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Harper Government Marks New Year with Historic Pension Reforms

OTTAWA, ONTARIO -- (Marketwire) -- 01/01/13 -- The Harper Government is ringing in the New Year with historic public sector pension reforms that will save Canadian taxpayers $2.6-billion over the next five years.

The reforms, which come into effect today, bring federal employee pension contributions more in line with the private sector by introducing a 50-50 cost-sharing model for pension plan members. The retirement age for new federal hires will also increase, effective January 1, 2013, from 60 to 65 years of age.

"Bringing public sector pension contributions more in line with the private sector is the right thing to do," said the Honourable Tony Clement, President of the Treasury Board. "It's also the fiscally responsible thing to do. These changes underscore our Government's commitment to returning to balanced budgets and ensuring the pension system is financially sustainable over the long term."

The pension changes, introduced in the Jobs and Growth Act, 2012, which received Royal Assent in December, are expected to generate ongoing savings of $900 million annually once the 50-50 cost-sharing regime is fully implemented in 2017.

"Introducing these historic reforms is an auspicious way to begin the New Year," said Minister Clement. "It's an important signal that our Government is on the right track when it comes to finding reasonable savings and respecting Canadian taxpayers' dollars."

More information about the public service pension plan is available on the Public Service Pension and Benefits Web Portal.

IF THERE IS A DISCREPANCY BETWEEN ANY PRINTED VERSION AND THE ELECTRONIC VERSION OF THIS NEWS RELEASE, THE ELECTRONIC VERSION WILL PREVAIL.

TTY (telecommunications device for the hearing impaired) - 613-957-9090

This news release is available at www.tbs-sct.gc.ca.

Follow us on Twitter: @TBS_Canada

Contacts:
Beverly Young
Acting Press Secretary
Office of the President of the Treasury
Board and Minister responsible for FedNor
613-957-2666

Media Relations
Treasury Board of Canada Secretariat
613-957-2640

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