Health workers' pension plan seeks judicial advice
Lawyer argues N.B. court case could set national precedent
Last Updated: Wednesday, September 8, 2010 | 12:39 PM AT
CBC News
A pension committee that represents nearly 10,000 New Brunswick nurses and other health-care workers is seeking advice on how to grapple with a staggering deficit that could lead to future cuts.
The provincial committee appeared in front of the Court of Queen’s Bench on Tuesday asking how the $1-billion pension fund could turn around its $300-million deficit.
The committee that oversees the plan for the employees of New Brunswick hospitals is trying to figure out what to do because it argues the pension plan isn't sustainable at the current level of contributions.
The three options open to the court include: cutting benefits, increasing contributions or a combination of those alternatives.
Susan Rowland, the pension committee’s lawyer, said the plan, which isn’t regulated by the province’s Pensions Benefits Act, is ambiguous and even contradictory about what the committee can lawfully do to resolve the cash crunch.
The decision could affect nearly 10,000 nurses and other health-care professionals who work at hospitals across the province, including lab technicians, occupational therapists and social workers.
Rowland stressed existing pensions will not be cut, but pensioners could lose their cost-of-living adjustments.
And members may have to pay more than 50 per cent of all contributions to the plan.
Rowland said she expects other provinces and territories will be watching.
She said there's no case law in Canada that deals with whether members of a pension plan obtain vested, or absolute rights, to benefits before actually they retire.
Share Tools
Latest New Brunswick News Headlines
- 'Unauthorized' pension change to be reversed
- Saint John's outgoing deputy mayor says an "unauthorized change" to the city's pension plan that would have benefitted the city's top earners if they retired early will be reversed. more »
- Fredericton invites citizens to weigh-in on new bylaw
- The City of Fredericton is inviting citizens to have their say on the municipality's new zoning bylaw. more »
- Workers' EI history to affect claim under new rules
- Human Resources Minister Diane Finley has announced details about the government's planned changes to employment insurance that would tighten the rules for Canadians collecting the benefit. more »
- 8 views on EI changes: 'political football' or 'eHarmony'?
- Human Resources Minister Diane Finley released more details of the government's plans for reforming employment insurance Thursday. Here's a sample of the reaction. more »
Top News Headlines
- Quebec faces mounting pressure amid student crisis
- The morning after nearly 700 people were arrested in protests in Montreal and Quebec City, Jean Charest announced he has replaced his top aide with his former right-hand man. more »
- Reclaiming the dead on Mt. Everest

- The difficulty, danger and expense of removing the bodies of climbers who died in Mount Everest's "death zone" mean most of the dead remain on the mountain as a stark reminder to other climbers of the risks. more »
- Conservatives move again to have robocalls suits tossed
- The Conservative Party has filed a second motion to dismiss the robocalls lawsuits filed by the left-leaning Council of Canadians, calling council chairperson Maude Barlow a 'virulent critic' of Prime Minister Stephen Harper who has 'orchestrated' the litigation. more »
- Suspect arrested in decades old N.Y. missing boy case
- A man has been arrested in the 1979 disappearance of a six-year-old New York City boy, in the first arrest ever made in a case that helped give rise to the nation's missing-children movement. more »
- Man dies after assault at house party
- 'Unauthorized' pension change to be reversed
- Workers' EI history to affect claim under new rules
- 300 litres of heavy water spilled at Point Lepreau
- Saint John managers ‘duped’ council, says deputy mayor
- Scrap metal plant sparks noise complaints
- Moose on the loose shot in Fredericton
- Food safety course necessary, trainer says
- Plastic bag fees should be legislated, council says

