After 20 years of public service, councillor David Hendsbee has just now decided he wants in on the municipality’s pension plan. But he needs some help to pay for it.
At the next meeting of Regional Council, Hendsbee will ask for a staff report on pension options for councillors past and present who “did not have sufficient information to opt in and now want to do so, with a matching municipal contribution to buy back time of service.”
Although he has a personal RRSP, the longtime Preston–Chezzetcook–Eastern Shore councillor only enrolled in HRM’s pension plan with his re-election last October.
As it stands, the 57-year-old won’t be collecting very much from the city for his two decades of municipal service. So he and “a couple of other councillors” who have been rethinking their previous decision want staff to investigate cheaper options for buying in so late in the game.
The municipality’s pension plan is mandatory for employees and voluntary for regional councillors. Participants are eligible for an annual pension equaling two percent of the average earnings over their three highest consecutive years of service, multiplied by the number of years they contributed to the plan.
Councillors and employees can also buy back years they weren’t part of the plan for a “commuted value” that represents what the past contribution would be worth now if it had been invested at the time.
Hendsbee was told that to buy back a single year of service it would cost him $31,000.
“I don’t have that kind of disposable income to be buying back my time at that kind of rate,” he says.
The cost is the full responsibility of the employee or councillor, but Hendsbee wants staff to look into changing regulations so that HRM will kick in some cash for a matching contribution.
“If I buy time, why do I have to pay for it all by myself?” he asks.
Pensions weren’t much of a priority for Hendsbee when he was young. The councillor says he was more focused on the bureaucracy of amalgamation than his own personal affairs when he first arrived at City Hall. He also says he felt pressured at the time by a “public reluctance” to take government money.
“You know how politicians with pensions are always being accused of self-serving and stuff,” says Hendsbee. “Now, thinking of it 20 years later, well, what do I have to show for it except for my own personal savings plan that I put away over the last 25, 30 years?”
First elected to the county in 1993, Hendsbee has served as a councillor for the amalgamated Halifax Regional Municipality since 1996—save for a brief four-year sojourn into provincial politics from 1999 to 2003. He’s ineligible for an MLA pension for his single term at Province House.
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This article appears in Aug 31 – Sep 6, 2017.
Hensbee had the option when he first became councillor but opted not to pay into the Municipality’s pension plan, too bad, so sad, no one pressured him to stay on as Councillor and the city should not be obligated to cover his poor decision.
This is one of the guys who try to screw with other city employees pensions at contract time…
In my opinion, that’s his problem. The private sector doesn’t help employees buy back pension years. Why do politicians think the government owes them any more than the ordinary citizens who opt out of pension plans. The excuse about focusing on amalgamation instead of personal affairs doesn’t fly any more than an excuse often used by regular people such as. “I don’t have extra money to pay into a pension plan; I’m trying to raise a family”. I’ve heard that one before. I definitely don’t think taxpayers are responsible for reversing his poor decision to opt out of the pension now that he realizes he won’t have the kind of money he wants when he retires.
He chose not to pay………..and we WILL NOT PAY NOW!!!
If he can’t afford to buy back time that’s his loss. Our tax money should not be used to help him get his pension now.
Perhaps he can try living off the OAS and CPP that many seniors have to subsist on. Not everyone was able to put money away in a “personal savings plan” over 20 or 30 years. Sorry, but I have no sympathy here.
Not one cent. Taxpayers will not stand for it. His poor foresight, his problem.
There are lots of HRM employees who lost years of pension time do to a variety of reasons. Would a deal be just for councilors for all HRM employees. I don’t think so , sorry David, you had a choice and you made it . Either buy back your time on your own or liven on your investments . I am sure as an intelligent individual you planned for retirement.
Rick
Just no…. you opted out. Don’t make us pay for something you didn’t want to do in the first place. It’s hard enough living with the wages us tax payers have and having to pay so much for rent, power, food, and anything else a family needs now you want us to pay even more so you can have a fucking pension?? GFYS!!!!!!!
OMG… yet another entitled politician wanting something for nothing..
Seems he was lucky enough to have extra money to invest into RRSP tax deferring and chose that over the government pension plan..
To decide now he wants in but doesn’t want to pay for its benefits is more than rediculous.
It’s another insult and slap to all hard working retirees with neither RPP’s or RRSP’s, let alone savings and resources..
Sad… really sad
NO!!!!
After working myself and raising two children my husband and I do not have any pensions except what we managed to put in rsp last 10 years. No pension plans for us. Our tax dollars pay his salary which is much larger than mine. Why should taxpayers pay for his stupidity. U snooze u lose. This is an example of why many people don’t trust government.
So he is now having regrets and think taxpayers should pay for HIS ERRORS in planning for the future……I don’t think so hensbee. ..I would tell you to fxck off!! Greedy self entitled axshole!!!
Seriously? As a former Councillor I am nothing short of horrified by this. This is a man who after 20 years of reading reports, making decisions on behalf of thousands of people, says he didn’t have enough information over the those 20 years to decide on whether or not he should join the pension plan! Shame on you Dave Hendsbee. You have left yet another blight on all who seek public service.
Really? We have had nothing in Lawrencetown during your sad tenure yet you want to put your pension on our back? No. I have to buy back mine. What makes you so special? Disgraceful!
PFFT! He had 20 years to opt in at any time! But he did not. He knew what he was doing, he thinks he will throw his weight around and make council and employees do what he wants. The arrogance is unreal.