Thursday, November 27th3.9°C
24124
24056

Ontario civil servants to pay half of retiree benefits premiums

TORONTO - The cash-strapped governing Liberals are going to require Ontario civil servants to pay more for their retirement benefits.

The government says public sector employees retiring in 2017 and later will have to pay half of their benefits premiums for life, health, dental and vision coverage.

Currently, the government pays 100 per cent of the premiums.

It says it will also change the eligibility period for retiree benefits from 10 to 20 years for workers who are hired from Jan. 1, 2017 onward or who have less than a decade of pension credit by that time.

The government says current retirees won't be affected by the changes, which it says will bring retiree benefits in line with other public sector organizations and save the province $1.2 billion over five years.

The announcement comes a week after the federal government proposed changes that would have its public sector retirees pay for half of their premiums, up from the current 25 per cent. Those changes would affect current retirees.

The Liberals also note that employees in Saskatchewan, Alberta, Manitoba, P.E.I., New Brunswick and British Columbia all pay 100 per cent of premiums if they elect to participate in benefit plans following retirement.

"We must continue to manage costs in a responsible and fair way," Finance Minister Charles Sousa said in a release.

"With half of all government spending going to compensation, including post-retirement benefits, managing these costs is essential to ensuring sustainable public services that Ontarians rely on."

The Ontario Liberals, who are facing a nearly $12-billion deficit this year, have been eyeing benefits and pensions as they look to curb costs and eliminate the red ink.

They say there are more than 84,000 active members of the Ontario Public Service and other employers enrolled in Ontario Public Service pension plans, and about 3,000 to 4,000 employees start collecting a pension and receive retiree benefits each year.

The Canadian Press


Read more Business News

24241


Recent Trending




Today's Market
S&P TSX15008.41-30.00
S&P CDNX765.38-5.68
DJIA17827.7512.81
Nasdaq4787.317+29.065
S&P 5002072.83+5.80
CDN Dollar0.8851-0.0038
Gold1193.50-3.10
Oil72.56-1.13
Lumber327.90-1.60
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.160.00
Knighthawk0.01-0.005
QHR Technologies Inc1.32-0.02
Cantex0.04-0.005
Anavex Life Sciences0.171-0.004
Metalex Ventures0.03-0.005
Russel Metals31.37-0.13
Copper Mountain Mining2.17+0.01
Colorado Resources0.12-0.01
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.34+0.015

 
23744


24120

FEATURED Property
15517975041 Redstem Street
5 bedrooms 3 baths
$475,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...

_



24156

24207


Member of BC Press Council


23369