FSNA reacts to Minister Flaherty's announcement on pension reform
Press Release – Ottawa (Marketwire – October 29, 2009) – FSNA, operating as the National Association of Federal Retirees, is pleased to hear that the Government of Canada is taking action to strengthen the pension framework and enhance benefit security for some workers and retirees. FSNA made its concerns known as one of the key witnesses during the pan Canadian public consultation process on the regulatory framework for private pension plans.
Most of the measures announced on Tuesday by The Honourable Jim Flaherty, Minister of Finance, however, are related only to the 7% of pension plans which are federally regulated. The legislative and regulatory changes proposed by the Minister of Finance will not address the pension and retirement income issues that the large majority of Canadians face. In particular, these measures will not affect the situations of the 11 million working Canadians who are not covered by a company pension plan.
The report of the federal/provincial/territorial Research Working Group on Retirement Income Adequacy, which is due in December, will provide an unprecedented opportunity for first ministers to address the issue of adequate and secure retirement income for the vast majority of Canadians.
FSNA looks forward to further federal and provincial legislation that will improve the situations of present and future retirees. FSNA will be especially interested to see legislation that will enhance the effectiveness and resilience of the CPP while ensuring it remains affordable and fair for future generations.
About FSNA
FSNA is the largest and most influential advocacy group for federal retirees. As a not-for-profit association with more than 165,000 members, FSNA is recognized by the Government of Canada as the major representative of pensioners – and their partners, and survivors – from the Public Service, Canadian Forces and the Royal Canadian Mounted Police and of retired federally appointed judges. FSNA’s mission is focused on protecting the interests and improving the benefits of pensioners.
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For further information:
Sylvia Ceacero
FSNA Executive Director
T: 613 745-2559 ext. 231
F: 613 745 5457
sceacero@fsna.com
www.fsna.com
December 30th, 2009 at 2:42 pm
on the business news is a posting stating that federal pensions may be reduced,news apparently supplied by the globe and mail??Any truth in this??
J.wolf
December 30th, 2009 at 2:43 pm
is this a rumor??
December 30th, 2009 at 2:44 pm
is there a truth in this comment??
January 4th, 2010 at 2:24 pm
There will be more tinkering with our pensions.Perhaps the most important factor is that MP’s pensions are more attractive than those of public servants.
Good reason for FSNA to be vigilant.
Fred Zeggil Winnipeg
January 4th, 2010 at 5:18 pm
Here is the only truth that I know (taken from the Globe and Mail) regarding contemplated changes to the federal public service pension plan (in a nutshell, it would consist of no longer allowing to new public servants the payment of unreduced pensions if the active member is at least 55 years of age AND has at least 30 years of service):
Daniel Leblanc and Bill Curry of the Globe and Mail report that Ottawa targets public service pension plan for cutbacks
http://www.theglobeandmail.com/news/politics/ottawa-targets-public-service-pension-plan-for-cutbacks/article1414621
A proposal is circulating to put an end to early-retirement provisions for new hires:
The Conservative government raised the possibility this month of going after the bureaucracy’s pension plan as it looks for ways to deal with a ballooning deficit.
But senior civil servants are also concerned that too many bureaucrats retire in their mid-50s, causing staff shortages that are set to worsen in coming years.
Any major change to the Public Service Superannuation Act, however, will be stiffly opposed by unions, which are trying to contain the growing criticism of their members’ plans in an era of dwindling private-sector pensions.
One of the most controversial aspects of the federal pension plan is the ability to retire with a full pension at age 55, after 30 years of service.
Federal officials expressed concerns that the provision is “reducing the pool of staff with experience,” with half of the executives in government eligible to retire by 2012.
Bernie Dussault
FSNA Senior Researcher
January 26th, 2010 at 8:03 pm
I don’t know about others, but I for one wish that when a spokesperson says something, that it be factual and clear. In the above statement, the spokesperson for FSNA should be clarifying that civil servants “MAY” retire at age 55, as long as they have at least thirty years service “BUT” with a reduced pension. Full pension entitlement comes only with thirty-five years of service, representing a maximum of seventy per cent of ones average salary over a five year period (I think it was). This would help the public appreciate that it is NOT a gold plated plan that the news media purports it to be.
One who is thankful for being able to achieve Freedom Fifty-Five