March 26, 1998
(Finance)
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FACT SHEET
Government addresses reform of MHA Pension Plan
- Government recognises that
pension arrangements for Members of the House of Assembly need to be
reformed and accordingly, will be introducing appropriate legislative
changes to that plan during this Session of the House of Assembly. These
changes will be retroactive to April 1, 1998.
- Effective immediately, the
following measures will be implemented for all Members of the House of
Assembly:
- pension contributions
will be increased from their present 7 per cent to eight per cent
effective April 1, 1998, and nine per cent effective April 1, 1999
- for all service included
in the pension calculation, including past service, a formulated
reduction will reduce MHAs' pensions at the time they receive Canada
Pension Plan benefits, (stacking will no longer exist) and
- the benefit accrual rate
will be adjusted to provide maximum benefit after 20 years of service,
for new members, instead of the current 17 years.
- As is case with addressing the
unfunded liabilities of all other pension plans, MHAs are being asked to
share in the solution.
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