The President of the Treasury Board, Anita Anand, has accused the Public Service Alliance of Canada (PSAC) of spreading “misleading information” about a $1.9 billion pension surplus. Anand spoke to reporters in Ottawa and said claims that the government is “stealing the pensions from public servants” are not true. At the end of November, it was reported that the Public Service Pension Fund had a $1.9 billion “non-permitted surplus” as of March 31, 2024.
The fund’s total assets were valued at $186 billion. The Public Service Superannuation Act says that these surpluses must be moved to the Consolidated Revenue Fund. PSAC started a “Stop Pension Theft” campaign in response, saying the government plans to take $9.3 billion from the pension plan.
Anand denied these claims. She said moving the extra funds follows the law and the government still guarantees the pension. She emphasized that PSAC’s statements are part of a misinformation campaign and asked the union to fix its story.
PSAC argues that the government’s actions are not fair, especially since workers and the government both pay equally into the pension fund. Union President Sharon DeSousa said workers are angry and feel betrayed by the government’s choice to take the surplus without talking to them first. Anand sent an open letter to DeSousa in response.
She explained that the union’s claim of a $9 billion surplus is not right because it is based on estimates, not real numbers. She repeated that moving the non-permitted surplus does not affect current or future pension benefits for retired public servants. The National Association of Federal Retirees is worried about how the federal government is handling non-permitted surplus funds.
This has led to $1.9 billion being moved into government accounts.
Anand disputes PSAC’s pension claims
There is also a chance that an extra $9.3 billion could be taken from pension funds.
This money is the delayed pay of retirees and employees. Current laws let the government take a contribution holiday without giving equal benefits to contributors. However, the Association thinks more fair options should be looked at.
Retirees and employees have given a lot to their pension plans and the overall stability of the pension system. They deserve to be treated fairly and with respect when it comes to how surplus funds are given out. “It is our position that surplus funds be reinvested in initiatives that benefit those who helped generate them, particularly retirees – starting with improving the Pensioners Dental Services Plan,” said Anthony Pizzino, CEO of the National Association of Federal Retirees.
The Pensioners Dental Services Plan (PDSP) has not been updated in over twenty years. It is now very different from current employee plans and the rising costs of dental care. The association has asked the minister to give retirees the same plan on a cost-share basis.
This issue is especially important for retirees facing ongoing affordability challenges. This situation shows how important it is to keep strong defined benefit pensions. A recent Canadian Centre for Policy Alternatives (CCPA) study emphasized this.
Defined benefit pensions play a key role in the economic well-being of communities across Canada. The National Association of Federal Retirees continues to fight for the rights and interests of retirees. They want to make sure retirees are recognized and valued in our nation’s decision-making processes.
