City of Regina, unions reach tentative deal on pension dispute
A tentative deal has been reached to resolve a dispute that has had the City of Regina and pension plan members at loggerheads in recent months.
"We're happy with the outcome," Kirby Benning, the chairman of the group representing employees, said Friday.
City officials also expressed satisfaction with the terms of the deal, which were described as putting in place "fundamental changes" to the pension plan which should satisfy the province's superintendent of pensions.
The changes were also noted as being sustainable and should "protect taxpayers, retirees, and employees."
The plan has been facing trouble for years and, most recently, was running a deficit of more than $200 million. Under the proposed agreement that deficit would be paid down over 20 years.
"This plan is going to be on very good financial footing and it'll have a very good future and a long future," Benning added.
According to officials, other highlights of the agreement include:
- Contribution rates for both sides would be lower
- A new, simplified governance structure
- A structured series of temporary contribution rate increases (and benefit reductions put in place) if the plan ever sees a substantial shortfall in the future.
The proposal still needs approval of city council, participating unions and a review by the province.
If everything falls into place, the new terms are set to take effect in July of 2015.