Public-sector unions launch legal challenge to Higgs pension bill
CUPE locals argue legislation forcing them into new plan violates their right to collective bargaining
Three public-sector unions in New Brunswick have filed a legal challenge to the Higgs government's legislation forcing them into a shared-risk pension system against their will.
Locals 2745 and 1253 of the Canadian Union of Public Employees and the New Brunswick Council of Nursing Home Unions filed the legal action Jan. 30, asking the Court of King's Bench to declare the law unconstitutional.
They argue the law, the Pension Plan Sustainability and Transfer Act, and its regulations, "substantially interfered" with their right to free bargaining under the Charter of Rights and Freedoms.
"The province has unilaterally overridden the terms of the plaintiffs' collective agreements," says the statement of claim.
It quotes passages from the unions' existing contracts that say their pension plans would continue to apply during the duration of the agreements.
The Progressive Conservative majority in the legislature approved the law in a raucous Dec. 12 vote during that dozens of union members sitting in the public gallery jeered and heckled, almost drowning out the proceedings.
As New Brunswick's finance minister in 2014, Premier Blaine Higgs set up the shared-risk system and persuaded or forced several public-sector employee groups to join it, including some CUPE locals.
In
November, union members protested against the bill, which forces two
CUPE locals and three groups in the New Brunswick Council of Nursing
Home Unions into a process to determine the future of their pension
plans. (Jacques Poitras/CBC)
But two CUPE bargaining units representing school custodians, maintenance workers, bus drivers and administrative staff continued to resist as recently as 2021, when Higgs, now premier, tried to shift them into the system during contract negotiations to end a strike.
They signed a side agreement on pensions with the province in 2021 at the end of a 16-day strike, setting up a separate process to resolve the issue.
Last November, Higgs accused the union of dragging its feet on that and introduced the Pension Plan Sustainability and Transfer Act.
It forces the CUPE locals and three groups in the New Brunswick Council of Nursing Home Unions into a process to determine the future of their pension plans and begin the transition this month.
The unions are asking for an injunction blocking that transition and for the court to declare the new act unconstitutional.
The premier's office did not immediately respond to a request for comment.
The application for an injunction will be heard March 12-13.
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Lloydminster, Alberta · Vermilion, Alberta
Here is why we need an Alberta Pension Plan ASAP!
Hello everyone. My name is Rick Rewuski and I live and work in
Dewberry, a small village located in East Central Alberta. I did some
Canada Pension Plan calculations for my grandson who is beginning his
career as an engineer, who will be earning in excess of $68,500.00 per
year. The sum of $68,500 is the insurable earnings used to calculate
the annual CPP premium as well as the CPP pension benefits at age 65.
Based on the insurable earnings of $68,500.00, the annual employee and
employer contribution to CPP will be $7,735.00. Assuming everything
remains the same for the next 42 years, my grandson will have
contributed a total of $324,870.00 to his pension fund.
Canada Pension reports that the average annual rate of return for the
past 10 years is 9.6% and the rate of return for the last year is
6.8%. If the fund earns an average of 6.8% per year, the fund will
have a balance of 1,811,624.75 at age 65. If the fund earns an average
of 9.6% per year, the fund will have a balance of $4,069,377.55 at age 65.
compounded annually, which would value my grandsons’ pension account
at $1,106,053.00 at age 65.
With a balance of $1,106,053.00 at age 65, and interest at 5%, my
grandson should expect to receive an annual pension in the amount of
$55,302.00 or $4,609.00 per month. However, that is not even close to
what he will actually receive in pension benefits. Canada Pension will
only pay 33% of the insurable earnings of $68,500.00 which is
$22,605.00 annually or $1,883.75 per month. That means, Canada Pension
is withholding $32,697.00 of the annual interest earnings. If my
grandson draws his pension for one year and then passes away, his
estate will receive a death benefit of $2,500.00 and Canada Pension
keeps the entire $1,106,053.00. If he is married at the time of his
passing, his spouse will only receive a portion of his annual Canada
Pension entitlement which is dependent on how much she is receiving
from her own CPP fund and, CPP will keep the entire $1,106,053.00 for
itself. Currently, the maximum a survivor can receive is a combined
total of $1,613.54 per month or $19,362.48 annually. You will notice
that the annual pension is much less than what the fund will earn
annually and CPP still keeps the balance of the fund of $1,106,053.00
for itself.
fixed amount of money into an account for 42 years and you were
offered a 5% annual rate of return on your investment, and your
investment would grow to a value of $1,106,053.00, you might think
that is a good deal. However, if your banker told you that in 42
years, you could only draw 40% of the annual interest earnings, and on
your death, your estate would receive a lump sum payment of $2,500.00
and the bank would keep the remaining $1,106,053.00 for themselves.
