TORONTO- Common Council is being cautioned to stay away from a shared risk model for Saint John’s pension plan.

Bill Tufts, the founder of Fair Pensions For All, says even though the pension task force recommended the shared risk model for the city, converting to a defined contribution plan would be best.

The public pension reform expert tells the Todd Veinotte Show he doesn’t believe the shared risk option is going to provide the long term solution the city needs. “It would be O.K. and it is a good plan if you’re starting off with scratch”, says Tufts. “If you’ve got a large workforce, if you’ve got no funding deficits…but Saint John is too far behind the eight ball”.

Common council will take part in a critical vote tonight on whether or not to adopt the shared risk model.

If selected, the shared risk plan would see the city’s pension deficit payments drop by millions of dollars.