This is the first scheduled increase since 2015, and it reflects changes in the cost of providing pension benefits. Independent actuaries, who regularly review the plan’s finances, have advised that current contribution levels are no longer sufficient to support the benefits members earn today and into the future. Pension costs have risen, in part because people are living longer and benefits have become more expensive to fund. Compared with similar public-sector plans, CSSB members have historically had lower contribution rates and relatively generous benefits, so many plans have taken similar steps to strengthen long-term funding.
Importantly for MAGE members, your earned pension benefits and retirement formula won’t change, and this contribution increase does not affect current retirees’ pensions. The phased rate adjustment is designed to help ensure the sustainability and security of CSSB pensions over the long term.
The Civil Service Superannuation Plan is an employer-sponsored, defined benefits pension plan covering most employees of the provincial public service of Manitoba, including the MAGE bargaining unit of PIPSC.