(Saint John Mayor Ivan Court)
(File Photo)
City Manager Pat Woods is expected to bring recommendations to Common Council to change the municipal pension plan and make it financially self sufficient.
Mayor Ivan Court is frustrated because the returns have been good since the financial meltdown but made little, if any dent, in the deficit according to the last valuation.
Court says the city will challenge the actuarial assumption on mortality. He says the retirees have not been living as long as the actuaries predicted and their assumption has cost the city millions of dollars.
The Mayor does concede, without changes, the city’s pension plan is unsustainable even though the returns of late have been very good.
Council members have been warned city assets could be seized if overdue payments are not made. The city missed a November 15th deadline to make a five million dollar payment because of not being in a financial situation to do so, according to the Mayor.
