The Alberta government has revised the regulations governing private sector pension plans, specifically targeting those in the construction trades, to enhance the financial security of nearly 180,000 plan members, it said.
These changes, aligning with similar amendments made by British Columbia in 2022, aim to provide greater flexibility and stability for the future benefits of pension recipients, the province said in a press release.
The amendments to the Employment Pension Plans Regulation introduce measures to simplify the calculation of benefits while ensuring a robust security cushion for each plan. This regulatory update will also grant the superintendent of pensions the authority to review these calculations to maintain the appropriateness and security of member benefits.
“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,” said Nate Horner, president of Treasury Board and Minister of Finance.
The regulatory adjustments aim to reduce financial volatility and eliminate burdensome requirements, thereby enabling pension plans to offer enhancements such as cost-of-living adjustments. This move is expected to improve the overall capacity of pension funds to support their members more effectively.
Arnie Stadnick, international vice-president for Canada of the International Brotherhood of Boilermakers, highlighted the importance of these changes for workers.
“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,” said Stadnick. He expressed gratitude towards Minister Horner, Premier Smith, and the Government of Alberta for their responsiveness to the union’s feedback.
Joseph Maloney, chairman of the International Brotherhood of Boilermakers National Pension Fund, echoed these sentiments, noting the broader impact on pensioners across the province.
“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,” said Maloney.
Quick facts
- A target benefit pension plan sets a formula for pension benefits, which can fluctuate based on the plan’s financial status.
- Alberta hosts 20 target benefit pension plans within the construction trades, encompassing nearly 180,000 members and managing assets totaling approximately $15 billion.
