Proposed changes to Winnipeg Police Pension Plan to save taxpayers millions annually

Released: November 5, 2019 at 9:19 a.m.
Proposed changes will allow it to continue to provide stable source of retirement income for Winnipeg Police Service members

Winnipeg, MB – The City of Winnipeg is proposing amendments to the bylaw governing the Winnipeg Police Pension Plan for Council’s consideration which could save the City and taxpayers approximately $12 million annually. The proposed amendments would bring the police’s defined benefit plan more in line with other major Canadian police force pension plans and allow it to continue to provide a stable source of retirement income to the valued members of the Winnipeg Police Service.

The Winnipeg Police Pension Plan is one of the most expensive police pension plans in Canada, requiring significant financial support from the City. The City is currently paying approximately 2.3 times more into the pension plan than employees.

The following amendments to the plan are being proposed for Council’s consideration:

  • Removing overtime from pensionable earnings effective January 1, 2020 resulting in savings of about $1.5 million annually. This in turn will be contributed back to the Police budget to assist with operations.
  • Increasing employee contributions to the Plan from 8% to 11.5% of salary over a five-year time frame commencing January 1, 2020, with reductions in City contributions from 18.48% to 11.5% of salaries over the same five-year period.
  • Changing the early retirement provisions effective January 1, 2020 to include a reduction in pension if retirement occurs before age 55, or age 60 if service with the City is less than 20 years, and eliminating the bridge benefit (increased pension payable between retirement and age 65) for service after January 1, 2020.

On December 14, 2011, Council approved an administrative report recommending that, in the event solvency exemption is not achieved for the Plan, that the City explore all options to reduce the significant financial impact related to the solvency deficiency rules and recommend a course of action for Council approval.

In consideration of Council’s instructions in 2011, the City undertook a review of the Winnipeg Police Pension Plan to determine what changes could be made.

The proposed amendments to the Winnipeg Police Pension Plan require Council approval, in adherence with the governing bylaw. The administrative report is publicly available through the Decision Making Information System (DMIS).

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