Pension Reforms Might Happen Sooner Than Expected

At the final meeting before Monday's municipal election, City Manager Pat Woods got the Common Council to deal with what he calls the albatross around its neck by approving proposed reforms to the city's pension plan before the last sitting of the Legislature in early June. 

The city needs the approval of the province to go ahead with the reforms, which would mean the pension deficit would go up to 220 million dollars but the city's payment would be reduced from 26 million to 16.1 million with employees contributing 9%.

Woods is conceding the timing will be tight.

Councillor Patty Higgins objected, comparing it to a Bernie Madoff style Ponzi scheme, or fraudulent investment operation. She said it's such a mess it might not even be reparable.

The other Councillors disagreed and voted to approve the recommendations. Woods told them the Superintendent of Pensions said there would be no harm in waiting until the fall because the city's financial straits will be no worse.