2012 New Brunswick: Proposed Pension Changes

On Thursday, May 31, the New Brunswick government tabled legislation for a new pension model developed by its Task Force on Protecting Pensions. Our colleague, Susan Rowland, is a member of the three person Task Force which developed and recommended these proposed changes.

The model is a shared risk plan. Risks are shared between the employer/sponsor and the members. Basic benefits will be paid but certain other benefits, such as cost of living increases, will only be paid if there is sufficient funding. The model provides for rigourous risk management practices. Other features include:

• Shared contributions by employer/sponsor and employees
• Mandatory funding guidelines
• Sound investment policy