PSAC cries pension foul
Ottawa proposes public-service pension reform

Daniel MacIsaac
Northern News Services

NNSL (Mar 01/99) - Jean-Francois Des Lauriers says NWT public-sector workers are under fire, and that the federal Liberal government is launching the attack.

Des Lauriers, regional executive vice-president of the Public Sector Alliance of Canada, said Wednesday that two recent moves by Ottawa hold serious repercussions for some 8,000 Northern workers and retirees.

Des Lauriers was reacting to a Feb. 10 announcement by Treasury Board president Marcel Masse, National Defence Minister Art Eggleton and Solicitor General Lawrence MacAulay that Ottawa will soon propose legislative amendments to the Public Service Superannuation Act, the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act.

The $127-billion public service plan currently has a surplus of $30 billion. Ottawa proposes, among other things, to retire this surplus over a 15-year period and to invest future plan contributions in the market place.

Des Lauriers said Ottawa's move is a case of the government, "not being able to keep its hands off of other people's money," citing the recent case plans for the Employment Insurance surplus.

But speaking from the Treasury Board's Ottawa office on Wednesday, media relations official Robert Bousquet defended the action.

"We believe we have the responsibility of dealing with surpluses for the benefit of Canadian taxpayers and to hopefully reach a balance between the interests of taxpayers and public servants," he said. "What we expect is that by investing in the public market we will have more money than we do now."

While Des Lauriers said he isn't against the new pension format in principle, he said any investment management board must include representatives of bargaining agents, like the alliance. And he insists the surplus itself should remain untouchable as it can be used as a buffer against inflation, to increase members' benefits or give them a holiday on contributions.

Des Lauriers said because of the combined effect of the pension proposal, the pay-equity issue, as well as recent cuts to Yellowknife workers' environmental allowance, PSAC has organized a demonstration march for March 9. Set to begin at the constituency office of Western Arctic MP Ethel Blondin-Andrew, the march will conclude at the Explorer Hotel where pay-equity hearings are scheduled.

"Let's tell Ethel Blondin-Andrew and the GNWT that our money is not up for grabs," a PSAC announcement reads.