Would you invest your money in that type of an investment? I think
not, but that is the investment plan that you are getting with your
Canada Pension Plan.
The Alberta Pension Plan is predicting that we could receive a lump
sum payment of $10,000.00 upon retirement and our monthly pension
could be 2 or 3 times as much as we are receiving from Canada Pension.
If you look at the amount of interest and account balances CPP is
withholding from each contributor, an increase in our monthly pensions
is absolutely possible.
Everyone is very concerned about how much money Alberta will receive
from Canada Pension Plan. Initial reports indicate that CPP owes
Alberta 343 billion dollars. What does it matter if we receive 343
billion or something less? Look at how much money we will save with an
Alberta Pension Plan and how much it will improve our lives when we
retire. A $10,000.00 lump sum payment upon retirement and double the
monthly income? Why would anyone turn that down?
All of the above information is available on the internet and I would
encourage everyone to do their own research. Then you can make an
informed decision.
Have a great day everyone!
Whether DB pensions should have been "allowed" (a better description is "negotiated and agreed to in a contract") is moot. DB pensions were the norm at one time in this great nation.
Reply to Art McCarthy
FYI the cost of services is driven of by greed and incompetence.
But you’re definitely right on my very strong dislike of Higgs and his disrespect for the collective bargaining process and his unwillingness to govern for all New Brunswickers.
The Higgs' approach is often one that I wouldn't take, but I fully support the government's initiatives to move all employees (that we pay for) to the shared-risk plan. It's unfortunate though that judges have the power to just opt out.
Two bites from the same apple.
The most fiscally responsible Premier ever.
The housing bubble, one of many contributors, is the root cause of property tax increases.
The existing tax legislation requires the assessment, but it is the local governments that set the rates.
If you want them to not gouge you, then speak to them instead of twist this as a Higgs' deficiency.
It great move by Premier Higgs to finally get this group converted over to the shared-risk plan (which, despite what most here claim, is still a very generous DB plan that 99%+ of private sector workers would love to have). The union was given ample time to work out the details of the change with government and chose to turn a blind eye and hope it would all go away.
NB taxpayers should appreciate the savings involved with these plans.
The teacher's union signed in 2014. There have been other groups since then.
FORCING changes is not negotiating, it is dictating. No matter how much you argue it was the right thing to do that fact does not change.
You seem to be happy it was forced on them, all because your dictator told you it was the right thing to do.
Just like most conservatives you seem to enjoy putting others "in their place".
Well, someone’s gonna be put in their place come next election.
As to the next election, we'll probably know the outcome before spring is finished. Despite your hatred for the guy, don't bet the farm that he'll lose or you could be looing for other work.
Despite your adoration for the guy don’t bet your cajones on his winning, you might be complaining at a higher pitch.
It was Higgs who agreed to the terms of the contract only to turn around and break it. I hope they walk off the job and Higgs needs to clean bedpans in a nursing home. That would humble his "holier then thou" attitude. I can't stand the man and can't wait to see the back of him!!!
I'm curious, is Higgs' pension from Irving "shared risk"?
(There's a series of interesting posts here by David Amos that provide a good perspective on just how poor the CPP payout is).
On another note, forget about financial advisors being capable of helping out anyone when it comes to the complexities of pension plans.
"A team from Morneau Shepell worked with the government-appointed expert task force and collaborating unions on the Shared Risk Pension Plan (SRPP) design for the Province of New Brunswick. As actuary on this project, Morneau Shepell consulted on the development of the new plan design and provided in-depth analysis."
Reply to Doug kirby
Reply to Samual Johnston
Reply to Noel Sherwood
"Sandy Harding, regional director for the Canadian Union of Public Employees, says this is 'not the end' of the fight over the shared-risk pensions."
Higgs government wins final approval for public-sector pension bill
PC majority forces passage of law over objections from opposition parties
Yea Right
Rosco holt
Reply to David Amos
It won't other unions been fighting this for years already.
