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October 22, 2003
BCNU launches pension law suit on behalf of retirees
Aim is to restore extended health benefits
The BC Nurses’ Union is launching a law suit on behalf of retired nurses against the BC government and the Municipal Pension Board of Trustees, aimed at restoring benefits to retirees.
The pension trustees dramatically reduced extended health coverage to retired members of the Municipal pension plan as a result of Liberal government increases to Medical Service Plan premiums and cuts to Pharmacare and paramedical coverage.
First, pension plan members were required to pay more for MSP as a result of the provincial government increasing the MSP rates by 50%.
Then the government eliminated all paramedical coverage (chiropractic, naturopathy, massage therapy, non-surgical podiatry and physiotherapy), except for those eligible for premium assistance.
Finally, Pharmacare coverage for drugs was reduced, and means-testing introduced.
Theses changes put immediate cost pressures on the pension plan and its ability to maintain the group benefits programs. Trustees made the decision, based on information provided to them at the time, to decrease coverage to retired plan members in order to manage within the financial framework available to them.
The resulting impact to retired members’ lives was considerable. Nurses poised to retire made important decisions based on the coverage they were promised at the time, and the erosion of benefits has caused financial hardship for many. That’s why BCNU is taking this step to win back their rightful benefits.
At issue is whether plan members are guaranteed the group benefits portion of their pension. BCNU’s position is that benefits are vested.
The outcome of this court case will have implications for both retired and active plan members. BCNU will be making every effort to protect members, past and present. We hope nurses will actively support us in these efforts.
Further information will be issued as we receive it.
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