News release

Nova Scotia Budget 1998-99, Backgrounders

Finance (to Oct. 2013)

INCREASED HEALTH SPENDING IMPROVES PATIENT CARE

The provincial budget contains an increase of $91.5 million in health program spending in fiscal 1998 99 over fiscal 1997 98 and will provide more money to nursing homes, increase the number of specialists and family doctors, co-ordinate cancer treatment, and include new funding to deal with the year 2000 issues.

"This budget means better health care," said Health Minister Jim Smith. "We are continuing to make improvements that will benefit all Nova Scotians."

The long-term care sector will receive a budget increase of $21 million to bring total spending to $133.2 million -- an increase of 18.8 per cent. The additional money for nursing homes and homes for the aged will fund extra staff and improvements initiated last year, help cover increased operating costs and salary increases, and address other health and safety issues.

Planning will begin for the addition of about 170 new long-term care beds to ensure they are allocated in parts of the province where the need is greatest, especially in the industrial Cape Breton area. The planning process is expected to evolve quickly enough to ensure the beds are in place during fiscal 1999 2000.

Capital funding of $6.9 million has been included for a redevelopment of Yarmouth Regional Hospital and construction of new health care facilities in Cheticamp and Neils Harbour. Planning is under way for a new regional hospital in Amherst.

Health boards have been asked to present three-year business plans that provide for balanced budgets and the resolution of any deficits incurred during that three-year period.

Other health spending increases include:

  • About $6 million is slated for work related to the year 2000 issues in computers across the health care system.
  • Nearly $6 million is budgeted for completion of the Nova Scotia TeleHealth Network. Now in operation in the Eastern Health Region, the network will be put in place in the rest of the province this year, starting in the western region in June.
  • Home Care Nova Scotia will receive an additional $8.2 million.
  • About $1 million will be used for the initial funding for interferon drugs, such as Betaseron, for people with remitting and relapsing multiple sclerosis. It's recognized that additional resources will be needed in future years as new therapies become available.
  • Cancer Care Nova Scotia, a new agency to co-ordinate and improve cancer detection and treatment, will receive a budget of $500,000.
  • About $9 million has been budgeted to pay for increased numbers of doctors recruited to Nova Scotia, additional services provided to patients, and an increase in physician fee levels.
  • The clinical academic budget at Dalhousie Medical School will double to $3 million.
  • The Physician Re-entry Program at Dalhousie Medical School will receive about $700,000 to allow practising family doctors to return for specialty training.
  • About $300,000 will be spent on a Rural Locum Service to provide replacements for family doctors in rural areas who want a break from their practice for continuing medical education or vacation.

Health spending in 1997 98 was $1.419 billion, an increase of $133 million over the previous fiscal year. Dr. Smith said that emphasis on health spending indicates that the government knows what is important to the people of the province.

"Nova Scotians have indicated that their cherished health care system is among their top priorities," said the minister. "This government has listened and responded in the budget."

Contact: Alan Jeffers
Department of Health
902-424-5925
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: National Child Benefit

THE NATIONAL CHILD BENEFIT IN NOVA SCOTIA

The National Child Benefit is a joint initiative of the federal, provincial and territorial governments to:

  • help prevent and reduce the depth of child poverty
  • promote attachment to the work force
  • reduce overlap and duplication between federal and provincial programs

The National Child Benefit program will take effect in July 1998. Federal, provincial and territorial governments have agreed to the following components:

  • The federal government will increase the Canada Child Tax Benefit, targeted specifically to low-income families, with the National Child Benefit Supplement.
  • Provinces will decrease social assistance payments for families with children by the amount of the National Child Benefit Supplement.
  • Provinces will reinvest the funds freed up under this approach into benefits and services for low-income families with children.

The government of Canada has committed $850 million nationally to its participation in the National Child Benefit for the program year beginning in July 1998. This funding will be used to enrich the Canada Child Tax Benefit. A further $850 million will be added over the next two years -- $425 million as of July 1999 and $425 million as of July 2000.

The National Child Benefit will increase income support to all children in low-income working families. The National Child Benefit Supplement will increase the Canada Child Tax Benefit by up to $605 per year for the first child, up to $405 per year for the second child, and up to $330 per year for each subsequent child. Families with net family income up to $20,921 will receive the maximum National Child Benefit Supplement.

