Workers and employer contribute to the pension fund, why does only the boss get a break? 

Research performed by the Public Service Alliance of Canada has revealed that the government’s actuaries anticipate a large surplus in the Public Service Pension Plan, a fund contributed to by both the federal government and public service workers. The research also shows the government plans to suspend employer contributions and remove $7.4 billion from the Public Service Pension Plan.  

Earlier this week, the Chief Actuary of Canada’s reports on the Public Service Pension Plan were tabled in Parliament as justification for moving $1.9 billion of non-permitted surplus to the government’s bank accounts. The government commissioned and tabled an unusual additional report that shows the intention to use this anticipated surplus to benefit only government coffers. Yet, when questioned on Monday, Treasury Board omitted any reference to a contribution holiday or additional surplus.  

“Workers and employer contribute together to this fund, so why should only the boss get a break? This is about fairness plain and simple,” declared Sharon DeSousa PSAC National President. “The government flat out lied to us. No wonder, it turns out the biggest holiday present the government is giving this year is to itself.”  

DeSousa explained that pension contributions are supposed to ensure federal workers can retire in security and dignity, not give a financial windfall to the federal government.  

“The decision by the government to put itself ahead of workers is wrong. They’re suspending employer contributions to the plan but not investing in fairer pensions or a contribution break for workers. That is a betrayal, " said DeSousa. "This is a disappointment but not a surprise. Whether it’s the Phoenix pay debacle, arbitrary telework edicts, or now this raid of the public service pension fund, our members are fed up with the government's blatant disrespect and failure to honor its promises of consultation.” 

PSAC is demanding the government invest the surplus in pension fairness for public service workers by suspending employee contributions and fixing the unfair, two-tier pension system brought in by the last Conservative government.  

“The government could have given much-needed financial relief to some of the lowest paid workers in the federal government and made a fairer pension system in a revenue-neutral way, at no cost at all to taxpayers,” explained DeSousa. “The question is, why didn’t they?” 

DeSousa added that thousands of frontline public safety and law enforcement workers across the country are also still waiting for the government to fulfill their promise to table pension reform legislation and deliver equitable retirement benefits to frontline workers who put themselves on the line for the rest of us.  

“I spoke with the Prime Minister earlier this week. He must do right by these workers.” said DeSousa. “It’s not too late.”