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COVID-19 Updates: Taking steps to return to normal.
President of Treasury Board and Finance Minister Doug Horner issued the following statement on reform of Alberta’s public sector pension plans, which face unfunded liabilities totaling $7.4 billion:
This release was issued under a previous government.
“Provinces across Canada are taking steps to make their pension plans more sustainable and to ensure they are able to meet the needs of future generations.
“The simple fact is this: while life expectancies have increased over the past several decades, the age of retirement has not. Today, some Albertans will spend more of their lives retired than they spend in the work force. This has a significant impact on pension plans, not just in Alberta, but across the country.
“Back in September I asked for feedback on proposed changes to the public pension plans. We listened and we are responding to that feedback.
“Today I met with board members from Alberta’s four public sector pension plans to provide details on changes I will bring forward in the Legislature to ensure long-term sustainability of these plans. These changes will ensure the sustainability of pension plans without over-burdening current or future plan members or taxpayers.
“I made two simple commitments: we’re going to protect the defined benefit nature of these pension plans, even though many other jurisdictions are making more dramatic changes. And we’re going to keep contribution rate increases as low as possible, so that we can leave more dollars in the pockets of employees.
“With that in mind, here are some of the changes we plan to move ahead with:
“With these changes, public servants will still have excellent pension plans, with secure and predictable benefits at a reasonable price. Pension benefits already earned will not decrease, and those earned in future will continue to increase based on years of service and salary.
“For additional details about Alberta’s public pension system and these important reforms, please visit www.pensionsustainability.alberta.ca.”
Pension Sustainability website
Alberta public sector pension plans:
Watch on YouTube: Alberta’s public sector pension video