Saint John mayor confident about pension reforms

Saint John Mayor Ivan Court is hopeful the provincial government will be open to approving changes to help the Saint John pension plan after temporary reforms to assist private sector pension plans were announced.

Justice Minister Marie-Claude Blais announced on Dec. 23 a series of short-term measures that would allow private sector defined benefit plans to consolidate their deficiencies and amortize them over 10 years, instead of five years.

While private sector pension plans were the target of the plan, Court said he is confident the provincial government will be open to more changes.

"The fact that they are offering some relief for the private sector, is a good indication that the government wants to preserve jobs and also create jobs," Court said.

"So when it comes to the city, which is a creation of the province, it bodes well for us that they are leaning towards us."

The city wants the provincial government to approve a controversial reform package to help deal with the plan's $163-million deficit.

Saint John is requesting an extended payback period, along with other changes including cuts to indexing.

"We're here for the long haul. We're not like a private business that may come and go, so I think there's a little bit more security in the municipal sector than there might be even in the private sector," Court said.

Saint John's estimated 1,600 workers and its retirees have promised to lobby the provincial government to keep their cost-of-living increases.

Jamie Hachey, the president of the Saint John Police Association, said he doesn't believe the private sector changes will have any impact on public sector plans.

"Particularly the one here, with the legislative amendments required to do just about any changes, puts it in a unique situation," Hachey said.

Provincial changes needed

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

Saint John, however, was not able to take all of the necessary steps to have a private member’s bill ready before the legislature finished sitting in December. The provincial MLAs are not scheduled to return until March.

Saint John council has requested that the MLAs return for a special January sitting to deal with the reform package.

Government House Leader Paul Robichaud said in December that it was unlikely that the legislature would return in January.

Robichaud said the reforms 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 in December.

A private member’s bill introduced in the house for first reading must go to a special committee 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.