Saint John pension reforms unlikely: Higgs

The New Brunswick government has asked Saint John city council to modify its reform proposals for the city employees' pension plan.

Mayor Ivan Court held a news conference Wednesday morning. Court said the province has concerns about the proposed reforms over the long term.

"What would happen if worst case scenarios took place? How would you handle it at that period of time? So, they're looking at the risk factors. What would be the success of this program if another downturn took place at a given period of time? So that's one of the issues that we really have to resolve," said Court.

The employee pension plan has an estimated $129 million dollar deficit.

Council wants to delay topping up the fund and spread out the deficit payments to make them more affordable.

Without reforms, Court said residents could face a 12 to 14 per cent tax hike, or up to $10 million in service cuts.

Tuesday, Finance Minister Blaine Higgs said Saint John is unlikely to receive the pension relief it requested from the province.

The Legislative Assembly could wrap up as early as this week and likely won't return until late fall. Higgs confirmed it's unlikely the legislature will consider any pension reform package before it rises.

Saint John's pension deficit is increasing by about $750,000 a month.

City council found itself in a fresh controversy this week when it was revealed Monday the mayor and councillors held a confidential meeting last Wednesday.

Court refused to talk about the unplanned meeting but several councillors said its focus was on the city's worsening financial situation.