The president of the Treasury Board has accused the federal public servants union of providing “misleading information” to its members after the public employee pension fund posted an unauthorized $1.9 billion surplus.
“It’s completely inaccurate to say that as a government we’re stealing pensions from public servants,” Anita Anand told reporters in Ottawa on Monday.
Anand announced in late November that the pension fund had recorded an “unauthorized surplus” of $1.9 billion as of March 31, 2024. The total actuarial assets of the Public Employees’ Pension Fund are $186 billion.
Mr. Anand said that as defined in the Public Employees Superannuation Act, the government will transfer the disallowed surplus to the Consolidated Revenue Department and “it will be kept in custody till further action is considered”.
Last week, the Public Service Alliance of Canada (PSAC) launched a “National Pension Campaign” called “Stop Pension Theft,” calling on the Trudeau government to “respect workers and keep pensions out of the way.” Ta.
“The Liberal government’s plan to take $9.3 billion from the federal Public Service Pension Plan is a betrayal of Canadian workers,” PSAC said on its website. “This reckless decision jeopardizes the retirement security of more than 700,000 federal employees.”
Anand told reporters at a press conference in Kanata on Monday that this was “part of the misinformation that PSAC is spreading.”
“In particular, it relates to unauthorized surpluses and unauthorized use of surpluses, and we would like to emphasize the important role played by democratic institutions such as PSAC in sharing accurate and authentic information.” said Mr. Anand. “Unauthorized surplus must be transferred under the law, and as a result of the law and the government pension system exceeding the amount specified in the law, we are required to transfer it. We’ve transferred it to the Consolidated Revenue Fund, and we’ll use that $1.9 billion to figure out our next steps.”
Anand said the federal government would “engage with all stakeholders” as it considers next steps.
Under the Public Employees’ Pensions Act, the assets of a registered pension scheme cannot exceed its liabilities by 25%, according to the Treasury Board’s website.
“In situations of unauthorized surpluses, the government must take steps to bring the surplus below the threshold.” Canada’s Consolidated Revenue Fund is for tax and revenue purposes, and the funds are used to cover the costs of public services. It will be taken out.
Anand points out that if there is a shortfall in the public employee pension fund, the federal government will have to fill it.
“We hope PSAC takes time to correct the misleading information being shared with its members about the Public Service Pension Plan, which is fully guaranteed by the Government of Canada on behalf of Canadian taxpayers,” Anand said. said.
The PSAC camp claims the federal government will “take $9.3 billion” from federal public service programs.
“This is a betrayal of trust,” Sharon D’Souza, national president of the Canadian Public Service Alliance, said in a statement. Meanwhile, the government is taking a break.” I was forced to carry a heavy burden. ”
The union said on its website that the Liberal government “plans to take $1.9 billion from pension surpluses and suspend $7.4 billion in government contributions, without consultation or transparency.”
DeSouza told CTV News Ottawa Anand had a choice.
“I think the Minister is misinforming the public about the decision-making process and the Minister’s capabilities. “The law requires the Minister to take action on what will happen to the pension system, and it is in the Minister’s interest to do so. “There are a variety of options available to workers that would have been available to them,” she said.
“The law allows you to receive the full amount of your surplus, but it’s a question of fairness, really. If you’re paying 50 per cent into a pension scheme, shouldn’t you look at your remuneration as well? ? And I can tell you, our members are angry that the government is doing this on their own. They have other options.
“Labor has continued to mislead Canadians into believing that unauthorized surpluses exceed $9 billion. This is false,” Anand wrote in an open letter to DeSouza on Monday. ” he said.
“The actuarial report provides the chief actuary’s best estimate and the minimum legal minimum under section 147.2(2)(d) of the Income Tax Act and section 44.4(1) of the Public Service Act. It is a prediction of what will happen based on the requirements of the Superannuation Act,” Anand wrote.
“These projections do not reflect any intentional or pre-determined government decisions about how to manage future unauthorized surpluses.”
Even with unauthorized surpluses or deficiencies, Anand said, “plan members still have guaranteed and predictable income in retirement.”
“Despite these facts, unions are misleading their members into thinking that their pensions are at risk and that the government is taking pension funds away from employees. “We would like to reiterate that it is wrong to transfer unfunded surpluses to unions,” Anand said in the letter. .
The finance chair also said the union’s suggestion that the government suspend contributions for the next four years was “wrong”.
PSAC called for “fair and reasonable solutions” to address the pension surplus, including suspending employee contributions and reversing the “two-tier scheme” introduced in 2012. He said he is proposing. The previous Conservative government made changes to the pension system, making it compulsory for people hired after 2013. Wait to retire until age 60.
–With files from Caitlin Wilson of CTV News Ottawa
