Backgrounder: Government's Response to the
Judicial Compensation and Benefits Commission

The Government of Canada has introduced legislation to implement its Response to the May 2004 Report of the Judicial Compensation and Benefits Commission. This Commission is established under the Judges Act to inquire every four years into the adequacy of the salaries and benefits of the federally appointed judiciary. “Independent, objective and effective” commissions are required, as a result of the PEI Judges Reference case – a key Supreme Court of Canada decision concerning the constitutional requirements for the financial security of judges.

The Government's Response to the Commission supports almost all of the Commission's recommendations, the main exception being the judicial salary proposal. The Supreme Court of Canada's 2005 decision in Bodner supports modifying Commission recommendations, provided a rational justification is given and the integrity of the Commission process is respected.

The Government proposes that judges receive a salary increase of 7.25 percent rather than the 10.8 percent recommended by the Commission. The rationale, as outlined in the Response, relates to the Commission's reliance on urban lawyers' private practice salaries as a comparator, and the value placed on the judicial pension.

The other recommendation not supported by the Government relates to the judiciary's representational costs in appearing before the Commission. The Government proposes a reimbursement of 66 percent of costs, both disbursements and legal fees. The Commission recommended reimbursement of 100 percent of disbursements and 66 percent of legal fees.

In accordance with the other recommendations proposed by the Commission, the legislation would amend the Judges Act to:

• Provide a mechanism to divide the judicial annuity upon breakdown of the conjugal relationship, consistent with those used to facilitate the division of other federal pensions;
• Permit Supreme Court of Canada judges to retire after 10 years of service on that Court, irrespective of age; and,
• Provide for minor enhancements to certain allowances, such as the Northern Allowance ($12,000 per year) to assist judges who reside in Labrador with the higher cost of living there.

Any amendments to modify the legislation will be considered as the Bill moves through the Parliamentary process.

The Bill also includes minor changes to the Federal Courts Act and amendments to other legislation related to the operation of the federal courts.

An online version of the Government Response to the May 2004 Report of the Judicial Compensation and Benefits Commission is accessible at: http://canada.justice.gc.ca/en/dept/pub/jcbc/table.html

An online version of the legislation will be available at www.parl.gc.ca.

-30-

Department of Justice
May 2006