"Ottawa, April 15, 1999 - The Honourable Don Boudria, Minister of State and Leader of the Government in the House of Commons, on behalf of the President of the Treasury Board, Marcel Massé, today tabled in Parliament a Bill to ensure long-term sustainability of public sector pension funds. The plans affected are those under the Public Service Superannuation Act (PSSA), the Royal Canadian Mounted Police Superannuation Act (RCMPSA), and the Canadian Forces Superannuation Act (CFSA).

"We wish to assure pensioners and employees alike that their pension benefits are safe and that they will continue to receive the benefits they have paid for during their years of service," said Minister Massé. "This step will not in any way diminish the benefits of public service pensioners, present or future," he added. [Emphasis inserted by the Webmaster in order to help ensure it will not be missed by the reader.]

Changes to these plans are necessary in order to improve financial management of the plans, and to ensure that employees, and the government, as employer, contribute to the plans in a more balanced way. For example, members of the Public Service Superannuation Act (PSSA), the largest of the federal public service plans, now contribute only 30% of the combined contributions to the PSSA plan, while the government contributes 70%. This legislation would allow the federal government, beginning in 2004, to gradually increase employee contribution rates, if necessary, to a level up to the historic average of 40%.