LAPP helps provide financial security in retirement to 260,000+ Albertans who belong to the 7th largest pension plan in Canada. LAPP members look forward to the lifetime income that a defined benefit pension plan provides.
Bill 27: Joint Governance of Public Sector Pension Plans Act received third reading on Tuesday, December 4, 2018. Improvements to the governance of LAPP, proposed by government and supported by employer and employee stakeholders (the unions and associations who represent our members), would give equal voice in how your Plan is managed in the future.
Your pension benefits will not be changing, the only change is how the Plan is governed. Your benefits and the pension fund that pays for them will remain secure and will still be managed by the same experts who have been taking care of LAPP all along.
Most Canadian public sector plans have already received independence from government and moved to a joint-governance structure with great success. Under the proposed legislation, LAPP members and employers who pay for the Plan will have a direct role in decision-making through a new board framework that would represent them. The improved governance structure will give the Board the ability to continue to manage the plan without being bound by government or politics.
Your Pension is Secure, and under a new joint-governance framework, it would continue to be backed by a well-managed and expertly-invested $42.7-billion pension fund that continues to grow over time. Under the new governance structure, experts at ALAPP Corp. would continue to manage the Plan on your behalf. The LAPP Boards, made up of representatives acting on behalf of member (employee) and employer groups, would still provide strategic governance to ensure LAPP continues to be secure and sustainable for many generations to come. The biggest difference is the Boards no longer have to wait for government to pass their recommendations and there is no longer the significant risk that any government-of-the day could change plan benefits for political reasons.
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