The New Brunswick Teachers’ Federation and the provincial government have reached an agreement regarding changes to the teachers’ pension plan.
“We are pleased that teachers have been willing to work collaboratively to create a pension plan that is sustainable for plan members and affordable for taxpayers,” says Finance Minister Blaine Higgs. “The new model will end the practice of special payments and, like the other plans that have been reformed, will reach matching contributions from teachers and the province.”
“It has been a rigorous and challenging process,” says federation co-president Peter Fullerton. “We wanted to ensure that both the needs of teachers and the education system were considered.”
The deal was approved by the federation’s board of directors on April 12.
“This agreement would not have been possible without the commitment from francophone and anglophone teachers, both active and retired, to make changes today in order to ensure this plan will be there for future generations,” says Higgs.
“We had a responsibility not just to active and retired teachers, to those nearing retirement or just starting out, but also for those who will begin teaching careers in years to come,” explains federation co-president Phillippe Cyr.
The new formula meets the four principles set out for pension reform efforts.
- The changes will eliminate the deficit facing the teachers’ pension plan and make it sustainable for the future.
- Funding for the plan will reach a 50/50 funding ratio from teachers and the province.
- Changes will ensure that the plan is regulated through the superintendent of pensions with a high likelihood that both benefits and cost-of-living increase objectives can be met.
- Intergenerational equity has been respected to the extent possible. Both parties will share in the risks and rewards.
Regional sessions for active and retired teachers will be held to explain the details beginning April 22. Further details will be communicated later this week.
Related articles: