Bill 43, the Civil Service Superannuation Amendment Act, had its first reading in the Manitoba Legislature on March 19, 2020. The bill includes changes to the Civil Service Superannuation Act that were jointly recommended by the Liaison Committee and the Employer Advisory Committee.
The change regarding commuted value (CV) withdrawals brings the plan in line with the Canadian Institute of Actuaries new commuted value standards which come into effect this August 1st and will bring fairer and more equitable allocations of pension values for members who are in the plan today and who retire from the Manitoba public service in the future. We should highlight that members can still withdraw CVs after age 55, which is unique for DB plans in Canada.
The bill also allows greater flexibility for purchase of service by employees on maternity or parental leave; it improves the governance of the CSSB by allowing the Liaison Committee to appoint employee representatives on the board; and it makes a number of housekeeping and language improvements.
The bill does not affect early retirement benefits such as the retirement bridging benefit, the rule of 80, or vacation time banking at a time when other Manitoba public sector plans are reducing their early retirement offerings.
The Liaison Committee will continue to advocate for a strong defined benefit pension plan for current and future members.
The CSSB has provided information on Bill 43 as well.