Statement by Minister Ali on addressing a surplus in the public service pension fund

Statement by Minister Ali on addressing a surplus in the public service pension fund

December 18, 2025 – Ottawa, Ontario – Treasury Board of Canada Secretariat

The Honourable Shafqat Ali, President of the Treasury Board, made the following statement today:

“The Government of Canada is committed to ensuring that the federal public service pension plan remains well-managed and sustainable, and fully guaranteed by the Government of Canada. As a result of strong market performance, the public service pension fund continues to be in a surplus position.

Yesterday, in the House of Commons, I tabled the Special Actuarial Report on the financial position of the Public Service Pension Fund as at March 31, 2025, along with an update from the Chief Actuary of Canada. 

Based on this report and update, I have determined that the pension fund is in a non-permitted surplus position, as defined under the Public Service Superannuation Act, with a funded position of 125.5% and an excess surplus of approximately $0.9 billion as at March 31, 2025. 

In keeping with the act, the government will transfer the non-permitted surplus amount to the Consolidated Revenue Fund, where it will be held, along with the non-permitted surplus amount transferred last year, while next steps are considered. Discussions with stakeholders will be held as appropriate. Once the transfer is made, there will no longer be a non-permitted surplus in the fund.

Budget 2025 introduced several proposed initiatives affecting the pension fund, including an Early Retirement Incentive program and an expansion of the Operational Service Early Retirement program. The Chief Actuary’s updated analysis reflects the estimated impact of these proposed initiatives. 

Federal public servants continue to benefit from a healthy, sustainable, and secure pension plan that provides stable retirement income and reflects sound stewardship.”