Message from the Chair of the Special Forces Pension Board
I am pleased to announce there will be no change to contribution rates in 2017. Members currently contribute 13.45% and employers contribute 14.55% of pensionable salary for a total of 28%. The Government of Alberta also contributes 1.25% for pre-1992 unfunded liabilities. Rates have remained stable since 2010.
I am pleased to report the Government of Alberta appointed two new Board members, Mike Baker and Sue Bohaichuk, and they extended Dwayne Smith's appointment to the end of 2017. You can read a little about each Board member under the About SFPP section of this website.
The 2015 Annual Report was posted to the website in August and contains a wealth of information. In 2015, the Plan's net assets grew by 9.7% while the pension obligation grew by 7.8%. The deficit has decreased from $574 million in 2011 to $162 million in 2015. While these improvements are noteworthy, the Board takes a careful approach to the long-term financial health and risks to ensure the Plan's resilience and sustainability.
Start on Actuarial Valuation
An actuarial valuation is required at least once every three years. Simply put, the valuation is a snap shot at December 31, 2016 assessing anticipated future funds and the future costs of pensions. It guides the establishment of contribution rates. Results will be shared later in 2017. If contribution rate adjustments are required, they would take place January 1, 2018.
Cost of Living Adjustment (COLA)
Each year the Board makes a decision on the amount of COLA for post-2000 service. The target is a COLA of 30% of Alberta CPI (Consumer Price Index). After reviewing the Plan's funded status with advice from its actuary, the Board has approved the full target increase of 30% Alberta CPI in January 2017. Details will be provided on the SFPP website in early 2017.
With the launch of the new mypensionplan site earlier this year, active members and pensioners can communicate directly with the Member Services Centre through the Secure Mailbox. Members and pensioners can register at www.mypensionplan.ca. Check it out.
Please reach out to firstname.lastname@example.org if you have comments, concerns or suggestions.
Chair, Special Forces Pension Board