Proposed pension changes for Newfoundland MHAs deferred

Proposed changes to the pension plan for members of the Newfoundland and Labrador legislature have been deferred following objections by the opposition parties.

The move followed a Liberal proposal at the end of February that suggested the province’s House of Assembly Management Commission explore moving to a defined contribution pension for members elected on or after Nov. 30, 2015.

Read: Newfoundland MHAs’ potential move to DC pension could save $5.2M

In November, the members’ compensation review committee had made recommendations to change the defined benefit plan to address a public outcry over “gold-plated pensions.” The proposed changes included moving to a revised defined benefit pension with no portability and no indexing component. It would also only be available at 60 years of age without a delayed retirement option.

The Liberal caucus’ suggestion was to move newly elected members into a defined contribution pension.

Opposition leader Paul Davis says the review committee was created to take politics out of the process and to do anything but accept its recommendations would be an error.

Read: Canadian pension plans moving slowly but surely towards DC: survey