Families on social assistance will continue to receive at least the same monthly income they receive now from all sources. They will also benefit from many of the complementary programs and services for low-income children made available through the provincial reinvestment funds.

NATIONAL CHILD BENEFIT: NOVA SCOTIA REINVESTMENT STRATEGY
Reinvestment programs must meet the objectives of the National Child Benefit, but provinces have the flexibility to introduce or enhance programs for children that meet local needs and priorities.

The reinvestment fund available to Nova Scotia is estimated to be worth $14.6 million annually. This money will go directly to programs and services for Nova Scotia families and children. As the federal government increases its contribution to the National Child Benefit, Nova Scotia will be able to expand its reinvestment program.

NOVA SCOTIA CHILD BENEFIT
Nova Scotia will direct $13 million annually toward a new Nova Scotia Child Benefit program, which will provide extra money for families in the lowest income brackets. This will be available whether people are working or not.

This benefit will be targeted to families whose gross income is under $16,000. Those eligible will receive $250 per year for the first child, $168 for the second child, and $136 for the third and each additional child.

HEALTHY CHILD DEVELOPMENT INITIATIVES
Nova Scotia will also allocate $2,225,000 for a range of Healthy Child Development Initiatives to help overburdened families in many circumstances.

  • Community-based Prevention Programs Building on the current established partnerships, parent education programs, and parent support programs, the government will enhance community-based prevention efforts across the province - $1 million.

  • Expanded Early Intervention Programs Early intervention programs serve children with special needs in the preschool years. The government will enhance existing programs and provide services for an additional 75 special needs children in under-serviced areas -- $225,000.

  • Expanded Centre-based Child Care Nova Scotia will strengthen the current infrastructure, introducing additional subsidized spaces and supporting children with special needs. It will result in the addition of up to 80 subsidized child care spaces and 30 portable child care spaces for special needs children in centres across Nova Scotia -- $750,000.

  • Expanded Family Child Care The government will expand quality child care options for low-income rural Nova Scotians who are working, looking for work, or training for employment opportunities. This will include the development of a regulated, family child care system, which would ensure positive experiences for the children, training for caregivers, and additional jobs for Nova Scotians. Nova Scotia anticipates 70 subsidized home child care spaces in rural Nova Scotia -- $250,000.

Nova Scotia's Healthy Child Development Initiatives will be offered through existing partnerships with public and private agencies. Details will be worked out in consultation with stakeholders affected.

Contact: Cathy Shaw
Community Services
902-424-4326
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Accountability Leadership

ACCOUNTABILITY LEADERSHIP PLANNED

Nova Scotia's minister of finance has announced details of a plan to bring Nova Scotia into a position of leadership in financial and other forms of public accountability.

Said Don Downe: "Full disclosure of financial decisions and implications is a fundamental part of democracy. Nova Scotia has made major improvements in this area over the past few years. We are now telling the public where we will go next."

The details of the plan are included in a document called Improving Financial Accountability: A Blueprint for Success. This document was tabled in the legislature today as part of the budget for fiscal 1998 99. The blueprint outlines the differences between Nova Scotia accounting practices and those of other provinces. It also sets out a timetable to bring the province into a position of leadership in the way we report to the public.

The major issues to be addressed in the coming months will include defining how wide a net the province should cast when reporting on the assets and liabilities for the province of Nova Scotia, and how to better account for long-lived assets such as roads, equipment and buildings.

"In some cases, these new accounting practices will represent a significant change from our present policies," said Mr. Downe. "This means we must move forward carefully, and after proper consultation with key stakeholders, including the Public Accounts Committee of the Nova Scotia Legislature and the Office of the Auditor General."

Contact: Bruce Cameron
Department of Finance
902-424-8787
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Economic Strategy

ECONOMIC STRATEGY UNVEILED

Nova Scotia's minister of finance has announced details of a new economic strategy for the province.

"A critical component of the plan is a new Provincial Economic Advisory Council," said Don Downe. "This council will have representatives from key sectors of our economy and advise the government on how to improve economic growth, particularly in areas outside Halifax."

The council is a joint effort between the departments of Finance and Economic Development and Tourism. It will work closely with Voluntary Planning so that work already done need not be duplicated.

Several key issues will be presented to the council for their immediate consideration. Among them are questions such as: Does our tax system promote growth? Given the revenue demands to pay for public services, does the tax system achieve a fair balance between consumers, businesses, and other organizations?

