MONCTON, NB — In front of a crowd of almost 600, Finance Minister Blaine Higgs apologized to disgruntled retired civil servants, over the lack of communication regarding the government’s proposed changes to their pensions.
He was open and frank about why changes are needed, but was met with more criticism and hostility.
“We will not stand for this and we will not forget,” a woman said in the crowd.
The province is proposing a shared-risk model pension plan. Changes would include an increase in contribution levels and higher age of retirement.
The current pension program includes some 13,000 pensioners.
After apologizing, Higgs said the bottom line is that something needs to change.
The Public Service Superannuation Act, or PSSA, has a billion dollar shortfall, which is only getting worse due to longer life-spans and lower interest rates.
“It can’t continue as it is. But it wasn’t in the same stage of crisis as those ones previously, but it is in a stage of crisis now,” Higgs said.
After the presentation of why a shared-risk model is needed, people began to ask questions and make comments. Many said they were frustrated with the lack of transparency.
“Maybe we can be open and honest with retirees that gave their life and gave thousands of free hours to make this a better province,” said one retiree.
“I’m upset because I don’t think the government had any intention of advising the retirees as to what their plans are,” said Yvon Gagnon, a former NB Power employee.
“I’m kind of confused, the questions were repeated and repeated and repeated but never answered,” said Colette Hache.
Higgs admitted he was embarrassed about that lack of communication and recognized the mistakes they made when initially informing retirees about the changes.
But he said they need to come up with a solution that’s fair for current taxpayers, retirees and helps alleviate the deficit.
“Blame the government for a lot of faults, and we deserve that,” Higgs said. “But what we’re trying to do here, is bridge the gap that we currently have and how we fix the situation together. This is not a done deal, this is a deal that thus far has been done poorly, and we’re trying to correct that.”
The information sessions will continue in Bathurst, Campbellton and Edmundston Friday and Saturday.
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