Montreal city workers to lose $160M in pension, union says

The union representing the majority ofMontreal's municipal workers is calling on Mayor Denis Coderre to reverse a recent decision to trimpension benefits.

The Coderre administration announced earlier this month it wouldsuspend indexation on retirement plans for more than 15,000 municipal workers starting Jan. 1, 2017.

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Pension plansare typically indexed annually to coverthe rising costs of living.

With the changes, the Canadian Union of Public Employees says retired Montreal city workers stand to lose around $160 million over the next decade.

"For us, this decision is illegal. We're going tochallenge it, of course. This decision to suspend the indexation is going to go to the Supreme Court," said the union's regional director, Marc Ranger.

The pension cuts will affectretired blue collar workers, managers, foremen, civil servants, firefighters and professionals.

Laval,LongueuilandLvisto also make cuts

Cities in Quebec were given the power to suspend indexation through the province's controversial Bill 3, now known as Law 15, which passed in 2014.

The lawcontained a number of pension reforms the government saidwerenecessary to combat apension fund deficit that, at the time, stood at $4 billion.

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The City of Montreal says the six retirement plans affected by the changes currently have a deficit of about $945 million.

By suspending indexation, the city says that deficit will be reduced by nearly $170 million.

Laval, Longueuil and Lvis will also make cuts tomunicipal pension plans starting onNew Year's Day.

Ronald Martin, president of the Montreal's firefightersunion, doesn't believe the city had to go down this path.

"It's not an obligation, it's only a possibility. Some other cities, like Gatineau, did not suspend the indexation for their pensioners," he said.

The City of Montreal says the move was a necessary step for the future of municipal pensions and for "intergenerational equity."

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