SFPP Member News and Updates
Contribution Rates and 2021 Cost-of-Living Adjustment
January 6, 2021
SFPP’s contribution rates have been maintained and the January 1, 2021 cost-of-living adjustment has been granted.
SFPP has managed the Plan through economic cycles over the last two decades. We have successfully kept member and employer contribution rates stable over the last 10 years, while improving the Plan’s funded position since the 2008 Global Financial Crisis. However, the world around us is changing. The economic markets are shifting with lower long-term investment returns. People are living longer. While SFPP’s policies and procedures have worked over the last 20 years, we must plan for the next 20 years and beyond.
Our strategy is focused on making SFPP a resilient, affordable pension plan that is meaningful to Alberta’s municipal police officers, while managing the challenges being experienced by pension plans across Canada. As a first step to prepare for the future, we asked SFPP’s actuary to review the Plan’s funded position (called an actuarial valuation). This allows SFPP to set contribution rates for up to three years, providing certainty to members and employers.
Based on SFPP’s actuarial valuation of the Plan as at December 31, 2019, SFPP has decided to:
- Maintain the current contribution rates; and
- Provide pensioners a Cost-of-Living Adjustment for January 1, 2021 of 30% of the increase in the Alberta Consumer Price Index (CPI) for pensionable service accrued after 2000, the same percentage provided in previous years.
The contribution rates as of January 1, 2021 are:
| Members | Employers | Total | |
|---|---|---|---|
| Current service contributions | 12.29% | 13.39% | 25.68% |
| Post-1991 unfunded liability contributions | 0.41% | 0.41% | 0.82% |
| Pre-1992 unfunded liability contributions | 0.75% | 0.75% | 1.50% |
| Total contributions | 13.45% | 14.55% | 28.00% |
* The Government of Alberta pays an additional 1.25% towards the pre-1992 unfunded liability.
Cost-of-Living Adjustments for January 1, 2021 are therefore:
- For pensionable service accrued before 2001, an increase of 0.78%; and
- For pensionable service accrued after 2000, an increase of 0.39%.
Plan Funding
Overall, SFPP’s funded position has improved from 92.4% at December 31, 2018 to 93.0% at December 31, 2019.
| ($millions) | December 31, 2019 | December 31, 2018 |
|---|---|---|
| Funding Value of Assets | $3,331.5 | $3,070.7 |
| Funding Target | $3,580.5 | $3,323.9 |
| Funding Deficiency | $249.0 | $253.2 |
| Funded Ratio | 93.0% | 92.4% |
What these numbers mean:
- The “funding value” is the market value of SFPP, with any investment gains above and losses below the expected returns smoothed across three years. The investment gains in 2019 are spread across 2019, 2020 and 2021.
- The “funding target” is how much money SFPP needs to pay benefits if the Plan continues indefinitely.
- If there is not enough money, then there is a funding deficiency (also known as an “unfunded liability”).
- SFPP’s actuary works out any additional contributions that are needed to pay the unfunded liability.
SFPP’s 2019 Funded Position
While SFPP still has an unfunded liability, the funded position has improved mainly due to positive investment returns and contributions made to the Plan in 2019. Most of SFPP’s funding deficiency relates to pensionable service prior to 1992, the year the Plan’s funding was changed to include regular actuarial valuations. Members, employers, and the Government of Alberta make contributions towards the pre-1992 unfunded liability.
SFPP saw strong investment gains of 13.5% in 2019 (compared to 0.5% in 2018), though the 2019 returns were less than the benchmark of 14.3%.
SFPP is a long-term investor and monitors long-term results. At the end of 2019, SFPP’s four-year annualized return was 7.8%, slightly above our benchmark return of 7.5% but below our value-add target of 8.5%. The value-add target reflects that AIMCo, SFPP’s mandated investment manager, is an active manager with the goal to outperform the overall market.
