PSAC files grievance, seeks damages for public servants for messy Canada Life benefits switch

The Public Service Alliance of Canada (PSAC) says it has filed a policy grievance against the Treasury Board of Canada, and is demanding compensation for members following the federal government's messy transition to its new health benefits administrator last year.

Sasha Hart, general counsel with PSAC, informed the standing committee on government operations and estimates on Monday morning.

«It has failed to protect the rights of members to a functioning health-care plan,» said Hart. «As well as caused adverse impacts on members with disabilities and other intersecting identities.»

On July 1, 2023, the federal government switched insurance providers from Sun Life to Canada Life.

As part of its grievance, PSAC is seeking financial compensation as well as general damages for pain and suffering and stress associated with the transition to Canada Life, said Hart.

In its policy grievance document, PSAC said the federal government's conduct in transferring the health-care plan was «in violation of the collective agreement.» PSAC says it implemented the transition «without due regard for the rights of all members to a functioning» plan, and claims it had caused «adverse impacts on grounds protected by the Canadian Human Rights Act.»

Members continue to face problems accessing health benefits but wait times are improving, according to Seth Sazant, PSAC pension benefits officer, who also provided testimony at committee.

«This system is fundamentally failing our members,» said Sazant.

He stated the two major delays that continue to pose problems for members are prior authorization for expensive drug prescriptions as well as a cyber security incident which impacted the benefits administered to members working outside of Canada.

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