After years of collaborative effort, the City of Weyburn recently announced its sustainable replacement solution for the City 's pension plan. Following years of discussion, City Council determined the City's employee retirement fund was not financially sustainable for either its members or the City's ratepayers.

Council moved in March of 2016 to wind down the City's plan and transfer all employees and pensioners to MEPP, the Municipal Employees Pension Plan.

The final vote at Monday's meeting of Weyburn City Council was made after a report from City Manager Matthew Warren.

“The transfer of the pension plan to MEPP was the best solution, which was decided as Council with help through administration, to secure retirement benefits of the City of Weyburn employees and alleviate the pension plan's funding challenges of the City's rate taxpayers,” Warren explained.

MEPP is an affordable and sustainable defined benefits pension plan administered by public employees benefit agency. They provide retirement benefits to the employees of school divisions, urban and rural municipalities, regional colleges, regional public libraries, and other local authorities in Saskatchewan.

Councillor Dick Michel noted his relief at the solution that will transfer the pension plan to MEPP.

“I'm truly glad that council had the wisdom and courage, I'm going to put it that way, to make this thing happen,” said Michel. “We talked about it in '07 and it's almost 10, 11 years to this point to get where we are, and that is a positive step for our employees and for the taxpayers of this city.”

While the cost of moving the plan to MEPP is around $8.5 million, the cost of the deficit payments with the previous plan would have accrued far more than the transfer.

“We've not only continued to make deficit payments, but we've accumulated an unfunded liability of about 8 and a half million dollars," said Councillor Jeff Richards. “So that is an onus on the taxpayer because that is actually who's responsible for that. Moving this plan to the Municipal Employees Pension Plan, MEPP, stops the increase in that deficit in its tracks."

Warren added the City's cost of moving the plan to MEPP will be paid out once, removing the deficit payments and saving on third party administration.

All active members in the City of Weyburn Defined Benefit Pension Plan have moved to the Municipal Employees Pension Plan (MEPP) as of January 1, 2019.

In 2007, the City’s pension provider approached Council with notice of increasing deficit payments. The combination of slowed asset growth and faster liability growth would result in increased contribution requirements for the plan’s members and the City, as well as decreased plan benefits.

As of December 31, 2018, the City plan had 104 active members, 52 pensioners/survivors and 9 deferred (individuals no longer employed with the City but still have a City pension).