An early actuarial review revealed a new pension surplus, raising questions about what happened next.
The Public Service Pension Fund (PSPF) is once again being used like a piggy bank. This time, it happened two years earlier than expected.
Every three years, the PSPF undergoes an actuarial evaluation.
In November 2024, a non-permitted surplus in the PSPF was revealed in a statement by then-Treasury Board president Anita Anand. At the same time, the federal government announced its intention to move about $1.9 billion from the Public Service Pension Fund to the Consolidated Revenue Fund and explore the next steps by consulting stakeholders.
They never consulted stakeholders.
In October 2025, two years earlier than the scheduled evaluation date, the government asked for a “special actuarial report” to check in on the PSPF. It was suspected that the plan would be in a surplus position once again — and it was, by $3.4 billion.
The 2025 federal budget included long-awaited changes that affect the PSPF, including new retirement eligibility rules for front-line workers and the Early Retirement Incentive (ERI) program. The ERI is a temporary program that allows eligible public servants to retire early with an immediate pension and no penalties. The budget directs that the program be paid for by the PSPF, which is unusual, as these initiatives are typically funded by the employer rather than through employees’ pension plans.
Using the pension fund to pay for the ERI removes billions of dollars from the plan and reduces plan members’ long-term pension security, without their consent.
On Dec. 18, 2025, an update to the financial position of the PSPF was released. Due to the cost of the budget initiatives (particularly the ERI, which represents 90 per cent of the cost increase), the non-permitted surplus was reduced to $0.9 billion.
That amount was transferred to the government’s coffers again.
Taken together, that means the government has scooped $2.8 billion from the PSPF, excluding the billions it will be spending on the ERI.
“Members’ pensions are hard-earned. The surplus should be reinvested into benefits that serve those who generated it, starting with the Pensioners’ Dental Service Plan (PDSP),” said Anthony Pizzino, CEO of the National Association of Federal Retirees.