October 18, 2013
For immediate release
Government to hold information sessions for employees
Finance and Energy
Upcoming information sessions will provide public sector employees with clear, factual information about the changes to public sector pension plans, says Finance, Energy and Municipal Affairs Minister Wes Sheridan.
“There is some misinformation circulating about what these changes will mean,” said Minister Sheridan. “I want to reassure plan members that their base pension will be maintained and that changes to the plan will not be retroactive.”
There is a 1-800 number, a website, and an email address (see below) set up to take inquiries. Human resources managers are also available to staff. Letters have been sent to plan members outlining the changes with further communication to come in the weeks and months ahead.
Next week, information sessions will begin throughout government in order to clarify the plan and address some of the misinformation.
For example: Current estimates being circulated that plan participants will experience 30-50 per cent cuts in benefits are based on a prediction that employees will receive a four per cent annual wage increase every year until 2053. This forecast is simply incorrect – and not borne out by any expert analysis. Therefore, statements about 30 to 50 per cent cuts are wrong. In fact, it is expected that plan participants will receive increases consistent with average Canadian wage increases in four out of five years going forward.
“We looked at many options when deciding upon a plan that would be fair to current employees, those close to retirement, retirees and taxpayers,” said Minister Sheridan. “These changes are moderate, and will be phased in over time.”
A schedule of upcoming information session times and location will be released in the next week.
For more information, please phone Island Information Service Monday to Friday from 8:30 a.m. to 5:00 p.m. at 368-4000, or 1-800-236-5196, visit the website at www.gov.pe.ca/pensionplans or email questions to email@example.com.