Sask. government plans to revamp City of Regina pension rules

With fixes made to the City of Regina's troubled pension plan, the province is moving to add new rules that it says will make it more sustainable in future.

The government said Wednesday it has accepted recommendations brought forward by the Financial and Consumer Affairs Authority to amend pension regulations for the city.

The city plan had a $225million unfunded liability and wasn't in compliance with provincial rules. The city and the employee groups that contribute to the plan were at loggerheads about how to fix it, but a deal was eventually reached last December.

Among the changes they agreed on: an end to cost of living increases for some future pension benefits, with current retirees grandfathered in.

Members of the plan include city employees, librarians and some health care workers.According to the most recent annual report the plan has roughly 7,000 members, of whom 4,000 are working and contributing to the plan and another 3,000 who are retired.

Among the furtherchanges the province says it favours are:

• a provision that contribution rates in the plan can't be reduced until the unfunded liability is paid off or eliminated.
• a longer period of time over which the unfunded liability in the plan can be paid off.

Later on Wednesday, the Regina Civic Employees' Pension and Benefits Committee said workers are "thrilled" with the proposed amendments, because it will give them peace of mind regarding their retirement security.