The announcement of a multi-billion-dollar surplus in the federal public service pension plan represented a once-in-a-generation opportunity to invest in the future of Canada’s public service and right the wrongs of the Harper era.

The report, written by the independent Chief Actuary of Canada and tabled by Treasury Board President Anita Anand on November 25, confirmed a $1.9 billion surplus in the Public Service Pension Plan (PSPP) that exceeds the allowable surplus under the legislation governing the plan. The government is moving these funds into the Consolidated Revenue Fund.

PSAC is disappointed the government failed workers by not using the surplus to reverse the unfair two-tier pension system introduced by the Harper Conservatives in 2012. Under the Harper changes, federal workers who started their jobs on or after January 1, 2013 must work five years longer to reach full retirement. This inequality is fundamentally unjust.  

“Federal workers built this pension surplus through their own hard-earned contributions, and taking these funds is a betrayal of their trust,” said Sharon DeSousa, PSAC National President. “It also sets a dangerous precedent for all Canadian employers who may now be eying the pension contributions of other public sector workers.”

These contributions are intended to secure the long-term retirement security of federal employees. The decision to redirect these funds into general government revenues, rather than investing in workers' pensions, undermines the stability of the public service pension plan and sets a dangerous precedent for all workers.

PSAC presented a cost-neutral proposal to the government more than six months ago to divert a portion of the total surplus – to reverse the Harper-era attack on pensions.

“We have already presented the government with a responsible plan for this surplus that comes at no cost to Canadian taxpayers and would reverse Harper’s inequitable pension system,” said DeSousa. “Our members are tired of the government’s broken promises of consultation – from Phoenix to telework – and now workers will have to wait even longer for pension fairness.”

“A two-tier pension system is inherently unfair, especially for racialized, Black, Indigenous and young workers who make up the majority of recent hires – the same workers this government has committed to supporting and recruiting into the public service,” said DeSousa. “If the government is serious about equity and inclusion, we need fair retirement benefits for everyone."

PSAC will oppose any attempts to unilaterally allocate these funds. We look forward to analyzing the Chief Actuary’s report in depth and expect to work closely with the government on a plan that ensures genuine consultation with public sector unions and that allocates the surplus towards pension fairness for our members.