PSAC Pension Fightback Campaign

Federal government continues to slow down Pension Surplus court challenge

November 23, 2001

An update on the federal public service superannuation plan

On November 8, 1999, the PSAC filed in the Ontario Superior Court of Justice, a Statement of Claim against the federal government that the rights of public sector workers were violated when Bill C-78 – Public Sector Pension Investment Act – was passed by Parliament. In the Statement (read the summary) the PSAC maintained that, by passing legislation to appropriate the $30-billion surplus, the government acted in violation of its legal obligation to ensure that the surplus is used for the best interest of public sector workers and retirees.

First the Attorney-General challenged the filing of the Pension Surplus case in the Ontario Supreme Court of Justice. That was dismissed and Leave to Appeal was denied. Then the A.G. challenged the naming of the bargaining agents as plaintiffs as well as those agents being represented by more than one Claim.

The latter case was heard on July 3, 2000 and in a decision released September 25, the Motion was allowed with respect to naming the bargaining agents on the Claim and dismissed on the request the bargaining agents’ Claims become one.

While irritating from a procedural perspective, this decision has no impact on the ongoing claim. The PSAC will be removed as a party from the Claim but the case is going forward in PSAC National President Nycole Turmel’s name, as well as Sister Susan Giampietri (former PSAC Ontario Regional Executive Vice-President) and Brother Daryl Bean (former PSAC National President).

The PSAC filed its appeal of the September 25 decision on October 4. If the PSAC succeeds on appeal, it will simply be added once again to the Claim. Currently, the PSAC is assembling its Affidavit of Documents detailing the history of the pension plan and its link to the wages of employees. Once completed, a date for Discovery will be requested.