Saint John police union accepts pension changes
The Saint John Police Force's union has reluctantly agreed to some concessions to help deal with the city pension plan's $129-million deficit, according to its president.
Saint John council approved a plan in November to help wrestle down its massive pension deficit by freezing wages and rolling back benefits for city workers.
The police force opposed the proposed reforms from the outset.
However, the union said on Monday it has agreed to new changes that include requiring new employees to work until the age of 60 before retirement and using the best five years of employment to calculate pension, instead of the best three.
Jamie Hachey, the president of the police force's union, said the officers voted in favour of the changes to the pension plan with a "heavy heart" and that morale is terrible.
"We've been threatened from [losing] everything to your disability benefits to your spouse not getting a pension if you were killed on duty, to you not having a pension if you're injured on duty, to maybe you're going to change tomorrow and be in an RRSP program. It's unbelievable," Hachey said.
Hachey said the union has not agreed to any changes to wages and benefits.
He said those matters are covered by the collective agreement and can only be changed through negotiations with the officers' employer, the board of police commissioners.
Hachey said talks are ongoing and he's optimistic a deal can be reached soon.
The pension reform changes proposed by Saint John's council still have to be approved in the provincial legislature.
Saint John council voted recently to ask Saint John Harbour Tory MLA Carl Killen, who left his council seat to run for provincial politics in September, to sponsor a private member's bill to allow the necessary pension reforms.
Saint John's pension deficit is increasing by about $750,000 a month, according to the city.
In November, the city said it was at risk of having assets seized if it does not make an overdue $5-million payment on its pension fund.