Case Study: Saint John Energy achieves a sustainable shared‑risk pension redesign, lowered employer contributions and $200K savings with TELUS Health

Morneau Shepell guides Saint John Energy through a sustainable pension plan redesign

Saint John Energy, a municipally owned electrical distribution utility in New Brunswick, faced a crisis with its 80‑year‑old defined benefit pension after the 2008 recession. Funding levels fell and employer minimum contributions jumped from 0% to 22.3% in 2009 and then to 54% in 2013, creating unsustainable costs and the prospect of layoffs if nothing changed.

Working with long‑time actuary Morneau Shepell, the company evaluated alternatives, chose a shared risk pension (SRP), and ran transparent education sessions and a representative employee working group to design the new plan. The group’s recommendations were adopted ahead of schedule (saving about $200,000 in solvency payments); the new contribution arrangement is 9% permanent plus 8.5% temporary for 15 years (17.5% total), improving affordability, member buy‑in and long‑term sustainability.

Saint John Energy

Marta Kelly

Vice President