Province, HRM to Jointly Review Pension Plan Concerns

The province of Nova Scotia will work with Halifax Regional Municipality (HRM) to address its concerns regarding provincial regulations as they apply to the municipality's pension plan.

Environment and Labour Minister Mark Parent and HRM Mayor Peter Kelly announced today, July 6, that a joint provincial-municipal working group will be appointed to review issues raised by the HRM Pension Plan Committee. During the past year, the HRM Pension Plan Committee has asked the province to exempt the plan from its existing solvency requirements.

Mr. Parent said the review committee will include, but not be limited to, representatives of HRM's Pension Plan Committee, the deputy minister of the Department of Environment and Labour and the province's superintendent of pensions.

"The purpose of the review will be to identify needed steps that will maintain a high level of protection for pension plan benefits, while enhancing the affordability of the plan on a sustainable footing," Mr. Parent said.

Mr. Kelly said: "We appreciate the province stepping forward and helping HRM resolve this issue. The regulations, as they now exist, would mean substantial increases in employer and employee contributions to the plan over the next five years. Experience in Canada has shown that municipal government pension plans are very stable, and we believe the likelihood of the HRM plan going bankrupt is very remote."