Winnipeg Free Press - PRINT EDITION

Police union rejects bid for pension relief

  • Print

WINNIPEG'S police union has rejected a city request to put off special payments to its pension fund.

On Tuesday, the City of Winnipeg announced it will have to obtain a letter of credit for $130 million after the Winnipeg Police Pension Plan members rejected a bid to allow a solvency exemption for their pension plan.

Actuaries evaluate pension plans to determine whether the fund has enough assets to meet its obligations if, hypothetically, the City of Winnipeg went bankrupt.

A city report, released Tuesday, said the police pension plan had a solvency deficiency of $120 million following an evaluation in 2011.

The city said it was unlikely to default on its pension contributions and requested an exemption for funding the deficiency.

Winnipeg Police Pension Plan members voted not to allow the exemption, which means the city must either spend $26 million a year over the next five years in special annual payments -- the amount equivalent to a 5.65 per cent property tax hike each year -- or obtain a letter of credit from a lender to offset the $130 million in pension obligations.

Winnipeg chief administrative officer Phil Sheegl said the city's 11 other unions agreed to an exemption, and obtaining a letter of credit will cost the city money.

An administrative report said Winnipeg will have to spend about $30,000 to obtain the credit this year and as much as $413,000 by 2018.

Winnipeg Police Association president Mike Sutherland said pension members want to protect their plan and were unable to reach a reasonable agreement with the City of Winnipeg. Sutherland said this is the first time the plan is in a deficiency, and he finds the city's position "strange" since the projected deficiency could drop if interest rates rise.

Sutherland called the issue a "non-story."

"Despite our numerous attempts to do so, the city expressed no sincere desire to get any reasonable agreement reached," he said.

jen.skerritt@freepress.mb.ca

Republished from the Winnipeg Free Press print edition February 20, 2013 B2

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Jets This Week: Quarter Season Analysis

View more like this

Photo Store Gallery

  • Marc Gallant / Winnipeg Free Press.  Local/Standup- Morning Fog. Horse prances in field by McPhillips Road, north of Winnipeg. 060605.
  • Two baby tigers were unveiled at the Assiniboine Park Zoo this morning, October 3rd, 2011. (TREVOR HAGAN/WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Would you visit Dalnavert Museum if it reopened?

View Results

Ads by Google