P.E.I. reforms MLAs’ pensions

Required contributions of plan participants will increase to 9% from 8%, effective the first full pay period in April 2014 and effective Jan. 1, 2015, indexation (pre- and post-retirement) for plan participants will no longer be guaranteed, and indexation will be provided at the same level as provided in the Civil Service Superannuation Act.

And the accrual rate on supplementary plan benefits will be reduced by 0.5%, while the age of eligibility for a new plan participant to receive an unreduced pension will increase to 57 up from 55. Both of those changes are effective after the next election.

The commission decided that reforms were required based on an extensive review of the benefits provided and the future sustainability of the plan.

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