Darrell Greer
Northern News Services

Arviat (Mar 27/02) - Kivalliq hamlet and housing workers have seen a 43 per cent rise in their pension premiums this year.

The workers contribute to their retirement years through the Northern Employee Benefits Services (NEBS) pension plan, which covers Nunavut and the NWT.

Arviat senior administrator Darren Flynn, one of the directors overseeing the fund, says an actuarial assessment discovered a $4-million insolvency in the $26-million pension fund.

"If it wasn't for the markets and a few other contributing factors it would be sitting at $30 million," says Flynn.

"If everything were to wrap up today, you have to be able to fully fund your liabilities. So, basically, we have a $4-million shortfall in the fund right now."

Employee premiums have risen to eight per cent of their base pay from the previous five per cent.

Employers are also contributing eight per cent, up from the previous 5.5 per cent of their employees' base pay.

Flynn says the NEBS plan is a superior benefits package that mirrors the superannuation package of federal and territorial government employees.

"The five per cent premium was probably overly optimistic when everyone else was paying between 7.5 to eight per cent for their plans. Everyone got slammed in the markets this past fall and this fund was no exception."

Flynn says another part of the problem is an aging population. He says the increased number of people receiving benefits had the same impact on the NEBS plan that saw Canada Pension Plan premiums rise to 4.7 per cent of insurable earnings from 3.5 per cent during the past four years.

Despite the increases, Flynn says the NEBS is a stable fund.

"The increases are part of our plan, along with a conservative approach on the markets, to ensure we're able to meet the demands that are going to be placed on the fund.

All pensioners will continue to receive a fully-indexed pension and new retirees will receive the same benefit."