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March 31, 2003
BCNU supports firefighters in calling for a special meeting with the Municipal Pension Plan Board of Trustees
The Trustees of the Municipal Pension Plan recently adopted a resolution that led to a reduction in the retirement benefit for pension plan members with Special Agreements.
Some Firefighter, Police and CUPE locals have negotiated Special Agreements that supplement their normal retirement pension. Typically the employer and employee pay an extra 2 to 3 per cent of pensionable earnings into a special fund. At retirement, the amount in the fund is used to purchase an additional pension benefit that is combined with the basic pension normally funded by plan contributions.
The reason the trustees adopted their resolution is because the amount that has been charged by the Plan for the additional benefit has not included the cost of inflation protection and the current arrangement is contrary to rules of the Canada Customs and Revenue Agency. The cost of inflation protection for the supplemental portion of the retirement pension has been borne by all other plan members.
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