Government Raids Workers' Pension Plan Despite $32 Billion Surplus

OTTAWA, ON, Nov. 26, 2024 /CNW/ - The Professional Institute of the Public Service of Canada (PIPSC) strongly opposes the government's decision to transfer $1.9 billion which exceeds the allowable surplus from the Public Service Pension Plan (PSPP) to its general revenue, a move that ignores workers' equal contributions to the plan at a time when many face layoff notices.

"This isn't just free money plucked from Santa's sleigh. This is our members' money, their deferred salaries," said Jennifer Carr, President of PIPSC. "Federal workers contribute 50% of the money that goes into the pension fund, yet are receiving 0% of this added surplus."

The actuarial report tabled by Treasury Board President Anita Anand on November 25 confirms the strength of the pension plan, showing exceptional investment returns of 18.4% in 2021 and 10.9% in 2022. These returns, combined with our members' contributions, helped build this surplus.

"Imagine a bank telling a Canadian that, even though their investments did exceptionally well, the bank is going to take the profits," continued Carr. "It sounds almost criminal."

PIPSC has consistently advocated for better ways to manage this surplus that would benefit both the government and members. A contribution holiday for both employer and employees would provide immediate relief. Targeted improvements to the pension plan would ensure long-term sustainability and demonstrate genuine respect for public service workers' contributions to Canada.

Instead, the government instead wants to use workers' contributions to pay for its poor decisions–like wasteful outsourcing and the billion dollar Phoenix boondoggle. This should concern not just the workforce, but the public.

"While the government talks about stakeholder consultation, it made this decision unilaterally – again," added Jennifer Carr. "In a pension plan where employees and employers contribute equally, employees should equally be considered in the decision making."

PIPSC is calling on the government to pause this transfer and engage in meaningful consultation with unions. Any solution must reflect employees' 50% contribution to the plan.

"If our members' pension contributions can help solve the government's fiscal challenges, those same funds should be used to protect their jobs," said Jennifer Carr. "'A well-managed and sustainable fund' should mean fair treatment of contributors, not just financial metrics."

The Professional Institute of the Public Service of Canada represents over 75,000 public service professionals across Canada, including scientists and researchers, engineers, and health care workers. Follow us on Facebook, on X (formerly known as Twitter) and on Instagram.                                                         

SOURCE Professional Institute of the Public Service of Canada (PIPSC)

For more information: Johanne Fillion, 613-883-4900 (mobile), [email protected]