David Amos
Reply to Rosco holt
Trust that I am well aware of what went down quite likely more than Higgy is
"A team from Morneau Shepell worked with the government-appointed expert task force and collaborating unions on the Shared Risk Pension Plan (SRPP) design for the Province of New Brunswick. As actuary on this project, Morneau Shepell consulted on the development of the new plan design and provided in-depth analysis."
N.B.'s auditor general is wrong to claim authority over Vestcor, pension body claims
7 months after being pilloried in AG report, Vestcor defends itself to MLAs
Robert Jones · CBC News · Posted: Sep 17, 2021 4:54 PM ADT
Shared-risk plans struggle to keep up with record inflation
Robert Jones · CBC News · Posted: Sep 08, 2022 6:00 AM ADT
Province tried to change pay model but says it will accept independent commission’s recommendations
Jacques Poitras · CBC News · Posted: May 02, 2023 7:00 AM ADT
Heh Heh Ho Ho
Heh Heh Ho Ho
Heh Heh Ho Ho
Higgs has got to leave
Pension bill targeting school board, nursing home workers grants a pass to judges
Financially troubled judicial pension plan excused from 'fairness' changes being forced on others
Robert Jones · CBC News · Posted: Dec 06, 2023 6:00 AM AST
Reply to Don Corey
It's obvious than Susan Holt is more interested in playing politics than saving money for NB taxpayers. Her stripes are becoming clearer when she actually makes a comment, instead of sitting on the fence.
Dan Lee
Reply to Don Corey
in other words ...she is backing up the workers
Don Corey
Reply to Dan Lee
Not really.....just playing the political game.
David Amos
Reply to Don Corey
True
Dan Lee
Reply to Don Corey
are you scared what she might do.........Arseneau was also p.........hmmmm you never mentioned him.......ahhhhh he must had been truly honest...............
Don Corey
Reply to Dan Lee
What is there to be scared of? The rest of your post is meaningless garble.
Don Corey
The NB shared-risk plans are actually defined benefit, but with the shared risk provision. They are far better than 99% of plans in the private sector, and will save NB taxpayers hundreds of millions over the years.
Good job by Higgs in putting an end to the union delay tactics and getting these CUPE groups where they belong.
Wilbur Ross
Reply to Don Corey
We'll be on strike after Christmas and it will be a nasty one. We have nothing really to lose. Job market is in our favour bub. Bring it on.
Don Corey
Reply to Wilbur Ross
Your union won't support a wildcat. Your choice.
Wilbur Ross
Reply to Don Corey
Bahahahaha ... that's what you think.
Don Corey
Reply to Wilbur Ross
Guess we'll find out soon enough. To repeat, it'll be your choice.
Wilbur Ross
Reply to Don Corey
Not really. Higgs made this choice son.
Don Corey
Reply to Wilbur Ross
Higgs made the right move on behalf of NB taxpayers.
Do you really know anything about a shared-risk plan, and how extremely generous it still is compared to the average private sector worker?
Donald LeBlanc.
Reply to Don Corey
Wildcat is the least of Higgs' (and our) problem. The problem here is that all these job categories already have huge staff shortages that are getting worse by the day. This will only accelerate even more massive departures from what is left of the ranks. You can legislate strikers back to work but you can't legislate them back when thay quit. You also can't legislate replacement workers to take jobs nobody wants. You just double or triple the pay on offer like we're doing with "Travel Nurses". That's what passes for "good money management" in NB.
David Amos
Reply to Don Corey
Obviously we agree to disagree
Don Corey
Reply to Donald LeBlanc.
Let's get real here. Nobody is going to leave a unionized public sector job with it's still very generous pension plan, a full benefits package and employment security.
Don Corey
Reply to David Amos
True.
David Amos
Reply to Don Corey
Nobody I know signed a contract for a shared-risk plan. However the last person I loved whose benefits Higgy attacked died this year so now I no longer care
Errol Willis
Reply to Wilbur Ross
Not gonna happen
Carl Bainbridge
Reply to Don Corey
I guess I will ask a different question
Do you really think that any of these jobs are "well paid" or have a "generous pension"
Even before transfering to shared risk, these pensions could never be called generous. Barely adequate at best.
And no none of the positions involved in this attack are well paid, they are all severely underpaid compared to similar work categories
Don Corey
Reply to Carl Bainbridge
Why did you not respond to my question? It was specific to pension plans.
