Supreme Court decision leaves plaintiffs
frustrated and abandoned
After 10 years and thousands of
dollars, it’s over.
On 19 December 2012, the Supreme
Court unanimous ruled 9-0 against 17 fed-
eral employee alliances and associations,
including AFP/AAC, that took the gov-
ernment to court for seizure of pension
surpluses and used those seized funds to
help pay down the national debt.
The case, legally titled
Professional
Institute of the Public Services of Canada,
et al.
, v. Attorney General of Canada, et
al., was heard on 9 February 2012 with
over 700,000 impacted retired and work-
ing public servants anxiously awaiting the
outcome.
It took the Justices 10 months from
the hearing to announce their final deci-
sion, ruling against the plaintiffs. It marks
the end of the road for the law suit.
”The federal government violated a
trust as our employer by abandoning its
duty to manage our pension contributions
on our behalf,” says Chuck McCabe, AFP
treasurer and board member. “We are ex-
tremely disappointed in the decision.”
Despite principles established in the
Pension Benefits Standards Act for dis-
posal of plan surpluses, Treasury Board
officials refused to negotiate any sharing
of the surplus between employer, employ-
ees and retirees.
InApril 1999, under the Chrétien gov-
ernment, the Treasury Board of Canada
produced
Bill C-78
, which authorized the
disposal of the $30 billion pension surplus
that had accrued in three federal superan-
nuation accounts (CFSA, RCMPSA and
PSSA). On September 7, of that same
year, the legislation was rushed through
parliament and passed into law, granting
the government access to surplus, which
it used to reduce the national debt. The
$30-billion figure comprised $14.9 billion
from the public service account, $12.9 bil-
lion from the Canadian Forces’ account
and $2.4 billion from the RCMP account.
The AFP and 16 other public service
unions and associations took the Govern-
ment of Canada to court for its actions.
The late Honourable Mr. Justice A. de
Lotbinière Panet originally heard dis-
missed the case on November 20, 2007,
on the grounds that the contributors to the
pension funds “have no equitable interest
in the superannuation accounts.”
ISSUE 14 | 2013
AFP/AAC
IN THIS ISSUE:
3
The Last Post Fund
Veterans’ organizations band
together to pressure the
government into improving
regulations and funding
governing the Last Post Fund.
5
In Memory
AFP/AAC recently lost a dedicated
volunteer and strong supporter of
retired CF personnel and their
spouses. We will miss Al Conyers,
who was a great friend and colleague.
6
Re-focussing
National chairman Tony Huntley
addresses members on the role of
AFP/AAC moving forward.
ARMED FORCES PENSIONERS’/ANNUITANTS’ ASSOCIATION OF CANADA
1
ARMED FORCES PENSIONERS
’
/ANNUITANTS
’
ASSOCIATION OF CANADA
Continued on page 2
