NewPage pensioners told to pay back thousands
Calculation error affects about 200 former workers
CBC News
Posted: Nov 28, 2012 4:50 PM AT
Last Updated: Nov 28, 2012 4:46 PM AT
NewPage pensioners have already been hit by a unfunded pension plan. (CBC)
A group of former NewPage paper plant workers have been told they'll have to foot the bill for a mistake made by the former administrator of their pension plan.
The workers — who are already living with reduced payments because the plan was underfunded — are now being asked to pay back tens of thousands of dollars.
Morneau Shepell, the current pension plan administrator, sent letters to the pensioners this week, saying a previous plan administrator made a calculation error when figuring out payments.
"They made an error. We are required to pay," said pensioner Blair Samson.
His pension is 34 per cent smaller than he anticipated. Now, he's been told he owes $18,000 because of the miscalculation.
"They're saying we were overpaid — that Aon Hewitt, which was the first administrator, had erred and that we were overpaid," he said. "Some people were overpaid as much as $60,000."
"I never caused the error," said Harvey Warner, another pensioner. His bill is $33,000.
"There should have been audits," he said. "Don't come back to us for your mistakes."
Samson said stress is building among the pensioners who don't know what to do. He said he knows of one man who lost his home because of the financial strain.
"I think it's going to be devastating," he said. "I think you're going to see Nova Scotians from our end that worked at the mill go on welfare because I don't understand how they can make these payments."
Approximately 200 pensioners who took a specific front-loading pension option are being told they owe Morneau Shepell money.
Government not involved
Samson said it's time the province stepped up.
"Government is helping out the other mill by buying woodland and that money is going to be used to supplement their pension."
Samson and Warner were in Halifax on Wednesday, asking the provincial government for help.
At a legislature committee meeting Wednesday morning, Nancy MacNeill Smith, the superintendent of pensions, said the previous plan administrator should pay for the mistake.
'I think you're going to see Nova Scotians from our end that worked at the mill go on welfare'— Blair Samson
But Labour Minister Marilyn More was quick to distance the government from the problem.
"It's not something government can get involved with," she said. "This is a matter between the administrators of the private pension plans. We're certainly aware of the extra burden that that mistake may make."
She pointed out that the pensioners aren't being told to pay the money immediately.
"Certainly Morneau Shepell has suggested that they're looking all possible options to see if there's anything that can be done to relieve them of that burden. But we'll have to wait and see what happens, there's nothing government can do."
Share Tools
Latest Nova Scotia News Headlines
- Porters Lake woman dies in fatal Cole Harbour crash
- RCMP in Nova Scotia are investigating a fatal head-on crash in Cole Harbour that killed a 51-year-old woman and sent a 72-year-old man to hospital on Monday. more »
- Halifax man rescued after 24 hours stranded in the woods
- A Halifax man can thank police, a concerned friend and his dog for saving him after a dramatic rescue near Musquodoboit Harbour on Monday. more »
- Harper to address Tory caucus amid Senate scandal
- Conservatives gathered Monday night to mourn the passing of a key architect in their rise to power — and to brace for the toughest test Prime Minister Stephen Harper's government has faced since taking office on a promise to clean up politics in the national capital. more »
- Conservative MP remains tight-lipped on Duffy scandal
- Revenue Minister and P.E.I. Conservative MP Gail Shea isn't offering an opinion on whether Senator Mike Duffy should resign in light of the unraveling expenses controversy. more »
Must Watch
Top News Headlines
- Will alleged Rob Ford video overshadow Toronto casino debate?
- A debate about a proposed downtown casino is supposed to take centre stage at Toronto City Hall on Tuesday, but it seems a safe bet that a still-unseen video of Mayor Rob Ford will continue to be a topic of conversation. more »
- Harper to address Tory caucus amid Senate scandal
- Conservatives gathered Monday night to mourn the passing of a key architect in their rise to power — and to brace for the toughest test Prime Minister Stephen Harper's government has faced since taking office on a promise to clean up politics in the national capital. more »
- Keith Boag: Have you heard about the murderous abortion doctor?
- The gruesome trial and murder conviction of Philadelphia abortion provider Dr. Kermit Gosnell is unlikely to change American abortion law, Keith Boag writes. But it has U.S. journalists questioning their priorities and how they cover such a sensitive issue. more »
- Fearful Oklahoma families search for children
- The parents and guardians stood in the muddy grass outside a suburban Oklahoma City church, listening intently as someone with a bullhorn called out the names of children who were being dropped off — survivors of Monday's deadly tornado. more »
- Police respond to fatal crash in Cole Harbour
- Halifax man rescued after 24 hours stranded in the woods
- Halifax musicians rally behind guitarist Rick Edgett
- UFO sightings in Canada in 2012 doubled previous record
- Conservative MP remains tight-lipped on Duffy scandal
- Halifax woman prepares for big Gambia run
- Canadian on EI shut out amid foreign worker influx
- Cape Breton fishermen pray as lobster season begins
- Thousands race in 10th Blue Nose Marathon

