03/11/2015 06:21 EDT | Updated 05/11/2015 05:59 EDT

Plan won't be cancelled: Solution found to Regina city workers pension plan

REGINA - A dispute between the City of Regina and its workers over the future of their troubled pension plan appears to have been resolved.

The Saskatchewan government says it has accepted recommendations from the Financial and Consumer Affairs Authority to amend the civic plan.

The authority threatened last summer to cancel the pension plan because of its estimated unfunded liability of $224 million.

The city has been trying for years to make the plan sustainable without success.

City employees and employer groups spent months squabbling, but finally agreed in November to send a joint proposal to the provincial pension regulator.

The proposal was accepted and recommendations for amendments were sent to the province.

The new plan is to come into effect July 1.

"The pension is now safe for the future," said Regina Mayor Michael Fougere.

The current deficit is to be paid off over 20 years — 60 per cent of the money from employers and 40 per cent from employees.

There are about 7,000 members in the plan, which covers 21 employee groups.

"This has been a long time coming," said Kirby Benning, chair of the pension and benefits committee for employees. "Plan members will finally have peace of mind regarding their retirement security."