The Government of Alberta will scale back some of its proposed changes to public sector pension plans announced in September.
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.
The early retirement subsidy for the Local Authorities Pension Plan, Public Service Pension Plan and Management Employees Pension Plan will be modified to a 60 and 90 factor. To retire early with an unreduced pension, a member must be at least age 60 and age plus years of service must equal 90 instead of the previous 85 or 80, depending on the plan. Special Forces Pension Plan members will continue to have their current early retirement benefits.
“This is considerably less of a change than what we had originally intended back in 2012, and frankly more moderate than what we presented in September,” says Finance Minister Doug Horner.
He also reiterated that changes to benefits already earned won’t be made retroactively. “Benefits to current retirees will not change. Period.”
Alberta’s labour groups are unhappy that the proposed changes to the plans weren’t negotiated.
“We’ve been asking for face-to-face negotiations for months now,” says Alberta Federation of Labour president Gil McGowan. “But the Redford government seems determined to dictate, not negotiate.”
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