Pensions and Other Future Benefits

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The Government has changed the presentation of the Consolidated Statement of Financial Position to segregate a significant class of pensions and other future benefits related to consolidated Crown corporations and other entities which were included in other accounts payable and accrued liabilities in previous years.

The obligations arising from public sector pensions and other employee and veteran future benefits, sponsored by the Government or some of the consolidated Crown corporations and other entities, are measured on an actuarial basis and are presented net of pension assets and unrecognized net actuarial gain or loss, as well as contributions and benefits paid by some of the consolidated Crown corporations and other entities after their measurement date of December 31 up to March 31.

Public Sector Pensions

The Government sponsors a number of defined benefit pension plans covering substantially all its employees, principally members of the federal public service, the Canadian Forces, including the Reserve Force, and the Royal Canadian Mounted Police, as well as employees of certain Public Service corporations and territorial governments. The Government also sponsors several other pension plans; the two most significant ones being for Members of Parliament and federally appointed judges. The Government has a statutory obligation to pay the pension benefits it sponsors.

The liabilities for public sector pensions sponsored by the Government are initially recorded through pension accounts, which are generally established pursuant to legislation. The pension accounts track transactions such as contributions, interest credits, benefit payments, transfers and administrative expenses. Any adjustments required under the Government's accounting policies are then recorded through allowance for pension adjustment accounts. The allowance accounts reflect the differential between accrual and cash accounting recognized through the years, as well as accumulated difference in interest calculations and consolidation adjustments related to refundable tax amounts remitted to or refunded from the Canada Revenue Agency.

The Government's pension plans are generally financed from employer and employee contributions or from Government and member contributions. The contributions are either part of general funds or transferred to the Public Sector Pension Investment Board (PSPIB) for investment in capital markets. Since April 1, 2000, amounts equal to contributions less benefits and other payments related to the public service, Canadian Forces — Regular Force and Royal Canadian Mounted Police pension plans, and since 2007 for the Canadian Forces — Reserve Force pension plan, that fall within the Income Tax Act limits are transferred to the PSPIB. The goal of the PSPIB is to maximize returns on investments without undue risk of loss, while having regard to the requirements and financial obligations of each of the pension plans. The PSPIB, a Canadian Crown corporation established by the Public Sector Pension Investment Board Act, reports the results of the investments in an annual report tabled in Parliament. Contributions for all the other pension plans sponsored by the Government are part of general funds.

More information on the above mentioned plans can be found in the respective annual report on the administration of the plans tabled in Parliament.

In addition, some of the consolidated Crown corporations and other entities maintain their own defined benefit pension plans covering substantially all of their employees. The majority of the defined benefit pension plans are contributory plans. Employer and employee contributions are made in accordance with the provisions of the plans. Pension plans' funds are held in external trusts that are legally separate from Crown corporations and other entities.

i. Pension plans

Public Service Pension Plan, Canadian Forces Pension Plan including the Reserve Force Pension Plan and Royal Canadian Mounted Police Pension Plan

The pension plans for the public service, Canadian Forces — Regular Force and the Royal Canadian Mounted Police provide for the payment of a lifetime pension and a temporary bridge benefit payable normally until age 65, the age at which members generally become eligible for the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP). The annual lifetime pension is based on the average salary of five consecutive years of highest paid service and the years of pensionable service. For the Canadian Forces — Reserve Force pension plan, the annual lifetime pension is based on a percentage of indexed pensionable earnings with a temporary bridge benefit until members become eligible for the CPP or QPP. Pension benefits are indexed annually on January 1 to take into account the cost of living.

Pension benefits accrue at a rate of two percent per year of pensionable service up to a maximum of 35 years, the exception being the benefits offered under the Canadian Forces — Reserve Force pension plan which accrue at a rate of 1.5 percent up to a maximum of 35 years. Pension benefits are coordinated with those of the CPP or the QPP. Pension benefits for the public service pension plan members will accrue under either Group 1 for employees who were plan members prior to January 1, 2013, or Group 2 for employees joining the public service pension plan on or after that date. The normal retirement age for Group 1 members is 60. For Group 2 members, the normal retirement age is 65 and other age related thresholds were increased by 5 years.

The contribution rates for current service for all members of the public service will increase gradually to a 50:50 cost sharing ratio with the government by 2017. Public service Group 1 members, Canadian Forces — Regular Force and Royal Canadian Mounted Police members contribute at different rates than public service Group 2 members. These rates are as follows:

  • Public service Group 1 members, Canadian Forces — Regular Force and Royal Canadian Mounted Police pension plan members contributed:
    • for the first nine months of the 2015 fiscal year, 7.5 percent (6.9 percent in 2014) of salary up to the Yearly Maximum Pensionable Earnings (YMPE) for the CPP or QPP and 9.8 percent (9.2 percent in 2014) of salary above the YMPE; and
    • for the last three months of the 2015 fiscal year, 8.2 percent (7.5 percent in 2014) of salary up to the YMPE and 10.4 percent (9.8 percent in 2014) of salary above the YMPE.
  • Public service Group 2 plan members contributed:
    • for the first nine months of the 2015 fiscal year, 6.6 percent (6.3 percent in 2014) of salary up to the YMPE for the CPP or QPP and 7.9 percent (7.6 percent in 2014) of salary above the YMPE; and
    • for the last three months of the 2015 fiscal year, 7.1 percent (6.6 percent in 2014) of salary up to the YMPE and 8.5 percent (7.9 percent in 2014) of salary above the YMPE.

Contribution rates for Group 2 members were lower than for Group 1 members due to the lower cost of the benefits related to increasing the normal age of retirement from 60 to 65.

Members of the Canadian Forces — Reserve Force contribute 5.2 percent on salary up to two thirds of the YMPE.

Employer contributions are made monthly to provide for the cost (net of employee contributions) of the benefits that have accrued in respect of that month at a rate determined by the President of the Treasury Board. For 2015, the employer contribution rates were about 1.4, 1.9 and 1.6 (1.6, 2.1 and 1.8 respectively in 2014) times the current year's employee contribution for the plans under the Public Service Superannuation Act, the Canadian Forces Superannuation Act (Regular and Reserve Force pension plans) and the Royal Canadian Mounted Police Superannuation Act, respectively. For new members joining the public service pension plan, on or after January 1, 2013, employer contributions were about 1.4 (1.5 in 2014) times the employee contribution. With respect to the Reserve force pension plan, the employer contributions, which were suspended in October 2011, were reinstated in December 2014 following the tabling of the Actuarial Report on the Pension Plan for the Canadian Forces Reserve Force as at March 31, 2013, since the actuarial report revealed that the non-permitted surplus no longer existed. For 2015, the employer contribution rate was about 1.8 times the current year's employee contribution for the Reserve Force pension plan. In addition, a one-time payment in arrears of $42 million was credited to the Reserve Force Pension Fund Account to cover the employer contributions for the period of April 2013 to November 2014.

The superannuation accounts, which record the transactions that pertain to pre April 1, 2000 service, are credited with interest at rates that are based on the Government of Canada long‑term bond rate. The average interest rate credited to the superannuation accounts was approximately 5.1 percent (5.3 percent in 2014).

The pension fund accounts, which record the transactions that pertain to service since April 1, 2000, are flow through accounts used to transfer funds to the PSPIB. The balance in the pension fund accounts at year‑end represents the amounts awaiting transfer to the PSPIB.

