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Pension
Coverage Overview
- Support
Staff/Out of Scope Staff/Management Staff (Non Certified Employees)
- As
a condition of employment, all employees are enrolled in the pension
plan effective their first day of permanent employment, if they
work a minimum of fourteen (14) hours per week.
- Alberta
Union of Provincial Employees (A.U.P.E.)
- As
a condition of employment, all employees are enrolled in the pension
plan effective their first day of permanent employment, if they
work a minimum of fifteen (15) hours per week.
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Contributions
- Employee
contributes:
-
6.75%
of employee's pensionable salary up to the Year's Maximum Pensionable
Earnings YMPE, plus 9.64% of any portion of employee's pensionable
salary which is over the YMPE.
- Employer
contributes:
-
7.75% of employee's pensionable salary up the Year's Maximum
Pensionable Earnings, plus 10.64% of any portion of employee's pensionable
salary which is over the YMPE.
The YMPE
for 2008 is $44,900.00. The maximum annual salary rate (cap) for contributions
and reporting to LAPP for 2008 is $130,136.50
The Local
Authorities Pension Plan is a defined benefit plan, which means employees
will receive a pension based on salary and years of service. Salary
refers to basic pay for the performance of regular duties. This does
not include earnings such as overtime pay.
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Pension
Options at Retirement
There
are a number of options available from which employee can choose. All
pensions are payable for employee's lifetime. Each pension option pays
a different death benefit.
- A Joint
Life Pension is payable for the life of employee and their nominee
(usually their spouse). The pension is calculated on the basis of
employee's age and nominee's age. Upon the death of either person,
payments are made to the survivor for his/her lifetime. A Joint Life
Pension also has a choice of a five-year guarantee in the event both
member and nominee die before five years of benefits have been made.
If employee
has a spouse when choosing a pension option, employee must select a
joint-life pension with their spouse as nominee. If employee's spouse
signs a waiver form giving up his/her pension entitlement, employee
can choose one of the other pension options:
- A Guaranteed
Term Option for a period of 10 or 15 years from retirement is
paid for employee's lifetime and includes a provision that should
employee's death occur before the guaranteed period expires, payment
will continue to a Beneficiary(ies) for the remainder of that period.
- A Normal
Pension is paid for employee's lifetime and is guaranteed for
five years. If employee dies before the guaranteed period expires,
payments will continue to a Beneficiary(ies) for the remainder of
that period.
Pension
counseling is available from the Pension Facilitator in the Human Resources
Department or from Alberta Pensions Administration.
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