Extra contributions for federal pensions added up to an estimated $2-billion. Now, Ottawa is trying to address it
Ottawa is negotiating with public-sector unions to address a $2-billion accounting issue related to federal pensions. The issue arose because public-sector pension plans were not adjusted to reflect enhancements in the Canada Pension Plan and Quebec Pension Plan. Unions are concerned that proposed changes may reduce the value of benefits for workers going forward.
- ▪Federal workers have been contributing more to their pensions than necessary due to unadjusted public-sector plans.
- ▪A report estimated that the difference in contributions could reach $2 billion from 2017-18 to 2025-26.
- ▪The government is presenting options to unions to realign the pension plan with its intended design.
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| Original publisher | The Globe and Mail |
| Canonical URL | https://www.theglobeandmail.com/investing/personal-finance/retirement/article-federal-pensions-contributions-public-sector-union-accounting/ |
| Publication time | Wed, 29 Apr 2026 10:00:00 +0000 |
| Retrieval time | 2026-04-29T10:16:54.510Z |
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Open this photo in gallery:Federal government workers earn their pension income from a combination of the Canada Pension Plan or Quebec Pension Plan and their public-sector pension.Justin Tang/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountOttawa is in talks with public-sector unions over plans to address an accounting issue that led to an estimated $2-billion in additional contributions to federal pensions from public servants and the government. Federal government workers earn their pension income from a combination of the Canada Pension Plan or Quebec Pension Plan and their public-sector pension. Traditionally, those benefits are designed to add up to 2 per cent of a worker’s average salary for every year of service.
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