CEIU position on supplementary pension plan for senior elected union officers

Much controversy has erupted over the recent decision by the PSAC National Board of Directors (NBoD) to establish a supplementary pension plan for senior elected union officers. The CEIU position on this matter is clear and unequivocal. Our National President, Jeannette Meunier-McKay voted against this move at the above-mentioned NBoD meeting. The CEIU National Executive has since endorsed her position.

Background

Senior elected officers at the PSAC and component unions, such as the CEIU, contribute to a PSAC pension plan when they are on leave from their substantive positions with the government. They cannot transfer contributions made to the PSAC plan to the government’s superannuation plan (the same plan that covers CEIU members).

As a result, on retirement, these union officers must collect their pension from two sources: the government superannuation plan and the PSAC plan. However, in most cases, this results in them receiving less than they would have if their salary as a union officer had been included under the government plan.

CEIU position

CEIU National President Jeannette Meunier-McKay – who stood to benefit from the plan proposed at the PSAC Board meeting – voted against it. The plan would have been very expensive for the CEIU and was simply too large a liability for our union to carry into the future.

At its March 2011 meeting, the CEIU National Executive discussed the supplementary pension plan and unanimously endorsed the position taken by Meunier-McKay.

As a result, the CEIU will not participate in the plan passed by the PSAC National Board of Directors. Our position was clearly communicated in a letter to PSAC National President John Gordon.