Government of Alberta Amends Employment Pension Plans Regulation

​​On November 21, 2017, the Government of Alberta amended the Employment Pension Plans Regulation to establish a new commuted value payout option available to Collectively Bargained Multi-Employer Plans (CBMEPs) that are under a solvency moratorium.

The update is designed to provide Plan Administrators and service providers with information regarding the changes.

1. CBMEPs that are currently under a moratorium on solvency funding can now calculate and payout commuted values on the same basis as the plans are funded, that is, on a going concern basis. CBMEPs are not required to pay commuted values on this new basis, rather this a merely an expansion of options.

2. CBMEPs that are not currently under a moratorium on solvency funding must apply for a moratorium on solvency funding if they wish to calculate and payout commuted values on the same basis as the plans are funded, that is, on a going concern basis. CBMEPs are not required to pay commuted values on this new basis, rather this is merely an expansion of options.

3. Detailed communication has been sent out to all CBMEPs that are
impacted by this change.

4. CBMEPs that elect to take advantage of this new option must:
a. Apply to the Superintendent of Pensions for approval;
b. Develop a communication plan to inform plan members of the change in the plan’s commuted value calculations; and
​c. Provide the communication plan to the Superintendent of Pensions.