Carl Bainbridge
Reply to Don Corey
I did
I told you, the current plans (Before Higgs made them even worse) were barely adequate at best
David Webb
Reply to Donald LeBlanc.
Ya, the shortage of nurses, doctors, trades people, etc. across the country is Higgs' fault. Lol.
Don Corey
Reply to Carl Bainbridge
So you acknowledge that you don't know what a shared-risk pension plan is; exactly what I figured.
Deborah Reddon
Reply to Donald LeBlanc.
Exactly right! Who wants to work for an employer that tramples all over them and treats them as if they don't matter and are not consulted.
Laura Smith
"As New Brunswick's finance minister in 2014, Higgs set up the shared-risk system and persuaded or forced several public-sector employee groups to join it, including some CUPE locals."
Merry Christmas! The best misery is shared misery.
Archie MacDaniel
Reply to Laura Smith
Yes, and it appears to work so well the Libs did not change a thing when they were in power.
Don Corey
Reply to Laura Smith
Do you really have a clue about a shared-risk plan? It's certainly a "misery" than private sector workers would love to have.
David Amos
Reply to Don Corey
I have a few clues about it that nobody cares to know
Donald LeBlanc
Reply to Archie MacDaniel
You're right about the double talking "Graham/Gallant/Boudreau/Atcon Liberals". But there isn't a single member of that crowd left in Holt's caucus; she made sure of that. In government, she's certainly not going adopt their incompetent and corrupt ways and she's certainly not going to adopt the even more incompetent, corrupt and evil Higgs ways. We can all pray that she only gets a minority government with the Greens as Loyal Opposition. That is our surest bet for a return to democracy and sanity.
David Webb
Reply to Donald LeBlanc
The best predictor of future behaviour is past behaviour. Lets pray the people that think debt doesn't matter ever get back in. I would like to hear Ms. Holt, or Mr. Coon for that matter, talk about what their plan is to improve the finances of the province. We have a $20 billion debt!!!!!!!! At least the liberal governments MRDC (Remember Doug Young) financed highway the province couldn't afford to finance, will be paid off in ten more years. Why do people not understand that interest payments going to debt takes away money that could be used for healthcare, education, housing, infrastructure, social services and subsidised housing.
Wilbur Ross
Higgs flushes away our Rights to Collective Bargaining as he wipes his A with the Constitution of Canada. Time to fight back. Higgs has set a dangerous precedent for the whole of country. Government contracts of all sorts are in danger if this is allowed to stand.
Archie MacDaniel
Reply to Wilbur Ross
The pension was not part of the collective bargaining agreement, you are making the same mistake the rookie leader of the opposition made. Problem is rest of the country is also moving to shared risk. But your sensationalism is 2nd to none, well done.
Wilbur Ross
Reply to Archie MacDaniel
You really need to do some research with all your free time :D
David Amos.
Reply to Archie MacDaniel
"Problem is rest of the country is also moving to shared risk"
Who?
Donald LeBlanc
Reply to Archie MacDaniel
Can you name one other jurisdiction in Canada where the public sector has moved to shared risk. I could be wrong, but I doubt they exist. Of course Michelle Smith wants to pull Alberta out of the CPP and I'm sure "Crypto Pierre" will back her up 100% if he ever gets to be PM. And of course that is the opposite of shared risk because the people of Alberta will be taking ALL the risk if she gets her way, especially after the oil and gas industry has milked every nickel out of it before they're forced to escape to their tax shelters once the climate meltdown shuts down Alberta and most of Canada. Higgs' old (and still) bosses will be "sharing the risk" of the same tax shelters and the rest of us will be sharing Trumpian hell.
David Webb
Reply to Donald LeBlanc
Lot's of feelings from a devout debt doesn't matter taker
Bobby Richards
Michelle Conroy used to have lots to say in defence of nurses. Now she’s hoping her vote for Higgs will get her promoted. It’s amazing how one can turn when they can stand to reap a reward.
David Amos.
Reply to Bobby Richards
Glad you noticed
Donald LeBlanc
Reply to Bobby Richards
When she made the move with Austin to the PCs she was quoted as saying they have the same values. After today (and long before), that is crystal clear and should start thinking about her next career move at the end of next year. If I were her I'd stay away from any unionized shop like her old RN gig. Their "values" are polar opposite.
Bobby Richards
Reply to Donald LeBlanc
Exactly
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