NEWS RELEASE

Province and HRM to Jointly Review Pension Plan Concerns

(Thursday, July 6/06)-- The Province of Nova Scotia will work with the Halifax Regional Municipality to address its concerns regarding provincial regulations as they apply to the municipality’s pension plan.

Environment and Labour Minister Mark Parent and Mayor Peter Kelly announced today that a joint provincial-municipal working group will be appointed to review issues raised by the HRM Pension Plan Committee. During the past year, the HRM Pension Plan Committee has requested the Province to exempt the plan from its existing solvency requirements.

Minister Parent said the working group will include, but not be limited to, representatives of HRM’s Pension Plan Committee, the Deputy Minister of Environment and Labour and the province’s Superintendent of Pensions.

“The purpose of the review will be to identify needed steps that will maintain a high level of protection for pension plan benefits, while enhancing the affordability of the plan on a sustainable footing, “ Mr. Parent said.

Mayor Kelly said “We appreciate the Province stepping forward and helping HRM resolve this issue. The regulations, as they now exist, would mean substantial increases in employer and employee contributions to the plan over the next five years. Experience in Canada has shown that municipal government pension plans are very stable, and we believe the likelihood of the HRM Plan going bankrupt is very remote.”

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Mayor Peter Kelly
490-4010

Bill Turpin
Communications Officer
N.S. Department of Environment and Labour
424-2575