The following plan rule amendments have been approved by the LAPP Sponsor Board. For more information, please visit the Plan Rule Amendment Process page.
| Plan Rule Amendment | Details | Effective Date | Date of Posting |
|---|---|---|---|
| Joint Lifetime Reduced by 1/3 on Member's Death Only and Guaranteed 5 Years | For members with a pension partner, the new default option will be payable for the lives of the member and/or the pension partner — just like the existing two Joint Lifetime pension options. With this option, when the pension partner dies, the member's pension is not reduced and is paid for their lifetime. If the member passes away before their pension partner, but within five years of starting their pension, the pension partner will receive the full pension until the five-year mark has passed. The pension is reduced by 1/3 thereafter. | January 1, 2024 | July 19, 2023 |
| Additional Payment Option for Certain Former Pension Partners | Where a member experiences a relationship breakdown prior to retirement and divides their LAPP benefit, the former pension partner currently transfers their share as a lump-sum benefit. For pension divisions from July 1, 2023, if the member is at least age 55 at relationship breakdown and has not commenced a pension, the former pension partner will also have the option of an immediate or delayed LAPP pension. | July 1, 2023 | March 30, 2023 |
| Maximum Employee Cost | There is no longer a 50% funding cap on member contributions. A member can now fund up to 100% of their benefit. This change is a result of government passing Bill 22. | January 1, 2022 | December 15, 2020 |
| Contribution Interest Rate. | The interest rate on contributions is changing, and will be as follows: 2021: 0.70% 2022: 4.40% 2023: 4.72% | January 1, 2023 | December 15, 2020 |
| Immediate Vesting | All members will be immediately vested in the Plan. A vested member is eligible for a lifetime LAPP pension at retirement. | January 1, 2022 or the first payroll period encompassing that date | December 15, 2020 |
| Voiding of Actuarial Reserve Purchases | The reversal of any actuarial reserve purchases if a member elects a CV transfer will be eliminated effective January 1, 2022, aligning LAPP with the Alberta Employment Pension Plans Act standards. | January 1, 2022 | November 5, 2021 |
| Amending or Eliminating a Qualifying Disability Plan Filed with LAPP | Subject to the requirements and limitations under Section 2.99(a) of the LAPP plan text and any applicable legislation, the sponsor (employer) of a Qualifying Disability Plan may amend or terminate the terms of the Qualifying Disability Plan that has been filed with LAPP. | January 1, 2022 | November 5, 2021 |
| Removal of Coordination | Coordination will no longer be available to members who start their pension on or after January 1, 2021. | January 1, 2021 | December 15, 2020 |
| Treatment of Suspensions as Approved Leaves of Absence. | LAPP employers will be permitted to designate the unsalaried portion of periods of suspension as approved leaves of absence, subject to a maximum suspension period of three months. | January 1, 2020 | December 15, 2019 |
| Withdrawal Provisions | Participating employers may withdraw from the Plan on or after March 1, 2024, under the terms and conditions set out in Section 20.04. | March 1, 2024 | June 24, 2025 |
| Excess Contributions | Some buybacks, such as prior service or second-year leave, are wholly paid by the member. When the member receives a benefit from the Plan, if their wholly member-funded contributions and interest exceeds the associated benefit, they will now be paid the excess contributions. | July 1, 2024 | June 24, 2025 |
| Variable Pay | Variable pay can be included in pensionable earnings. Previously, the pensionable amount of variable pay could not exceed 20% of gross basic pay. Employers will now have the option to increase pensionable variable pay up to 40% of gross basic pay. | Jan 1, 2024 | June 24, 2025 |
| Participation Class Exclusions | Prior to 1994, an employer could exclude certain classes of employees from participating in LAPP. This was changed in 1994, though some employers chose to retain the legacy pre-1994 exclusions. This amendment allows those employers to transition away from the legacy exclusions. | September 1, 2024 | June 24, 2025 |
| Buyback Purchase | Members will be able to purchase buyback service through a transfer from a registered pension plan. | September 1, 2024 | June 24, 2025 |
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