Hands off our pensions
October 19, 2012
Pension changes an attack on the next generation of public service workers
Yesterday the government crammed through Bill C-45, incorporating hundreds of pages of major legislative changes that Canadians have not been consulted on.
This government knows it would lose public support if each of these initiatives were opened up to public scrutiny and debate.
These amendments unilaterally alter public sector pension plans and include increasing the normal retirement age from 60 to 65 for new hires beginning in 2013.
Another change in the bill is that now, public service workers are going to be paying 50% of the contributions to the public service pension plan. Like all responsible employers, the federal government will also pay 50%.
PSAC opposes this bill because it is an attack on younger generations who make up the majority of new hires in the public service. The increase in the retirement age will generate a two tier system, creating inequities between young and older workers in the public service, forcing younger workers to retire at an older age.
Anyone who looks at the numbers can see that the public service pension plan is sustainable and there is no reason to penalize young workers.
These changes are also an attack on lower paid workers in the public service. With wage increases very low or stagnant, public service workers will take a big hit with this increase. For a public service worker earning $45,000 a year, it represents a pay cut of about $1,260 a year.
The average annual pension received by retired federal public sector workers in 2011 was $25,991.
We call on the government to focus on strengthening pensions for all Canadians instead of weakening pension plans and retirement security for Canadians dedicated to public service.
Date Modified : 2012/10/19
