In the current economic and fiscal environment, Canada’s public sector pension plans have
come under significant scrutiny. Critics have argued that these generous defined-benefit pension
plans are inequitable, because the benefits they offer are vastly superior to those in the private
sector at a public cost that is understated and unsustainable. This has led some to suggest
that plans for public servants be brought more in line with private sector defined-contribution
plans, where workers bear the risks of underfunding. Proposals to increase the retirement age
and the share of costs borne by employees have also gained traction.
As governments across the country move toward public sector pension reform (Canada, Ontario
and New Brunswick announced important changes in 2012; Quebec is still examining the
options), it is important to put these issues in perspective. In this study, pension expert Bob
Baldwin analyzes the federal Public Service Superannuation Plan (PSSP) as a case study of the
broader policy issues in the context of these reforms.