Why is the federal government reviewing the structure of the public service pension plan?
The federal government is currently looking for ways to help pay down Canada’s huge budget deficit, a consequence of the economic stimulus package that was introduced in an effort to deal with the international economic downturn. It is also trying to reduce the public service’s retirement rate in order to address its serious recruitment and retention problem. What legal framework governs the pension plan for federal employees? The pension plan that applies to PIPSC members exists under the Public Service Superannuation Act (PSSA) of 1954, which was most recently amended in 1999. That year, the Public Service Pension Investment Board was created to invest federal pension contributions and ensure that there would be sufficient funds available in the future to cover the government’s obligations to its retirees. What’s the problem? In 2008-2009 the Public Service Pension Investment Board took a financial hit on its investment portfolio, whose value plummeted from $38.97 billion in 2008 to
