N.B. announces new pension offer for civil service, coalition says it’s not official

MONCTON – Finance Minister Roger Melanson announced Monday the government has made a new offer to public sector pensioners.

Melanson said the government has been talking with the retirees and made an offer they thought was fair a few weeks ago.

“We made a proposition to them and we really hope that they will accept what we offered,” he told reporters. “We think it’s reasonable and certainly responsible in today’s reality.”

But the spokesperson for Pensions Coalition NB told Global News they never received an official offer from the province.

“I don’t know what he’s talking about,” Clifford Kennedy said.

Tweet This Click to share quote on Twitter: "I don't know what he's talking about," Clifford Kennedy said.

“I understand that we’ve had meetings. We’ve had seven meetings between ourselves and officials. We’ve never had the opportunity to meet with the minister or the premier.”

Kennedy described the meetings as “cordial” and said the coalition was able to raise its concerns to the province. He said their main concern was on the Cost of Living Allowance (COLA).

“The average pensioner is 71-years-old and the average pension is $21,000 per year,” he said. “We’ve got some retirees that are making much less than that and the COLA is an absolute importance for the retirees.”

Re-examining the pension changes made under the Alward government was one of the Gallant government’s election promises. Gallant said they would sit down with pensioners and reach a deal that was good for everyone.

In December 2013, the Alward government passed legislation that overhauled public service employee pensions.

At that time, the Alward government had said the pension fund was underfunded by a billion dollars. But pension groups opposed the changes saying they weren’t consulted before the changes were made. Pension Coalition NB had considered launching a constitutional court challenge.

During Monday’s announcement Melanson would not release details of the deal.

“No I think at this time, by respect, we know that the retirees will be looking at this at we hope that they will accept,” he said. “We have respected our commitment in wanting to sit down and discuss with the retirees.”

Kennedy said he didn’t understand how Melanson could announce a deal publicly, but not release any details.

“And we’re still waiting for the opportunity to have a meeting with the minister and the Premier. So we haven’t received a response on that either.”