City Council scores hat-trick of wrongs!
CUPE and other employees groups in the plan told Councillors on several occasions they are legally required to approve the contribution rate increase recommended by the plan’s actuary.
On Tuesday, however, City Councillors voted to break the law by denying the rate increase – a decision that could cost taxpayers dearly if the matter ends up in court.
That decision to ignore its legal obligations to pension plan members has many shaking their heads, including Vancouver-based pension lawyer Scott Sweatman.
As Sweatman told a Global television reporter this week: “They [City Councillors] can’t walk away from their financial obligations because they don’t like the design of the plan. If it went to court the allegation would be breach of trust, breach of their statute, and their fiduciary obligation to act in the best interests of the plan members.”
Shame on the city! All this spinning of facts should be illegal. The truth is that when budgets are set and wages negotiated, pensions are very much a part of the mix. To imply that city employees are somehow getting more than their fair share at the expense of the public by having a pension plan is nothing but lies. SHAME!
May 17, 2011 at 3:48 pm
Good comment.
June 20, 2011 at 10:41 pm
The proposal for a plan that only pays what our money earns is a bad idea?
As one of the younger employees at the city, I feel that the defined benefit plan is outdated. How can we ask for more than we contributed? The current plan essentially gives my money (at a higher contribution rate) to those retirees that payed at a much lower rate. Is it even possible for the pension to have money left in 25 years when I retire? What will employees have to contribute at that time – 20-30%?
This is a downward spiral, and cannot be sustained. Maybe its time for our union to stand up for whats right, and get the people that they represent what they deserve, not hope to win the lottery and get more than they contributed when they retire.
May 18, 2011 at 10:04 am
The unions are standing up for what is right.
They have been doing this for decades.
June 20, 2011 at 10:43 pm
Are you really standing up for what is right for everyone? Although I can recognize a need for e pension, should we all get more than our own money has earned?
Fair is fair….and I agree….we should start standing up for what is right! In this instance, my union is wrong.
June 21, 2011 at 8:27 am
I am thankful that my union can see the big picture and will take a public stand on what the majority my membership want!
June 22, 2011 at 7:58 pm
Mitch defininately doen’t understand penson plans. You put money in, employer puts money, you earn investment returns, you have a pension (defered wages) based on a set formula. An Actuary (the gods of pensions) determines the rates based on asumptions (a calculated guess) that are usually wrong. In our case too low. The plan in past 15 or more years has only had a slight surplus once, so the calculations were wrong for the majority of years, so now we pay the price, maybe a new Acturary is in order!!
June 22, 2011 at 10:35 pm
I totally agree with you MItch, our union is beeing rediculously greedy and that mentality of ‘don’t leave a dime on the table’ is there. I for one would prefer a 7% DC plan over a 14% DB plan. This is one reason why people cannot stand unions, they do not bargain on what the majority of people want. If a vote was put out to all members i would be surprised if we actually supported what the ‘leaders’ are doing. I give the City Manager all the credit in this process as he is the only person sharing information! Go Glen Go!
June 24, 2011 at 9:02 am
This is one reason why people cannot stand unions …
– How could possibly know what “others” are “truly” thinking?
– Maybe it is just “you” that thinks this way.
– You need to read up on some labour history regarding what “unions” have fought / won and paid for – you may be very surprized on what you will learn.
If a vote was put out to all members i would be surprised if we actually supported what the ‘leaders’ are doing …
- A vote was held last December and May of this year – were you there?
I give the City Manager all the credit in this process as he is the only person sharing information!
- Oh realy – he is the only one in your mind … and you have the right to think that way.
July 6, 2011 at 11:41 pm
I respect your comment Mitch …
But … today pensions … tomorrow … vacation accumulation … then ,,, then … ?
Once that downward spiral begins — where / when does it stop?
What needs to be tweaked / gutted / changed is the current city administration.
June 26, 2011 at 9:02 am