Information concerning the three major public sector pension plans:
Public Service Pension Plan, Canadian Forces Pension Plan, and the Royal Canadian Mounted Police Pension Plan

As part of the ongoing objective to ensure the long-term sustainability of the public sector pension plans, the President of the Treasury Board would like to inform plan members that:
• the contribution rates they are paying towards their pension plan will be increased beginning in 2006 to achieve a more balanced cost-sharing ratio, and
• an amendment to the three pension plans, if enacted by Parliament, will change the formula by which plan benefits are coordinated with the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP) benefits in plan members’ favour.

Increases in the plan member contribution rates
• Contribution rates will increase beginning in January 2006 for active pension plan members in the three major public sector pension plans, namely the Public Service Pension Plan (PSPP), the Canadian Forces Pension Plan (CFPP), and the Royal Canadian Mounted Police Pension Plan (RCMPPP).
• Increasing contribution rates ensures that pension plan members and the Government of Canada, as employer, contribute to the pension plans in a more balanced way. 
• The current plan member contribution rates are 4 per cent on the portion of salary up to the maximum covered by the CPP or the QPP — $41,100 for 2005 — and 7.5 per cent on the portion of salary above this maximum.
• The current plan member contribution rates have been in effect since January 2000. In 1999, Public sector pension reform legislation was introduced and plan members contribution rates were frozen for the years 2000 to 2003. It was further decided that plan member contributions rates would remain unchanged for 2004 and 2005, to allow for consultation and review in regards to the rates that would apply for the period beginning in 2006.
• Currently, the Government is paying 72 per cent of the costs of the Public Service Pension Plan and PSPP plan members are paying only 28 per cent of those costs.  A 60:40 cost-sharing ratio between the employer and the PSPP members, respectively, is the historical average for this plan.
• Currently, the cost-sharing ratio for the CFPP is 78:22 and for the RCMPPP is 75:25 between the employer and the plan members, respectively.
• To better align plan member contributions and the cost of plan benefits, the Treasury Board ministers have approved contribution rate increases to achieve a more balanced cost-sharing for the three pension plans.
• The following table sets out plan member contribution rates that will apply to all three pension plans starting in 2006.
Contribution rates
 
2005
2006
2007
2008
2009
2010
2011
2012
2013
On earnings up to the maximum covered by the CPP/QPP
4.0%
4.3%
4.6%
4.9%
5.2%
5.5%
5.8%
6.1%
6.4%
On any earnings over the maximum covered by the CPP/QPP
7.5%
7.8%
8.1%
8.4%
8.4%
8.4%
8.4%
8.4%
8.4%
Coordination with the CPP/QPP
• In addition, as part of their ongoing examination of the three pension plans, the ministers responsible for the pension plans have further recommended an amendment to these plans. If this amendment is enacted by Parliament, the formula used to coordinate plan benefits with the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP) will be changed in plan members’ favour. 
• The pension plans are coordinated with the CPP/QPP (CF and RCMP plan members contribute to CPP only). Under coordination, plan member benefits are reduced by a standard formula once the pensioner reaches age 65 (which is the normal age of eligibility for CPP/QPP) or immediately if he is entitled to a CPP/QPP disability pension. The CPP/QPP pension at age 65 may be more or less than the reduction of the PS, CF and RCMP pension since the provisions of each plan are different and the amount of benefit is calculated independently under each plan.
• If approved, the proposed formula in all three plans will mean a smaller reduction in plan benefits commencing in 2008:
• when the plan member retires and reaches age 65,or
• if a plan member is entitled to draw CPP/QPP disability benefits.
• The proposal is a technical amendment to the three pension plans that will adjust the reduction factor used in calculating the pension benefits at age 65.  This amendment, if enacted by Parliament, would affect all plan members who turn 65 in 2008 and later. 
• Beginning in 2008, the reduction factor would gradually be lowered from the current 0.7% reaching 0.625% in 2012.
The following chart sets out the adjustment factor that will apply when a plan member reaches age 65. The applicable adjustment factor will be determined by the year in which the member reaches age 65 and will remain unchanged in all subsequent years for that individual.
Adjustment for the period 2008 to 2012
 
 
2007
2008
2009
2010
2011
2012
2013
Reduction factor at age 65 (in all 3 pension plans)
0.700%
0.685%
0.670%
0.655%
0.640%
0.625%
0.625%
• By lowering the reduction factor beginning in 2008, the pension reduction for individuals reaching age 65 in 2008 and later would be smaller than if the existing reduction factor was applied.
• For more information, see the following documents on the Treasury Board Secretariat Web site:
• Fact Sheet – Information concerning the three major public sector pension plans; and
• The Co-ordination of the Public Service Pension Plan with the Canada Pension Plan or Quebec Pension Plan.

(NOTE: U.T.E. & P.S.A.C. are working with the employer to ensure that changes to the plan will not adversely affect our members)

UTE MEMBERS GET PUBLIC SUPPORT FOR FIGHTING CUTS TO CRA CLIENT SERVICES

On April 26, 2006 members of UTE across the country did an "information picket" to the public regarding the changes to our client services at CRA.  Members of your local executive spoke with members of the public entering the tax office.  The public was informed about the existing change of "no cash" at the office in addition to eventual changed to appointments only, the cancellation of "print on demand" and a further reduction to forms availability at the Tax offices.

The following report was sent to UTE by local President, Sarah Redd:

We went from 10:00-1:30 talking to members of the public entering the Kelowna TSO. We received 250 cards from UTE National. We handed out 159 cards and out of that, 128 cards were signed and mailed.   There were 31 cards that were given to the public for them to mail themselves (20 were taken by one person to have everyone at her office complete and mail). We have 91 cards remaining.

