PIPSC and the Province of New Brunswick have agreed to sit down together this Spring to work to resolve the long-standing litigation regarding the changes to your pension. In 2014, the former government imposed its vision for pensions by passing legislation converting the safe, reliable, and cost-effective defined benefits pension plan to a not-so-shared risk pension plan. This new model has resulted, generally, in reduced benefits and higher costs for members. Since then, PIPSC has been challenging these legislative changes in court.
Over the years, we have received feedback from hundreds of members about the impact of these pension changes. Working alongside the New Brunswick Pension Council—comprised of PIPSC representatives from each provincial bargaining unit—we continue to identify your concerns with respect to plan changes, including:
- Increased member contributions
- The shift to a career (lifetime) average formula
- Changes to retirement eligibility and retirement age
- Changes to plan governance
- Adjustments to early retirement provisions
- And other impacts on benefit security, costs, and governance
We will continue to keep members informed throughout the process. Additional information on our efforts to address this issue is available here.
The New Brunswick Shared Risk Plan is a target benefit pension plan that provides most PIPSC members in the provincial public service with a lifetime pension based on a formula. However, unlike a defined benefit plan, benefits are not guaranteed and depend on the plan’s financial performance.