Alberta’s Local Authorities Pension Plan is lowering its 2026 contribution rates and providing members with a cost-of living adjustment due to the plan’s strong financial position.
Contribution rates for both plan members and employers will decrease by roughly one per cent for next year, with surplus funds making up the difference, according to a press release. As at Dec. 31 2024, the LAPP had $70.7 billion in assets.
Read: Alberta’s LAPP allowing DB plan sponsors to join by transferring assets, liabilities
On Jan. 1, 2026, retired and deferred members will also receive a one-time COLA of 90 per cent of the increase in Alberta’s consumer price index, up from the usual 60 per cent. The final inflation numbers for calculating COLA will be available in November and are based on the increase in Alberta inflation, the release noted.
In 2027, active members will receive an increase in their future pension payments for time worked that year, with no additional costs to members or employers. The portion of their pension based on earnings up to the average year’s maximum pensionable earnings will be calculated at 1.8 per cent instead of 1.4 per cent.