Audit at a Glance—Public Sector Pension Plans
(Chapter 1—2014 Spring Report of the Auditor General of Canada)
In this audit, we looked at how the Treasury Board of Canada Secretariat, the RCMP, National Defence, and Finance Canada have carried out key responsibilities to manage the federal government’s pension plans for public servants. The federal government’s net liability relating to these pension plans exceeds $150 billion.
Although we found that the entities we audited have carried out their responsibilities under the law, no one is responsible for carrying out a regular and systematic assessment of whether government of Canada pension plans are sustainable over the long term.
Pension plans are operating now in an environment where interest rates are low, and plan members are living longer. It is therefore important that public sector pension plans be designed and managed in a way that considers not just present circumstances, but also protects the interests of current and future employees and taxpayers.