Pension Reform Proposals Cancelled by Government - Board Update
September 24, 2014
On behalf of the LAPP Board, I want to update you on what is happening with the Alberta Government's reform initiative for Alberta's public sector pension plans.
On September 18, 2014 Premier Jim Prentice issued a news release announcing that he was suspending the fall sitting of the Legislature until November 17. Known as prorogation, the suspension brings an end to all business and legislation on the order paper before the Legislative Assembly.
"This includes the Public Sector Pension Plans Amendment Act (Bill 9) and the Employment Pension (Private Sector) Plans Amendment Act (Bill 10). Bills 9 and 10 will not be reintroduced under the Prentice government," says the release.
While Bill 9 is now defunct, pension sustainability is still on the agenda of government as the Premier indicated in his mandate letter to newly appointed Minister of Finance and President of Treasury Board, Robin Campbell, September 17, 2014.
Pensions are identified as one of four priorities for the Minister's attention:
During a press conference held September 18, 2014, the Premier clarified that the work of the Standing Committee on Alberta's Economic Future was also suspended and that the committee would not be preparing a report for the legislature. The committee had been tasked with reviewing the legislation, seeking opinions from experts and holding public consultations on Bills 9 and 10. The premier said that the hundreds of submissions made to the committee would be useful information for the department of finance to consider in its future work to address pensions.
The Board will keep you updated on any new developments as soon as we learn anything more. Our Board presentations to the Standing Committee are posted at the links below and we encourage you to read them.
Important note: The LAPP website is now being updated to remove communication materials about the changes government planned to make to LAPP pension benefits starting January 1, 2016. Pension estimators for the proposed changes will also be removed. The original estimators will be available so that members can calculate benefit entitlements based on the current plan rules and projecting beyond January 1, 2016.