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NSGEU forces province to move on pension refunds
 'We
are pleased to see the government chose to act in response to our
request rather than face possible legal action.' Joan Jessome
Halifax - The Nova Scotia Government and General Employees Union (NSGEU/NUPGE)
has scored an important victory for about 150 members who were
overcharged by the province when they purchased pension credit for
casual service.
A legal opinion, obtained by the union and provided to the government,
prompted the province to review the issue and announce that it will
reimburse members affected.
"The government had no choice but to act when confronted with the
evidence to show they had acted improperly," says NSGEU president Joan
Jessome.
"In 2002, they decided to change their interpretation of what members
would have to pay to buy back past service. This change was made
unilaterally and without any formal notice, let alone consultation to
increase the payments required by employees," Jessome says.
"Previously, members had to pay what would have been their
contribution plus interest. The change meant they also had to pay the
employer's contribution.
"We are pleased to see the government chose to act in response to our
request rather than face possible legal action," she says.
Still under review
"At the same time, we will be carefully reviewing their official
response to see if any further action is required, especially for
members who chose not to buy back service due to the increased costs
for them," Jessome adds.
The province acknowledged in a news release that regulations were
improperly interpreted in "one specific area" from 2002 onward.
Kim Blinn, director of pensions, says refunds, including interest,
will be made to all affected plan members.
Legislation and regulations governing the Public Service
Superannuation Plan allow full-time Nova Scotia government employees
who worked as casual employees for a period of six months or more to
purchase this time as pensionable service for pension purposes.
The average amount to be paid is estimated to be in the range of
$5,000. Employees may also take the amount as a credit to purchase
additional time, if they are eligible.
More information:
•
N.S. government pension
web site
NUPGE
Web posted by NUPGE:
11 October 2005
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