The public service pension plan posts a surplus of $1.9 billion

The federal public service pension plan shows a surplus of $1.9 billion, according to a report presented by Treasury Board President Anita Anand on Monday.

In a press release, the Office of the President of the Treasury Board indicated that the government intended to transfer this unauthorized surplus to the Treasury, where it will be held until next steps are considered.

As we assess the situation and next steps, we will continue to engage with key stakeholdersadds the Treasury Board.

At the Treasury Board Office, it is explained that all registered pension plans in Canada must respect the provisions of the Income Tax Act regarding the limit on the amount of surplus that they can accumulate, including that of federal officials.

The Government of Canada is committed to providing public servants with a well-managed, sustainable pension plan fully guaranteed by the Government of Canadaensures the office of the President of the Treasury Board.

The Public Service Alliance of Canada (PSAC) deplores the fact that the surplus is not used to redress the inequalities caused during the Harper era.

The civil servants’ union refers in particular to what it calls the two-tier regime imposed by the conservatives which stipulates that a civil servant who joined the pension scheme after 1^is January 2013 must work five years more than his predecessor to be entitled to full retirement.

A situation unfairdeplores a union

L’AFPC describes the situation as fundamentally unfair.

It is racialized, black, indigenous workers and young people who are penalized the most because they form the majority of recent hires. These are the same marginalized groups that the government is committed to recruiting and supportingunderlines Sharon DeSousa, national president of theAFPCin a press release sent Monday at the end of the day.

With this transfer of surpluses to the Treasury, the union is talking about a breach of trust.

The surplus was accumulated thanks to the contributions of honest workers. […] It is […] a dangerous precedent for other employers who would like to grab their staff’s pension fundsworries the national president of theAFPC.

Both employees and the employer contribute to the public service pension plan by making contributions.

With information from Estelle Côté-Sroka