Released on August 17, 2009
Please note: this program has now closed
The Government is moving forward to resolve pension claims from non-permanent public service employees who were uninformed or misinformed of their pension options between 1981 and 1999.
"This has been a long-outstanding issue that dates back over several administrations," Minister Responsible for the Public Service Commission June Draude said. "We are pleased to be moving forward to resolve it."
From 1981 to 1999, non-permanent employees in the public service had the option to join the Public Employees Pension Plan (PEPP). However, some employees were uninformed or misinformed about their options during that time.
Government has since taken corrective action to ensure this does not happen again. Processes in the public service are more rigorous, and participation in the pension plan became mandatory in 1998 for in-scope employees and in 1999 for out-of-scope employees.
The terms of the settlement are based on a framework agreement negotiated with the Saskatchewan Government and General Employees' Union, and detailed information about the process was posted on the Public Service Commission's (PSC) website last fall. The PSC is in the process of notifying all public service employees of this settlement program. To date, about two-thirds of government employees have been advised and the remainder will be notified this fall.
To qualify for a settlement payment, employees must demonstrate that they were not informed of their eligibility to join the public service pension plan while they worked in a non-permanent capacity, and that they would have invested in these retirement savings options if they had been able to.
Thirty-three payments were approved last week, ranging from $2,094 to $69,385 - at an average of $16,000 per employee. It is expected that further settlements will be forthcoming. Funding for this settlement ($15 million) was approved and announced in the Government's Third Quarter Financial Report for 2008.
"This is money our employees should have had in their pension plans," Draude said. "Pension issues involve a lot of detail and complexity, as well as legal processes, which all take considerable time to resolve. This government believes in fair treatment, and I am pleased that we are taking action to make up these pension losses."
-30-
For more information, contact:
Colleen Hawkesford
Public Service Commission
Regina
Phone: (306) 787-5581
Email: colleen.hawkesford@gov.sk.ca