fund that would be managed professionally and be there for me, along with a cost of living, when I retired. In essence, it was deferred compensation in return for the service I would provide as a member of the public service.
Commentary by Jo-Ann Fellows
Published in Telegraph Journal - March 4, 2013
The Public Service Superannuation Act is the oldest pension plan for public sector employees.
It is a defined benefit plan. The employee pays an annual contribution into the plan and, in theory, the provincial government makes an equal contribution. These contributions go into a fund, which is invested. When the individual employee retires, the money for paying the benefit comes from the fund. The promise is made by the employer, in this case the Province of New Brunswick, that the benefit will be paid. The benefit is calculated on a formula which combines average annual pay and length of service.
Before, I go further I will mention that I am a retiree of the PSSA. I worked for 10 years at the University of New Brunswick, and nearly 20 years for the province.