Tips for public-sector financial management
I read the article in The Chronicle Herald (Jan. 24) by Ben Eisen and Alex Whalen on public-sector wage restraint with great interest.
Obviously, trying to achieve an appropriate fiscal balance will be a challenge for the Nova Scotia government, especially with all the needs we see in health care, education and the environment. Concerns about a recession are also a factor to be considered.
Here are some thoughts on steps I would like to see given further consideration, in terms of public-sector financial management:
1. Change public-sector pensions from a defined benefit plan to a collective defined contribution plan for the following groups: MLAs, provincial court judges and senior managers and legal staff in the civil service. Retain a defined benefit plan for unionized workers.
2. Have a cap for public-sector pensions when the worker retires such that the amount of pension income can’t exceed the most current median after-tax income figure for Nova Scotia available from Statistics Canada.
3. Consider having public-sector wage increases of two per cent a year but cap the dollar amount of the increase at a maximum of $1,400 per year.
4. Increase payments to recipients of social assistance by minimally an additional 2.5 per cent per year on top of any increases already scheduled.
5. Review the issue of public-sector pension indexing and consider at least some form of action for those whose pension falls below a certain dollar amount and who are not scheduled for some type of increase. Additionally, reimburse public-sector union members for an amount equivalent to the union dues paid during the time period April 1, 2015, to March 31, 2021, as compensation for passing legislation such as the Nova Scotia Public Services Sustainability Act.
6. Increase MLA base salaries by at least the same dollar amount as that received by the Clerk II position in the civil service, if the recommendations of the MLA salary tribunal are not going to be followed.
Robert Roe, Halifax