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Judge hearing case filed by employees' pension committee castigates province for delaying action on pension plan shortfall.
Fredericton (10 Sept. 2010) - A judge says the New Brunswick government is "dragging its feet" in dealing with a $300-million shortfall in the pension plan for provincial nurses and hospital workers.
Justice William Grant of the Court of Queen's Bench made the comment after hearing evidence in a case initiated by the pension committee of the Pension Plan for Certain Bargaining Employees (CBE).
The committee told the court that it informed the province three years ago, before global markets crashed, that a serious funding problem had developed.
Now the pension plan has a $300-million deficit and the committee is asking the court for direction on who has the authority to direct measures to deal with the problem.
Grant questioned whether the court has any role in the matter, suggesting the parties could resolve the issue themselves.
While noting that the problems facing the plan are serious, he suggested that the problems could be worked out through negotiations by the parties involved - the province, the New Brunswick Nurses Union (NBNU) and the New Brunswick Union of Public and Private Employees (NBUPPE).
Referring to the Liberal government of Premier Shawn Graham, the judge said "it appears one party is dragging its feet" by refusing to sit down at the negotiating table.
Lawyers for the pension committee said a solution had been put forward on behalf of the unions to add a funding policy to the plan. This would involve both sides contributing whatever money is necessary to stabilize the plan.
The proposed change would mean increased contributions of about $48 every two weeks for members earning $60,000 a year. The government's share has been estimated at $7 million.
The government indicated in a letter dated June 2009 that the proposal would be presented to the provincial board of management, a cabinet committee. However, the pension committee has not heard back in the 15 months since then.
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More information:
N.B. legal fight for control of pension plan