Government to Address Surplus in Public Service Pension Fund

The Government of Canada has announced plans to address a surplus in the public service pension fund. According to a statement by Anita Anand, President of the Treasury Board, the public service pension plan is currently in a surplus position of approximately $1.9 billion as of March 31, 2024. This surplus exceeds the limit set by the Public Service Superannuation Act, which mandates that a pension plan's assets cannot exceed its liabilities by more than 25%.

To comply with this regulation, the government intends to transfer the surplus to the Consolidated Revenue Fund. This transfer will eliminate the non-permitted surplus in the pension plan. Discussions with stakeholders will continue as the government considers next steps.

The public service pension plan provides retirement income to federal public servants, with benefits based on salary, service, age, and termination reason. Both the employer and active members contribute to the plan. The government assures that the plan remains well-managed and sustainable, ensuring continued benefits for its members.