Changes allow for $25-million payment to teachers for pension liability
Legislation amendment adjusts payment responsibilities for 2007
Edmonton ... Bill 53, Teachers’ Pension Plans Amendment Act, 2007, which was introduced in the Legislature November 21, will authorize government to pay $25 million to cover the teachers’ share of the pre-1992 unfunded pension liability from September 1 to the end of December.
“As part of the government’s commitment to find a long-term solution to the pre-1992 unfunded pension liability of the Teachers’ Pension Plan, Budget 2007 included $25 million to provide partial coverage of the teachers’ portion,” said Minister of Education Ron Liepert. “Bill 53 is enabling legislation to make these payments.”
The government is applying the $25 million equally to cover the 3.1 per cent teachers’ portion of unfunded liability pension payments from September 1 until all these funds are spent which is estimated to be to the end of December. This applies to all teachers and other certificated staff who contribute to the Teachers’ Pension Plan where the Government of Alberta is the employer-contributor.
The Teachers’ Pension Plans Act currently sets out the ratio for the payment of additional contributions between the contributing active members and the government, with active members paying one-third and the government paying two-thirds. The amendment proposed under Bill 53 addresses the administrative authority for the government to make payments towards the teachers’ portion of the pre-1992 unfunded liability. The payments commenced on September 1.
In addition to this $25-million good faith gesture on teachers’ pension, the Alberta government and the Alberta Teachers’ Association announced a memorandum of agreement in principle to address the Teachers’ Pension Plan pre-1992 unfunded liability on November 15.
Strengthening the education system is an important part of Premier Stelmach’s plan to secure Alberta’s future by building communities, greening our growth and creating opportunity.
