Statement by Minister Anand on intention to address a surplus in the public service pension fund

November 25, 2024 – Ottawa, Ontario – Treasury Board of Canada Secretariat

The Honourable Anita Anand, President of the Treasury Board, made the following statement today:

“The Government of Canada is committed to providing federal public servants with a well-managed and sustainable pension plan, fully guaranteed by the Government of Canada.

As a result of sound investments, the public service pension plan is healthy and currently in a surplus position. Like all registered pension plans in Canada, under the Income Tax Act the public service pension plan has a legislated limit to the amount of surplus that it is legally permitted to carry.

Today, in the House of Commons, I tabled a Special Actuarial Report on the financial position of the Public Service Pension Fund as of March 31, 2024. With reference to this report, I have determined that the public service pension plan has a “non-permitted surplus,” as defined under the Public Service Superannuation Act (the Act), of approximately $1.9 billion as of March 31, 2024.

In keeping with the Act, the Government intends to transfer this non-permitted surplus to the Consolidated Revenue Fund, where it will be held while next steps are considered. Once this transfer is made, there will no longer be a non-permitted surplus in the pension plan. As considerations and next steps are explored, discussions with relevant stakeholders will continue.

Federal public servants continue to benefit from a well-managed and sustainable pension plan and can be confident in its continued health in the years ahead.” 

Quick Facts

• The public service pension plan is designed to provide federal public servants with a retirement income payable during their lifetime. Pension benefits are based on an employee’s salary, pensionable service, age, and reason for termination.
• As per the Public Service Superannuation Act, a registered pension plan’s assets cannot become 25% greater than its liabilities. In a non-permitted surplus situation, the government is required to take action to bring the surplus amount below this threshold.
• The employer and active pension plan members both contribute to the public service pension plan.
• The action of transferring the excess surplus of approximately $1.9 billion is permitted under the Public Service Superannuation Act and the Income Tax Act.
• The Consolidated Revenue Fund of Canada is the account into which taxes and revenue are deposited, and from which funds are withdrawn in order to defray the costs of public services. Funds are deposited and withdrawn by the Receiver General for Canada.

Associated Links

• Public service pension plan
• Public Service Superannuation Act
• Income Tax Act