Canada exacts C$6.7 billion from public retirees for health costs

By Randall Palmer OTTAWA (Reuters) – Retired federal workers will pay more of their supplemental health costs under an agreement with the Canadian government intended to align the public sector with the private sector, Treasury Board President Tony Clement said on Wednesday. Retirees' contributions will rise to 50 percent of the cost of their health plan from 25 percent now. The new deal is projected to save C$6.7 billion ($6.0 billion) over six years, less than the C$7.4 billion flagged in the Conservative government's February 11 budget, but it avoids the threat of a court challenge if Ottawa had tried to impose the changes through legislation. There was a low-to-medium legal risk before." The broad lines of the changes had been announced in the federal budget, but agreement had not been reached with the unions and retirees.