Nick Stein Item (m)
The Committee met May 27-28/07 in Moncton. The minutes of this meeting have been prepared and sent out in a PAC bulletin. The agenda included:
- Reviewed the status of campaign on the cash/counter initiative and requested more information from locals and the employer
- Pension changes in the 2007 federal budget (copy of response from employer attached)
- Review the possibility of lobbying for changes to the Superannuation Act in regards to pensionable time in regards to non-pensionable service for part-time workers
- Determine the success of a lobbying campaign on the 5 year leave without pay issue
- Prepare a bulletin on the results of the anti-scab vote and what action(s) to take on the Bill C-415
- Review the CRA Parliamentary Review to see if there are items of interest for UTE
- Prepare a bulletin for the field on locals lobbying and involvement in political activities
- Review documents on the Visitors Rebate Program issue in Summerside and contact MPs
The Committee also discussed what role it should play in regards to the upcoming round of negotiations.
Chair of the Committee
Pension changes in the 2007 federal budget (copy of response from employer )
Thank you for your e-mail of May 28, 2007, concerning references contained in the Government's last budget relating to the issue of phased retirement.
Phased retirement is a budget 2007 proposal in the early stages and several pieces of legislation will need to be introduced or amended in order for it to be carried out. The Income Tax Act, the Income Tax Regulations and the Pension Benefits Standards Act will all need to be modified. Further, since the Public Service Superannuation Plan is governed by the Public Service Superannuation Act (PSSA), this too would need to be amended. According to budget documents, the earliest the proposal would be effective is some time in 2008.
While it is likely that the plan described in the budget would apply to the Public Service Superannuation Plan and hence to CRA employees, there is no guarantee that this will automatically occur. There may be restrictions placed upon application and although phased retirement may be permitted by revised Income Tax Regulations, it is probable that it would be up to each pension plan to determine whether it wishes to access these provisions. The Department of Justice is working on legislation and regulations. The Treasury Board Secretariat has noted that they will not be able to establish a position until they have had a chance to review the new rules and regulations.
Finally, since a major element of the program involves part-time work, it would be subject to managerial approval and discretion, based on operational feasibility and requirements, similar to other policies.
More communication will be provided as the process evolves.
William V. Baker
Canada Revenue Agency