Saint John pension reforms under review

A controversial package of proposed reforms to the City of Saint Johns pension plan is now in the hands of the provincial government.

City council wants the provincial governmentto approve the reforms to help deal with the plan's $193-million deficit.

The package, which includes cuts to cost-of-living increases, is being reviewed by the province's superintendent of pensions, said Deputy Mayor Stephen Chase.

"She has to be very certain that what the government is being asked to do is very sound and on principle," he said.

'I don't believe they are getting assurances, but they're saying they're feeling confident.' Coun. Bill Farren

Coun. Bill Farren said city managers believe the changes will be approved.

"I don't believe they are getting assurances, but they're saying they're feeling confident," he said.

"What that means is...I guess they're feeling confident."

Government MLAshave refused to say how they will treat the city's request when the legislature resumes sitting on March 27.

The citys pension plan was created by a provincial act, so an amendment must be passed in the legislative assembly before any changes can be made.

The reforms are being opposed by many local union officials.

City officials have estimated the elimination of cost-of-living increases for employees and suspension of them for retirees could save $75 million.

The changes could have been introduced in the legislature last fall but thecity missed the deadlineto have the information published in the Royal Gazette.

City politicians then urged the provincial government to recall the legislature to hold a special session to approve the changes, but that request was denied.

The city has already institutedmillions of dollars in cutsto programs and is eliminating 50 jobs as it tries to find $9 million a year to pay down the deficit.