Canada's Treasury Board President Tony Clement announced Wednesday (March 26) that the government would reduce contributions to the health care benefits of retired totalling $6.7 billion over six years.
Photo Credit: Adrian Wyld/CP

Government reducing its health benefit payments for public service retirees

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The Canadian government announced Wednesday (March 26) it had negotiated a cut to the money it paid into the health care benefits for retired public sector employees from 75 to 50 per cent, a 100 per cent increase for the retirees.

The announcement was made by the minister responsible, Treasury Board President Tony Clement, who said this would save taxpayers $6.7 billion dollars over the next six years.

The Professional Institute of the Public Service of Canada (PIPSC) and other bargaining agents representing federal government employees agreed to the agreement with Treasury Board after negotiating some concessions on deductibles and health care payments.

PIPSC president Debi Daviau said it was far from a good deal, but “the best we could get” given the government could have legislated the change.

RCI’s Wojtek Gwiazda has a report.

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More information:
Treasury Board press release – Agreement Reached on Benefits for Retired and Current Federal Employees – here
PIPSC statement – Agreement on Changes to the Public Service Health Care Plan – here

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