Changes to the CBE Pension Plan
BACKGROUND
The New Brunswick Nurses Union (NBNU), the New Brunswick Union (NBU), and the Government of New Brunswick (collectively, the “Parties”) have agreed to amend the CBE Pension Plan’s early retirement rules and contribution rates. These amendments were agreed upon by a Memorandum of Understanding dated October 19, 2026.
These amendments have two important impacts for members:
- For all pensionable service† accumulated from January 1, 2027, there will be no early retirement reduction if you retire at age 62 or later. It is very important to understand this does not mean that CBE Pension Plan members will be able to retire at age 62 without reductions starting in 2027. Rather, there are three separate early retirement rules that will be applied based on when you worked and contributed to the Plan. These rules, with examples, are explained below – see “Early Retirement Rules”.
- A contribution rate increase for both members and employers as of January 1, 2027 to account for the cost of providing members with the ability to retire earlier with this change, and enjoy their pension longer. See “Contribution Rates” below for more information.
WHAT ARE EARLY RETIREMENT RULES?
If you are vested‡ and choose to retire before age 65, permanent early retirement reductions may be applied to your pension depending on your age. These account for the fact that you will draw a pension for a longer period. The reductions are in place to protect the Plan’s financial sustainability, while still providing you with the option to begin drawing your pension before age 65.
The early retirement rules for the CBE Pension Plan are included below – see “Early Retirement Rules”.
WHAT DOES THIS MEAN FOR YOU?
As an active member of the CBE Pension Plan, the impact of this change will depend on:
- When you worked and contributed to Plan, i.e., when you earned pensionable service
- Your age at retirement
As the new rule only applies to pensionable service after December 31, 2026, any service you have accumulated up to December 31, 2026 will still be subject to the existing rules. Examples of this are included in the following video.
Important! Please note: The examples are for illustrative purposes only and are intended to demonstrate the permanent early retirement reductions rules in general. Individual circumstances vary widely. For information tailored to your own pension, please contact Vestcor’s Member Services Team.
FEEDBACK
If you have any comments to share on these changes, please submit them in writing to the CBE Pension Plan Board of Trustees or the New Brunswick Superintendent of Pensions by December 31, 2026.
| CBE Pension Plan Board of Trustees c/o Vestcor PO Box 6000 Fredericton, NB E3B 5H1 info@cbenb.ca |
Superintendent of Pensions Financial and Consumer Services Commission 225 King Street, Suite 200 Fredericton, NB E3B 1E1 pensions-retraite@fcnb.ca |
For more information about the CBE Pension Plan, click here
As of January 1, 2027, there will be three separate early retirement rules under the CBE Pension Plan:
- For pensionable service before July 1, 2012.
- For pensionable service from July 1, 2012 to December 31, 2026.
- For pensionable service from January 1, 2027.
The rules that may apply to you depend on the age you choose to retire and when you worked and contributed to the Plan, i.e. your pensionable service‡, as follows:
1. For pensionable service accumulated before July 1, 2012The permanent early retirement reduction is 3% per year* that your pension starts prior to age 60. No reduction applies if you begin drawing your pension after you turn age 60 for this period of service.
| Age | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 |
| Reduction | 15% | 12% | 9% | 6% | 3% | 0% | 0% | 0% | 0% | 0% | 0% |
*3/12% for each month prior to age 60
The permanent early retirement reduction is 5% per year** that your pension starts prior to age 65. No reduction applies if you begin drawing your pension after you turn age 65 for this period of service.
| Age | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 |
| Reduction | 50% | 45% | 40% | 35% | 30% | 25% | 20% | 15% | 10% | 5% | 0% |
** 5/12% for each month prior to age 65
The permanent early retirement reduction will be 5%*** per year that your pension starts prior to age 62. No reduction will apply if you begin drawing your pension after you turn age 62.
| Age | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 |
| Reduction | 35% | 30% | 25% | 20% | 15% | 10% | 5% | 0% | 0% | 0% | 0% |
***5/12% for each month prior to age 62
To support this benefit improvement for members, employer and member pension contribution rates will increase effective the first full pay period in January 2027. The increase will be made up of two components:
- A permanent increase of 0.8% of pensionable earnings for both members and employers to fund the enhanced benefits
- A temporary increase of 0.15% of pensionable earnings for both members and employers that will remain in place for 15 years to help ensure the CBE Pension Plan’s risk management goals are not adversely affected by the benefit improvement.
As a result, member and employer contribution rates will increase from 7.8% to 8.75% of pensionable earnings effective January 1, 2027. Effective January 1, 2042, the temporary 0.15% increase will end, and contribution rates will decrease to 8.6% for both members and employers.