Other questions raised in the budget speech today by the finance minister include: What measures can the government take to encourage individual self-reliance? Community self-reliance? What role should government departments play in creating a better economic climate? How can we enhance our education and training efforts? What can we do to help more businesses succeed outside Metro Halifax?

"We know the strategies for development are not the same for Halifax and the rest of the province," said Mr. Downe. "We know the kind of business that thrives in Sydney may not be the same as the kind that can prosper in Louisbourg, Inverness, Springhill, Digby, or Shelburne. We expect good advice on what needs to be done differently."

The government is consulting with others on potential members of the council. The intention is to have members with a wide variety of experience in many sectors of the economy.

"We are looking for men and women with vision, creativity, and leadership," said the minister.

The government is also committed to reducing the barriers to business growth by streamlining services and eliminating unnecessary paper work. This effort will be supported by a second piece of legislation on licences, applications and approvals. The ministers of Finance and Business and Consumer Services have asked Peter O'Brien, executive director, Atlantic Region, of the Canadian Federation of Independent Businesses, to join the implementation team for this process.

Other initiatives to make service delivery easier for businesses include a joint project with Revenue Canada, the Workers' Compensation Board, and the provincial government to create a common business registry; the use of debit cards at Access Nova Scotia Centres; and a pilot project to deliver public tender documents electronically.

Contact: Bruce Cameron
Department of Finance
902-424-8787
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: HST Relief

HST RELIEF OFFERED ON ELECTRICITY

Finance Minister Don Downe has announced details of a plan to offer a partial rebate of the HST paid on electricity last winter.

"We promised to offer some sales tax relief when we could do so without affecting the funding for social programs," said Mr. Downe. "A forecasted surplus of $37.4 million for 1997 98 allows us to do that. This is a prudent response to a real public desire for lower taxes."

The rebate of five per cent on electricity purchased by residential consumers between Nov. 1, 1997, and March 31, 1998, is authorized under the Expenditure Control Act. The act requires the government to use the money in a surplus to either reduce debt or reduce taxes.

"Today I am pleased to say we have been able to do both" said the minister.

The HST rebate is estimated to cost approximately $10 million. The forecast balance of $27.4 million will be used to repay debt. As a result, there will be a permanent reduction in debt-servicing charges in the range of $1.5 million a year.

"This saving frees up more money every year for critical social priorities such as health and education," said Mr. Downe.

Details on the implementation of this rebate must still be worked out with Nova Scotia Power and other electrical utilities in Nova Scotia. It is anticipated that the rebate will show up on most residential electrical bills as a credit, starting with bills that are delivered in July. Residents who do not receive the credit from their electrical utility may apply to the Department of Business and Consumer Services for a direct rebate from the government. Copies of proof of residential electrical consumption will be required.

"Electricity was chosen as the form to deliver this rebate for a number of reasons," said Mr. Downe. "First and foremost, almost all Nova Scotians use electricity, and so this allowed the widest number of people to benefit. Another consideration is that the cost of electricity to all consumers has gone up, while the cost of home heating by oil has gone down."

Contact: Bruce Cameron
Department of Finance
902-424-8787
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Meeting Program Demands

NEW EFFORT TO MEET PROGRAM DEMANDS

Finance Minister Don Downe has announced details of a new effort to meet new and expanding program demands.

"A growing economy, fuelled by the Sable Gas project, will make 1998 one of the best years in recent memory," said Mr. Downe. "The increased revenues for the province will help fund growing needs in critical areas such as health care and education, but it will not be enough. We must do more."

In his budget for fiscal 1998 99 released today, June 4, the minister outlined a plan to tackle the problem from three directions.

"First of all, we have to build even stronger economic growth in the years ahead," said Mr. Downe. "The creation of a new Provincial Economic Advisory Council will help us map out ways to have more development in many parts of the province, but especially in our rural communities."

The council will work closely with Voluntary Planning and other government agencies to build on the work already done. "We will also help create more business activity through a reduction of red tape and by offering better service when businesses start up," said Mr. Downe.

"Secondly, we are pursuing a policy of fiscal fairness with the federal government. The federal government has withdrawn significant amounts of money from our province by reducing cost-shared programs. I will be in Ottawa on June 15 with my provincial colleagues to press the federal government to start putting some money back into the basic health care and social system."

