NLTA, government reach agreement over pension plan

Premier Paul Davis announced Thursday that the Newfoundland and Labradorgovernment has reached an agreement in principle that sustains the teachers' pension plan.

Davis made the announcement at theNewfoundland and Labrador's Teachers' Association biennial meeting in St. John's.

"Through this agreement, we are helping to ensure that once our teachers retire they have access to a sustainable pension fund," Davis saidin a news release.

The teachers' defined benefit plan will be maintained in the agreement, according toNLTApresident Jim Dinn.

"It will secure long-term stability and peaceof mind for teachers and for government and for taxpayers alike," Dinn told CBC News.

"We have maintained [a] defined benefit plan for that there is a long-term benefit. No doubt there will be costs associated with it, but there's long-term benefit, long-term savings for all."

The government and NLTA haven'trevealed details on what measures are being taken to keep the pension plan viable.

The union will travel the province over the next two weeks to explain details of the pension plan to members.

The NLTA is recommending members accept the deal.