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PEIUPSE/NUPGE has been working hard against government changes to public service worker pension plans that will dramatically reduce retirement security. Make sure the government knows you don't agree with cutting retirement income.
Charlottetown (04 Nov. 2013) - In early September, without obtaining concurrence from 3 of the 4 participating unions, the P.E.I. Government decided to make signifi cant changes to the Civil Service Superannuation Fund.
PEI Government changes will provide retirees with considerably less retirement security
The PEI government’s plan seeks to alter the current calculation of the "final average" which includes the best three years' salary averaged to determine the pension payout. The change would average a worker's entire salary to determine the payout. This means that since most workers have lower salaries at the beginning of their careers, the overall pension payout will now be reduced.
This government plan will not be retroactive, however, it will be factored into all future pension earnings. This change will affect all members who have not yet retired and will most affect employees in the early and middle stages of their career.
Additionally, beginning in 2019, retirement will be delayed by two years (must have 32 years of service or be 62 years of age).
The government is also removing the current cost of living increases which retirees receive each January. This means that pensions will fall behind as cost of living increases and the pension remains stagnant.
PEIUPSE/NUPGE proposes a new plan
Presented in early October, PEIUPSE/NUPGE and the Canadian Union of Public Employees (CUPE) developed an Alternative Plan to government which does not have such a drastic effect on retirement benefits.
In the union's plan, pensions would be calculated on the best 5 years of salary averaged to determine the payout.
Beginning in 2019, retirement will be delayed by two years (must have 32 years of service or be 62 years of age).
Pensions will have a guaranteed indexing of at least 60%.
The pension would be governed by the participating unions and government (Joint Responsibility).
PEIUPSE/NUPGE needs your help to Protect Your Pension!
The union has been communicating with members in various ways - articles, letters, meetings and ads - since September 2011 to ensure all members are informed about the possible government changes to their retirement security. Members can find updated information on the peiupse.ca website (CSSF Working Group Pension Discussion Updates).
More information:
NUPGE Pensions and Retirement Security
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE