The Canadian Taxpayers Federation (CTF) and Fair Pensions for All blew the whistle today on another struggling pension plan in Saskatchewan that is costing taxpayers more and more – the Municipal Employees Pension Plan (MEPP.)
Last week the two organizations exposed the unreported problems at the City of Saskatoon’s employee pension plan. Today the two are drawing attention to the MEPP’s $233 million deficit; down from an $18 million surplus the year before.
Due to the rich payouts promised in the pension plan, taxpayers have had to put more and more cash into the plan each year per employee.
How Much Taxpayers Pay Into the MEPP
(as a percentage of each employee's salary)
| General Members | Designated Members | |
| 2009 | 5.40% | 7.30% |
| 2010 | 6.40% | 8.75% |
| 2011 | 7.40% | 10.20% |
| 2012 | 7.40% | 10.20% |
| 2013 | 8.15% | 11.35% |
Source: Municipal Employees Pension Plan
“Seventy-five per cent of Saskatchewan taxpayers working outside government have no pension plan and yet they have to pay more and more in property taxes each year for each municipal government employees’ pensions,” said CTF Prairie Director Colin Craig. “That’s not right. Voters need to pressure municipal politicians to promise to put new employees in a less costly type of pension plan known as a defined-contribution plan.”
“We can’t sound the alarm bell loud enough on this issue,” added Craig. “If you find a municipal politician that won’t commit to putting new hires in a less costly plan then they clearly don’t have a clue what’s really going on. These pension problems are only going to get worse.”
“The type of pension plan that municipal employees in Saskatchewan have is in big trouble across the country,” said Bill Tufts, founder of Fair Pensions for All. “This is money that is diverted away from other services that taxpayers expect and means less money for new roads, water and sewer work. My biggest concern is that services for our citizens most in need – the disabled, the poor, youth at risk and seniors – will be axed.”
“Businesses have moved away from this type of plan years agao because it’s way too risky and costly. Governments need to follow the lead of businesses across the province and put new hires in less costly defined-contribution plans,” added Tufts.
To view the latest pension report - click here
To view the contribution schedule – click here
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