Saint John pension reform report due soon

Saint John Mayor Mel Norton says a report from the province's task force looking at Saint John's employee pension plan is due any day.

But Norton warns whatever recommendations are in the task force's report, it is still going to be difficult for the city to meet its financial obligations.

"It will still involve many millions of dollars," he said at a city council meeting on Tuesday.

"And while the intention of council is to fix this situation and beat this challenge once and for all, it should be understood that it's not going to be without a fair bit of pain for everyone in the community."

The citys employee pension plan has an estimated deficit of $193 million.

Norton said the task force will also make a recommendation on whether the city needs to create a bylaw in order to maintain the pension plan's board of directors.

The pension board continues to meet even though it may not have any official powers.

Coun. Bill Farren attempted to dissolve the pension board and appoint a new one during a council meeting last Monday. But that motion failed after John Nugent, the city solicitor, advised council the city doesn't have the authority to scrap the pension board.

The board was given its mandate by the provincial act that created the plan, but that law was repealed by the legislative assembly in June.

Robert Danay, an assistant professor at the University of New Brunswicks law school, said in an interview this week that the pension plan still exists but there is nothing that says the board still exists.

Danay said the city should pass a bylaw giving the board powers to continue.

Once the provincial act was repealed, Saint John has been free to make changes to the board as it wishes.

The city has been working the provincial pension task force for several months.

It could lead to pension changes similar to ones being promoted by the Alward government.