New Regina police pension plan starts July 1
Old plan had been running a $63M deficit
Regina police officers are getting a new pension plan to replace the current one that has a $63-million deficit.
Currently, police have a defined benefit plan, under which they receive regular payments of a set amount when they retire.
However, a shortfall has developed for a number of reasons, including stock market reversals, retirees living longer and police retiring earlier.
"The stakeholders agreed that the current plan was no longer sustainable or affordable in its current state and something more than a temporary fix needed to be done to protect both current and future employees and taxpayers," a news release from the Regina Police Service said.
Starting July 1, the old plan will be wound down and a new one will be introduced that police pension officials say will be on more solid financial ground.
People who are on the old plan will keep their benefits accumulated to that date, but after that, additional benefits will fall under the new plan.
The Regina police will be switching to what's called a targeted plan, which has features of both defined benefit (with set payments) and defined contribution (with set contribution amounts) pension plans.
One big change is that contributions will be reduced. Currently, police officers contribute an average of 11.9 per cent of their income. After July 1, it'll be 8.5 per cent. The employer will contribute the same.
The 3.4 per cent difference will go into bigger police pay cheques, the Regina Police Service said.