The changes to the retirement allowance policy announced in last year's budget proved to be successful. The province's future liability for the retirement allowance has been reduced by approximately $62 million. Our management and non-union employees reacted favourably to this policy change, as more than 75 percent of eligible employees chose the payout option. These changes will also be negotiated with public sector unions for bargaining employees. Mr. Speaker, our efforts to improve management and lower the use of sick leave through initiatives such as a comprehensive Attendance Management Program are now yielding results. The province has realized productivity savings of approximately $1.2 million to date. The Department of Human Resources continues to work collaboratively with all stakeholders in an effort to increase employee health and well-being and to reduce the total cost of absenteeism. Initial results show that everyone is committed to ensuring we achieve a 20 percent reduction in sick leave usage by March 31, 2015, resulting in savings of approximately $20 million.

#### Creating Creating Sustainable Future for Pensions

Mr. Speaker, pension plans in Canada and around the world continue to face challenges and New Brunswick is no exception. Over the past year, there has been a great deal of discussion in New Brunswick on how to ensure that our public sector pension plans are sustainable, secure and affordable. lt hasn't been easy working with friends and neighbours to save their pensions, but choices needed to be made. Maintaining the status quo was not an option. We were facing a one billion dollar deficit in the largest public service pension plan, under the Public Service Superannuation Act (PSSA) - a deficit that was expected to increase due to demographic realities and realistic estimates of future investment returns. PSSA Changes to the represent one of the cornerstone pieces of our first mandate. These amendments ensure that the public service plan is sustainable for current and future retirees. The pension model we have adopted has been recognized across North America by sources including the New York Times editorial board, the Boston College Center for Retirement Research and pension experts such as Jim Leech, the retired head of the Ontario Teachers' Pension Plan. Our model has been adopted by a number of municipalities and private organizations in the province. Support from unions representing two-thirds of the bargaining positions in the public service plan came about after our government undertook a consultation and collaboration process that lasted more than a year. Three-quarters of New Brunswick public servants now have the benefit of a more secure, sustainable and affordable pension plan as a result of the legislative changes we have led. Furthermore, retirees were assured in the legislation that they will never see their pensions reduced from their current level. Ali plan members will continue to receive cost of living increases among the highest of any public sector plan in Canada. The effect of these changes was immediately evident when we announced that public service retirees will be receiving full indexation for this year under the new plan, an amount that would not have been provided until a subsequent year under the former plan.