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Briefing Note on Pension Reform

(note: The Briefing Note is the collaborative work of the ad hoc stewardship group of the Coalition. Translations will be posted as they come available.)

Problematic conversion of the Public Service Superannuation Act (the “PSSA”) to a Shared Risk Pension Plan (“SRPP”) and its application to current pensioners or to pensionable service accrued prior to the effective date.  Most worrisome areas include, but are not limited to:

·         Future annual escalation to be market related as opposed to current escalation which is CPI related with a cap of 5%;

·         Depending on future market returns the benefit amount in course of payment on date of conversion may be reduced in the future – i.e. reduction of base benefit;

·         Additionally, ancillary benefits such as spousal benefits, may be reduced going forward;

·         Removal of the Minister of Finance as the “governor” of the plan and the Province as the “guarantor.”

These areas are identified based on recent amendments (December 2012) made to the Pension Benefits Act (Bill 20) to incorporate provisions allowing conversion to a SRPP.

(Full Briefing Note)