SFPP in 2020 and Beyond
SFPP’s policies have proven effective for managing the normal economic cycle. Since the 2008 global financial crisis, SFPP has been able to rebuild the Plan’s funding position, increasing the funded ratio from 73.5% to 93.0% as of December 31, 2019. In addition, SFPP has maintained its margin above its target, which provides a buffer for the Fund through short periods of low investment performance
This past year was challenging. The COVID-19 pandemic coupled with the economic crisis has caused considerable unpredictability in our lives and in the financial markets. Long-term expected investment returns have continued to decrease. Further, our initial projections indicated that the gains in the Plan's funded ratio would be eroded by the end of 2020. With long-term expected returns decreasing and people living longer, SFPP is reviewing current and emerging funding risks. From this review, SFPP will focus on how to ensure the Plan is resilient, sustainable and meaningful for the next 20 years and beyond.
May 2025
Important Information about a Potential Canada Post Service Interruption
A possible Canada Post service disruption could occur later in May of this year. If it happens, the service disruption will impact mail delivery.
Currently receiving an SFPP pension
If your monthly pension is deposited directly into your bank account, the mail disruption will not affect you. If you still receive your monthly pension by paper cheque, contact us to set up direct deposit or to make other arrangements.
Sending or receiving pension-related documents
If you need to send or receive pension-related documents, several options are available.
Send and receive documents electronically:
- Document Centre (available in your secure online account) is a safe and easy way to send and receive your pension documents.
Drop off or pick up documents in person:
- Our office is open from 8:15 a.m. to 4:00 p.m. MDT, Monday to Friday (excluding holidays).
- Designated visitor parking is available at the building.
- A secure after-hours drop box is located beside the back doors for your convenience.
Special Forces Pension Plan
5103 Windermere Boulevard SW
Edmonton, AB
T6W 0S9Fax: 780-421-1652
Contact us if you have questions about how to manage your pension documents during a potential postal interruption.
National Police Week
As we observe National Police Week from May 11-17, 2025, SFPP Corporation staff extend our deepest appreciation to you, the men and women who serve and protect our communities. We see the impact of your work in our communities and recognize your sacrifices.
This year's theme, Committed to Serve Together, acknowledges “the crucial partnership between members of a police service, between police services, between the police and other first responders, as well as between the police and the organizations and people in the communities they serve.”
The theme resonates with our passion for playing an important role in the secure retirement future of police officers. SFPP has strong partnerships with our employee and employer sponsors and our service providers. Together, we are committed to providing well-deserved lifetime pensions to municipal police officers in Alberta.
Your SFPP pension is designed with police officers in mind. You can rest easy knowing that while you’re protecting us now, we are protecting your retirement future.
Thank you for your service.
To learn more about your pension and how it supports you and your loved ones today and in the future, join one of our online sessions:
Online Information Sessions Retirement General Pension Buybacks Tuesday, May 13
9 am - 10:30 am
Tuesday, August 12
6 pm - 7:30 pmWednesday, June 18
1 pm - 3:30 pm
Thursday, July 24
1 pm - 2 pm
Wednesday, November 26
1 pm - 3:30 pm
Thursday, July 24
1 pm - 2 pm
March 2025
SFPP Pension Fund Remains Strong Amid USA-CAN Trade Dealings
SFPP Corporation is closely monitoring the economic situation caused by ongoing trade and tariff disputes between Canada and the United States. We stand ready to respond to changes that may impact the pension plan’s investments. Our top priority is to keep your pension fund secure, and we will continue to take all necessary measures to safeguard it.
Fund Performance
Over the last year, the SFPP Fund performed well. In fact, in the midst of the current economic turmoil, the fund has slightly increased in value in the first quarter of 2025. While this is subject to change based on market fluctuations, our ability to navigate market shifts helps deliver consistent returns and protects your pension benefit.
Potential Impacts to Investments
Trade disputes affect global investments in various ways, including uncertainty in the financial markets, impacts to sector-specific industries reliant on imported materials, and changes in consumer spending or corporate earnings.
Understandably, some Plan members may feel anxious about their pension due to these uncertain times and the ongoing media coverage. However, market ups and downs are normal in the realm of investment management. Our Statement of Investment Policies and Procedures (SIPP) outlines the risk limits and asset mix for our investment manager to follow. The SIPP exists to safeguard against the impacts of such volatility.
Investment Strategy
SFPP uses a diversified investment strategy to manage risks and protect your pension. This strategy includes:
- Diversification: To enhance returns and spread out risk, our asset allocation is diversified across equities, fixed income, and other assets such as real estate, infrastructure, agriculture, etc.
