Union members who helped elect Liberals now fear pension reductions
A major federal public-sector union is warning that the Liberal government, which many public servants supported at the ballot box, may now be preparing to scale back their pension benefits.
A major federal public-sector union is warning that the Liberal government, which many public servants supported at the ballot box, may now be preparing to scale back their pension benefits.
In a November 19 statement, the Public Service Alliance of Canada voiced concern that Budget 2025 contains language suggesting federal workers are “overcontributing” to their pension plans and that the budget proposes “correcting” the issue. PSAC says the wording hints at an attempt to reduce the value of federal pensions to offset recent CPP and QPP adjustments — a move the union calls “unacceptable.”
An anonymous employee at the Canada Revenue Agency, speaking as a whistleblower, voiced frustration to True North over the situation.
“I want Canadians to know that public servants are not government officials, and that the government takes advantage of everyone they possibly can,” the employee said.
The union’s warning comes after last year’s decision by the Liberal government to transfer $1.9 billion from the Public Service Pension Plan into general revenues — a move unions said undermined workers’ retirement security.“
“Pensions are a core part of our members’ compensation — paid for and earned over a lifetime of service,” PSAC said in its statement.
It added that any change to pension benefits must be transparent and handled at the bargaining table, not embedded in a budget as an accounting measure.
PSAC is demanding immediate clarification on the intent and impact of the pension language in Budget 2025, and is calling on the Carney government to strengthen—rather than weaken—the retirement security of federal workers.
The union says it will update members as more information becomes available.
You would think they would care about the economic ruin and job losses but then again, they are Marxists.
Twenty-Five year finance guy here. I've reviewed dozens of pension plans in my career
This is much ado about nothing.
Pension pools are managed by actuaries who determine their long-term viability by reviewing the liabilities (pension obligations) against the rate of contributions and the amount of money in the pool to make recommendations.
The federal gov't makes contributions to the pool and when the pool falls short, the government has to cough up. Likewise, when the pool exceeds the need of members, the plan sponsor is entitled to peel off overcontributions.