The retirement compensation arrangements (RCA) accounts records transactions for those pension benefits above the pension limits set under the Income Tax Act. The RCA, Regulations No. 1 and No. 2 are registered with the Canada Revenue Agency and a transfer is made annually between these RCA regulations and the Canada Revenue Agency, either to remit a 50 percent refundable tax in respect of the net contributions and interest credits or to receive a refund based on the net benefit payments.

Members of Parliament retiring allowances

Members of Parliament are eligible at a certain age to receive a basic allowance upon termination of membership and after having contributed to the plan for at least six years. Retirement age is set at 55 for pensionable service incurred before January 1, 2016 and at 65 for pensionable service incurred on or after January 1, 2016, with the option of reduced benefits for early retirement at age 55. The basic allowance is based on member's average sessional indemnity for the best five years and accrues at a rate of 3 percent of average sessional indemnities for both Members of the House of Commons and for Senators. Basic allowances are indexed annually on January 1 to the cost of living once recipients reach age 60. Pensionable service accrued on or after January 1, 2016, under the Members of Parliament pension plan will be coordinated with the CPP or QPP at age 60.

The contribution rates will increase over time to bring the plan members' share to 50 percent by no later than January 1, 2017. For the 2015 fiscal year, plan members contributed at a rate of 9 percent (8 percent in 2014) of their salary for the first 9 months and 10 percent (9 percent in 2014) for the last three months.

The Government contributions are made monthly to provide for the cost (net of plan member contributions) of the benefits that have accrued in respect of that month at a rate determined by the President of the Treasury Board. The Government contributions, expressed as a multiple of plan member contributions, are on average as follows:

Table Summary

The table presents a two‑year comparative of the average of the Government contribution expressed as a multiple of Members' contributions. It consists of three columns: a listing of the contribution accounts for Members of Parliament; current year; previous year.

  2015 2014
Members of Parliament —    
Retiring allowances account 4.5 4.5
Compensation arrangements account 4.1 5.1

Contributions are credited to the appropriate pension account, either the Members of Parliament Retiring Allowances Account or the Members of Parliament Retirement Compensation Arrangements Account. The pension accounts are also credited with interest at the rate of 2.5 percent per quarter before January 1, 2013, then at the rate determined by the Chief Actuary of Canada. The average interest rate credited to the pension accounts in 2015 was approximately 3.4 percent (4.2 percent in 2014).

Pension plan for federally appointed judges

This plan provides fully indexed annuities to judges and to all eligible survivors providing they meet minimum age and service requirements. The full benefit amount is generally payable when the member has completed 15 years of pensionable service and the sum of the member's age and years of service totals 80.

Judges appointed to the bench before February 17, 1975, make required contributions of 1.5 percent of salary. All other judges contribute 7 percent of salary.

Legislation does not require a specific pension account to be maintained to record the transactions pertaining to this plan. Therefore, except for the portion recorded in the Supplementary Retirement Benefit Account, the liability pertaining to this plan is recorded through an allowance account. During the year, benefits paid are recorded as expenditures against the statutory payment authority. The expense is adjusted at year‑end through an allowance account, to bring the current year expense from cash to an accrual accounting basis, similar to that of the other pension plans. During the year, the benefit payments charged to the expenditure authority amounted to $136 million ($129 million in 2014). At March 31, 2015, the portion of the pension liability recorded through an allowance account for the judges' pension plan amounted to $2,314 million ($2,203 million in 2014).

Consolidated Crown corporation and other entity pension plans

Pension benefits provided under consolidated Crown corporations and other entities defined benefit pension plans vary depending on the terms of the plans. Some of the consolidated Crown corporations and other entities defined benefit pension plans are closed to new entrants.

ii. Actuarial valuations

As required under the Public Pensions Reporting Act, actuarial valuations of the pension plans sponsored by the Government are performed at least every three years for funding purposes. The actuarial valuations are performed by the Office of the Chief Actuary, submitted to the President of the Treasury Board and tabled in Parliament.

The most recent date for the actuarial valuation of each pension plan sponsored by the Government is as follows:

  • Public Service — March 31, 2014;
  • Canadian Forces — Regular Force — March 31, 2013;
  • Canadian Forces — Reserve Force — March 31, 2013;
  • Royal Canadian Mounted Police — March 31, 2012;
  • Members of Parliament — March 31, 2013;
  • and Federally appointed judges — March 31, 2013.

The actuarial valuations for the public service, Canadian Forces, Royal Canadian Mounted Police and Members of Parliament pension plans include the valuation of the Retirement Compensation Arrangements (RCA) component related to each plan.

These funding valuations provide the Government with recommendations for setting both employer and employee contribution rates, as well as any actuarial adjustment to amortize deficiencies or excesses. These actuarial adjustments are made in equal instalments over a period not exceeding 15 years commencing in the year in which the actuarial report is laid before Parliament.

To address deficiencies, an actuarial adjustment of $435 million ($435 million in 2014) was credited in the Public Service Pension Fund Account, $170 million ($249 million in 2014) in the Canadian Forces Pension Fund Account, $2 million (nil in 2014) in the Reserve Force Pension Fund Account, $12 million ($12 million in 2014) in the Royal Canadian Mounted Police Superannuation Account, $74 million ($74 million in 2014) in the Royal Canadian Mounted Police Pension Fund Account and $8 million ($8 million in 2014) in the Retirement Compensation Arrangements (RCA) Account No. 2. No actuarial adjustments were debited to the accounts ($280 million in the Members of Parliament Retiring Allowances Account and $30 million in the Members of Parliament Retirement Compensation Arrangements Account in 2014) to address excesses. The actuarial adjustments recorded in pension fund accounts are transferred to the PSPIB for investment in capital markets. To address deficiencies, the consolidated Crown corporations and other entities made special funding payments of $60 million in 2015.

Table 6.15 presents a summary of the balances and transactions for public sector pension plan liabilities. In particular, receipts and other credits for the Government's pension accounts consist of contributions from plan members, the Government of Canada, participating Public Service corporations and territorial governments, as well as transfers from other pension funds, actuarial adjustments to amortize deficiencies, refunds of refundable tax and interest. Payments and other charges for the Government's pension accounts consist of annuity payments, minimum benefits, cash termination allowances (lump sum payments to employees suffering a disability), returns of contributions, pension division payments, transfer value payments, transfers to other funds, remittances of refundable tax, payments of administrative expenses, actuarial adjustments to amortize excesses, and transfers to PSPIB. Adjustments to the Government's allowance accounts result from the differential with annual actuarial valuations performed for accounting purposes. These include differences between benefits earned and contributions and interest calculations, as well as from other adjustments required under the Government's accounting policies such as recognition of actuarial gains and losses and consolidation adjustments related to refundable tax amounts.

Pension benefits funded by the Government relate to post March 2000 service that falls within the Income Tax Act limits for the three main public sector pension plans and all service for the Canadian Force — Reserve Force pension plan, as funds are invested in capital markets through the PSPIB. Funded pension benefits also relate to consolidated Crown corporations and other entities where pension plans' funds are held in external trusts that are legally separate from Crown corporations and other entities. For unfunded pension plans, separate market invested funds are not maintained. These relate to pre April 2000 service and post March 2000 service that falls above the Income Tax Act limits for the three main public sector pension plans, all service periods for the pension plans of the federally appointed judges and Members of Parliament, and some of the consolidated Crown corporation and other entity pension plans.

