Manitoba's Finance Minister is reassuring the public the recent review of Manitoba teachers' pensions was a "routine review" and there are no plans to make changes.

Cameron Friesen says the Manitoba Teachers' Society recently alerted members retired teachers could see a 30 percent reduction in pension benefits.

"This is incorrect and serves no purpose other than to scare retirees," Friesen says.

Norm Gould, Manitoba Teachers Society President, says one of the report's suggestions was examining target-benefit pension plans, which he says differ from defined benefit pension plans in terms of benefit assurance and longevity of the pension.

norm mts
Norm Gould, President of the Manitoba Teachers Society

Gould, who represents over 15,000 teachers, says they've since been assured pensions won't be effected and will remain a defined benefit pension plan, backstopped by the Province of Manitoba, "which is fantastic," Gould says.

However, he says concerns remains as imposed salary freezes will impact the purchasing power on pensions. Last month Education Minister Ian Wishart announced a two-year freeze on teachers' salaries.

Assuming a two percent rate of inflation, Gould says it will reduce the purchasing power of the average teacher by $4,000.

Public sector pensions are based on the last 12 years of work. Taking the long view, Gould says if salaries are stagnant it could impact the pension calculation.