SASKATOON –The city and the union representing locked-out Saskatoon Transit workers have a different take on the state of the general pension plan.
According to city officials, the pension plan currently has a $6.7-million deficit and will cost taxpayers $90,100 monthly in special payments dating back to the beginning of the year to maintain.
Read more: city locks out Saskatoon Transit workers
Amalgamated Transit Union Local 615 (ATU 615) has a different take.
“The evidence that we’ve received from our legal counsel suggests that we have an $80 million surplus in our plan,” said ATU 615 president Jim Yakubowski.
According to an analysis done by Koskie Minksy LLP, the pension plan has an estimated surplus of $80-mllion.
“If this is the case, it would negate the need for the $90,000 monthly special payments from the City, and, in addition, there would be a substantial estimated total (explicit plus implicit) reserve margin for conservatism of $80 million or over 10% of liabilities,” reads the report.
The authors of the report note they are experts in pension law but are not qualified actuaries.
The union is calling for a third party review to see if there really is a deficit.
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In a news release Monday, city officials said the union is misleading the public about the pension and there is no need for a review as the 2012 valuation was done by a third party according to provincial legislation.
“There is only one plan valuation of consequence and of record that the City of Saskatoon must pay attention to and that is the one prepared and filed to the provincial regulator under the requirements of the Pension Benefits Act,” stated the release.
“The City did not prepare the valuation or approve it. According to the law, we are required to respond to it. However, in this case the City and taxpayers are 100 per cent responsible for the deficit.”
Read more: pension plan unsustainable: City of Saskatoon
The city locked out around 330 members of ATU 615 Saturday evening after the sides could not come to an agreement on a new contract.
The city is offering 10 per cent over four years along with increased contributions by both sides to address the pension deficit.
ATU 615 is looking for a wage increase of 22.5 per cent over five years.
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