Liberals, PCs backtrack on MHA pension decision

After public outcry, the Liberals and Progressive Conservatives are reopening the discussion on whether newly elected MHAs should be grandfathered into existing plan.

Both parties change their minds on earlier vote to keep rookies in richer pension plan

Peter Cowan · CBC News · Posted: Dec 12, 2016 3:41 PM EST | Last Updated: December 12, 2016

PC Leader Paul Davis and Premier Dwight Ball want the management commission to look at other options to reduce the $100-million unfunded pension liability for MHAs. (Eddy Kennedy/CBC)

After public outcry, the Liberals and Progressive Conservatives are reopening the discussion of whether current MHAs should keep richer pensions.

Premier Dwight Ball and Opposition PC Leader Paul Davis both asked the speaker to put MHA pensions back on the agenda of the House of Assembly's management commission for the next meeting.

Last week, the commission rejected the findings of an independent review on compensation that said the 20 MHAs elected a year ago should take longer to accrue benefits and face a higher retirement age.

That decision could add an estimated $3.6 million to the pension plan's deficit, according to the review committee.

After angry reaction from both business and labour groups, PC Leader Paul Davis said he regrets his vote and wants a do-over.

"I had a chance to think it through further over the weekend. I've heard from numerous people around the province about how they felt about it and in hindsight and reflection I felt it was the right thing to do," he told reporters Monday.

Davis and the PC MHA for Ferryland, Keith Hutchings — who is also Opposition House Leader — will move to rescind the previous decision of the management commission.

Survivor benefits only area off limits

Premier Dwight Ball spoke on the issue for the first time on Monday, telling reporters he doesn't think reducing the $100-million pension liability should be left just to the 20 new MHAs.

He said more changes could be coming that affect everyone, including all existing MHAs and retirees.

"We're going to explore other options. There's only one area that I'm not prepared to go, and that's really for survivor benefits, that is kind of a red light for me," Ball said.

That's a change from the position taken by Government House Leader Andrew Parsons last week who said MHAs elected last fall shouldn't have their pensions changed.

"I think there's a number of members in this House who, when they signed up to run in the last general election, they knew what they were getting into, in the sense that they could make employment plans, make financial plans," Parsons said at the time.

Whatever the decision of the management commission, it will be put to a vote by members of the House of Assembly before any changes are implemented.