The third step in the strategy -- to build up funds for critical government programs -- calls for an effort to identify savings within government departments.

"Last fall our government embarked upon a planning effort that asked departments how they would respond to a change in funding," said the minister. "At that time they responded well, and I believe we can pick up on the process with a goal toward being able to redirect between one and three per cent of the program budget for critical priorities."

The search for new solutions will be conducted by a team of senior deputy ministers ahead of planning for budget 1999 2000.

"This year we have been able to direct the benefits of a pension plan surplus to the health and education system. Our three-part approach to growing the economy, reaching a better fiscal balance with Ottawa, and redirecting program dollars will help us move ahead in the future," said Mr. Downe.

Contact: Bruce Cameron
Department of Finance
902-424-8787
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Investment in Education

UNPRECEDENTED INVESTMENT IN CHILDREN AND EDUCATION

The provincial government is making an unprecedented investment in children and education. The bottom line for school boards shows an $82.3-million increase in provincial and municipal funding for the 1998 99 budget year.

"Our first responsibility is to our children. We want them to get off on the right foot, from the first day they start school," Education and Culture Minister Robbie Harrison said. "They deserve the best education possible, so when they leave school, they can make the most out of life at home, at work, and in their communities."

"I am proud to say, as a province, we've balanced the books, and we can now make this unprecedented investment in our children, in education and in our future," the minister said. "This money will be put to work where it's needed most in the classroom."

Funding is in line with pressing needs identified by school boards themselves -- to hire more teachers to reduce class sizes, to purchase more textbooks for new programs, to increase support for special education, and to address air quality and environmental concerns. As well, school boards can continue to build in priority areas like Reading Recovery, an early intervention program making a real difference in the reading skills of hundreds of Nova Scotia children.

The $82.3 million breaks down as follows:

  • $47.15-million increase in school board grants;
  • $23.9 million for negotiated salary increases; and
  • $11.2 million to support priorities such as smaller class sizes, new junior high and high school programs, and improved air quality in schools.

New school board funding is shared, based on a 90 10 ratio between provincial and municipal governments.

In addition to the $82.3 million, the department is investing an additional $1.15 million to support African Nova Scotian and Mi'kmaq learners, responding to the Black Learners Advisory Committee Report and the Task Force on Mi'kmaq Education.

Funding will establish the Mi'kmaq Services Division to lead the development of language programs and curriculum. The division will also support professional development for Mi'kmaq guidance counsellors.

Funding will also continue to implement the 46 recommendations in the BLAC Report, including more scholarships for African Canadian students; support for after-school education programs; and support for the Afrocentric Learning Institute to focus on curriculum and professional development.

School boards are also receiving $35.3 million in technology over the next three years. This technology boost will provide computers, professional development, and hundreds of local area networks in schools and communities across the province. Details are being worked out now with school boards.

Contact: Donna MacDonald
Education and Culture
902-424-2615
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Lifelong Learning

LIFELONG LEARNING A BUDGET PRIORITY

Universities, colleges, libraries, museums and cultural organizations all see funding increases in the 1998-99 budget year. As well, literacy, workplace education and related adult education programs are being co-ordinate under Learn Nova Scotia, a new strategy launched with a $2-million funding increase.

"Nova Scotians value education, our museums, culture and libraries -- for what they contribute to our communities, economic development, and our quality of life," said Education and Culture Minister Robbie Harrison. "We're investing in lifelong learning so everyone -- from grandparents to grandchildren -- have the education, training and cultural experiences they value right in their own communities."

Highlights include:

  • $24 million increase for universities by 2000-01, beginning this year with an $8 million increase in operating grants: $5.5 million is being added to the overall university envelope, and $2.5 million is being transferred within the envelope. This gives universities more flexibility in operating budgets for priorities such as stabilizing tuition fees and protecting quality programs and services.

  • assistance for post-secondary students: $1.6 million is being added to the provincial loan-forgiveness program -- already considered the most generous in the country. As well, funding for Nova Scotia Links is up by $1.2 million to $5 million this year (cost-shared with the federal government). This program has already provided 3,000 internships and will provide 1,500 more over the next 10 months -- helping students pay for their education and find work when they graduate.

