Local Authorities Pension Plan contribution rate increase begins in 2010
EDMONTON – The Local Authorities Pension Plan Board of Trustees has made the decision, based on the recommendation of their actuary, to increase contribution rates for members and employers in an effort to handle increased liabilities and offset investment losses that occurred in worldwide markets last year.
The first increase will move contribution rates from 7.46 to 8.06 per cent on salary up to the Year’s Maximum Pensionable Earnings (YMPE) and from 10.66 to 11.53 per cent on salary above the YMPE, effective Jan. 1, 2010. Similar increases will follow in 2011 and 2012.
The YMPE for 2009 is $46,300. The 2010 YMPE figure will be available this fall.
The contribution rate increases will ensure that the pension plan is able to meet members’ needs when they retire. The LAPP board voted to phase in the total increase gradually over three years, rather than making a one-time increase to contribution rates. The LAPP Board includes trustees representing both employers and unions.
Please click on the link below to access detailed documents on the rate increases, including tables with the new rates. The information at the link below is provided by the LAPP Website.