The Government of Alberta has introduced a bill to reform the province’s public sector pension plans.

Bill 9, the Public Sector Pension Plans Amendment Act, passed first reading on Wednesday.

Doug Horner, the province’s finance minister, has said the changes are necessary to keep the pensions sustainable and make up for a more than $7.4-billion unfunded liability.

The changes include a reduction in early retirement subsidies instead of eliminating them; targeting the cost of living adjustment at 60% of Alberta inflation, up from 50%; and a contribution rate cap on post-2015 benefits instead of all benefits.

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Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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