NPPH Salaried Non-Union Pensioners’ Society revealed Wednesday that the funds for retired employees are underfunded by up to 41 percent, and continuing to grow. (Casket file photo)

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The news isn’t good for NewPage Port Hawkesbury (NPPH) pension recipients.
Wednesday afternoon, the NPPH Salaried Non-Union Pensioners’ Society revealed that the funds for retired employees are underfunded by up to 41 percent, and continuing to grow.
The pensioners’ group received word of the shortfall from Montreal-based Morneau Shepell – the plan administrator.
In a press release, the NPPH Salaried Non-Union Pensioners’ Society – which represents 350 retired and active salaried employees and co-operates with Communications, Energy and Paperworkers Union of Canada (CEP) Local 972 representatives – the union for retired and active unionized NPPH employees, said approximately 760 retired employees are facing an annual income loss of up to $7.23 million.
The group said the potential loss of 30 to 40 percent of pensions is a “shocking and totally unexpected impact on people who trusted that they had a secure retirement income.”
Their pensions are not indexed for the cost of living.
While pension uncertainty hangs over their heads, the group said members are dealing with myriad “serious and long-term” medical issues, including cancer, vision loss, mobility issues, heart disease, diabetes, MS and lupus.
Pacific West Capital Corp., the company negotiating to purchase the mill, has indicated it will not cover the liabilities in the pension plans. Nova Scotia Premier Darrell Dexter has also said the province will not offer any sort of bailout.
NPPH Salaried Non-Union Pensioners’ Society said the group will continue its fight, including through the courts, with an effort to have their concerns heard under the Companies Creditor Arrangement Act process. The goal is to have the pensions categorized as a secure creditor and moved up in the line of those seeking payment for monies owed from NPPH.
Monday, society members will meet with Strait area MLAs to discuss their situation. Meetings with MPs from the region are also scheduled. The group has also petitioned the provincial government for its assistance.
The NPPH mill in Point Tupper has been in “hot idle” mode since last September while the company has proceeded with creditor protection proceedings, including the search for a buyer by a court-appointed monitor.
Further updates coming on this site and in our February 1 print edition.