Regina’s mayor is calling for representatives from the employees’ groups within the Civic Employees’ Pension Plan to return to the negotiating table.
The superintendent of pensions has stated that the plan could be terminated by the end of the year.
“We need to act quickly to fix the plan and protect the retirees who helped build our city and depend on the pension for their income,” says Mayor Michael Fougere. “We have asked the employee group representatives to come back to the table four times since early June, but they have yet to commit.”
Last year, both sides felt they had reached an agreement that would solve many of the plan’s issues, and both signed a letter of intent (LOI) as a sign of commitment.
However, the superintendent’s office rejected the LOI, citing the following major issues that were not adequately addressed:
- Governance structure — both the employee and employer can veto any proposed changes, meaning unanimous agreement is needed; that has made it virtually impossible for changes to be made in the past.
- Intergenerational equity — younger employees with less service are subsidizing the pensions of older employees with more service.
- Fair rate of contribution by employees and employer — the contribution rates that employees and employers would be required to make are too high and are simply unaffordable and unsustainable.
Fougere says the employers still believe the LOI is a strong basis for an agreement, but they recognize that the superintendent is requiring that more changes must be made.
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