  • funding increases for the Nova Scotia Community College: slight provincial funding increases add to a $3.9-million increase in federal transfers, negotiated by the province on the college's behalf. Customized training revenues for the college are also up to $10.4 million, a 25.5 per cent increase from the previous year

  • a sign of the college's growing reputation for delivering on-time training that leads to jobs. The province is also increasing its funding to College de l'Acadie by $600,000 to offset a federal reduction and protect the college's current budget.

  • Learn Nova Scotia, a new strategy supported by $2 million in additional funding and to provide more co-ordination in adult education: Learn Nova Scotia will co-ordinate both service providers and programming in literacy, career services, workplace education and community learning. The strategy will also be linked to local community and economic needs.

  • heritage and culture funding increases by between 11 and 15 per cent: funding includes support for the Nova Scotia Arts Council, and for cultural development, including emerging industries such as sound recording. The heritage sector will be strengthened by increased development and marketing of community museums and the 25 Nova Scotia Museum sites, encouraging more Nova Scotians to benefit from their heritage.

  • an 11.6 per cent provincial funding increase for libraries: a recent survey showed 98 per cent of Nova Scotians think public libraries are essential or important as community resources, supporting education, community development and lifelong learning.

  • support for a Labour Market Development Secretariat: the Secretariat will develop a provincial Labour Market Development Strategy to guide investment in building and maintaining a workforce that attracts and sustains economic activity. The strategy will also meet work transition needs of unemployed Nova Scotians and support the socioeconomic development of the communities where they live.

  • support for international marketing: funding is increasing for the Educational and Cultural Industries Marketing Division to work in partnership with universities and colleges on a $2.1-million federal-provincial international marketing initiative. As one example, universities and colleges are targeting New England first, with a team-marketing approach expected to attract 180 New England students by 2000. International marketing efforts extend to the Eastern Seaboard, Scandinavia, the Caribbean and the Middle East.

Contact: Donna MacDonald
Education and Culture
902-424-2615
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Teachers' Pension Plan

IMPROVEMENTS TO NOVA SCOTIA TEACHERS' PENSION PLAN IMPROVEMENTS

Nova Scotia's minister of finance has announced details of significant improvements in the Nova Scotia Teachers' Pension Plan.

Said Don Downe said: "Only a few years ago, the Nova Scotia Teachers' Pension Plan was in very bad financial shape. The plan had an unfunded liability of 53 per cent as of July 31, 1991. I am very pleased to announce today that the plan's unfunded liability has dropped to less than five per cent as of March 31, 1998."

The reduction in the plan's unfunded liabilities is due to a number of factors.

"We believe the most important factor was the decision of the teachers and the government to put the plan on a firm footing in 1993," said Mr. Downe. "Our joint action increased the funds available for investment and allowed the plan to take advantage of a strong rise in the value of stocks and bonds in the past few years."

Following is the history of the plan's unfunded liabilities and the estimated funding level as of March 31, 1998:

Date Unfunded liability Funded ratio July 31, 1979 $457.9 million 32.6 per cent July 31, 1984 $782.4 million 36.9 per cent July 31, 1988 $845.4 million 47.6 per cent July 31, 1991 $1,213.5 million 46.9 per cent July 31, 1994 $824.2 million 69.7 per cent March 31, 1995 $814.2 million 71.2 per cent March 31, 1996 $649.7 million 77.9 per cent March 31, 1997 $582.0 million 81.9 per cent March 31, 1998 $144.5 million 95.7 per cent

The plan's improved state started with an agreement between the Nova Scotia Teachers' Union and the province in May 1993. At that time the two sides agreed to increase pension contributions from 6.4 per cent of pay to 8.75 per cent. In addition, the teachers' union agreed to an inflation-indexing floor of one per cent. That means pensions are increased only by the amount of the increase in the cost of living above one per cent.

For its part, the Province of Nova Scotia agreed to put in $300 million and make annual payments of $10 million increasing by 7.5 per cent per year. The $300 million was initially set up as a payable of the province at an interest rate of eight per cent.

Instalment payments were scheduled for 30 years. However, in July 1997, the government decided to make the full remaining payment and cease paying the interest.

For the past three years, the Nova Scotia Teachers' Pension Plan and the Public Service Superannuation Plan have ranked in the top quartile of Canadian pension plans as measured by one of the country's leading performance-measurement firms. The average annual return in both plans has been approximately 20 per cent for this period.

