Equal Sharing of Contributions to Pension Plans
NOW THEREFORE BE IT RESOLVED THAT the Alberta Urban Municipalities Association request the Government of Alberta support employers in their request to abolish the extra 1% contribution currently borne by employers.
FURTHER BE IT RESOLVED THAT the Alberta Urban Municipalities Association request the Government of Alberta supports the request that employers and employees should be equally responsible for contributions towards pension.
WHEREAS all municipalities currently contribute 1% more than employees in contribution to both the Local Authorities Pension Plan and the Special Forces Pension plan;
WHEREAS a recent survey circulated by the Local Authorities Pension Plan outlined that historically this extra 1% was attributable to funding pensionable service accrued before the pension plan inception and that said pensionable time has been paid in full;
WHEREAS we contend that the reason for the extra payment has been satisfied, and there is no further reason to continue to levy this extra cost on employers:
“Currently LAPP employers contribute 1% of pay more in contributions than their employees. This arrangement was made in 1962, when the plan was first set up, to pay for service prior to that time. Those costs have long since been repaid.” Reference: “LAPP Sponsor Sustainability Survey – Page 4”; and
WHEREAS we contend that both the employer and employee should be equally responsible for funding employee pensions.