Members of the New Brunswick Legislative Assembly are the latest group of individuals to have their pensions transitioned to the “Shared Risk Pension Plan” model in that province.
On March 26, 2014, amendments were tabled to prospectively transition MLA pensions into the “Shared Risk Pension Plan”. These amendments are slated to come into force on July 1, 2014, although they will only impact on MLA’s service after the tentatively scheduled September 22, 2014 election.
Most public servants have already had their pensions transitioned to the new model. According to an official news release from the Office of the Premier: “Everyone has a role to play in pension reform and MLAs are no different … The legislation we introduced to make public service pensions more affordable, fair, sustainable and secure for all public service members has paved the way for MLAs to adopt a shared-risk model.”
This change, which will also increase the age for unreduced retirement on future service from 60 to 65, is projected to result in an annual savings of $1.3million.
A copy of the amendments (Bill 51) can be viewed here.