RTAM 

RTAM Talking Points

For Members, Teachers, MLAs

 

 

 

1.    The Sale Report and subsequent Bill 45 promised:

 

o     Improved COLAs up to 2/3rds CPI

o     A reserve account

o     A new method of interest crediting for the PAA

 

 

With the release of the 2009 COLA of .37% where the CPI is 1.2%, retired teachers are receiving a COLA far below the 2/3rds threshold.  This represents the 2^ndconsecutive year of COLA less than the 2/3rds of CPI.

 

 

2.    The COLA account (PAA) still needs much more significant funding beyond the new method of interest crediting now referred to as the “better of “ method.

 

 

3.    Other provinces have acted to address their COLA problems and now the Civil Service Superannuation Act of Manitoba is being amended to allow a transfer of $145 million from “surplus” to support future COLA payments.  Last year we were told the Government wanted the Teachers to be similar to the CSSA with a COLA cap of 2/3rds of CPI.  We were also told by MTS, retired teachers would not have access to any surplus funds from the main account (Account A).  Apparently, the Government agrees with this position.  Why are Manitoba retired teachers being treated differently than the Civil Service with respect to the use of surplus? Why can’t Manitoba do more to address the COLA problem?

 

 

4.    The “better of” method of interest crediting (which was RTAM’s idea) paid off in spades for the July 2009 COLA compared to the MTS’s suggestion of “total fund returns”.  The MTS’s position would have produced a ZERO COLA.

 

 

5.    In Summary:

 

 

 

More work and funding are needed to provide fair COLAs for both present and future retired teachers in Manitoba.

 

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