It's too bad it took a federal deficit of more than $50 billion to get a government to reconsider the high benefits package for federal employees. The Globe and Mail reports,

One of the most controversial aspects of the federal pension plan is the ability to retire with a full pension at age 55, after 30 years of service. Federal officials expressed concerns that the provision is “reducing the pool of staff with experience,” with half of the executives in government eligible to retire by 2012.

“Current provisions are typical of plan designs conceived during a period of excess labour supply,” the presentation said.

Sources said the government has been exploring the possibility of modifying, or even removing, early-retirement incentives for new recruits as a long-term solution.

As it stands, federal officials feel that the provision “is working against us,” especially with impending labour shortages.

Another possibility would be allowing bureaucrats to collect partial pensions while continuing to work for the government....

According to the Treasury Board, however, federal employees paid $1.2-billion into the plan in 2007-08, compared to the government's $2.6-billion share. That 32-per-cent employee contribution will go up, but only to 40 per cent by 2013.

Government pension plans in Ontario, Quebec and Alberta operate on a 50-50 basis, the Treasury Board says. On average, federal bureaucrats retire at 59 with a fully indexed pension of $38,000 a year.

For more on the issue of public sector defined benefit pension plans, visit http://fairpensionsforall.blgospot.com.