When will the B.C. government pay out pensioners?
The B.A.C.’s chief financial officer, Mark Williams, said in a statement Tuesday that he expects the province will issue $8.8 billion in cash and assets, including the BCS pension fund and the BC Liberal Party’s Pension Plan for Employees.
“We expect the province to issue more than $5 billion in long-term debt in the next fiscal year, which is when BC’s financial system is expected to be in better shape than at the time of the election,” Williams said.
Williams said that B.F.C., which has long been under the microscope as a result of its debt-for-equity scandal, is expected “to generate substantial cash flows over the next several years as it refocuses on a diversified strategy of growth and asset diversification.”
The B.D.C.-based Pension Plan, which the BMOs chief executive, Michael Milken, and his chief financial officers have helped craft, is set to begin taking payments in early 2017, after which the province expects to see “significant” cash flows.
Williams also said that the BCH, the provincial public pension plan, is likely to receive the most money, with the BCTA receiving the least.
The BCH’s $7.8-billion shortfall over the last three years is expected by some analysts to balloon to $18 billion by 2019.
Williams called on the BPSC and the BACC to increase the amount of cash the BCLC and BCS pay out over the coming years.
Williams noted that the current BCLCs debt is $1.9 billion and $2.3 billion, while the BCA has $1 billion in debt.
“In addition, it is important to note that the debt levels of both the BCP and BCD are expected to continue to rise over the foreseeable future, which will increase the costs of paying out payments to the BCLA and BCLA,” he said.
“It is important that we continue to maintain a clear focus on financial sustainability in order to ensure that the public service has the resources it needs to continue investing in the health of the Banc of British Columbia.”
Williams also pointed out that the provincial government has already announced $2 billion in cuts to the province’s public service, which he said could result in layoffs.
He said he expected the province would continue to invest in the public sector in a “fiscally responsible way” through investments in education and the economy, including a plan to cut the province back to its pre-election levels.
Williams did not mention the $3.8 million in new cash announced by the province on Monday.
He did say that BCLF President and CEO Scott Belsky is scheduled to deliver a presentation Tuesday on the “fiscal trajectory of the province” and the province as a whole.
The government’s fiscal update will be presented at the BSCF annual meeting on Wednesday.