Fredericton city council will be voting on a bylaw amendment at its next regular council meeting to take over responsibility for the pension plan for police and fire employees.
According to a release from the city, the Superannuation Board of the City of Fredericton Police/Fire Pension plan voted to remove its plan actuary on Oct.13. That means the plan may no longer meet its legislative and regulatory requirements.
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City council will vote on a bylaw amendment to remove the authority of the current board to serve as the plan’s administrator and then take over, using an employer administrator model.
“This is an unprecedented but necessary action on council’s part in response to a decision that puts the plan in peril,” said Fredericton Mayor Mike O’Brien in a news release.
“In order for a pension plan to exist, it must have an administrator, whose job it is to ensure that the plan is in compliance with statutory and regulatory requirements. The decision to dismiss the actuary means that the administrator cannot do its job and it would be irresponsible of council to allow the actions to negatively impact the plan.”
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The city says this change will not affect benefits or contributions.
First and second reading of the amendment will take place on Nov. 13. Third and final reading is scheduled for the Nov. 27 regular council meeting.