Pension Surplus Trial In Process (Extract from Federal Superannuates National Association (FSNA) 'On Guard' 2005, Vol.43, no.4) The trial regarding the $30-billion surplus taken from the superannuation accounts of the Canadian Forces (CF), the Public Service (PS), and the RCMP was to have started in the Ontario Superior Court of Justice, in Ottawa, on the 15th of November. As this date fell a week later than the date at which this issue was sent to print, the outcome of the court case will be posted on FSNA's Web site and published in the spring issue of ON GUARD. The court case challenges the pension surplus related portion ofBill-C-78 that was introduced in the spring of 1999, following failure to reach an agreement on a new pension deal between the bargaining agents, the pensioners' representative, and the employer. The negotiations ended in December 1998 because the employer refused to discuss the matter of surplus distribution. FSNA's position in relation to the pension surplus has always been clear and consistent: Any surplus must be shared equitably by the employer (the taxpayers), the employees, and the pensioners. The trial regarding the $30-billion surplus taken from the superannuation accounts of the Canadian Forces (CF), the Public Service (PS), and the RCMP was to have started in the Ontario Superior Court of Justice, in Ottawa, on the 15th of November. As this date fell a week later than the date at which this issue was sent to print, the outcome of the court case will be posted on FSNA's Web site and published in the spring issue of ON GUARD. The court case challenges the pension surplus related portion ofBill-C-78 that was introduced in the spring of 1999, following failure to reach an agreement on a new pension deal between the bargaining agents, the pensioners' representative, and the employer. The negotiations ended in December 1998 because the employer refused to discuss the matter of surplus distribution. FSNA's position in relation to the pension surplus has always been clear and consistent: Any surplus must be shared
Bill-C-78 implications Bill C-78 introduced amendments to the superannuation acts that allowed the Minister to withdraw certain portions of the surplus from the superannuation accounts over a period of time up to 15 years. Such withdrawals could only take place for a given plan after an actuarial report on that plan was laid before Parliament. ""Surplus withdrawals"" have since been made at least once from each of the plans. They amount to $15.6 billion for the CF account, $ 10.3 billion for the PS account, and $2.4 billions for the RCMP account. This represents a total of $28.3 billion as at 31 March 2004. The latest government financial report (summer 05) shows that a $28.3-billion surplus has been ""retired"". Joint lawsuits Three lawsuits are challenging the government's decision to take the accumulated surplus. One was filed by the Public Service Alliance of Canada; one by the Professional Institute of the Public Service of Canada on behalf of the other National Joint Council bargaining agents and other organizations, including FSNA; and one was filed by the Armed Forces Pensioners'/Annuitants' Association of Canada in conjunction with SSEA, now the Canadian Association of Professional employees. Because the three cases relate to the same surplus matter, the three groups of plaintiffs, the government's lawyers, and the Court agreed that the three cases would be heard at the same time, under a single trial. Consequently, the law firms representing each case have been working together and holding periodic meetings with the plaintiffs. The legal challenge costs are shared between plaintiffs on a prorated basis. FSNA's total contribution as of September 2005 amounts to $80,000
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