Table Summary

The table presents, in millions of dollars, a transactions and balances summary for public sector pension plan liabilities. It consists of five columns: a listing of public sector pension accounts and related allowances for pension adjustments; the opening balance for the accounts as at April 1 of the current year; Receipts and other credits; Payments and other charges; the closing balance for the accounts as at March 31 of the current year. The first series of rows presents the funded pension benefits; the related allowance for pension adjustments; and the subtotal. The following rows of the series present the totals for pension fund accounts and the allowance for pension adjustments; the pension benefit liabilities related to funded plans sponsored by the Governement; the pension benefit assets related to funded plans sponsored by consolidated Crown corporations and other entities; and the net pension benefit liabilitis related to funded plans. The second series of rows presents the unfunded pension benefits; the related allowance for pension adjustments; and the subtotal. The following rows of the series present the totals for superannuation accounts and allowance for pension adjustments; the pension benefit liabilities related to unfunded pension plans sponsored by the Government as well as those sponsored by consolidated Crown corporations and other entities; the pension benefit liabilities related to unfunded plans; and the net pension benefit liabilities. A final series of rows presents the public sector pension liabilities minus the public sector pension assets for the net pension benefit liabilities that were recognized and presented in the Consolidated Statement of Financial Position.

(in millions of dollars)

Table 6.15
Public Sector Pensions

  April 1, 2014 Receipts and other credits Payments and other charges March 31, 2015
Funded pension benefits —        
Public Service Pension Fund Account, Table 6.18 500 4,887 4,985 402
Allowance for pension adjustments 3,752 308 475 3,585
Subtotal 4,252 5,195 5,460 3,987
Canadian Forces Pension Fund Account, Table 6.20 263 1,438 1,518 183
Allowance for pension adjustments 1,030 235 297 968
Subtotal 1,293 1,673 1,815 1,151
Reserve Force Pension Fund Account, Table 6.21 2 95 99 (negative 2)
Allowance for pension adjustments 248 105 76 277
Subtotal 250 200 175 275
Royal Canadian Mounted Police Pension Fund Account, Table 6.23 11 533 537 7
Allowance for pension adjustments 340 37 74 303
Subtotal 351 570 611 310
Total pension fund accounts 776 6,953 7,139 590
Total allowance for pension adjustments 5,370 685 922 5,133
Pension benefit liabilities related to funded plans sponsored by the Government 6,146 7,638 8,061 5,723
Pension benefit assets related to funded plans sponsored by consolidated Crown corporations and other entities (negative 938) 81 406 (negative 1,263)
Net pension benefit liabilities related to funded plans 5,208 7,719 8,467 4,460
Unfunded pension benefits —        
Public Service Superannuation Account, Table 6.17 96,424 4,830 5,378 95,876
Allowance for pension adjustments (negative 9,690) 498 280 (negative 9,472)
Subtotal 86,734 5,328 5,658 86,404
Canadian Forces Superannuation Account, Table 6.19 46,297 2,315 2,493 46,119
Allowance for pension adjustments (negative 5,090) 297 129 (negative 4,922)
Subtotal 41,207 2,612 2,622 41,197
Royal Canadian Mounted Police Superannuation Account, Table 6.22 13,185 670 658 13,197
Allowance for pension adjustments (negative 1,326) 71 36 (negative 1,291)
Subtotal 11,859 741 694 11,906
Members of Parliament Retiring Allowances Account, Table 6.24 497 31 27 501
Allowance for pension adjustments (negative 73) 5 4 (negative 72)
Subtotal 424 36 31 429
Members of Parliament Retirement Compensation Arrangements Account, Table 6.25 224 31 17 238
Allowance for pension adjustments 204 7 2 209
Subtotal 428 38 19 447
Retirement Compensation Arrangements (RCA) Account, Table 6.26 2,154 274 208 2,220
Allowance for pension adjustments 1,732 93 89 1,736
Subtotal 3,886 367 297 3,956
Supplementary Retirement Benefits Account (Judges), Table 6.27 196 10   206
Allowance for pension adjustments 2,203 131 20 2,314
Subtotal 2,399 141 20 2,520
Supplementary Retirement Benefits Account (Others), Table 6.27        
Total superannuation accounts 158,977 8,161 8,781 158,357
Total allowance for pension adjustments (negative 12,040) 1,102 560 (negative 11,498)
Pension benefit liabilities related to unfunded plans sponsored by the Government 146,937 9,263 9,341 146,859
Pension benefit liabilities related to unfunded plans sponsored by consolidated Crown corporations and other entities 79 7 4 82
Pension benefit liabilities related to unfunded plans 147,016 9,270 9,345 146,941
Net pension benefit liabilities 152,224 16,989 17,812 151,401
The net pension benefit liabilities were recognized and presented in the Consolidated Statement of Financial Position as follows:
Public sector pension liabilities 153,162 16,908 17,406 152,664
Public sector pension assets (negative 938) 81 406 (negative 1,263)
Net pension benefit liabilities 152,224 16,989 17,812 151,401

Table 6.16 presents a summary of transactions in public sector pensions that resulted in charges to expenses. Interest is calculated based on the accrued pension obligations under the various plans. The net interest expense represents interest of $7,906 million ($8,341 million in 2014) credited to the superannuation accounts in accordance with the pension legislation, a provision of $4,240 million ($3,844 million in 2014) and interest of $414 million ($421 million in 2014) on the consolidated Crown corporations and other entities' obligations, shown net of $4,764 million ($3,961 million in 2014) in expected return on pension investments.

Table Summary

The table presents, in millions of dollars, a summary of transactions in public sector pensions that resulted in charges to expenses. It consists of three columns: a listing of pension benefits; current year divided into nine columns — Government contributions and other, Adjustment, Net benefits earned, Actuarial adjustments, Less costs recorded in previous years, Plan curtailment, Actuarial losses (gains) recognized, Pension expense, Net interest expense; previous year divided into two columns — Pension expense, and Net interest expense. The first series of rows presents the funded pension benefits. The second series of rows presents the unfunded pension benefits. A final row presents the total of both funded and unfunded pension benefits reported in the Consolidated Statement of Operations and Accumulated Deficit.

