Released February 12, 2019
WEYBURN – The City of Weyburn is pleased to announce that after years of collaborative effort, a sustainable replacement solution has been achieved for the City’s pension plan.
As viability of pension plans across Canada continues to decline due to economic conditions and changing demographics, all active members in the City of Weyburn Defined Benefit Pension Plan have moved to the Municipal Employees Pension Plan (MEPP) as of January 1, 2019.
“The transfer of the City’s pension plan was the best solution to secure the retirement benefits of the City of Weyburn employees and alleviate the pension plan funding challenges on Weyburn ratepayers,” director of finance, Laura Missal, said.
In 2007, the City’s pension provider approached Council with notice of increasing deficit payments. The combination of slowed asset growth and faster liability growth would result in increased contribution requirements for the plan’s members and the City, as well as decreased plan benefits.
After years of discussion, Council determined that the plan was not financially sustainable for either the plan’s members or the City’s ratepayers. Council moved in March of 2016 to wind down the City’s plan and transfer all employees and pensioners to MEPP.
The cost of moving the City’s plan to MEPP is around $8.5 million; if the City’s previous plan was to continue, the deficit payments would continue to increase to more than the cost for the City to transfer to MEPP.
MEPP is an affordable and sustainable defined benefits pension plan administered by Public Employees Benefit Agency. MEPP provides retirement benefits to the employees of school divisions, urban and rural municipalities, regional colleges, regional public libraries and other local authorities in Saskatchewan.
As of December 31, 2018, the City plan had the following members:
- 104 actives
- 52 pensioners/survivors
- 9 deferred (individuals no longer employed with the City but still have a City pension)