Saint John misses pension change deadline

Saint John has missed the deadline to get proposedchangesto its pension plan passed during this sitting of the legislature.

City council contends the changes are necessary to reign in the plan's $163-million deficit.

But the legislative session is expected to end Dec. 16 and clerk Loredana Catalli Sonier said her office has not yet received a formal application from Saint John for a private member's bill.

In addition, before the city can apply, it must advertise its plans to redraftthe employee pension plan in the Royal Gazette and area newspapers for three successive weeks, she said.

'It would be highly unlikely that an application could go through in that short a time.' Loredana Catalli Sonier, legislature clerk

"If we look at where we're at in the session, and likely to adjourn before Christmas, it would be highly unlikely that an application could go through in that short a time because of the notice requirement," Catalli Sonier said.

"That applies to all applications," she said, adding it is unlikely the advertising requirement would be waived on such a contentious issue.

Among the proposed changes, the city wants to cut or suspend cost-of-living increases for both current and retired workers as a way to deal with the deficit.

Mayor declines comment

Saint John Mayor Ivan Court declined to comment Thursday, referring inquiries to senior city managers.

If Saint John's pension legislation is not changed, indexing to the inflation rate will continue and the deficit will likely grow.

Cutting indexing for current employees and suspending indexing for retirees until the fund is fully recovered, is expected to reducethe deficit by $75 million.

The package also calls for an additional $7 million annually in city contributions to the fund.

The Saint John employee pension plan was created by a special act of the provincial legislature so the legislature must approve any reforms.

The city's estimated 1,600workers and retirees have vowed to lobbythe provincial government to keep their cost-of-living increases.

City officials have said the only other options to deal with the deficit would be major service cuts, or a tax hike of well over $200 a year on an average home. Several city councillors have said property taxes will not be increased to cover off the pension shortfall.

The provincial government and city of Saint John have been negotiating a solution to the pension crisis for a year.

Saint John initially requested the provincial government extend the payback period to 25 years on its pension deficit. But the provincial government rejected that plan in the spring.