And the province says it accepts that decision and will go along with the commission's recommendations.

The government argued for smaller pay raises than what judges wanted during a hearing last year and made a case for putting their pensions under the province's shared-risk system.

The judges responded that the government's reasoning was flawed, didn't account for inflation and would jeopardize their independence.

The commission agreed with the provincial court judges that their salaries should remain linked by a formula to the salaries of Court of King's Bench justices, who are paid by the federal government.

"We are of the view that linkage of the salaries creates certainty for all involved," the report says.

     A Justice Department spokesperson said the province would comply with all eight of the commission's recommendations. (Shutterstock)

"Linkage assists in fostering respect for the commission process. Linkage avoids litigation and subsequent allegations of unfairness and bad faith."

Justice department spokesperson Geoffrey Downey said the province would comply with the recommendations.

"The commission's report has been received and reviewed by the department, and all eight recommendations were approved," he said.

The report was tabled at the legislature April 11.

Province wanted salaries tied to N.B civil servants

Under provincial law, a commission is appointed every four years to make decisions on the salaries and pensions.

That is because of the principle that the salaries of judges shouldn't be set by the province, which prosecutes criminal cases that the judges hear.

As of April 1, the commission estimates King's Bench judges would be earning $381,505. Provincial court judge salaries, indexed at 80 per cent of that amount, would be $305,204.

The commission heard arguments from the province and the Provincial Court Judges Association last year.

The province tried to argue that salaries should be "de-linked" from the King's Bench salaries and indexed to those of civil servants because of "continued challenges in restoring balance to New Brunswick's finances."

That would have meant increases of two per cent per year for four years, starting in 2020.

But the judges argued that the economy was bouncing back stronger than ever after a major pandemic slowdown in 2020. 

The province had a surplus of $408.5 million in 2020-21 and was projecting a surplus of $487.8 million for 2021-222 at the time the commission was hearing arguments.

And with inflation estimated at 17.4 per cent over the four-year mandate of the commission, the province's proposal would amount to "a substantial reduction in real salary."

The commission agreed with that. 

Pension reforms also rejected

On pensions, the commission rejected the province's arguments for incorporating the judges into the shared-risk plan, in which the majority of public-sector employees are enrolled.

The government argued the existing plan was costly, with taxpayers contributing $5.77 for every dollar from a judge. 

But the judges said it would put their pensions under the control of the board of Vestcor, the provincial pension management corporation, which has a board made up of provincial and union representatives.

"This would create the untenable perception and the real risk that judges would be vulnerable to economic manipulation from both the government and the largest unions in the province," the report says, citing the association.

The commission agreed.