Two amendments were made to the Employment Pension Plans Regulation that will provide more flexibility for the almost 180,000 hard-working members across 20 target benefit pension plans. These changes align Alberta with other provinces and follow similar changes made by British Columbia in 2022.
“Predictable and stable funding rules are a win-win for target benefit pension plans in Alberta. Administrators and employers now have more flexibility to consider benefit improvements, like cost-of-living increases or better retirement benefits, for plan members.”
Amendments made to the Employment Pension Plans Regulation simplify the calculation of benefits, while establishing an ample security cushion for each specific plan. The amendments will also allow the superintendent of pensions to review the calculation to make sure it is appropriate for the plan and protects the security of member benefits.
Reducing volatility and cutting down on onerous requirements, while allowing the pension plans to provide benefit improvements such as cost-of-living requirements will improve pension funds’ ability to support their members.
“Boilermakers work hard and are integral to keeping Alberta’s economic engine moving forward. Our members worked to secure changes to the pension regulation to provide flexibility for long-term planning and improved benefits for all workers. The International Brotherhood of Boilermakers extends our gratitude to Minister Horner, Premier Smith and the Government of Alberta for listening to our feedback and taking action to modernize Alberta’s pension regulation.”
“This policy change will benefit thousands of pensioners across Alberta, including members of the International Brotherhood of Boilermakers Pension Fund. We could not have secured this without the collective action of our members, and we commend the Government of Alberta for working with us to support workers, pensioners and seniors throughout the province.”
Quick facts
- A target benefit pension plan sets a formula for pension benefits. The benefits members receive at retirement could decrease based on the plan’s financial position.
- There are currently 20 target benefit pension plans in the construction trades operating in Alberta, with almost 180,000 members and approximately $15 billion in assets.