Committee to review pension increase

On June 20, Premier Roger Grimes and Finance Minister Joan Marie Aylward met with the public service pensions coalition, which represents all public sector unions who participate in the public service pension plan, the public sector managers association and public service pensioners, to discuss changes to the Public Service Pension Plan resulting from the most recent negotiations.

Premier Grimes and Minister Aylward announced today the formation of a committee to review options to allow for a pension increase for low-income public service pensioners.

"The committee was given a mandate to review possible options for a pension increase, based on need, that will be paid from the pension fund but only if it will not jeopardize the integrity of the fund," said Minister Aylward.

The committee includes officials from the Department of Finance and representatives from the public service pensions coalition. The committee will explore the issue further over the summer and report back to the finance minister.

"The meeting was requested by the coalition to seek further clarification on the proposed changes to the management of the pension plan and to determine government's position with respect to an increase for public service pensioners," explained Minister Aylward.

Recent negotiations have resulted in a change to a joint governance arrangement for the pension plan, a move that the coalition has welcomed.

"The meeting was positive and reflected the desire to address the needs of low-income public service pensioners," said Minister Aylward.

Media contact: Lynn Barter, Communications, (709) 729-0084. 

2001 06 21                                                           2:35 p.m.