This directive outlines the Government of Alberta's policy for membership, pensionable salary and calculating pensionable service under the Public Service Pension Plan (PSPP), Management Employees Pension Plan (MEPP) and the Management Supplementary Retirement Plan (SRP). This policy will be applied fairly and equitably throughout the Government of Alberta.
Pension plan membership
Pension plan participation will commence immediately for eligible employees. Eligibility for pension plan participation for part-time, temporary and fixed term contract employees is set out in the Pension Membership Policy - Part-time, Temporary and Fixed Term Contract Employees (PDF, 350 KB).
Pension plan participation is mandatory for full-time permanent employees whose regularly scheduled hours of work are not fewer than 30 hours per week. Part-time permanent employees whose regularly scheduled hours of work are fewer than 30 hours per week and at least 14 hours per week or 728 hours per service year must participate in the pension plans.
Pension plan participation is mandatory for temporary, full-time employees whose regularly scheduled hours of work are not fewer than 30 hours per week.
An individual commencing employment on wages is not eligible for participation in the pension plans.
Pension plan participation is mandatory for 2,850 hour wage employees who meet the requirements of the Collective Agreement. The application of "employee" for bargaining unit members is set out in the Collective Agreement.
Employees hired on a Contract of Employment have pension eligibility determined in accordance with guidelines describing the contract terms and provisions established by the Public Service Commissioner. Pension eligibility will be reflected in their employment contracts.
Employment pursuant to a contract of employment that precludes participation in a public service pension plan cannot be credited as pensionable service in any of the Alberta Public Service Pension plans if the individual later transfers to a position where pension plan participation is required (though the individual may be permitted to purchase the service under the applicable pension plan rules). This provision continues after the conclusion or termination of the contract.
The Public Service Commissioner may, in some circumstances, delegate authority to a deputy head for the purpose of establishing contract of employment terms for specific employee groups.
Notwithstanding the above, pension plan participation is not permitted if an employee:
- works less than 14 hours per week or 728 hours per service year; or
- has reached December 30 of the year in which they reach age 71; or
- is in receipt of a pension from the PSPP, MEPP or the Public Service Management (Closed Membership) Pension Plan, based on previous participation in any of those plans.
Pensionable salary types (list is not exhaustive)
- Gross basic annual salary (including salary for entitlements - e.g. General Illness, Long Term Disability Income (LTDI), Supplemental Employment Benefits
- Modifiers - Acting incumbent pay and other modifiers
- Premiums - Shift differential nights and shift differential weekends
- Retroactive salary adjustments
Non-pensionable salary types (list is not exhaustive)
- Standby Pay
- Vacation leave payout
- Expense allowance payments (e.g. meal allowances)
- Non-cash benefits
Pensionable salary – calculation
Pensionable salary is calculated, and contributions to the pension plan are deducted, on a bi-weekly pay period basis.
- Where a full-time employee's annualized pensionable salary will exceed the Year's Maximum Pensionable Earnings (YMPE) limit established for the PSPP for the reporting year, the employee's pensionable salary and YMPE will be annualized and contributions will be prorated within each bi-weekly pay period for the purpose of determining contributions to the pension plan.
- The above information applies to part-time employees' salary although full-time equivalencies are not applied to part-time salary.
MEPP & SRP
- Where an employee's annualized pensionable salary will exceed the salary cap established for the MEPP, the employee's pensionable salary and the salary cap will be annualized and contributions prorated within each bi-weekly pay period for the purposes of determining contributions to both the MEPP and the SRP.
Pensionable salary – calculation parameters
In accordance with guidelines issued by the Alberta Pensions Services Corporation, the pension plan contribution rates, YMPE, and salary cap figures for a year relate to all pensionable salary paid within that pension plan reporting year. The period during which an employee receives LTDI benefits is considered pensionable service and contributions will be made on the pre-disability salary and eligible increases.
For information related to other salary types, please contact your Ministry Payroll Specialist.
Pension Plan Reporting (Service) Year
The service year for pension purposes relates to the bi-weekly pay schedule.
Pensionable Service – Base Unit
Pensionable service will be calculated on a daily basis by determining the number of days worked within the pension plan reporting year, out of the total possible number of days within the pension plan reporting year.
The full-time equivalent base units used in the calculation of pensionable service are set out in accordance with the Public Service Employment Regulation (PDF, 875 KB) or Collective Agreement and shall be either:
- 40 hours per week; or
- 38.75 hours per week; or
- 36.25 hours per week; or
the equivalent, on a bi-weekly, monthly or annual basis. The part-time equivalent base units are calculated as a percentage (%) of the full-time equivalent as outlined above.
Pensionable Service – Maximum Accrual
Pensionable service earned within a service year will not exceed 1.0000 under the pension plan.
For more information on any of the pension plans, contact the Compensation Services Centre.
About this directive
|Authority:||Employment Pension Plans Act and Regulations
Joint Governance of Public Sector Pension Plans Act
Joint Governance of Public Sector Pension Plans Consequential Amendments Regulation
Public Sector Pension Plans Act
Public Sector Pension Plans (Legislative Provisions) Regulation
Management Employees Pension Plan Regulation
Public Service Act
Public Service Employment Regulation (PDF, 1.1 MB)
|Application:||Organizations under the Public Service Act|
|Effective Date:||March 1, 2019|
|Contact:||Alberta Public Service Commission:
Labour and Employment Practices; Classification, Compensation and Benefit Services