The president of Canada’s largest federal public sector union says she’s “disappointed” in the government for again moving a large surplus out of the Public Service Pension Fund into a central bank account. Read MoreTotal of $2.8 billion in surplus to sit in central bank account while next steps are considered, Treasury Board says.
Total of $2.8 billion in surplus to sit in central bank account while next steps are considered, Treasury Board says.
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The president of Canada’s largest federal public sector union says she’s “disappointed” in the government for again moving a large surplus out of the Public Service Pension Fund into a central bank account.
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“Our position has always been that any public service pension surplus should be invested back into the workers who’ve contributed to the plan their entire careers,” said Sharon DeSousa, national president of the Public Service Alliance of Canada (PSAC).
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Treasury Board President Shafqat Ali announced Thursday the government was redirecting into the Consolidated Revenue Fund a surplus of around $900 million, which it is required by law to address.
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The Consolidated Revenue Fund is an account where the federal government deposits taxes and revenues, from which it can withdraw money to cover public expenses, according to the Treasury Board.
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The transfer announced this week followed a similar transfer of $1.9 billion around this time last year.
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The total surplus now sits at $2.8 billion. It will remain in the central bank account “while next steps are considered,” Ali said in a statement.
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The government is required by law to address what’s called a “non-permitted surplus,” which occurs when assets in the pension fund grow past a certain level.
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Under the law, the Treasury Board may pause contributions or pay the excess into the Consolidated Revenue Fund.
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But public service unions have accused the government of using the surplus as a “piggy bank” to fund its operations.
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“We’re disappointed to see the government has once again pocketed the hard-earned pension contributions of federal public service workers,” DeSousa said in a statement.
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PSAC has maintained that the money should be used to reverse a two-tier pension system created in 2012 under then-prime minister Stephen Harper. Those changes pushed back the retirement age for public servants who joined the federal bureaucracy in 2013 and onwards.
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DeSousa said Friday the money could also be used to “integrate the Early Retirement Initiative into the existing Workforce Adjustment process negotiated by unions.”
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Both the government and public servants contribute to the Public Service Pension Fund and worker benefits are fully guaranteed.
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