(in millions of dollars)

Table 6.16
Summary of Transactions in Public Sector Pensions that Resulted in Charges to Expenditures

  2014–2015 2013–2014
Government contributions and otherLink to footnote 1 Adjustment Net benefits earned Actuarial adjustmentsLink to footnote 2 Less costs recorded in previous yearsLink to footnote 3 Plan curtailment Actuarial losses (gains) recognized Pension expense Net interest expense Pension expense Net interest expense
Funded pension benefits —                      
Public Service Pension Fund Account 2,342 71 2,413 435 (negative 435) (negative 40) 44 2,417 193 2,949 352
Canadian Forces Pension Fund Account 795 (negative 22) 773 170 (negative 170)   134 907 101 1,087 153
Reserve Force Pension Fund Account 65 (negative 51) 14 2 (negative 2)   (negative 20) (negative 6) (negative 3) 23 7
Royal Canadian Mounted Police Pension Fund Account 278 1 279 74 (negative 74)   18 297 18 332 36
Consolidated Crown corporations and other entitiesLink to footnote 1 152 (negative 70) 82 60 (negative 60)   (negative 84) (negative 2) (negative 110) 38 (negative 57)
Total funded pension benefits 3,632 (negative 71) 3,561 741 (negative 741) (negative 40) 92 3,613 199 4,429 491
Unfunded pension benefits —                      
Public Service Superannuation AccountLink to footnote 4 14 (negative 32) (negative 18)     (negative 8) 498 472 4,558 821 4,921
Canadian Forces Superannuation Account 3 (negative 6) (negative 3)       297 294 2,185 352 2,358
Defence Services Pension Continuation ActLink to footnote 1 3   3         3   4  
Royal Canadian Mounted Police Superannuation Account   (negative 1) (negative 1) 12 (negative 12)   71 70 634 81 679
Royal Canadian Mounted Police Continuation ActLink to footnote 1 11   11         11   12  
Members of Parliament Retiring Allowances Account 9   9       5 14 16 13 12
Members of Parliament Retirement Compensation Arrangements Account 17 1 18       2 20 8 19 6
Retirement Compensation Arrangements (RCA) Account 105 (negative 23) 82 8 (negative 8) (negative 3) (negative 14) 65 99 115 106
Supplementary Retirement Benefits Account 4   4         4   3  
Judges ActLink to footnote 1 136 (negative 20) 116       41 157 93 159 69
Other (diplomatic services, lieutenant governors, etc.)Link to footnote 1 2   2         2   2  
Consolidated Crown corporations and other entities   2 2       1 3 4 3 3
Subtotal 304 (negative 79) 225 20 (negative 20) (negative 11) 901 1,115 7,597 1,584 8,154
Less: contributions from the Judges plan recorded to revenues (negative 14)   (negative 14)         (negative 14)   (negative 14)  
Total unfunded pension benefits 290 (negative 79) 211 20 (negative 20) (negative 11) 901 1,101 7,597 1,570 8,154
Total reported in the Consolidated Statement of Operations and Accumulated Deficit 3,922 (negative 150) 3,772 761 (negative 761) (negative 51) 993 4,714 7,796 5,999 8,645

Public Service Superannuation Account

This account, established by the Public Service Superannuation Act, is used to record all transactions (contributions, benefit payments, transfers and interest credits) in respect of service accrued by public service members up to March 31, 2000.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Public Service Superannuation Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits, the total transaction type and the subtotal of the objects which includes the opening balance. The second series of rows presents the various applicable classification objects related to payments and other charges. A final row presents the closing balance for the account — result from the opening balance and receipts and other credits minus payments and other charges.

Table 6.17
Public Service Superannuation Account

  2014–2015
($)
2013–2014
($)
Opening balance 96,423,778,971 96,648,001,666
Receipts and Other Credits —    
Employee contributions —    
Government employees 2,613,256 3,974,740
Retired employees 14,933,384 17,027,791
Public Service corporation employees 196,820 261,641
Employer contributions —    
Government 14,472,374 17,233,070
Public Service corporations 112,735 242,124
Transfers from other pension funds   391,468
Interest 4,797,893,981 5,061,490,938
Total receipts and other credits 4,830,222,550 5,100,621,772
Subtotal 101,254,001,521 101,748,623,438
Payments and Other Charges —    
Benefit payments —    
Annuities 5,240,665,149 5,163,832,472
Minimum benefits 16,184,060 16,775,306
Pension division payments 18,100,278 29,996,061
Pension transfer value payments 34,531,513 45,395,025
Return of contributions —    
Government employees 721,888 154,483
Public Service corporation employees 31,857 141,859
Transfers to other pension funds 9,343,265 10,651,878
Administrative expenses 58,478,052 57,897,383
Total payments and other charges 5,378,056,062 5,324,844,467
Closing balance 95,875,945,459 96,423,778,971

Public Service Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after April 1, 2000, under the Public Service Superannuation Act. An amount equal to contributions less benefits and other payments is transferred to the PSPIB for investment in capital markets. The closing balance in this account represents the net cash position prior to transfer to the PSPIB.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Public Service Pension Fund Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits. The second series of rows presents the various applicable classification objects related to payments and other charges. The third series of rows presents receipts and other credits less payments and other debits as well as transfers to PSPIB. A final row presents the closing balance for the account — result from receipts and other credits minus payments and other charges and transfers to PSPIB plus the opening balance.

Table 6.18
Public Service Pension Fund Account

  2014–2015
($)
2013–2014
($)
Opening balance 499,943,338 550,792,204
Receipts and Other Credits —    
Employee contributions —    
Government employees 1,667,207,395 1,586,029,379
Retired employees 38,077,475 36,906,148
Public Service corporation employees 157,358,746 151,031,744
Employer contributions —    
Government 2,342,382,010 2,519,014,713
Public Service corporations 218,193,085 242,823,824
Actuarial adjustment 435,000,000 435,000,000
Transfers from other pension funds 29,619,344 95,280,934
Total receipts and other credits 4,887,838,055 5,066,086,742
Payments and Other Charges —    
Benefit payments —    
Annuities 1,343,904,637 1,143,851,882
Minimum benefits 11,322,140 11,418,925
Pension division payments 26,204,917 27,576,454
Pension transfer value payments 279,072,403 302,264,857
Return of contributions —    
Government employees 7,572,183 9,638,773
Public Service corporation employees 3,533,886 3,505,117
Transfers to other pension funds 52,019,965 48,803,327
Administrative expenses 41,056,225 35,110,461
Total payments and other charges 1,764,686,356 1,582,169,796
Receipts and other credits less payments and other charges 3,123,151,699 3,483,916,946
Transfers to PSPIB 3,220,804,650 3,534,765,812
Closing balance 402,290,387 499,943,338

Canadian Forces Superannuation Account

This account, established by the Canadian Forces Superannuation Act, is used to record all transactions (contributions, benefit payments, transfers and interest credits) in respect of service accrued by Canadian Armed Forces members up to March 31, 2000.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Canadian Forces Superannuation Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits, the total of the transaction type and the subtotal of the objects which includes the opening balance. The second series of rows presents the various applicable classification objects related to payments and other charges. A final row presents the closing balance for the account — result from the opening balance and receipts and other credits minus payments and other charges.

Table 6.19
Canadian Forces Superannuation Account

  2014–2015
($)
2013–2014
($)
Opening balance 46,297,375,844 46,357,136,100
Receipts and Other Credits —    
Contributions from personnel 2,717,194 2,771,407
Contributions by the Government 2,717,194 2,771,407
Interest 2,308,115,023 2,427,304,029
OtherLink to footnote 5 1,066,108 1,303,108
Total receipts and other credits 2,314,615,519 2,434,149,951
Subtotal 48,611,991,363 48,791,286,051
Payments and Other Charges —    
Benefit payments —    
Pensions and retiring allowances 2,426,059,524 2,418,117,579
Minimum benefits 658,347 510,547
Pension division payments 33,211,687 41,067,717
Pension transfer value payments 1,906,716 2,038,584
Return of contributions 18,298 4,054
Transfers to other pension funds 205,620 534,304
Administrative expenses 31,280,608 31,637,422
Total payments and other charges 2,493,340,800 2,493,910,207
Closing balance 46,118,650,563 46,297,375,844

Canadian Forces Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after April 1, 2000, in accordance with Part I of the Canadian Forces Superannuation Act. An amount equal to contributions less benefits and other payments is transferred to the PSPIB for investment in capital markets. The closing balance in this account represents the net cash position prior to transfer to the PSPIB.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Canadian Forces Pension Fund Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits. The second series of rows presents the various applicable classification objects related to payments and other charges. The third series of rows presents receipts and other credits less payments and other debits as well as transfers to PSPIB. A final row presents the closing balance for the account — result from receipts and other credits minus payments and other charges and transfers to PSPIB plus the opening balance.

