Quote:
Originally Posted by Colin May
There has been no indexing of pensions. The plan was in deficit from day one because the City of Dartmouth had the most expensive and most generous plan ( always in deficit) and the other municipalities who became part of HRM had less generous plans. .The pension Cttee has looked at how to deal with the surplus and one union wants an increase in pension payments.
The rules re pension plans were less strict at the time of amalgamation and as the rules tightened the reality of the sustainability became a problem. The rules are so strict that there are very few private sector defined benefit pension plans. The banks closed their defined benefit plans to new employees some time ago and are all defined contribution.
This link provides easy to understand information re the plan and compares the HRM plan with what is available elsewhere in Canada...
https://cdn.halifax.ca/sites/default/files/documents/city-hall/regional-council/190115rc123pres.pdf page 8 is an easy guide to the subject |
It's still not really clear to me. Terminology aside, has there been an increase in the payout? Based on their statement that "indexing" (or whatever you want to call it) is ad hoc based on funding position, and as you note it is fully funded.
I did find this: "Starting 2026 (Jan 1): A new COLA rate of 2.61% per year is approved through 2030."
It would appear to me there is at least some provision for increasing payouts over time. The pension also offers very generous survivor benefits. Again, fully support those receiving these pensions and their good decision-making in choosing to work for the city.
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