Whitehorse Daily Star

Image title

Photo by Whitehorse Star

Left: DARRELL PASLOSKI Right: PLANS QUERIED – Opposition Leader Liz Hanson aired her concerns about changes to the public servants' pension plan during question period Tuesday.

Premier quizzed on pension plan changes

Concerns about changes to public servants' pension plans announced in last week's federal budget were raised in question period Tuesday by Liz Hanson, leader of the official Opposition.

By Ainslie Cruickshank on April 4, 2012

Concerns about changes to public servants' pension plans announced in last week's federal budget were raised in question period Tuesday by Liz Hanson, leader of the official Opposition.

"(Public servants) are now expected to make larger contributions to their pensions,” she told the house.

"With the stroke of a pen, Yukon public sector workers will be paying an average of $1,100 more each year for their pension out of their household budget.”

Yukon government workers pay into the same retirement fund as federal employees do, so the changes will affect both levels of government workers in the territory.

Currently, the governments pay 60 per cent of retirement contributions and the employee pays 40 per cent. The changes announced in the federal budget would even the contributions to 50 per cent each.

"Does the premier endorse this change that will mean our Yukon public servants will have $1,100 less in their pockets?” asked Hanson during question period.

Premier Darrell Pasloski replied the government is waiting to see the timeline for when the changes will be implemented.

"What was announced was that there will be changes to that plan that will occur over time,” he told Hanson.

"We are not sure exactly what those timelines will be at this point. We are waiting for more information to find out exactly what the timelines and the specifics are going to be to the changes to the plan.”

During an interview last week, Pasloski said the changes would bring the pension plan into line with other private and public sector plans.

Hanson said the government will save $4.4 million when the pension contribution changes are implemented.

"That's $4.4 million not being spent in the local economy. One of the most pressing social policy debates going on is the growing gap between rich and poor. The middle class is shrinking,” she said.

Replied Pasloski: "Any time there are people in this economy who have less disposable income in their pocket to spend in this economy concerns me and this government, and we are conscious of that.

"We're waiting to find out what the details are going to be and what exactly is the timeline for the rollout of this change in that plan.”

Comments (3)

Up 0 Down 0

Maureen N on Apr 5, 2012 at 3:51 am

We are a family with a very detailed and strict budget so it is quite easy to see where we will have to cut. We do all of our life spending here in Whitehorse and with a reduction of more than $100 a month we won't be buying as much. Less disposable income will mean a lot less spending in local businesses. A hundred dollars may not seem like much of a threat to the economy but when you multiply that by all the Yukon employees it will mean quite a loss - to others.

Up 0 Down 0

jack p on Apr 4, 2012 at 12:28 pm

excellent news, maybe we can get Liz to pay more into her lucrative MLA pension........

Up 0 Down 0

50% Is Fair... on Apr 4, 2012 at 9:18 am

As one of the many government employees in the Yukon I can only speak for myself in saying I have no problem paying the increased 50% share for my pension. I think it is only fair considering what other workers across Canada have been facing recently regarding retirement plans. I imagine this posting will be slammed by others who don't agree...

My main concern is for any local federal government employees who might be losing thier jobs altogether due to the budget cuts.

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.