Table 6.20
Canadian Forces Pension Fund Account

  2014–2015
($)
2013–2014
($)
Opening balance 263,355,393 276,095,519
Receipts and Other Credits —    
Contributions from personnel 423,930,301 396,753,920
Contributions by the Government 795,171,662 839,980,653
Actuarial adjustment 170,000,000 249,000,000
Transfers from other pension funds 48,449,248 22,679,991
OtherLink to footnote 6 14,476 71,702
Total receipts and other credits 1,437,565,687 1,508,486,266
Payments and Other Charges —    
Benefit payments —    
Pensions and retiring allowances 375,524,290 317,768,166
Minimum benefits 1,236,235 765,816
Pension division payments 28,887,588 32,917,206
Pension transfer value payments 152,155,635 141,162,757
Return of contributions 927,893 927,654
Transfers to other pension funds 505,487 1,182,251
Administrative expenses 18,292,463 16,663,986
Total payments and other charges 577,529,591 511,387,836
Receipts and other credits less payments and other charges 860,036,096 997,098,430
Transfers to PSPIB 939,925,712 1,009,838,556
Closing balance 183,465,777 263,355,393

Reserve Force Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after March 1, 2007, in accordance with Part I.1 of the Canadian Forces Superannuation Act. An amount equal to contributions less benefits and other payments is usually transferred to the PSPIB for investment in capital markets. Employer contributions, which were suspended in October 2011, were reinstated in December 2014 following the tabling of the Actuarial Report on the Pension Plan for the Canadian Forces Reserve Force as at March 31, 2013, since the actuarial report revealed that the non‑permitted surplus no longer existed. The closing balance in this account represents the net cash position prior to transfer to the PSPIB.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Reserve Force Pension Fund Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits. The second series of rows presents the various applicable classification objects related to payments and other charges. The third series of rows presents receipts and other credits less payments and other debits as well as transfers to PSPIB. A final row presents the closing balance for the account — result from receipts and other credits minus payments and other charges and transfers to PSPIB plus the opening balance.

Table 6.21
Reserve Force Pension Fund Account

  2014–2015
($)
2013–2014
($)
Opening balance 1,609,568 13,234,366
Receipts and Other Credits —    
Contributions from personnel 28,285,286 27,324,355
Contributions by the Government 65,160,998 12,917,754
Actuarial adjustment 1,900,000  
OtherLink to footnote 7 1,550  
Total receipts and other credits 95,347,834 40,242,109
Payments and Other Charges —    
Benefit payments —    
Pensions and retiring allowances 5,233,714 4,466,218
Minimum benefits 60,485 14,329
Pension transfer value payments 12,934,442 11,782,916
Return of contributions 90,747 117,139
Transfer to other pension funds 48,426,486 22,499,217
Administrative expenses 13,703,701 12,987,088
Total payments and other charges 80,449,575 51,866,907
Receipts and other credits less payments and other charges 14,898,259 (negative 11,624,798)
Transfers to PSPIB 19,059,670  
Closing balance (negative 2,551,843) 1,609,568

Royal Canadian Mounted Police Superannuation Account

This account, established by the Royal Canadian Mounted Police Superannuation Act, is used to record all transactions (contributions, benefit payments, transfers and interest credits) in respect of service accrued by Royal Canadian Mounted Police members up to March 31, 2000.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Royal Canadian Mounted Police Superannuation Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits, the total of the transaction type and the subtotal of the objects which includes the opening balance. The second series of rows presents the various applicable classification objects related to payments and other charges. A final row presents the closing balance for the account — result from the opening balance and receipts and other credits minus payments and other charges.

Table 6.22
Royal Canadian Mounted Police Superannuation Account

  2014–2015
($)
2013–2014
($)
Opening balance 13,184,685,451 13,124,862,672
Receipts and Other Credits —    
Contributions from personnel (current services and arrears) 445,328 635,140
Contributions by the Government 433,433 1,006,666
Actuarial adjustment 12,000,000 12,000,000
Interest 657,522,222 688,854,286
Total receipts and other credits 670,400,983 702,496,092
Subtotal 13,855,086,434 13,827,358,764
Payments and Other Charges —    
Benefit payments —    
Annuities and allowances 629,035,127 608,138,291
Cash termination allowance and gratuities 258,112 414,215
Pension division payments 11,624,932 8,919,639
Pension transfer value payments 1,816,571 893,751
Return of contributions 344,657 75,413
Transfers to other pension funds 77,096 39,410
Administrative expenses 14,722,162 24,192,594
Total payments and other charges 657,878,657 642,673,313
Closing balance 13,197,207,777 13,184,685,451

Royal Canadian Mounted Police Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after April 1, 2000, under the Royal Canadian Mounted Police Superannuation Act. An amount equal to contributions less benefits and other payments is transferred to the PSPIB for investment in capital markets. The closing balance in this account represents the net cash position prior to transfer to the PSPIB.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Royal Canadian Mounted Police Pension Fund Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits. The second series of rows presents the various applicable classification objects related to payments and other charges. The third series of rows presents receipts and other credits less payments and other debits as well as transfers to PSPIB. A final row presents the closing balance for the account — result from receipts and other credits minus payments and other charges and transfers to PSPIB plus the opening balance.

Table 6.23
Royal Canadian Mounted Police Pension Fund Account

  2014–2015
($)
2013–2014
($)
Opening balance 10,962,617 69,187,954
Receipts and Other Credits —    
Contributions from personnel (current services and arrears) 169,627,163 156,961,854
Contributions by the Government 277,612,254 288,267,058
Actuarial adjustment 74,000,000 74,000,000
Transfers from other pension funds 11,864,616 5,062,568
Total receipts and other credits 533,104,033 524,291,480
Payments and Other Charges —    
Benefit payments —    
Annuities and allowances 117,650,733 98,094,194
Minimum benefits 212 230,963
Pension division payments 12,756,823 7,710,279
Pension transfer value payments 23,648,648 10,870,592
Return of contributions —    
Personnel 415,768 88,354
Interest 1,500 27,562
Transfers to other pension funds 473,148 683,982
Administrative expenses 8,209,554 12,385,262
Total payments and other charges 163,156,386 130,091,188
Receipts and other credits less payments and other charges 369,947,647 394,200,292
Transfers to PSPIB 374,442,871 452,425,629
Closing balance 6,467,393 10,962,617

Members of Parliament Retiring Allowances Account

This account was established by the Members of Parliament Retiring Allowances Act to provide pension benefits to eligible Members of Parliament who contributed to the plan. "Member" means a Member of the Senate or the House of Commons. Benefits are also available to eligible surviving spouses or eligible dependent children of Members who served on or after a certain date and contributed under the Act.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Members of Parliament Retiring Allowances Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits, the total of the transaction type and the subtotal of the objects which includes the opening balance. The second series of rows presents the various applicable classification objects related to payments and other charges. A final row presents the closing balance for the account — result from the opening balance and receipts and other credits minus payments and other charges.

