Over the last two decades, various federal governments have attacked public sector workers’ pensions, reducing benefits for newer workers or raiding surpluses to fill financial gaps. Public sector pensions are paid for through equal contributions by the employer and workers to provide a comfortable retirement to those who have provided quality service to Canadians – they should be fair and equal to all employees and should never be used as a slush fund to compensate for the employer’s poor management of public finances.
Stephen Harper’s Conservative government created an inequitable system by introducing a two-tier pension plan. Under the tier two plan, which covers all workers who joined the federal public sector on or after January 1, 2013, employees must work an additional five years before being eligible to retire compared to those who belong to the tier one group – or those who began contributing by December 31, 2012.
Tier two pensions are invested in the market, making them more volatile and subject to fluctuations. In November 2024, the Treasury Board announced that the tier two pension plan had a surplus above the legal threshold, and this money would be placed in the government’s central account. All surplus funds were built with the hard-earned contributions of public sector employees who deserve fairness and stability.
Public pensions are sacred and any attempt to reduce or alter this critical employment benefit in ways detrimental to workers will always be met with strong opposition. CAPE is committed to fighting for workers’ pensions and to ensuring they get an equal say in how their money is spent.
Updates
December 5, 2024 - Join the Fight for Pension Fairness – Joint Union Campaign
November 29, 2024 –CAPE is urging Treasury Board to ensure $1.9B public pension surplus benefits federal workers
Resources
Protect public sector pensions – write to your member of Parliament!
Public Service Pension Plan – Government of Canada
Statement by Minister Anand on intention to address a surplus in the public service pension fund
