Department Seeks Input on Pension Reform
Labour and Workforce Development
The Department of Labour and Workforce Development released a discussion paper today, March 5, to gather more input from employers, employees, unions and industry about private-sector pension-plan management.
The Nova Scotia Pension Review Panel filed its final report last year and the department has accepted about 90 per cent of the recommendations. The department wants more input on the review panel’s proposed funding formula and whether there should be more flexibility for private-sector pension plans, based on risk, funding arrangements and governance.
“Currently, we work under a one-size-fits-all system of regulation,” said Minister of Labour and Workforce Development Marilyn More. “We want to move to a system that supports improved governance and accountability of private-sector pension plans.”
Government has responded to pressures created by a weak investment market and low interest rates over the past few years, and, in November, amended the Pension Benefits Act regulations to address solvency pressures.
Input from employers, unions, members, plan administrators and pension committees is needed because hard decisions may have to be made for some plans to continue to meet the needs of their members and provide benefits promised to retirees.
“We want to be proactive to assist pension plans in meeting the challenges they face,” said Ms. More.
The discussion paper is available on the department’s website: www.gov.ns.ca/lwd .
