RECOMMENDATION
	His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act to establish the Public Sector Pension Investment Board, to amend the Public Service Superannuation Act, the Canadian Forces Superannua tion Act, the Royal Canadian Mounted Police Superannuation Act, the Defence Services Pension Continuation Act, the Royal Canadian Mounted Police Pension Continuation Act, the Members of Parliament Retiring Allowances Act and the Canada Post Corporation Act and to make a consequential amendment to another Act''.
	SUMMARY
	The Bill establishes an independent Public Sector Pension Invest ment Board with a mandate to invest employee and employer pension contributions made under the Public Service, Canadian Forces and Royal Canadian Mounted Police (RCMP) pension plans. New pension funds are created under each plan in respect of service after April 1, 2000.
	The Bill also amends these plans so the employee contribution rate under each is set independently of those under the Canada Pension Plan. Employee rates under each plan are frozen until 2003, and set by Treasury Board subsequently, subject to limits. Existing plan surpluses are reconciled with current liabilities, and mechanisms for managing future surpluses are established. The three existing pension advisory committees are strengthened to ensure employee and pensioner input to the design, administration and funding of the plans, the term life insurance component of the Public Service plan is improved and survivor benefits are extended to an expanded class of beneficiaries. Several authorities are proposed to provide increased flexibility under the Canadian Forces and RCMP plans. Canada Post Corporation is directed to establish its own pension plan as of October 1, 2000, and transitional arrangements are provided in connection with this.