LAPP Board Reduces Member and Employer Contribution Rates
Through prudent planning and effective risk management, the LAPP Board of Trustees has significantly improved the funded position of the Plan over the past few years to where it can now make a reduction in the contribution rates paid by employers and employees of the Local Authorities Pension Plan.
The Board voted unanimously at a recent Board meeting to reduce contribution rates by 1% for employees and 1% for employers, effective January 1, 2018. This is the first contribution rate reduction in 20 years.
For a LAPP member earning $60,000 a year, this will mean a $600 reduction in contributions in 2018, before taxes.
The Board conducts an actuarial valuation once every year to ensure the Plan is adequately funded to meet its pension obligations and that it has made adequate funding provision for future risks that might impact the Plan. This year the Board was able to reduce rates as well as strengthen benefit security by improving its capacity for dealing with future risks, like market volatility or a sudden downturn in the economy.
In 2018, the Board will be conducting a review of its long-term funding strategy in addition to doing another actuarial valuation. After that work is done, the Board will have a better sense of where contribution rates will be in the future as well as the ongoing funded-status of the Plan. It is the Board’s ultimate goal to reduce contributions further and this review will help provide information on how soon that can happen.
See Contribution rates
2016 Annual Report - June 26, 2017
Pension Highlights Statements
Your Pension Highlights (formerly the member annual statement) gives you a high level look at the activity of your pension for the last year, including:
Pension Highlights are sent each year after employers submit their year-end member information. Even if you are no longer contributing, but have left funds in the Plan, this annual statement lets you make sure all of your information is correct and up-to-date.
The statements are sent in the mail, unless you have chosen to Go Green. In that case, your statement will be available on mypensionplan.ca. To Go Green and get e-mail notifications when annual statements, newsletters and other publications are available online, visit mypensionplan.ca and select “Address and Contact Information.”
Pensioner Annual Statements
Retired members will receive their Pensioner Annual Statement soon. This yearly statement gives you a high level look at your pension benefits, including:
The statements are sent by mail or electronically if you have chosen to Go Green. In that case, your statement will be available on mypensionplan.ca. To Go Green and get e-mail notifications when annual statements, newsletters and other publications are available online, visit mypensionplan.ca and select “Address and Contact Information.”
You can also go online to mypensionplan.ca to see the history of your pension, send and receive messages online through the Secure Mailbox, manage your banking and direct deposit information, and update your address and contact information.
2016 Tax Slips are coming. Update your address today!
The 2016 tax slips will be mailed out in the last two weeks of February 2017. Please go online to mypensionplan.ca to confirm that we have your correct mailing address. Don’t want to wait for the mail? You can also view and print your tax slips online at mypensionplan.ca starting on February 8, 2017.
Contribution Rate Advisory for 2017
The LAPP Board of Trustees is pleased to announce that there will be no contribution rate increase for members and employers in 2017 and none is currently proposed for 2018.
LAPP contribution Rates have remained the same since 2014, and as the funded position of the Plan continues to improve, the Board is comfortable projecting that rates should not have to increase in the next two years either.
The decision is part of the Board's unanimous approval of its 2015 Actuarial Valuation.
The Board's practice is to set rates far enough in advance to allow employers and members time to budget.