Board Supports Collaborative Process: Message from the Chair
In January, Alberta Finance Minister Robin Campbell called together members of the LAPP Board and other pension Boards to “wipe the slate clean” on pension reform and start afresh with a more collaborative process that would allow each plan to travel its own road and do so with its own stakeholders.
The Minister indicated he favored an approach to pension reform that was the result of employer and employee representatives working together to determine the best way to ensure the plans are well governed and sustainable, with the interests of all stakeholders balanced.
The new process will see stakeholders working together on a new governance model that will give employers and employees who pay for the plan the right to make decisions about the costs and benefits of LAPP. Collaboration would also include agreeing to a Funding and Benefits Policy to set out the guidelines for how costs and benefits will be managed in the future.
"My position is that employee and employer sponsors for each of the plans will be empowered to determine the pension deal," said the Minister. “That deal is decided by them, based on what's best for them.”
The LAPP Board welcomes this fresh approach to pension sustainability because, as we have shared with you many times, best practice and experience across this country dictate that those who bear the risks should govern the plan. It is the employers and members of LAPP who secure the pension fund with their contributions and they should determine the pension deal... READ MORE