Todd Parsons, Union of Northern Workers president, riled up a crowd of approximately 40 union members outside the legislative assembly Oct. 16. The group was protesting the Northern Employee Benefits Services Pension Plan Act. - NNSL file photo |
Pension plan revisions please unions
Controversial Bill 12 greeted with support from former critics
Elaine Anselmi
Northern News Services
Wednesday, March 18, 2015
SOMBA K'E/YELLOWKNIFE
After protests and heated challenges from unions, a bill affecting public service pension plans across the territory has been poured over and fine-tuned before receiving final assent March 12.
The Northern Employee Benefits Services Pension Plan Act, or Bill 12, sets out guidelines for managing the pensions of public employees and teachers across the territory. Public Service Alliance of Canada, United Northern Workers and the Northwest Territories Teachers Association criticized the bill's formula for determining benefits and a lack of room for public service representation. Up until now, employees have had the Northern Employee Benefits Services Pension Plan, which has existed without legislative guidelines since 1999.
"It is clear from the passion with which presenters spoke that pension security is an emotionally-charged subject matter and one that is very important to those who work hard to save toward their retirement," Frame Lake MLA Wendy Bisaro told the house during the report of the Standing Committee on Government Operations on March 5.
The turnout for public meetings on the bill was above anything expected by the committee, Bisaro said, adding that the public input through letters and presentations were greatly appreciated.
In October, the standing committee sought an extension of 120 days to review the bill and make recommendations. With 12 changes proposed by the committee, Finance Minister Michael Miltenberger accepted them wholly and each motion was carried.
"We were pleased to see that the standing committee looked at the submissions and there was a thorough consideration," said Gayla Meredith, president of the teachers' association.
"They came up with a number of motions to address some of the items ourselves and other labour organizations brought forward."
In the fall, unions and employees identified a risk that the plan could move from defined to targeted-benefit. The former is calculated using a set formula including years worked and final salary, whereas a targeted plan allows benefits to be affected by changes in the economy.
The committee addressed this issue in two areas, by removing the power of the pension committee to retroactively reducing benefits, and in specifically stating that the plan is defined.
"I'm very pleased to see that the bill was amended to clearly identify that the plan was a defined-pension plan," said Todd Parsons, president of the Union of Northern Workers.
"It is confirmed as well in the legislation that there will be no retroactive reductions in any of the members' benefits."
The makeup of the pension committee that governs the plan was another challenge for unions, as there was little employee representation.
The committee suggested an amendment that would see equal representation for employer and employee, as well as one independent member on the pension committee.
"We were pleased to see the equal employer and plan member representation on the pension committee and that the pension committee itself is the one given powers," said Meredith.
"They're the ones that make decisions on the plan."
Unions also voiced concern in the fall that the new plan gave the finance minister too much power.
The committee found this was not the case and decided taking away the minister's granted power would be problematic.
"The committee considered these concerns but recognized that the removal of this provision from the bill would leave the minister unable to act in the event that there was a failure to manage the NEBS plan in compliance with the act," the report reads. Compared to other legislation, the committee found the power given to the minister was on par.
With the restructuring of the pension committee allowing for more employee input, Meredith said this concern was addressed.
The lack of consultation over the development of Bill 12 was a point the unions heavily argued.
After receiving responses from those affected, the committee agreed.
Though the committee did not doubt the plan administrator's good intentions, they found that adequate information and time for consideration was not granted to members.
In the future, Parsons hoped the union would be consulted on writing legislation that affects its membership.
But overall, he said the revisions to the new bill are positive.
"We're pleased, very pleased to see that our lobbying efforts and pressure was successful in achieving the amendments that were being pursued by the unions," he said.