The response from the public overall was exceptional.  Everyone we talked to (young, old and in-between) were interested in hearing about the cuts, and didn't want them to happen.  Many mentioned their concerns about those people who find the telephone and Internet inaccessible (ie. seniors, persons with disabilities etc.).
5 out of 7 of the local executive were able to participate today.  I would like to congratulate them on a job well done!

The cards have been mailed to the local MP's for the area.  Every effort will be made by the local President and Vice President to meet with the MP's to follow up on their receipt of the cards, and discuss with them the need for the cessation of the cuts to services at CRA.

KELOWNA CAP NEWS RESPONDS TO UTE'S ADVERTISEMENT IN EARLIER EDITION:

Kelowna Capital News - Friday April 14, 2006
Union looks to public for support in protesting changes
by Jennifer Smith - Staff Reporter

A dispute between Revenue Canada and its employees has prompted a plea to Kelowna residents over impending cuts to walk-in counter services.

Covering two thirds of a page in the April 5 edition of the Capital News, the Public Service Alliance of Canada and Union of Taxation advertisement states the Canada Revenue Agency is reducing services at its counters as of April 30, followed by a statement saying residents can no longer walk in and get answers about individual or business tax returns, the GST rebate or family tax credit.

But walk-in services have not been cut in this area-at least not yet
say a CRA official.

"We won't be going to appointments only for at least another year and that will only be once we've done pilot (studies) across the country," said Dan McGrath, Southern Interior communications manager for Canada Revenue Agency.

As of June, the agency will begin making appointments for those who don't want to wait in line, but will still offer drop-in counter service.

It is also showing people how to use internet client services and promoting its toll-free telephone number.

"Like many organizations, the advances in technology made many things possible that weren't before," said McGrath.

"We've got a long-term goal and the idea is to migrate people to affordable, equitable and accessible service channels."

The changes are an attempt to trim $438.9-million from the Canada Revenue Agency's overhead by 2010, in compliance with recommendations made in a review of federal spending in February 2005.

As one of several cities selected to take part in the service reduction pilot studies, Kelowna's client service office in the Dixon Avenue Landmark Square building can no longer accept cash payments, giving those who try to pay the government a form to take to their bank.

"For the elderly this is a big deal. They're having to come down here, a lot of them can't drive, they're having to take public transit." said Sara Redd, president of the local Union of Taxation Employees.

And that's just the start she said.

Describing communication between the employer and the union as strained, Redd said employees don't know where or when different portions of the overall service changes will take effect and believed at the time their national offices placed the add that the information was true.

"This ad may be more applicable in terms of the date to another part of the country, but we are expecting the service to be reduced," said Redd.

The Canada Revenue Agency contends the changes amount to more efficient service for most clients and better use of tax dollars.

"Virtually 95 per cent of the requests for information we get we can answer over the phone or the internet," said McGrath.

The Canada Revenue Agency agents are showing people how to access their online personal accounts at terminals in the local office to pull up tax forms, back taxes and answers to their questions.

Two years ago the department switched to a national call centre system, meaning those who call in with questions are transferred to the first available agent in call centres across the country, whereas residence once called their local office.

Asked if the union woes amount to fear over job loss, Redd was adamant its opposition stems from a desire to ensure the public has access to government services.

"Our communities rely on these services, particularly the elderly and low income individuals and people with disabilities. It is very important that we try and maintain these services for our communities," she said adding the
1-800 (toll free) line can be convoluted for these residence.

McGrath confirms no one in Kelowna has lost a job. Eleven employees were offered positions in other areas of the Canada Revenue Agency office, while 14 other counter staff stayed on to continue service.

Two other services, a client feedback form and on-demand T4 print outs are also gone from the local office.

Those who want to request a T-4 print out can still make the request at the service centre, but must wait for the document to arrive in the mail.

The union is asking the public to contact local MPs to protest the cuts.

The Canada Revenue Agency says it will review changes before moving forward.

"There will be ongoing evaluations. At some point there will be a time for use to sit down and say, OK how is this working?" said McGrath

INTO THE LANDMARK V

March 27, 2006 marks the day that the Kelowna staff at SITSO moved into the new Landmark V building. With shiny new digs, and all of us under one roof we can look forward to no more leaky roof and no more plumbing problems.

HANDICAP PARKING AT LANDMARK

The employer does have parking spaces available at the Landmark building for persons with disabilities. If you require further info, please contact Sarah Redd or Elaine Lloyd

MOVE TO THE NEW BUILDING

The move to the new building is scheduled for March 24th. Our first day in the new building is March 27th. The employer has asked that everyone on a compressed work week take the 24th off as there will be no systems access and the movers will be in working. We ask that you co-operate where possible. Should you have a problem or conflict in changing your compressed day, please talk to your immediate supervisor to make alternate arrangements. If you wish to take vacation you may do so, however it is not being forced. Should you have any questions, please contact your supervisor or union rep.

A plan for a UTE driven social club for the new building is in the works. If you are interested in being part of the social club committee, please contact Heather Held.

LOCAL BURSARY COMMITEE BEING FORMED

The local busary committee is comprised of one member of the executive and two members at large. All members of the committee MUST NOT have a child eligible or applying for the bursary. If you are interested in being part of the busary committee, please contact Sue Moser at (250) 712-4315

FOUNDING ANNUAL GENERAL MEETING A SUCCESS!

The founding annual general meeting held on December 14, 2005 was a great success! Bylaws were passed, elections were held, and we got this local off to a great start!