Table 6.24
Members of Parliament Retiring Allowances Account

  2014–2015
($)
2013–2014
($)
Opening balance 496,466,754 755,805,893
Receipts and Other Credits —    
Members' contributions —    
Current services 1,973,821 2,014,865
Arrears of principal, interest and mortality insurance 12,477 14,394
Government contributions (current services) 8,855,514 8,916,866
Interest 20,367,021 36,078,041
Total receipts and other credits 31,208,833 47,024,166
Subtotal 527,675,587 802,830,059
Payments and Other Charges —    
Benefit payments —    
Annual allowances 26,640,665 26,329,938
Return of contributions —    
Withdrawals 13,936 32,157
Interest 209 1,210
Actuarial adjustment   280,000,000
Total payments and other charges 26,654,810 306,363,305
Closing balance 501,020,777 496,466,754

Members of Parliament Retirement Compensation Arrangements Account

This account was established by the Members of Parliament Retiring Allowances Act to provide for benefits in respect of pension credits accrued by Members of Parliament which are not payable out of the Members of Parliament Retiring Allowances Account. Benefits are also available to eligible surviving spouses or eligible dependent children of Members.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Members of Parliament Retirement Compensation Arrangements Account. It consists of three columns: a listing of transactions grouped by activity type and object; current year; previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits, the total of the transaction type and the subtotal of the objects which includes the opening balance. The second series of rows presents the various applicable classification objects related to payments and other charges. A final row presents the closing balance for the account — result from the opening balance and receipts and other credits minus payments and other charges.

Table 6.25
Members of Parliament Retirement Compensation Arrangements Account

  2014–2015
($)
2013–2014
($)
Opening balance 224,403,100 243,993,039
Receipts and Other Credits —    
Members' contributions —    
Current services 4,149,123 3,426,803
Arrears of principal, interest and mortality insurance 27,370 32,258
Government contributions (current services) 17,061,626 17,500,384
Interest 9,435,453 11,878,044
Total receipts and other credits 30,673,572 32,837,489
Subtotal 255,076,672 276,830,528
Payments and Other Charges —    
Benefit payments —    
Annual allowances 12,912,355 12,355,325
Return of contributions —    
Withdrawals 45,225 69,032
Interest 522 1,587
Refundable tax 4,304,614 10,001,484
Actuarial adjustment   30,000,000
Total payments and other charges 17,262,716 52,427,428
Closing balance 237,813,956 224,403,100

Retirement Compensation Arrangements (RCA) Account

This account was established by the Special Retirement Arrangements Act to provide pension benefits for federal employees under retirement compensation arrangements.

The RCA Regulations, No.1 (RCA No. 1) pays those pension benefits above the amount that may, in accordance with the Income Tax Act restrictions on registered pension plans, be paid under the Public Service Superannuation Act, the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act. The RCA No.1 was created effective December 15, 1994.

The RCA Regulations, No.2 (RCA No. 2) pays benefits to public service employees between the ages of 50 and 54, who were declared surplus as part of a three year Government downsizing initiative which ended on March 31, 1998. It pays the difference between an unreduced pension and the reduced pension for early retirement payable from the Public Service Superannuation Account. The RCA No.2 was created effective April 1, 1995, and is funded entirely by the Government.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of transactions and balances under the Retirement Compensation Arrangements (RCA) Account. It consists of four columns: a listing of transactions grouped by activity type and object; RCA No. 1 divided into three columns — Public Service sub‑divided into current year and previous year, Canadian Forces sub‑divided into current year and previous year, Royal Canadian Mounted Police sub‑divided into current year and previous year; RCA No. 2 — Public Service sub‑divided into current year and previous year; Total sub‑divided into current year and previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits, the subtotal of the objects and the total of the transaction type which includes the opening balance. The second series of rows presents the various applicable classification objects related to payments and other charges. A final row presents the closing balance for the account — result from the opening balance and receipts and other credits minus payments and other charges.

Table 6.26
Retirement Compensation Arrangements (RCA) Account

  RCA No. 1 RCA No. 2 Total
Public Service Canadian Forces Royal Canadian Mounted Police Public Service
2014–2015
($)
2013–2014
($)
2014–2015
($)
2013–2014
($)
2014–2015
($)
2013–2014
($)
2014–2015
($)
2013–2014
($)
2014–2015
($)
2013–2014
($)
Opening balance 1,040,164,699 975,251,232 351,185,693 329,950,629 32,475,115 31,534,253 729,836,159 749,295,712 2,153,661,666 2,086,031,826
Receipts and Other Credits —                    
Employee contributions —                    
Government employees 10,065,769 10,588,750 2,545,185 2,370,829 124,274 150,376     12,735,228 13,109,955
Retired employees 420,128 264,330     1,885 670     422,013 265,000
Public Service corporation employees 2,006,026 1,721,296             2,006,026 1,721,296
Employer contributions —                    
Government 75,678,400 83,641,858 28,844,798 28,525,250 628,765 868,308     105,151,963 113,035,416
Public Service corporations 14,750,273 13,501,115             14,750,273 13,501,115
Actuarial adjustment             8,000,000 8,000,000 8,000,000 8,000,000
Transfers from other pension funds 696,131 24,845     905 1,455     697,036 26,300
Refundable tax             20,127,193 18,797,103 20,127,193 18,797,103
Interest 54,330,519 54,134,392 18,267,496 18,150,993 1,649,328 1,691,539 35,493,565 38,383,183 109,740,908 112,360,107
Subtotal 157,947,246 163,876,586 49,657,479 49,047,072 2,405,157 2,712,348 63,620,758 65,180,286 273,630,640 280,816,292
Total 1,198,111,945 1,139,127,818 400,843,172 378,997,701 34,880,272 34,246,601 793,456,917 814,475,998 2,427,292,306 2,366,848,118
Payments and Other Charges —                    
Benefit payments —                    
Annuities 30,744,211 26,098,541 5,314,519 4,686,817 907,151 833,805 84,608,122 84,639,839 121,574,003 116,259,002
Minimum benefits 165,375 165,922 130,424           295,799 165,922
Pension division payments 737,864 903,333   223,681         737,864 1,127,014
Pension transfer value payments 548,456 324,334 1,458,834 894,069 4,170       2,011,460 1,218,403
Return of contributions —                    
Government employees 6,225 18,401     2,927 18     9,152 18,419
Public Service corporation employees 55,168 5,809             55,168 5,809
Transfers to other pension funds 267,634 1,747,052     3,445 24,072     271,079 1,771,124
Refundable tax 61,260,886 69,699,727 20,408,583 22,007,441 803,334 913,591     82,472,803 92,620,759
Subtotal 93,785,819 98,963,119 27,312,360 27,812,008 1,721,027 1,771,486 84,608,122 84,639,839 207,427,328 213,186,452
Closing balance 1,104,326,126 1,040,164,699 373,530,812 351,185,693 33,159,245 32,475,115 708,848,795 729,836,159 2,219,864,978 2,153,661,666

Supplementary Retirement Benefits Account

This account was established by the Supplementary Retirement Benefits Act to provide for pension benefit increases resulting from changes in the Consumer Price Index. The account continues to provide for increased pension benefits resulting from indexation for pensions of federally appointed judges, and recipients of pensions under various continuation acts and other related acts.