- Risk management: Thorough risk management practices identify and manage potential threats to the Fund's stability. This includes setting an appropriate risk limit aligned to meeting our long-term objectives.
- Long-term focus: Our investment approach is centered on long-term growth and stability, offering resilience through various market conditions.
- Monitoring: We are in regular contact with Alberta Investment Management Corporation (AIMCo), our legislated investment management service provider, to monitor and assess the geopolitical and economic impacts to the Plan’s investments.
In times of economic uncertainty, it’s even more important to take the long view. Our investment strategy is responsive to today’s market conditions while ensuring important decisions are made with due consideration.
Be assured that SFPP remains fully funded and your pension is safe and secure now and for many decades to come.
SFPP Pension Fund Remains Strong Amid USA-CAN Trade Dealings
SFPP Corporation is closely monitoring the economic situation caused by ongoing trade and tariff disputes between Canada and the United States.
January 2025
Attend an online information session to recognize Pension Awareness Day
There’s no better way to recognize Pension Awareness Day on Thursday, February 20, than by taking a couple of hours to learn more about the value of your pension plan and the benefit it provides to you and your family. This day is the perfect opportunity to reflect on your retirement planning, stay informed, and take the necessary steps to achieve a secure retirement future.
Online General Information Session
Thursday, February 20, 2025
5 p.m. to 7:30 p.m.Visit the Information Sessions page to sign up. This free online session is open to current SFPP members and anyone interested in becoming a police officer with one of our participating employers.
One of the most valuable aspects of your retirement is your pension plan. The more you know about SFPP, the more prepared you and your loved ones will be now and in your retirement years. Your SFPP pension complements the retirement income you will receive from the government through the Canada Pension Plan and Old Age Security, plus whatever other personal savings and investments you may have. In addition, your pension protects important people in your life when you pass away.
About Pension Awareness Day
The Financial Services Regulatory Authority of Ontario held the first Pension Awareness Day in February 2023 as a day for Plan members to discover the value of their pension and to encourage curiosity about retirement savings. Now numerous agencies across Canada have jumped on board to recognize the importance and value of pensions. Held on the third Thursday of February, the goal is to encourage Plan members to learn more about their pension benefit, to ask questions, and to start planning for their retirement today.
Pension Awareness Day
Attend our online general pension information session, to discover the value of your pension plan and the benefit it provides to you and your family.
2024 SFPP winter newsletter
The 2024 SFPP winter newsletter features important information for SFPP members, including:
- Message from the CEO, Liz Doughty
- COLA set for 2025: 70% of the increase in the Alberta CPI for post-2000 service
- Online education sessions offered in 2025
- Buying back a leave of absence is good for your pension
- Document Centre upgrade to serve you better
- Multi-factor authentication to replace security questions
2024 SFPP winter newsletter
The winter newsletter highlights important information about the Plan and new features available to members.
Tax slips ready by end of February
Tax slips will be available in your secure online account by the end of February 2025.
You will receive a tax slip from us for your 2024 tax return if you:
- received a regular monthly pension payment
- received a payment as a beneficiary or pension partner
- made a buyback purchase through SFPP
- received a pension payout or lump sum payment
Avoid delay – register for your secure online account
If you have registered for your secure online account, your tax slip will be available in the Document Centre at the end of February 2025. Log in to your secure account to view and print your statement. If you do not require a paper copy of your tax slip from SFPP (especially if you file your taxes electronically), please log in by mid-January and select ‘go green’ to avoid receiving a paper copy. This will ensure that your tax slip and other correspondence from SFPP will no longer be physically mailed to you. Instead, you will receive an email telling you that new information is in your secure online account and you can access it there.
If you are not registered for your online account, or you have not chosen to receive your documents electronically, printed tax slips will be put in the mail by the end of February.
Beneficiaries in pay, survivors in pay, and ex-pension partners in pay can register for a secure online account and receive their tax slips and annual statements in the Document Centre.
If you received a payment from SFPP and are no longer an active Plan member, your tax slip will be in the mail by the end of February 2025.
To receive your tax slip as soon as possible, log in to your secure online account and confirm your current contact information and correct mailing address.
Tax slips ready by end of February
Please confirm your contact information now to ensure prompt delivery.