POLITICS

Group of New Brunswick retirees contemplates legal action to protect pensions

09/30/2013 10:38 EDT | Updated 11/30/2013 05:12 EST
FREDERICTON - A group of retired public servants says it may resort to legal action to force the New Brunswick government to leave their pensions alone.

Clifford Kennedy of Pension Coalition New Brunswick says 96 per cent of about 2,300 people who attended a recent series of public meetings voted to challenge proposed changes to public pensions in the province.

The government has proposed introducing a shared-risk model for public pensions and include current retirees in the changes.

Kennedy says existing retirees would lose some or all of their annual cost-of-living increases.

The public service plan, which covers about 32,000 people, has a $1-billion deficit and is only about 50 per cent solvent.

Finance Minister Blaine Higgs says changes are needed to make the pension plans sustainable.

Kennedy says his group will try to pressure government to exempt current retirees in an effort to avoid legal action.