Q1. When do the changes to the early
retirement provisions come into effect?
A1. In order for the changes to become
effective, amendments will be required to the Public Service Superannuation
Regulations. These amendments should be in place in the fall of 2006.
Q2. Why are these changes being
proposed now?
A2. At the request of Correctional Service
Canada (CSC), a review was undertaken of the early retirement provision for
members of the public service employed in operational service at CSC,
representing about 10,000 employees.
The Government recognized the unique needs of these employees who often have
shorter careers due to the more dangerous and physically demanding nature of
their jobs.
Members with operational service include a large variety of occupational
groups at CSC including Nursing, Psychology, Welfare Programs, Administrative
Services, Clerical and Regulatory, General Services, General Labour and Trades,
and Correctional Services.
It is important to remember that these early retirement provisions have been
in existence since 1994.
Therefore, it is timely to address certain key elements of the early
retirement scheme for members with operational service, namely, the requirement
of additional contributions and the access to certain benefit provisions.
Q3. Are these changes a result of
Correctional Officers' demands for pension plan improvements?
A3. Collective bargaining and pension plan
regulations are two separate issues, governed by distinct mechanisms.
In fact, the review of the early retirement provisions will affect over
10,000 CSC employees with operational service, including employees in a wide
range of occupational groups including Nursing, Psychology, Welfare Programs,
Administrative Services, Clerical and Regulatory, General Services, General
Labour and Trades, and Correctional Services.
The decision to review the early retirement provisions that were introduced
in 1994 for CSC employees with operational service was motivated by a need to
better align it with other occupations involved in public security.
Q4. Are the pension provisions
retroactive and if so, to when?
A4. The changes will require amendments to the
portion of the Public Service Superannuation Regulations dealing with the
special retirement benefits offered to members who are employed in operational
service at CSC.
These amendments should be implemented in the fall of 2006, and will be
retroactive to the date of the announcement of the changes, that is May 30,
2006.
Q5. What does "operational
service" mean?
A5. Operational service refers to Correctional
Service Canada (CSC) employees working in federal correctional facilities,
parole offices, and community correctional centers.
More specifically, operational service is defined as service by a person
employed by CSC whose principal place of work is not:
- the national headquarters or a regional headquarters of CSC;
- the offices of the CSC Commissioner; or
- a regional Correctional Staff College or any other institution that
provides similar training to CSC employees.
Q6. What does "deemed"
operational service mean?
A6. CSC employees in operational service for at
least 10 years who then cease to be in operational service but continue to be
employed by CSC are considered "deemed to be employed in operational
service" if they so choose.
Currently, employees who choose to be deemed to be employed in operational
service must continue to contribute at the additional 1.25% rate. In other
words, once 10 years of "operational service" are accumulated,
employees who move to "non-operational service" may elect to continue
to pay extra contributions for all additional years of service in CSC.
The existing provisions for "deemed operational" employees will
continue, but the employee contribution rate will be reduced from 1.25% to
0.62%. In other words, "deemed operational" employees will be
able to retire without penalty with 25 years of operational service at age 50,
but will pay an additional contribution at the reduced rate of 0.62%.
Q7. Will there be a shortage of
employees in Canada's prisons as a result of these pension changes?
A7. There will be no shortage of employees in
Canada's prisons as a result of these early retirement provisionschanges.
The department is well aware of its potential retirements situation and has
developed human resources plans accordingly. A review and analysis of the
additional potential retirements as a result of the changes was also conducted.
The department is satisfied that the additional potential retirements will not
prevent them from maintaining their level of service.
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