Statement by Minister Ali on addressing a surplus in the public service pension fund

OTTAWA, ON, Dec. 18, 2025 /CNW/ - The Honourable Shafqat Ali, President of the Treasury Board, made the following statement today:

"The Government of Canada is committed to ensuring that the federal public service pension plan remains well-managed and sustainable, and fully guaranteed by the Government of Canada. As a result of strong market performance, the public service pension fund continues to be in a surplus position.

Yesterday, in the House of Commons, I tabled the Special Actuarial Report on the financial position of the Public Service Pension Fund as at March 31, 2025, along with an update from the Chief Actuary of Canada.

Based on this report and update, I have determined that the pension fund is in a non-permitted surplus position, as defined under the Public Service Superannuation Act, with a funded position of 125.5% and an excess surplus of approximately $0.9 billion as at March 31, 2025.

In keeping with the act, the government will transfer the non-permitted surplus amount to the Consolidated Revenue Fund, where it will be held, along with the non-permitted surplus amount transferred last year, while next steps are considered. Discussions with stakeholders will be held as appropriate. Once the transfer is made, there will no longer be a non-permitted surplus in the fund.

Budget 2025 introduced several proposed initiatives affecting the pension fund, including an Early Retirement Incentive program and an expansion of the Operational Service Early Retirement program. The Chief Actuary's updated analysis reflects the estimated impact of these proposed initiatives.

Federal public servants continue to benefit from a healthy, sustainable, and secure pension plan that provides stable retirement income and reflects sound stewardship."

Quick Facts

• The public service pension plan provides federal public servants with a lifetime retirement income based on salary, pensionable service, age, and reason for termination.
• The employer and active pension plan members both contribute to the public service pension plan.
• The public service pension plan is fully guaranteed by the Government of Canada. If the plan becomes underfunded for any reason, the government is required to transfer additional funds into the plan. From 2013 to 2018, the government made deficit payments totalling $2.8 billion, including interest.
• In 2024, the federal public service pension plan had a $1.9-billion non-permitted surplus. The Government of Canada transferred the excess to the Consolidated Revenue Fund, and it is no longer part of the public service pension fund.
• Under the Income Tax Act, all registered pension plans in Canada are subject to rules regarding the treatment of surpluses.
• As per the Public Service Superannuation Act, a non-permitted surplus exists when the plan's assets exceed 125% of its liabilities. The government must take action to bring the surplus below this threshold.
• The Consolidated Revenue Fund is the account into which the Government of Canada deposits taxes and revenues and from which it withdraws funds to cover public expenses. Funds are deposited and withdrawn by the Receiver General for Canada.
• Federal public sector pensions are not subject to collective bargaining per section 113(b) of the Federal Public Sector Labour Relations Act.

Associated Links

• Public service pension plan
• Funding of the Public Service Pension Plan
• Public Service Superannuation Act
• Income Tax Act
• Budget 2025
• Statement by Minister Anand on intention to address a surplus in the public service pension fund (November 25, 2024)

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SOURCE Treasury Board of Canada Secretariat