Public Service Alliance of Canada releases figures after Treasury Board President Anita Anand upset major unions this week by announcing that a $1.9-billion surplus from previous fiscal year will be shifted to general revenues
Ottawa could potentially reap a $9-billion boost to its bottom line over the next few years, federal documents show, thanks to a growing surplus in the pension fund for public servants, prompting a standoff with unions over what should be done with the windfall.announced
However, in an analysis to be released Friday by the Public Service Alliance of Canada , the union points out that new federal records show the government is projecting changes totalling $9.2-billion through 2028.that was also released this week showing that if the existing surplus continues to grow as projected, the federal government could partly pause its contributions to the fund in 2025, fully pause them the next two years and have a partial pause for 2028.
Ms. DeSousa said PSAC has been urging the government for months to consider such options in anticipation of a pension surplus decision. Instead, she said Ottawa is using the funds to improve its bottom line.The special actuarial report, prepared by the Office of the Chief Actuary, said the value of the pension fund as of March 31, 2024, is $186.4-billion. The fund has a surplus of $38.8-billion over $147.6-billion in liabilities, which is a funded ratio of 126.3 per cent.
Each year that a projected surplus above the 125-per-cent threshold does in fact materialize, the government is required to take action to bring the surplus back within the limit. The actuarial report presents a government contribution freeze as a default scenario, but the government could choose to repeat this year’s practice of shifting the surplus to the consolidated revenue fund.
It is not immediately clear how these accounting adjustments will affect the Liberal government’s bottom line. Ms. Freeland has repeatedly declined to clarify whether her update will in fact show the target was missed.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Public service job cuts loom as Ottawa misses spending and deficit targetsThe Hill Times
Read more »
Ottawa Public Library's rural branches to have extended service hours starting March 2025Ottawa Public Library (OPL) will extend its service hours in 10 rural branches in an effort to improve its service starting in March.
Read more »
Proposed police budget adds $20 to average tax billAn Ottawa Police Service cruiser parked in downtown Ottawa in August 2024.
Read more »
Ottawa Police seek new training facility as Algonquin College lease endsAn Ottawa Police Service cruiser parked in downtown Ottawa in August 2024.
Read more »
Ottawa Senators push back, but New York Islanders win 4-2 in OttawaOTTAWA — The New York Islanders survived a late comeback by the Ottawa Senators in Thursday's 4-2 win. The Islanders led 3-0 before Ottawa made it interesting in the third period.
Read more »
Ottawa Real Estate: Average rent drops in Ottawa in OctoberThe cost of renting an apartment in Ottawa dropped in October, with lower rental rates for bachelor and two-bedroom apartments.
Read more »