The status of Bill C-78 - Pension Legislation

Bill C-78 - Public Sector Pension Investment Board Act amending the Public Service Superannuation Act, the Canadian Forces Superannuation Act, the Royal Canadian Mounted Police Superannuation Act, the Defence Services Pension Continuation Act, the Royal Canadian Mounted Police Pension continuation Act, the Members of Parliament Retiring allowance Act and the Canada Post Corporation Act.

C-78 denies unions and pensioners joint management of the plan and gives the government sole control with an unfettered right to the existing $30-billion surplus in the plan as well as any future surpluses.

On June 15 the Senate Committee recommended: joint management of the plan; the disposition of future surplus; the pension plan(s) for Canada Post and the initiation of a Parliamentary Review of the operation of the proposed Public Sector Pension Investment Board joint management.

Subsequently, on June 18, Public Service Alliance of Canada National President Daryl Bean wrote to the then President of the Treasury Board, Marcel Massé, requesting a meeting. Also sent Chairperson of the Senate Committee, Michael Kirby, a letter confirming the request.

June 25 - Treasury Board President Massé informs the head of the National Joint Council that while he remains open to the resumption of discussions with a view to reaching agreement on a joint management framework as was proposed to, and accepted by the Consultation Committee in December, 1998, "the issue of the disposition of the existing surplus is not open for further discussion".

July 14 - the vice-chairperson of the Senate Committee, David Tkachuk, wrote to the Treasury Board President requesting the government’s draft amendments before the committee’s hearings on August 23. He also stated that the committee strongly believes that the government "has no moral right to the surplus without negotiating with the parties involved".

July 30 - PSAC President Bean writes the Treasury Board President stating that "since the Senate Committee is scheduled to meet August 23 and 24 … I believe that it is incumbent upon us to meet, and meet quickly. Such meeting should take place without precondition, and with all parties free to put any of the issues addressed in the Senate Committee report on the table for discussion and hopeful resolution".

August 3 - in a letter to the new Treasury Board President Lucienne Robillard, Bean says that while her predecessor and his union have exchanged correspondence on the pension issue, "no meetings of the Consultative Committee have been convened by the Treasury Board". He reiterated his statement to her predecessor that "it is incumbent upon us to meet and meet quickly".

August 13 - no response to date from the new Treasury Board President.

While the unions and pensioners have asked for meetings, none have occurred. The Senate Committee is scheduled to meet August 23 and 24 to consider Bill C-78, once again, and review progress the parties have made.

Bill C-78 was introduced in Parliament on April 15, 1999 for first reading. It went to second reading April 22. Time limits were announced on April 23 and invoked April 26. Sent to the National Resources and Government Operations Committee for limited hearings on April 27. The Committee made its report to Parliament Tuesday, May 11. Parliament debated the report and any amendments on Tuesday May 11, and Thursday May 13. Passed to the Senate on May 31, where it was dealt with by the Senate Committee on Banking, Trade and Commerce. They issued their report on June 15^th. On June 17, the Senate voted 41 to 38 to delay the final vote until September, based on the Committee’s recommendations.

The Senate recommended that the government negotiate with the unions, other affected groups and the pensioners to deal with the recommendations made by the Senate Banking Committee.

On Feb. 27, 1998, Treasury Board President Massé announced that a consultative process would begin to seek agreement on a framework for the future management of the public service pension plans. As a result the Consultative Committee on Public Service Pension Reform was created. Members included representatives of the employer, plan members’ representatives named by the National Joint Council (NJC), and a representative of pensioners. The Consultative Committee met from February 1998 until December 10, 1998, at which time negotiations broke down and Treasury Board announced it would act unilaterally. The disposal of the surplus was the only issue still in dispute.