S-2.1.1 - Act to foster the financial health and sustainability of municipal defined benefit pension plans

Full text
26. Despite section 25, negotiations between municipal bodies and active members must be undertaken not later than 1 January 2016 with respect to any pension plan provided for by an agreement that was in force on 31 December 2013, is still in force on 5 December 2014 and was entered into between the municipal body and all or some of the plan members, if
(1)  the pension plan is fully funded, as shown in the actuarial valuation required under section 4; or
(2)  the pension plan’s funding rate reaches 80%, as shown in the actuarial valuation required under section 4. Furthermore, the actuarial valuation shows that the current service contribution does not exceed 18% of the active members’ payroll or 20% of the payroll of firefighters and police officers as increased under the second paragraph of section 8, or the agreement provides either that past deficiencies are to be shared equally, that current service contributions or future current service deficiencies are to be shared equally or that a stabilization fund funded by a contribution is to be established.
The agreement reached between the parties under Chapter IV becomes effective on the expiry of the collective agreement or of any other agreement providing for the pension plan, unless the parties agree that it will become effective on an earlier date.
However, any provision requiring the automatic indexation of pensions with respect to active members is repealed from 1 January 2014 with respect to service subsequent to 31 December 2013 and service prior to 1 January 2014, in accordance with sections 11 and 13. Indexation of the pensions of members who are retired on 31 December 2013 may be suspended in accordance with Division III of Chapter II.
2014, c. 15, s. 26.