Ex-N.L. premier brokers pension reform

Unions bolster new, fully-funded public sector retirement program
|Canadian Labour Reporter|Last Updated: 10/20/2014

With less than two weeks before his retirement, Newfoundland and Labrador’s outgoing premier Tom Marshall announced a sweeping deal to reform the province’s troubled Public Service Pension Plan (PSPP).

To do so, Marshall — alongside now-former finance minister Charlene Johnson — collaborated with five public sector unions, including the Newfoundland and Labrador Association of Public and Private Employees (NAPE), the Newfoundland and Labrador Nurses’ Union, the Canadian Union of Public Employees, the Association of Allied Health Professionals, the International Brotherhood of Electrical Workers and the Newfoundland and Labrador Public Sector Pensioners’ Association.

Together, the parties crafted an agreement that is expected to fully fund the pension plan — which currently has a shortfall of about $4 billion — in the next 30 years.