Saint John’s financial situation is even worse than many of us may have thought.
Susan Rowland, Chair of the Pension Task Force, explained last night at Common Council that the pension deficit is actually $345.5 million, which paints a very different picture than the $195.9 million estimated in the financial report the city filed earlier this year with the Superintendent of Pensions.
In light of the re-calculation, the Pension Task Force is strongly advocating the switch to a shared risk model, which in broad terms means city employees pay more and the city less.
Mayor Mel Norton tells CHSJ News the Shared Risk Model might be far less expensive than the current payment, but getting the funding in anything approaching reasonable shape would still be a long process. Common Councillor John MacKenzie referred to the shared risk model as “the best of the worst.”
Councillor Susan Fullerton disagrees, saying the shared risk model places too much of a burden on taxpayers who are not members of the plan. Further complicating matters is the need to have all unions on board before the transition could, in theory, proceed.
Council will take a week to reflect and receive input before voting on the next step Monday.
