GOVERNMENT TO PROVIDE GUARANTEED PENSION INDEXING FOR FORMER PUBLIC SECTOR WORKERS

The government is providing guaranteed indexing equal to 70 per cent of the rate of inflation for pensioners of Saskatchewan public sector defined benefit plans. Finance Minister Andrew Thomson introduced The Superannuation (Supplementary Provisions) Amendment Act, 2006 in the legislature today.

"Providing guaranteed indexing of 70 per cent of the rate of inflation is a fair solution that provides certainty of future pension levels for members of these plans," Thomson said.

The legislation will guarantee the 70 per cent indexing to superannuates from the Public Service Superannuation Plan (PSSP); The Power Corporation Superannuation Plan (PCSP); and the Liquor Board Superannuation Plan (LBSP). These are commonly referred to as "the old pension plans."

Approximately 8,000 superannuates will receive this benefit. The overall impact to the General Revenue Fund for 2007-08 is estimated to be $11.9 million.

Defined benefit pensioners began receiving ad hoc increases in 1965. Increases have been provided in all but eight years since then. With the guaranteed indexing there will be no more ad hoc increases.

"I listened to the members of these plans and decided on the rate of 70 per cent to balance fairness for the plan members against the demands on the provincial treasury and Saskatchewan taxpayers," Thomson said.

Saskatchewan is providing higher guaranteed indexing at 70 per cent to former workers than either Alberta (60 per cent) or Manitoba (66.67 per cent).

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For More Information, Contact:

Mike Woods Finance Regina Phone: 306-787-6578 Email: mwoods@finance.gov.sk.ca