09/20/2026
THIS IS THE PART THAT SHOULD MAKE PEOPLE PAY ATTENTION.
Roughly $2.8 BILLION has been moved out of the federal Public Service Pension Fund and into the government’s Consolidated Revenue Fund in the 11 yrs this government has been in power.
That means the money is no longer sitting inside the pension fund.
It is now in the same central federal account used to pay government expenses.
Could some of it eventually go toward Canadian infrastructure, housing, health care or other domestic projects? Sure…Could some of it ultimately support wars? Yes. Could some of it be sent to foreign countries? YES….Do we currently know exactly what Ottawa plans to do with that $2.8 billion? No.
Treasury Board itself says the money is being held while “next steps are considered.” And that is my issue.
This was a pension fund built from employee contributions, government contributions and investment earnings. The government was legally required to deal with the excess surplus once the fund exceeded the permitted funding level. But transferring the surplus into general revenues was not the only mechanism available. The law also allows a full or partial employee contribution holiday.
https://www.canada.ca/en/treasury-board-secretariat/corporate/transparency/briefing-documents-treasury-board-canada-secretariat/parliamentary-committee/president-appearance-oggo-bill-c-15-budget-2025-implementation-february-2026.html
Meanwhile, retiree and bargaining organizations have been arguing that these transferred amounts should instead benefit plan members or retirees through things such as pension enhancements. Treasury Board’s own 2026 briefing documents acknowledge those demands.
And before somebody twists this, this particular fund is the federal public-service pension plan. It is not CPP, OAS or a general pension fund for every Canadian senior. The Public Service Pension Fund is basically the workplace pension plan for federal government employees.
So no, Ottawa could not simply take this fund and increase OAS for every senior without changing the law and funding structure…BUT, in principle, Parliament could legislate a different treatment for future surpluses…so that they CAN use those Surpluses to help raise CPP, and OAS!! They just choose NOT to! So , why is moving that money into general government revenues preferable to finding a way for the people who contributed to that pension system to benefit from it?
Especially when so many seniors are struggling just to afford groceries, rent, heating and medication.
Maybe the money eventually gets spent on something worthwhile in Canada.Maybe it doesn’t. Right now, we simply do not know.
