Correspondence

By fax - 990-2806

August 24, 1999

The Honourable Lucienne Robillard

President of the Treasury Board

L’Esplanade Laurier, 9^th Floor

140 O’Connor Street

Ottawa, Ontario K1A 0R5

Dear Mrs. Robillard :

During my presentation before the Senate Banking, Trade and Commerce Committee this morning, I released an opinion poll on the disposition of pension surplus. The poll, commissioned by the PSAC and conducted by ENVIRONICS Research Group, found only minimal support for the government’s position that it is entitled to the entire $30 billion surplus.

In fact, the ENVIRONICS Focus Canada Omnibus poll found that at 51%, more than ten times the number of respondents who believe that the government is entitled to the entire surplus, support the proposition that plan members are entitled to the entire surplus.

The « survey of 2,018 Canadians, 18 years of age and over, was carried out in-home between July 2 and August 2, 1999 » and are « considered accurate to within plus or minus 2.2 per cent, 19 times out of 20 ».

ENVIRONICS asked : 

« The federal government has introduced legislation that, if passed, would remove the $30 billion dollars in accumulated surplus from the pension plans of federal government employees. Historically, however, federal employees have contributed 40 percent of the pension funds and the government has contributed 60 percent. Do you think the federal government is entitled to (a) all of the pension surplus ; (b) 60 percent of the pension surplus ; or (c) none of the pension surplus ? »

and Canadians answered :

• 5% believe that the government is entitled to all of the pension surplus ;
  
• 29% believe that the government is entitled to 60% of the pension surplus ; and
  
• 51% believe that the government is entitled to none of the pension surplus.

While I would not advocate that government set policy according to poll results, public opinion is clearly a factor that should be taken into consideration. From my perspective, public policy should be guided by principles of fairness, integrity and honesty, and sometimes, these principles will be at variance with public opinion.

When principles important to the concept of good government are at variance with public opinion, the government is right to discount public opinion.

That said, when these principles and public opinion converge public opinion should guide public policy more forcefully. The surplus issue is one of those times.

• Fairness indicates that plan members should share in any pension surplus at least on the basis of their full direct and partial indirect contributions.
  

• Integrity suggests that governments use their legislative power with discretion and consult, negotiate or mediate in good faith instead.
  

• Honesty would suggest that if the government is entitled to the full pension surplus, as it argues, it would allow the question to be adjudicated through the Courts rather than through pre-emptive legislation.

I have attached a copy of my statement to the Senate Banking, Trade and Commerce Committee so that you can review my more detailed analysis of the ENVIRONICS poll, and a copy of the actual tabulations, so that you and your officials can draw your own analysis and conclusion.

That said, I should point out that the logical conclusions are almost inescapable, because it barely matters who responds to this question. The answer is almost identical according to age, gender, education level, religion, marital status, language, home ownership, union membership, income level, occupation, region, community size and political preference.

In the light of the reasoned arguments on surplus distribution that we presented to the Consultative Committee last year, and subsequently made public before the Senate Committee on June 9, 1999;

In the light of an implicit obligation for governments to act in a way that is, and is perceived to be, fair;

In the light of a responsibility incumbent upon government to act in an honest way;

In the light of public opinion; and,

In the light of your position (August 20, 1999 letter to me) that Bill C-78 must pass without amendment before further movement on pension reform will be contemplated, I have urged the Senate Banking, Trade and Commerce Committee and the entire Senate to vote the Bill down.

That said, and as I said in my August 23^rd letter to you, you still have an opportunity to make things right. If you truly believe in pension reform that benefits all sides, you have the power to make it happen. Despite the ENVIRONICS poll result showing strong support for PSAC’s opening position that plan members are entitled to the entire surplus, I am still ready, willing and able to meet, without precondition, to resolve the issues in advance of the final Senate vote.

Sincerely,

Daryl T. Bean

National President

c.c: The Right Honourable Jean Chrétien

       Senator Alasdair B. Graham

       Senator Michael Kirby

       Senator David Tkachuk

       NJC Unions

     233 Gilmour, Ottawa, Ont. K2P OP1