NS universities with defined benefit pension plans exempted from solvency tests

March 9, 2012

The Nova Scotia government confirmed Thursday that solvency tests will no longer apply to the 5 provincial universities with defined benefit pension plans, though they are still subject to other benchmarks. The move sees Dalhousie University being released from looming $50-million yearly payments to close a $270-million solvency gap, which the institution warned would necessitate deep budget cuts and massive layoffs. A government official says Dal and its faculty are still contributing over $43 million annually to the pension plan, so "they still have quite a serious obligation to fulfill every year," but notes that most other provinces have already granted similar exemptions. The Globe and Mail reported Thursday that the exemption brightens Dal's budget outlook and makes it less likely that the university's faculty members will go on strike today. Globe and Mail | Dal News