Saint John pension reform timeline remains uncertain

Saint John councilmay have to pass its 2012 budget without knowing whether its proposed pension changes will be approved by the provincial legislature.

The city has asked the legislative assembly to convene a special session in the new year todeal witha private members bill that would deal with Saint Johns pension troubles.

The city needs the legislature to pass a bill that would allow Saint John council to cut millions of dollars from its employee pension deficit.

But the city has not yet met all of the requirements to get a private members bill into the legislative assembly, which adjourned on Wednesday. The legislature is not scheduled to return now until March.

Government House Leader Paul Robichaud said the changes being requested by Saint John council are complicated and the process would require more than just a few days.

"It's not the case that it will take only one or two days. It's going to be a minimum of two weeks to deal with that issue," Robichaud said.

A private members bill introduced in the house for first reading must go to a specialcommittee of the legislature, a minimum five-day delay. After hearing presentations for and against the bill, the committee sends it back to the legislature for second and third readings.

If there is unanimous consent, the bill can move quickly between readings. But there could be additional delays, if the issue is contentious and several MLAs line up to speak during the debate.

'I like to know some certainties'

Saint John, however, still must pass its city budget even if the desired changes have not been passed by the legislature.

Saint John Coun. Bill Farren said he is not comfortable with the idea of passing the city's 2012 budget early in the new year without knowingwhether theprivate members bill on the pension has been approved by the legislature.

"I like to know some certainties. That's the way I do my business," Farren said.

If for some reason the bill did not pass in the legislature, council would be obliged to cut more than $7 million from programs or raise property taxes.

The city hopes to cut $75-million out of its $163-million pension deficit by ending cost of living increases in the pension plan for workers and suspending them for retirees.

Saint John'sestimated 1,600 workers and its retirees have promised to lobby the 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.