The St. John’s Board of Trade wants the Government of Newfoundland and Labrador to take immediate action and a set clear timeline to implement pension reform.
“The need for swift action is paramount for our membership of more than 880 businesses, and should be of concern to every Newfoundlander and Labradorian who will end up paying their share of the growing unfunded liabilities to public service pension plans because that’s where our tax dollars will have to be directed,” says board chair Denis Mahoney.
The board says that residents of the province pay $900 million each year to pensions, the unfunded liability of which totals more than $5 billion when benefits liabilities are included.
Last week, the province said current retirees wouldn’t be affected by ongoing pension reform discussions.
Also last week, Moody’s said Newfoundland and Labrador and Quebec both face the biggest pension risk among Canadian provinces due to large shortfalls in their pension funds.
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