Retiree says costs climb 40% while pensions rise only 10%
Retired Nova Scotia government workers say inflation has wiped out about $27,000 in purchasing power over 15 years and warn that legislative changes could further weaken their pension oversight.
CBC News reports that expenses for members of the Public Service Superannuation Plan have climbed about 40 percent over the past 15 years, but pensions have gone up only 10 percent, pension committee chair Fred Morley told MLAs on the legislature’s public bills committee.
He said that gap translates into a cumulative loss of $27,000 in income and spending power.
Morley said there have been no pension increases in the last five years, despite a 20 percent rise in prices and what he called the highest inflation in 50 years.
“Inflation has dramatically eroded the purchasing power of our members,” he said.
With an average annual pension of $22,000, many retirees now face difficult decisions, Morley told CBC News.
He said “people are having to sell their homes” and even move in with their children, and that he has heard of members turning to food banks and, in some cases, becoming homeless. When pensions do not keep pace with inflation, he said, “there’s a lot of repercussions.”
Changes in the province’s Financial Measures Act would amend the Public Service Superannuation Act to move comprehensive plan reviews from every five years to every seven.
Morley said five years is already at the long end for pension plans and that adding two more years means even more time between chances to reconsider the plan’s structure.
Finance Minister John Lohr said the proposal comes from the pension plan trustees and that the government is bound by the act to follow such recommendations.
He said the review process takes about two years and speculated trustees wanted more time between those efforts.
Morley disputed that the government has no room to act, telling CBC News that the legislation remains under government control and within its purview to change.
"Making reviews less frequent weakens oversight," he said. "That responsibility rests entirely with government, not the trustee."
Morley outlined changes he said would improve fairness and transparency without adding cost for the province, according to CBC News.
He called for cost‑of‑living adjustments to be reviewed every year instead of every five years.
He also suggested considering merging the public service plan with the two other major provincial pension plans for teachers and health‑care workers.
Morley said a combined plan would ensure consistent governance for all government employees and give them collectively “the ability to make more high‑profit investments.”
According to CBC News, Morley said his proposed changes would not cost government anything but would create more fairness and transparency for the 3,000 members his association represents and the 20,000 retired public servants and survivors receiving benefits.
Long‑term care workers move toward strike over wages
At the same time, more than 5,000 long‑term care workers at 52 nursing homes are making strike preparations after five days of conciliation talks with the province failed to produce a deal.
The CUPE‑represented workers have been without a contract since October 2023.
Affected roles include continuing care assistants; licensed practical nurses; support services staff in environmental, housekeeping and laundry; occupational therapy aids and physiotherapy aids; and maintenance.
Wages are a central issue.
Martin said some workers make $18.77 an hour and would reach just above $21 an hour by the end of the proposed contract, while in some cases they earn almost $10 an hour less than counterparts in the rest of Atlantic Canada, according to CBC News.
A provincial statement said the retroactive offer includes a 70 percent increase in shift and weekend premiums, from $2.35 an hour to $4, and noted that other provinces have negotiated new agreements since CUPE’s contract expired in Nova Scotia.
Martin said the province did not change its offer at conciliation and that “we’ve gone as far as we can and now we meet with our members and staff and discuss next steps.”
With talks ended, a legal strike could begin in 48 hours, though not all homes are ready.
CBC News reports that seniors and long‑term care minister Barbara Adams said essential service contracts and service level agreements will ensure Nova Scotian seniors’ care needs are met even during a work disruption.
Martin said the union wants a deal but is not willing to accept the current offer.
