# Public sector, feds reach deal on retiree health benefits



## Grapeshot (26 Mar 2014)

The government has reached a deal with its public sector unions to double the amount retired federal employees pay in premiums for health benefits. The deal was negotiated between the Public Service Alliance of Canada on behalf of all federal retirees and Treasury Board. Retired CF members are lumped in with the federal retirees. 

The deal in effect immediately doubles premiums while tossing in a few scrapes. Once again PSAC has capitulated to protect its current dues membership and thrown retirees under the bus.  The bigger question is who represented retired veterans, I certainly never belonged to PSAC when I served!  For me, a doubling of premium is effectively a 2% cut in my gross pension. For those earning a pension of around $25,000 the hit will be significantly bigger.

CBC is covering the story at:  http://www.cbc.ca/news/politics/public-sector-feds-reach-deal-on-retiree-health-benefits-1.2586998


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## Bruce Monkhouse (26 Mar 2014)

At least they reached a deal.......the Ontario Govt. just decided that it was going to hack our benefits for when we retire. No negotiations, or in fact, even a warning.  According to the OPSEU website most are looking at a 5.5% loss of income.


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## Remius (26 Mar 2014)

Some uniformed people are more than happy to see cuts to public servants (or retired ones) until they realise that it affects them too...


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## dapaterson (26 Mar 2014)

However, they are eliminating the $100 per family annual deductible, so that is a small step forward.  Plus up to $1000 lifetime for laser eye surgery.

So it's not all gloom and doom.


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## stokerwes (27 Mar 2014)

For a pensioner getting  $25000/year this would mean approximately $17.00/month increase in PSHCP, before any tax calculations, deductions,etc. It doesn't sound like much, but for some it will have an impact.
I think the hardest pill to swallow is that the game rules were once again changed after the fact. People that have been retired an currently emloyed and are covered by the current plan should not be affected by this, IMO. It should only affect new hires.
The big question for me is what is parliament giving up? The MP's don't seem to be affected by any austerity measures that they are doling out.
This has the potential for a court battle but at the end of the day I think the government is just going to do whatever they want regardless of unions or any special interest groups protests.


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## The Bread Guy (27 Mar 2014)

stokerwes said:
			
		

> I think the hardest pill to swallow is that the game rules were once again changed after the fact .... The big question for me is what is parliament giving up? The MP's don't seem to be affected by any austerity measures that they are doling out.  This has the potential for a court battle but at the end of the day I think the government is just going to do whatever they want regardless of unions or any special interest groups protests.


And, as others with waaaaaaaay more experience than me in such matters have suggested before, remember this when you hear someone say, "yeah, those public sector unions are too powerful."  There's a case to be made that the employer can do what they want.


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## Crispy Bacon (27 Mar 2014)

stokerwes said:
			
		

> The big question for me is what is parliament giving up? The MP's don't seem to be affected by any austerity measures that they are doling out.



They've reduced MP's office operating budgets, switched their pension system to 1:1 contributions, and have to wait to collect their pension at 65 (previously 55).


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## Tibbson (27 Mar 2014)

Crispy Bacon said:
			
		

> They've reduced MP's office operating budgets, switched their pension system to 1:1 contributions, and have to wait to collect their pension at 65 (previously 55).



Since we've been warned that we will soon be paying for parking on base (at least here in Halifax) because TB views parking as a taxable allowance, I'll be curious to see how much our MPs and their staff need to pay per month for parking at their constituency offices as well as in Ottawa.


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## Crispy Bacon (28 Mar 2014)

Schindler's Lift said:
			
		

> Since we've been warned that we will soon be paying for parking on base (at least here in Halifax) because TB views parking as a taxable allowance, I'll be curious to see how much our MPs and their staff need to pay per month for parking at their constituency offices as well as in Ottawa.



My understanding is that on-base parking is a "taxable benefit" because it's parking that is provided by the employer (DND).  Parking at/around Parliament Hill is quite expensive ($150-300 per month), but I don't know why an MP would pay for parking at his/her constituency office.


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