Pension note regarding devolution to provincial and territorial governments

Former CEIU members from a number of regions have been devolved to other levels of government through labour market development agreements, and some current members may face a similar prospect in the years ahead.

These members have raised questions regarding the entitlements that may flow from the litigation between the PSAC and the government over the superannuation surplus, and this note addresses this issue to the extent possible at this time.

For background on the pension surplus litigation, please see the PSAC website.

The union is locked in a legal battle with the government over the pension surplus and the outcome remains unknown. This makes it impossible to provide a specific response regarding entitlements to those have been, or may be, involved with devolution.

What can be clearly said is that it has always been the intent of the PSAC to ensure that the superannuation surplus is utilized to the benefit of all existing and previous plan members in proportion to their participation under the provisions of the Public Service Superannuation Act (PSSA). The PSAC has adopted this position out of concern for all current and former PSSA contributors, pensioners, deferred pensioners and survivors.

This PSAC position has recently been reiterated in connection with former CEIU members in Ontario who moved to the provincial government in January 2007. Alliance President John Gordon has written to the Treasury Board regarding the Pension Transfer Agreements with Ontario and possible entitlements from a successful outcome to the litigation over the superannuation surplus.

When the court decides the issues in dispute, the union will be in a position to offer a more specific response to the concerns of members involved with devolution. Please check the PSAC and CEIU websites regularly for developments in this important legal action.