Contact: Bruce Cameron
Department of Finance
902-424-8787
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Superannuation Plan

NOVA SCOTIA PUBLIC SERVICE SUPERANNUATION PLAN

Nova Scotia's minister of finance has announced details of an increase in the surplus within the Nova Scotia Public Service Superannuation Fund.

"This plan had a tremendous year when it came to investment returns," said Mr. Don Downe. "The gains on investments now far outweigh the normal contributions made by employers and employees."

The pension plan surplus opened the way for improvements to all stakeholders. "I was committed to making sure the benefits of these gains were shared among employees, taxpayers, and pensioners," said Mr. Downe.

Federal Income Tax Act rules do not allow employers to continue making contributions once an actuarial evaluation establishes a funding level in excess of 110 per cent. The rules of the Nova Scotia Public Service Superannuation Plan require the province to match contributions made by employees. Therefore, if the province does not make a contribution, neither does the employees.

Mr. Downe said this means the provincial government believed action had to be taken when a preliminary evaluation showed a 121 per cent funding level as of March 31, 1998. In the budget released today, June 4, he announced a number of steps that offer benefits to many of the pensioners, as well as the employees and the employers.

SURVIVOR BENEFITS INCREASED

  • Effective immediately the pension paid to a surviving dependant is increased from 60 per cent of the retiree's pension to 66.66 per cent. This measure reduces the surplus by $38.2 million.
  • The government will guarantee at least 60 monthly payments from the plan at full pension to the retiree and/or their spouse. This means the pension will not be reduced to a surviving spouse until five years have passed since the original retirement. This measure reduces the surplus by $3.4 million.

OLDER RETIREES HAVE FULL INFLATION PROTECTION

  • Pension payments to people who retired prior to 1984 are being increased. This group, especially those who retired in the 1970s, found themselves without full inflation protection. The government will increase the pension payments to restore their original purchasing power. For those who are now in their 80s, the payments could increase by as much as 70 per cent or more. This measure reduces the surplus by $25.6 million.

EMPLOYEE AND EMPLOYER PENSION CONTRIBUTIONS SUSPENDED

  • For fiscal 1998 99, pension contributions by employers and employees to this plan are being suspended. This is consistent with federal and provincial government requirements with respect to this plan. Details on the process of implementing this measure will be announced shortly. This measure reduces the surplus in the plan by $56.8 million

CONTRIBUTION HOLIDAY PREVIOUSLY ANNOUNCED

  • The previously announced pension contribution holiday for 1997 98 means an additional reduction in the surplus in the amount of $56.8 million. Pension contribution refunds will be received by most employees on June 18, 1998.

MORE PRUDENT RETIREMENT ASSUMPTIONS MADE

  • The pension plan advisers have suggested changing the actuarial assumption on what the average age of retirement would be. The previous assumption was that most people would retire at an average age of 60. Current experience suggests that an assumed average retirement age of 59 is likely more accurate. This change in assumption reduces the surplus by $65 million.

These and other changes add up to a total of $247 million and reduce the surplus accordingly. As a result, the plan is now estimated to be funded at 108 per cent. An actuarial evaluation is being done now to confirm that estimate.

Contact: Bruce Cameron
Department of Finance
902-424-8787
E-mail: [email protected]

FINANCE--Budget 1998-99 Backgrounder: Private Pension Plan

PRIVATE PENSION PLAN LEGISLATION TO BE REVIEWED

Finance Minister Don Downe has announced details of a plan to review private pension plan legislation in Nova Scotia.

"We are committed to comprehensive research and industry consultation, with a view of bringing forward general pension reform, if deemed necessary," said Mr. Downe.

The legislative review by officials began earlier this spring. In support of a movement toward more legislative harmonization, the department is consulting with other provinces across Canada on issues such as the operation of locked-in registered retirement savings plans and life income funds. The review will also examine surplus ownership and pension issues arising from marriage breakdown. Other issues requiring research may develop as the process advances.

The results of the research will be published in a paper and distributed to interested parties later this fall. It will also be made available on the Internet as part of the pension regulation section of the Department of Finance website: http://www.gov.ns.ca/fina/

Plan sponsors, pension consultants, financial institutions, related industry organizations, and the general public will be asked for comments. The process is expected to result in the tabling of any required legislation in the spring of 1999.

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