Evidence of meeting #94 for Government Operations and Estimates in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was plan.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Kim Gowing  Director, Pensions and Benefits Sector, Treasury Board Secretariat
Jean-Claude Ménard  Chief Actuary, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions
Martin Leroux  Vice-President, Policy Portfolio and Asset Liability Management, Public Sector Pension Investment Board
Mark Boutet  Vice-President, Communications and Government Relations, Public Sector Pension Investment Board

11:30 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

I can't say exactly. I'm waiting until the accounts come out, but that's the target.

11:30 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Does TBS expect the cumulative savings to reach $2.075 billion by 2017 and 2018, as projected?

11:30 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

I'm sorry....

11:30 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

I can repeat the question if you like.

11:30 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

The $2.1 billion, I apologize.

11:30 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Okay.

11:30 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

Again, we're targeting to reach the savings by 2017, and we're monitoring the contribution rates over the....

11:30 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Thank you very much.

Of course, some public servants are worried about the changes being made to the plan. As you know, the employee contribution rate to the Public Service Pension Plan will steadily increase until the employer and the employees are splitting the plan's cost 50/50.

Will employees have more of a say in the plan's management, or will they continue to have their voices heard through their representatives within the Public Service Pension Advisory Committee?

What is the plan in terms of public sector unions' involvement?

11:35 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

Currently, employees will be engaged through the Public Service Pension Advisory Committee, through their representatives.

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

In other words, they will pay more, but they will not have more of a say in the process.

11:35 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

Again, the pension advisory committee will....

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

So no changes will be made in that area.

11:35 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

No change to the....

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Okay.

Do I have any time left, Mr. Chair?

11:35 a.m.

NDP

The Chair NDP Pat Martin

You have two minutes.

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Does the Chief Actuary provide actuarial estimates of the costs and obligations stemming from the changes made to the contribution rates of the Public Service Pension Plan?

11:35 a.m.

Chief Actuary, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions

Jean-Claude Ménard

The answer is yes.

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Do the actuarial evaluations stem from the changes to the contribution rate coming into effect?

11:35 a.m.

Chief Actuary, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions

Jean-Claude Ménard

That answer is also yes.

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Could you describe how that worked?

June 18th, 2013 / 11:35 a.m.

Chief Actuary, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions

Jean-Claude Ménard

First off, we received the proposal contained in Bill C-45 . In some ways, it's a fairly easy change to make because the total cost of the plan stays the same as far as we're concerned, except for new contributors. That cost, however, will materialize over time.

For the first five years, then, the change affecting new contributors isn't as significant as the change in the cost-sharing ratio, which will go from 35/65 to a 50/50 split. We carried out the evaluations that were asked of us.

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

Very well.

11:35 a.m.

Chief Actuary, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions

Jean-Claude Ménard

They appear, by the way, in the report that was tabled in Parliament.

11:35 a.m.

NDP

Mathieu Ravignat NDP Pontiac, QC

The compensation package will change because the public service pension plan amounts are changing. Will that have an impact on the public service's appeal as an employer? It is seen as an employer of choice, after all.

11:35 a.m.

Director, Pensions and Benefits Sector, Treasury Board Secretariat

Kim Gowing

I would have to say the public service pension plan is still a very good pension plan, and I believe it will continue to attract employees.