Table Summary

The table presents, to the nearest dollar, a two‑year comparative of the Supplementary Retirement Benefits Account. It consists of four columns: a listing of transactions grouped by activity type and object; Judges divided into two columns — current year and previous year; Others divided into two columns — current year and previous year; Total divided into two columns — current year and previous year. The first row presents the opening balance for the account. The following first series of rows presents the various applicable classification objects related to receipts and other credits type transactions, the total of the transaction type and the subtotal of the objects which includes the opening balance. The second series of rows presents the various applicable classification objects related to payments and other charges. A final row presents the closing balance for the account — result from the opening balance and receipts and other credits minus payments and other charges.

Table 6.27
Supplementary Retirement Benefits Account

  Judges OthersLink to footnote 8 Total
2014–2015
($)
2013–2014
($)
2014–2015
($)
2013–2014
($)
2014–2015
($)
2013–2014
($)
Opening balance 196,642,456 186,874,741 651,476 605,733 197,293,932 187,480,474
Receipts and Other Credits —            
Employee contributions —            
Government 3,393,911 3,267,632 31,265 32,677 3,425,176 3,300,309
Employer contributions —            
Government 3,393,911 3,267,632 31,265 32,677 3,425,176 3,300,309
Interest 2,952,920 3,232,451 10,509 11,664 2,963,429 3,244,115
Total receipts and other credits 9,740,742 9,767,715 73,039 77,018 9,813,781 9,844,733
Subtotal 206,383,198 196,642,456 724,515 682,751 207,107,713 197,325,207
Payments and Other Charges —            
Annuities     35,533 31,275 35,533 31,275
Closing balance 206,383,198 196,642,456 688,982 651,476 207,072,180 197,293,932

Allowance for Pension Adjustments

This account records the accounting adjustments resulting from annual actuarial valuations of public sector pension plans sponsored by the Government.

Actuarial losses of $1,076 million ($2,012 million in 2014), due to plan experience and changes in actuarial assumptions, were recognized in this account and increased pension expenses for the year.

An amount of $701 million ($468 million in 2014) was recorded in this account to offset the amortization of deficiencies of $701 million ($778 million in 2014) charged to the account and no amount ($310 million in 2014) was credited for amortization of excesses to the account during the year but already accounted for in previous years expenses or in actuarial gains and losses.

An amount of $82 million ($11 million in 2014) was debited to this account and decreased pension costs to adjust for the difference between the Government contributions and the net cost of benefits earned.

An amount of $51 million (nil in 2014) was recorded in this account and decreased pension costs to adjust for the cost reduction of past service related to a curtailment that was made to the public service benefits during the year.

An amount of $4,240 million ($3,844 million in 2014) was credited to this account to adjust for the difference between interest based on the accrued pension obligations and interest credited to the superannuation accounts. In addition, an amount of $4,244 million ($3,486 million in 2014) was debited in this account to record the expected return on the pension investments.

As well, a consolidation adjustment of $67 million ($84 million in 2014) was credited to this account and debited against personal tax revenues to eliminate the effect of internal transactions resulting from tax amounts debited to the RCA accounts that were previously recorded as tax revenues.

The unrecognized net actuarial loss of $11,164 million ($9,442 million in 2014) will be recognized in this account and will affect expenses in future years.

As a result of annual actuarial valuations for accounting purposes, the accrued pension obligations of $265,103 million ($247,428 million in 2014) less the pension assets of $101,357 million ($84,903 million in 2014) were found to be $4,799 million ($2,772 million in 2014) higher than the balance of the pension fund accounts of $590 million ($776 million in 2014) and the superannuation accounts of $158,357 million ($158,977 million in 2014). The excess or shortfall is made up of the following:

Table Summary

The table presents, in millions of dollars, a two‑year comparative of the public sector pension plans for which excesses or shortfalls have been determined through annual actuarial valuations for accounting purposes. It consists of two columns: a listing of five public sector pension plans; Excess (shortfall) divided into two columns — current year, and previous year. Each of the five series of rows presents a pension plan, the related accounts and the total allowance for the plan. A final row presents the total for all plans presented in this table.

(in millions of dollars)

  Excess (shortfall)
2015 2014
Public Service Pension Plan —    
Public Service Superannuation Account (negative 123) 4,360
Public Service Pension Fund 486 (negative 3,250)
Retirement Compensation Arrangements (negative 1,960) (negative 1,503)
Total allowance for Public Service Pension Plan (negative 1,597) (negative 393)
Canadian Forces Pension Plan —    
Canadian Forces Superannuation Account 694 2,207
Canadian Forces Pension Fund (negative 648) (negative 1,805)
Reserve Force Pension Fund (negative 27) 65
Retirement Compensation Arrangements (negative 282) (negative 222)
Total allowance for Canadian Forces Pension Plan (negative 263) 245
Royal Canadian Mounted Police Pension Plan —    
Royal Canadian Mounted Police Superannuation Account (negative 38) 420
Royal Canadian Mounted Police Pension Fund 11 (negative 397)
Retirement Compensation Arrangements (negative 16) (negative 9)
Total allowance for Canadian Mounted Police Pension Plan (negative 43) 14
Members of Parliament Pension Plan —    
Members of Parliament Retiring Allowances 17 37
Retirement Compensation Arrangements (negative 238) (negative 224)
Total allowance for Members of Parliament Pension Plan (negative 221) (negative 187)
Pension plan for federally appointed judges (negative 2,675) (negative 2,451)
Total (negative 4,799) (negative 2,772)

Other Employee and Veteran Future Benefits

The Government and the consolidated Crown corporations and other entities sponsor different types of future benefit plans with varying terms and conditions. The benefits are available to employees and former employees (including military or Royal Canadian Mounted Police members) during or after employment, or upon retirement. Some are considered retirement benefits, whereby benefits are expected to be provided after retirement to employees and their beneficiaries or dependants. Others are considered post‑employment benefits, whereby benefits are expected to be paid after employment but before retirement. Benefits for veterans are paid to war veterans, as well as to Canadian Forces retired veterans and Canadian Forces still‑serving members. Benefits for members of the Royal Canadian Mounted Police are paid to both current and former members. These are primarily post‑employment benefits, but some benefits are also paid during employment to still‑serving members. They include disability and associated benefits paid to veterans or Royal Canadian Mounted Police members, or to their beneficiaries and dependants.

The other major future benefits include health care and dental benefits available to retired employees and retired military and Royal Canadian Mounted Police members, accumulated sick leave entitlements and post‑employment benefits such as workers' compensation benefits and severance benefits that accumulate.

Table 6.28 presents the balance of these liabilities at year‑end.

Table Summary

The table presents, in millions of dollars, the balance at year end of liabilities related to other employee and veteran future benefits. It consists of five columns: a listing of the other future benefits plans; the opening balance as at April 1 of the current year; Receipts and other credits; Payments and other charges; the closing balance as at March 31 of the current year. A final row presents the total for the future benefit plans listed in this table.

