Federal pension plan sparks union outcry
Public service unions are calling the government's plan to reduce pension contributions 'unacceptable,' arguing it strips workers of enhanced benefits.
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Federal public service unions are pushing back against the government's plan to reduce their pension contributions, saying it unfairly penalizes workers for CPP and QPP enhancements that kicked in six years ago.
The changes stem from Budget 2025, which announced the government would reduce annual pension contributions to account for the Canada Pension Plan and Quebec Pension Plan enhancements introduced in 2019. When those enhancements took effect, federal employee contributions went up — but the public service pension plans were never adjusted to reflect the change.
The government says it's simply realigning contributions to the original formula, which would save roughly $1.1 billion over four years starting in 2026-2027. But union leaders argue the move robs workers of retirement security that every other Canadian is receiving.
"Everyone else in Canada is going to get an increase in CPP and increase to their retirement benefits, and we're not," said Bernard Holbrook, president of the Research Council Employees' Association.
Nate Prier, president of the Canadian Association of Professional Employees, called the proposal unacceptable. Union leaders say the changes would wind back public service pensions to pre-2019 levels while other workers across Canada keep their enhanced benefits.
For federal employees who've watched their contributions climb without corresponding adjustments to their pension plans, the timing stings — especially as the government cites budget pressures to justify the move.