News Release

FREDERICTON (GNB) – An agreement has been reached between the provincial government and the New Brunswick Teachers' Federation which meets mutual objectives for a more sustainable, affordable and secure teachers' pension plan.

“We are pleased that teachers have been willing to work collaboratively to create a pension plan that is sustainable for plan members and affordable for taxpayers,” said Finance Minister Blaine Higgs. “The new model will end the practice of special payments and, like the other plans that have been reformed, will reach matching contributions from teachers and the province.”

“It has been a rigorous and challenging process,” said federation co-president Peter Fullerton. “We wanted to ensure that both the needs of teachers and the education system were considered.”

The agreement was approved by the federation’s board of directors on Saturday, April 12.

“This agreement would not have been possible without the commitment from francophone and anglophone teachers, both active and retired, to make changes today in order to ensure this plan will be there for future generations,” said Higgs.

“We had a responsibility not just to active and retired teachers, to those nearing retirement or just starting out, but also for those who will begin teaching careers in years to come,” said federation co-president Phillippe Cyr.

The new formula meets the four principles set out for pension reform efforts.

Sustainability: The changes will eliminate the deficit facing the Teachers' Pension Plan and make it sustainable for the future.

Affordability: Funding for the Teachers' Pension Plan will reach a 50/50 funding ratio from teachers and the province.

Security: Changes will ensure that the plan is regulated through the superintendent of pensions with a high likelihood that both benefits and cost-of-living increase objectives can be met.

Equitable to all generations: Intergenerational equity has been respected to the extent possible. Both parties will share in the risks and rewards.

Regional sessions for active and retired teachers will be held to explain the details beginning April 22. Further details will be communicated later this week.