(in millions of dollars)

Table 6.28
Other Employee and Veteran Future Benefits

  April 1, 2014 Receipts and other credits Payments and other charges March 31, 2015
Veterans' disability and other future benefits 36,735 6,970 3,079 40,626
Royal Canadian Mounted Police disability and other future benefits 4,127 806 152 4,781
Public Service Health Care Plan 21,667 1,299 763 22,203
Pensioners' Dental Services Plan 2,999 258 82 3,175
Severance and other benefits 3,365 196 1,220 2,341
Accumulated sick leave entitlements 1,529 274 243 1,560
Workers' compensation 987 269 126 1,130
Consolidated Crown corporations and other entities 550 31 257 324
Total 71,959 10,103 5,922 76,140

All of the Government and almost all of the consolidated Crown corporations and other entities' sponsored plans are unfunded. The health care and the dental plans are contributory plans. Contributions by retired plan members are made to the plans to obtain coverage. Therefore the liabilities and costs are shown net of members' contributions. The accrued benefit obligations related to these plans is determined actuarially for accounting purposes. As at March 31, the recorded liabilities included the following components:

Table Summary

The table presents, in millions of dollars, a two‑year comparative of the accrued benefit obligations related to other employee and veteran future benefits. It consists of three columns: a listing of the other future benefit plans; current year divided into five columns — Accrued benefit obligations, Other future benefit assets, Unrecognized net actuarial gain (loss), Benefits paid after measurement date up to March 31, and Future benefit liabilities; previous year — Future benefit liabilities. A final row presents the total for this table.

(in millions of dollars)

  2015 2014
Accrued benefit obligations Other future benefit assets Unrecognized net actuarial gain (loss) Benefits paid after measurement date up to March 31 Future benefit liabilities Future benefit liabilities
Veterans' disability and other future benefits 60,558   (negative 19,932)   40,626 36,735
Royal Canadian Mounted Police disability and other future benefits 8,941   (negative 4,160)   4,781 4,127
Public Service Health Care Plan 25,695   (negative 3,492)   22,203 21,667
Pensioners' Dental Services Plan 4,331   (negative 1,156)   3,175 2,999
Severance and other benefits 3,505   (negative 1,164)   2,341 3,365
Accumulated sick leave entitlements 1,606   (negative 46)   1,560 1,529
Workers' compensation 1,299   (negative 169)   1,130 987
Consolidated Crown corporations and other entities 328 (negative 3) 1 (negative 2) 324 550
Total 106,263 (negative 3) (negative 30,118) (negative 2) 76,140 71,959

The cost of these benefits can accrue either during the service life of employees or upon occurrence of an event giving rise to the liability under the terms of the plans. An interest component is charged to expense based on the average accrued benefit obligation.

In 2015, amendments were made to the veteran future benefit plans thereby improving and expanding eligibility for certain benefits. This includes modifying the Earnings Loss Benefit to ensure that part-time Reserve Force veterans have access to the same minimum level of income support as Regular and full-time Reserve Force veterans and to ensure their benefits are calculated in the same way; expanding access to the Permanent Impairment Allowance to help compensate disabled veterans for the loss of career opportunities associated with their disabilities; and changes to vocational rehabilitation so that there is more flexibility in identifying a suitable employment goal — one that reflects both their military and civilian work experiences. Furthermore, access to treatment and long‑term care benefits were improved by expanding services within the Operational Stress Injury Social Support Program as well as the transfer of the Sainte-Anne's Hospital to the government of Quebec effective April 1, 2016. New veteran future benefits were also created. This includes the Family Caregiver Relief Benefit which will provide annual financial support to eligible veterans who have an informal caregiver who plays an essential role in the provision or coordination of their care. The Retirement Income Security Benefit was created to provide additional financial security after the age of 65 for moderately to severely disabled veterans. The new Critical Injury Benefit will compensate eligible Canadian Armed Forces members and veterans for the immediate impacts of the most severe and traumatic service-related injuries or diseases between the time the injury occurs and the time when their condition becomes medically stable. These amendments resulted in a one-time past service cost of $1,828 million and the immediate recognition of a previously unrecognized net actuarial gain as of $69 million.

With respect to the employee severance benefit plan, an amendment was agreed upon resulting in a one‑time past service cost of $3 million ($23 million in 2014) and the immediate recognition of a previously unrecognized net actuarial gain of $3 million (nil in 2014).

In 2015, former employees of the Candu Reactor Division of Atomic Energy of Canada Limited ceased to be employed in the public service and became employed by a new employer. As a result, new regulations defer the availability of pensions under the PSSA for those individuals who choose to leave their accrued pension benefits under the PSSA until such time as they cease to be employed with the new employer. The impact of this curtailment is a one-time past service cost of $51 million and the immediate recognition of a previously unrecognized net actuarial gain of $6 million.

Beginning in 2011, the accumulation of severance benefits for voluntary departures ceased for certain employee groups. Employees subject to these changes are being given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. The impact of the curtailments is a one‑time past service cost reduction of $3 million ($94 million in 2014) and the immediate recognition of a previously unrecognized net actuarial gain of $37 million (net actuarial loss of $69 million in 2014), representing the portion related to the obligation for employees subject to the curtailments.

In 2015, payments of $643 million ($1,178 million in 2014) were made to employees affected by the curtailments of the severance benefit plan who opted to cash out the full or partial value of their accumulated benefits. Because the actual cost of settling part of the obligation differed from the liability previously recorded, a one-time past service cost reduction of $49 million (past service cost of $127 million in 2014) was recognized along with a previously unrecognized net actuarial gain of $101 million (net actuarial loss of $131 million in 2014), representing the portion related to the obligation for employees subject to the settlements.

During the year, expenses relating to these benefits were as follows:

Table Summary

The table presents, in millions of dollars, a two‑year comparative of expenses related to other employee and veteran future benefits. It consists of three columns: a listing of the other future benefit plans; the expenses for the current year divided into eight columns — Benefits earned, Plan amendment, Plan curtailments, Plan settlements, Actuarial losses (gains) recognized, Net benefit expense, Interest cost, and Total; the previous year — Total.

(in millions of dollars)

  2015 2014
Benefits earned Plan amendment Plan curtailments Plan settlements Actuarial losses (gains) recognized Net benefit expense Interest cost Total Total
Veterans' disability and other future benefits 1,472 1,828     1,945 5,245 1,656 6,901 5,495
Royal Canadian Mounted Police disability and other future benefits 312       261 573 233 806 734
Public Service Health Care Plan 639       (negative 282) 357 660 1,017 2,294
Pensioners' Dental Services Plan 99       42 141 117 258 323
Severance and other benefits 54 3 (negative 3) (negative 49) (negative 151) (negative 146) 93 (negative 53) 595
Accumulated sick leave entitlements 226       (negative 14) 212 48 260 293
Workers' compensation 25       24 49 39 88 158
Consolidated Crown corporations and other entities 17       2 19 11 30 26
Total 2,844 1,831 (negative 3) (negative 49) 1,827 6,450 2,857 9,307 9,918

Footnotes

Footnote 1

"Other" includes consolidated Crown corporations and other entities' contributions to their pension plans and statutory payments made to beneficiaries.

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Footnote 2

Represents actuarial adjustments to amortize deficiencies and excesses.

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Footnote 3

Represents the reversal of costs already recorded in the allowance for pension adjustments of previous years.

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Footnote 4

Includes payments under the Supplementary Retirement Benefits Act and various acts.

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Footnote 5

Includes unclaimed cheques, returned annuity payments upon joining a Government pension plan and returned payments from prior years.

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Footnote 6

Includes unclaimed cheques and returned annuity payments upon joining a Government pension plan.

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Footnote 7

Includes unclaimed cheques.

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Footnote 8

Includes lieutenant governors and non‑career diplomats.

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