OTTAWA, Ontario, Dec. 09, 2024 (GLOBE NEWSWIRE) -- The National Association of Federal Retirees is concerned about the federal government's handling of non-permitted surplus funds, which has resulted in the transfer of $1.9 billion into government accounts. We are troubled by the potential appropriation of an additional $9.3 billion from pension funds, representing the deferred compensation of retirees and employees. Although current legislation permits such actions, allowing the government to take a contribution holiday without providing equivalent benefits to those who have contributed, we firmly believe that there are more equitable alternatives available.
Retirees and employees have made significant contributions to their pension plans and the overall stability of the pension system; therefore, they deserve fair and respectful treatment in the allocation of surplus funds. “It is our position that surplus funds be reinvested in initiatives that benefit those who helped generate them, particularly retirees – starting with improving the Pensioners Dental Services Plan,” said Anthony Pizzino, CEO, National Association of Federal Retirees.
The Pensioners Dental Services Plan (PDSP) has not been updated in over twenty years and is now vastly out of step with current employee plans and the rising costs of dental care. The association has asked the minister to provide retirees with the same plan on a cost share basis. This issue is especially pressing for retirees facing ongoing affordability challenges.
This situation highlights the critical importance of maintaining strong defined benefit pensions, as recently emphasized in the Canadian Centre for Policy Alternatives (CCPA) study, which play a fundamental role in the economic well-being of communities across Canada. The National Association of Federal Retirees stands united in advocating for the rights and interests of retirees, ensuring that they are recognized and valued in our nation's decision-making processes.
For media inquiries, please contact:
Annette Goerner, Managing Director, Public Relations, spark*advocacy
media@federalretirees.ca
613-818-6941
About:
The National Association of Federal Retirees is the largest national advocacy organization representing active and retired members of the federal public service, Canadian Armed Forces, Royal Canadian Mounted Police (RCMP) and retired federally appointed judges, as well as their partners and survivors. With more than 170,000 members, including more than 60,000 veterans and their families, the Association has been advocating for improvements to the financial security, health and well-being of our members and all Canadians since 1963.
