The Public Service Superannuation Plan

I would like to take this opportunity to set a few things straight in light of an erroneous comment by Mr. Jury regarding the Public Service Superannuation Plan.

In his editorial last July 12, he wrote that the government paid $30 billion out to 45,000 public servants to encourage them to take an early retirement.  This would amount to $666,666 for each retired public servant.  This is a false and totally frivolous remark.  The $30 billion was transferred directly to the Consolidated Revenue Fund of Canada, not into the pockets of employees.

Mr. Jury maintains that the unions agreed that the government would take $30 billion from the employees’ superannuation fund.  He is no doubt unaware that the unions took legal action six years ago to contest the federal government’s arbitrary withdrawal of the surplus from the Public Service Superannuation Plan and two other federal pension plans.  The trial before the Superior Court of Ontario is scheduled to begin on November 15, 2005.

He also stated that federal employees pay less into their pension plans than do other Canadians.  Just for reference, I would like to remind him of an example where members of the Canadian Automobile Workers and the Steelworkers Unions do not contribute to their pension plans.  Their employers cover the full cost.

In closing, one must bear in mind the fact statistics clearly show that there is an increasing number of elderly people living in poverty.  Healthy pension plans contribute to the economic security of retirees.

Nycole Turmel,

National President

Public Service Alliance of Canada