The federal government along with the public sector unions have finalized a deal that reforms health-care benefits for retired public servants. Treasury Board President Tony Clement announced the deal to amend the Public Service Health Care Plan at a press conference Wednesday.
Presently, retired civil servants pay 25 per cent of their health premiums and the federal government pays 75 per cent. However now with amendments, a 50-50 cost-saving plan would be adopted and will reportedly be phased out in over four years starting April 1, 2015.
Clement said that the agreed changes will save the government $6.7 billion.
"We thank all parties for negotiating in good faith to reach a fair, fiscally responsible, and sustainable agreement, resulting in benefits for federal employees, retirees, and the taxpayer," Clement stated.
"This modernization will result in literally billions of dollars in savings while minimizing the impact on services and on our employees."