Compensation policies for public agencies

Overview

The Reform of Agencies, Boards and Commissions Compensation Act was repealed in December, 2023. The Public Sector Employers Act (PSEA) was proclaimed the same day. While a new compensation framework is being developed, public sector employers must continue to adhere to the limits and conditions set out in:

Ministerial Order 49-2023
Ministerial Order 50-2023

The interim approach that must be used is detailed in Ministerial Order 13-2024.

Ministerial Orders 23-2023 and 24-2023 have been repealed.

The Provincial Bargaining and Compensation Office administers government compensation policies. For assistance, email: [email protected].

Current guidelines

The following are the compensation regulations and/or processes currently under the Reform of Agencies, Boards and Commissions Compensation Act:

The Reform of Agencies, Boards and Commissions Compensation Regulation (RABCCA Regulation)

This regulation came into effect March 16, 2017 for the designated agencies and executives listed in Schedule 1 of the regulation. It applies immediately to new hires and re-appointments, and to incumbents after a 2-year notice period.

These changes set salary bands for CEOs (and equivalents), bringing their pay in line with public sector equivalents. The changes also mandate the following:

• eliminating executive bonuses
• eliminating executive market modifiers, which is added pay over and above regular salary
• capping executive severance pay at 12 months
• aligning other executive compensation components, such as benefits like private health care access
• eliminating perks such as retention bonuses, golf club memberships and housing allowances

Agencies with existing positions that become subject to the compensation regulation have a transition period before the requirements come into effect. This timeline varies based on the date that the position became subject to the requirements.

The requirements apply to existing incumbents after a 2-year notice period; however, the requirements apply immediately to new hires or when an individual is reappointed to a position.

• RABCCA Regulation
• RABCCA Regulation Ministerial Guidelines
• RABCCA Ministerial order for modifications for a designated executive (Ministerial Order 07-2018)
• RABCCA Ministerial order for modifications for a designated executive (Ministerial Order 05-2018)
• RABCCA Ministerial order for modifications for a designated executive (Ministerial Order 06-2020)
• RABCCA Ministerial order for modifications for a designated executive (Ministerial Order 12-2020)

Post-secondary Institutions

Reform of Agencies, Boards and Commissions (Post-secondary Institutions - PSIs) Compensation Regulation

The compensation regulation for designated executives at Alberta’s public post-secondary institutions (PSIs) came into effect on April 15, 2018, and amended on April 1, 2021. The regulation establishes a compensation framework including remuneration and benefit parameters for designated executive positions at Alberta’s public PSIs subject to the Alberta Public Agencies Governance Act. The positions that are designated as executive positions under section 3 of the regulation include:

• the position of president (listed in Column 1 of Schedule 1)
• positions exercising managerial functions that report directly to the president (Tier A)
• positions exercising managerial functions reporting directly to Tier A (Tier B)

The regulation maintains the 5-level base salary model for president positions, establishes total remuneration ranges (for example: the amount of base salary and benefits, paid, payable or provided annually), and provides amended parameters for benefits and allowances. In addition, the regulation provides total remuneration caps for Tier A and Tier B positions. Further, total remuneration. The 2-year transition period ended on March 31, 2023.

Executive compensation plans

The following agencies, boards and commissions are not subject to the compensation regulation, but are required to submit executive compensation plans annually:

• Alberta Investment Management Corporation (AIMCo) and Alberta Treasury Branches (ATB Financial). These large financial agencies have direct private sector counterparts, such as banks and investment firms. Their compensation must be designed for the specialized financial market in which they operate, while demonstrating alignment with government’s compensation principles.
• Alberta Health Services (AHS) is Canada’s only fully integrated provincial health system and there is no similar organization to provide a relevant comparison of compensation. AHS must submit a compensation plan to ensure scrutiny of its compensation practices. Transparency will continue to be provided through mandated salary disclosure.

As of July 1, 2022, the Salary Restraint Regulation is no longer in effect.