MONCTON, NB, Nov. 22, 2011 /CNW/ - In a letter addressed to Saint John
Council, the Canadian Federation of Independent Business (CFIB)
applauded the initial measures taken to tackle deficiencies in the
city's pension plan that have put serious pressures on its operating
"I want to acknowledge the leadership it took to propose a suspension of
annual indexation and the removal of overtime pay from pensionable
earnings within the City of Saint John pension plan," Catherine Swift,
president of CFIB stated in her letter. "While we do not expect this to
completely solve the long-term issues associated with the plan, these
courageous first steps are vital in dealing with the plan's tremendous
deficit which would have been forced on Saint John's families and
businesses through significant property tax hikes."
While some provisions will undoubtedly help to address the immediate
shortfall, CFIB continues to be concerned by the Defined Benefit (DB)
feature that guarantees a fixed return with no assurance that it will
be covered many years out. This very risk is what has placed so many
taxpayer-funded pension plans in a critically underfunded position.
"The decision to move forward on pension reform should be a call to
action for other cities and all levels of government, declared Swift.
"We will continue to urge government leaders to make the tough
decisions in order to bring affordability, sustainability,
cost-certainty and fairness to public sector plans.
To view CFIB's open letter: www.cfib.ca/nb
As Canada's largest association of small- and medium-sized businesses,
CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes
direction from more than 108,000 members in every sector nationwide,
giving independent business a strong and influential voice at all
levels of government and helping to grow the economy.
SOURCE CANADIAN FEDERATION OF INDEPENDENT BUSINESS
For further information:
To set up an interview with Catherine Swift or for further information contact Meghan Carrington or Gisele Lumsden at 416-222-8022 or via firstname.lastname@example.org