Your Plan Has Value Temporary Benefit EnhancementsLAPP’s strength is delivering more value for members, retirees and employers for a second year in a row. |
Your Plan Has Value Temporary Benefit EnhancementsLAPP’s strength is delivering more value for members, retirees and employers for a second year in a row. |
Building on the December 31, 2025 funding valuation, the LAPP Sponsor Board approved a second year of Temporary Benefit Enhancements. Reduced contributions, a bigger pension, and stronger inflation protection are all possible because the Plan remains in a strong financial position.
Choose the section that applies to you:
The temporary contribution reduction of about 1% continues through 2027. You keep more of every paycheque, and paying less does not reduce the pension you build.
| Pensionable earnings | Approximate annual savings |
|---|---|
| $50,000 | $440 |
| $75,000 | $661 |
| $100,000 | $976 |
Savings are approximate and based on the current YMPE.
For service earned in 2027 and 2028, the portion of your pension based on earnings up to the year’s maximum pensionable earnings (YMPE) is calculated at 1.8% instead of 1.4%, at no additional cost to you or your employer.
That means more pension for the same work. Eligible members could receive up to $276 more in annual lifetime pension for each of those years of service.
Already in place for 2027. The 2027 increase was approved following the previous funding valuation. This latest decision extends the same enhanced rate to 2028 service, so you earn it for two years in a row.
Good to know: The enhanced inflation protection on January 1, 2027 applies to retirees and members with a deferred pension, not to active members.
Each year, your pension increases to help it keep pace with the cost of living. That cost-of-living adjustment (COLA) is normally 60% of the average increase in the Alberta Consumer Price Index (CPI). On January 1, 2027, it will be 90%, matching the enhanced protection provided on January 1, 2026.
Final inflation figures are not available until November. If Alberta inflation is 3.0%, here is what you could receive for every $1,000 of pension:
| Regular COLA | Enhanced COLA, January 1, 2027 | Difference | |
|---|---|---|---|
| For every $1,000 of pension | $18.00 | $27.00 | +$9.00 |
If you were actively employed in 2026 and then started or deferred your pension in 2026, you will receive a prorated increase.
You will see the increase in your January 2027 pension payment.
You will see the increase in your accrued pension on your annual statement, released in the third quarter of 2027.
The temporary contribution reduction of about 1% for both members and employers continues through 2027. Rates are unchanged from 2026.
| Rate | 2026 | 2027 |
|---|---|---|
| Employer, up to the YMPE | 7.52% | 7.52% |
| Employer, over the YMPE | 10.32% | 10.32% |
| Member, up to the YMPE | 6.52% | 6.52% |
| Member, over the YMPE | 9.32% | 9.32% |
The year’s maximum pensionable earnings (YMPE) is set by the Government of Canada each year. The 2027 YMPE will be released later this year.
No payroll action is needed before January 1, 2027. Because rates are unchanged from 2026, your current deduction setup continues to apply.
A strong pension is one of the most valuable parts of working in Alberta’s public sector. These enhancements add to that value, at no additional cost to employers or members.
For employers and your employees
For unions and your members
The cost of providing a LAPP pension has not changed. What has changed is how part of it is paid. The Plan’s strong financial position has created an opportunity to use a portion of the surplus to provide temporary benefit enhancements and contribution relief for members and employers. Using a portion of the surplus for a defined period also helps manage the Plan’s surplus within the limits established under the Income Tax Act.
A permanent change would lock in higher long-term costs regardless of how markets perform, and could mean contribution increases later. Keeping these enhancements temporary protects the contribution stability employers rely on, with the full cost rate remaining a stable reference point for budgeting.
These enhancements are temporary and apply only to the periods described on this page.
No. They are temporary and are approved one valuation at a time, based on the Plan’s funded position.
No. The Plan remains in a strong financial position after these enhancements, and your benefits remain secure. Your core pension formula is unchanged.
No. The enhanced cost-of-living adjustment applies to retirees and members with a deferred pension. Active members benefit through reduced contributions in 2027 and the enhanced accrual rate for 2027 and 2028 service.
Yes. The 2027 increase was approved following the previous funding valuation and is already in place. This latest decision extends the same enhanced rate to 2028 service.
No. The cost of providing the benefit has not changed. Surplus is covering part of the contribution for a defined period, so members and employers pay less while the benefit remains fully funded.
Contribution rates, the accrual rate, and cost-of-living adjustments return to their regular levels. This is a planned return to normal, not a reduction in the benefits you have already earned.
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