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Monday, February 10, 2014

Cabinet Minister Says Province Is Doing Teachers A Favour

Provincial Finance Minister Blaine Higgs wants legislation passed during this session of the Legislature to change teacher pensions to the shared risk model.

Higgs maintains the government can’t continue to make special payments that have averaged $83 million annually over the last 10 years. 

Provincial Attorney General Ted Flemming tells CHSJ News there's been a lot of fear mongering on the part of those who want to keep the status quo.

Flemming says the change means teachers will have to contribute more to their pension plan, if they decide to retire in their mid fifties then they'll get less than if they worked longer and cost of living increases will depend on how well the fund performs.

He also argues the government is actually doing the teachers a favour if you look at what is happening elsewhere. Flemming points out even a city such as San Jose, California in Silicon Valley, no less, is on the verge of bankruptcy because of unfunded pension liabilities.