The City of Saint John's Pension Plan converted to a Shared Risk Model in December 2012 when the municipality and its four unions, representing police, firefighter, inside and outside workers all signed a memorandum of understanding.
Under the shared-risk model, the city and its workers will share the risk for future deficits. This means that benefits have now become conditional upon meeting certain financial parameters. It is also possible that in limited circumstances, base benefits may be reduced. There is at least a 97.5% probability that base benefits will not be reduced over the following 20 years.
The City's pension is administered by a Pension Plan Board of Trustees.