COLA FOR RETIRED TEACHERS TO DOUBLE THIS YEAR: BJORNSON

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Up to $1.8 Milllion More to Retired Teachers This Year, $130 Million Over 10 Years.

The cost-of-living adjustment (COLA) for retired teachers will double this year under amendments to the Teachers’ Pensions Act, which was passed today, Education, Citizenship and Youth Minister Peter Bjornson has announced.

 

“We are moving forward with the recommendations of the Teachers’ Pension Task Force and a long‑term solution that will improve their pension plan and cost-of-living adjustments,” Bjornson said.  “These amendments will see an additional $1.8 million put in the hands of retired teachers this year alone and invest up to $130 million into the Teachers’ Retirement Allowances Fund over the next 10 years to provide for a better COLA and ensure the long-term stability of the teachers’ pension fund.”

 

The changes that received royal assent in the Manitoba legislature today provide an improved cost-of-living adjustment through the pension adjustment account. Over a 10-year period, this adjustment would, subject to available funding in the account, be up to 5.33 per cent or two-thirds of the annual increase in Canada’s consumer price index on Dec. 31 of the previous year. After 2018, increases would, subject to available funding in the account, be limited by the Canadian consumer price index on Dec. 31 of the preceding year.

 

The result would more fairly reflect cost-of-living increases faced by retired teachers on fixed incomes and help to provide former educators with a more stable, more fair and enhanced pension plan over the next 10 years, Bjornson said.

 

Additional administrative and technical amendments to the act will:

·        recognize the school year may be shorter than 200 days;

·        enable teachers hired as employees of the Manitoba Teachers’ Society or the Manitoba Association of School Trustees to be designated, at the employer's request, as eligible employees retroactive to the date they were hired;

·        enable teachers hired as employees of a school division or district other than under a teaching contract to be similarly designated as eligible employees; and

·        enable teacher contribution rates to be varied by regulation on the recommendation of the Teachers’ Pension Task Force, removing the need for a legislative amendment.

 

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