SFPP Newsletter
December 2025
SFPP Fund reaches $5B following strong market performance
SFPP achieved good investment returns in 2025. By the end of November, the Plan’s investments had achieved a return of 7.5% and the total value of the Plan’s assets had increased to $5.1 billion. This performance is expected to improve the overall financial position of the Plan, taking into account both assets and future pension benefit commitments.
This positive investment performance in 2025 arose despite a number of challenges in the Canadian and global economies, including inflation rates that are still higher than normal, global trade tensions and tariffs, and rising unemployment rates. However, technological advances, particularly in artificial intelligence (AI), have resulted in growing economic activity with respect to the creation of data centres and confidence that these new technologies will result in improved productivity levels in the future. In turn, this has helped boost stock prices, especially among companies involved with AI. SFPP investments have exposure to these types of stocks, and a strong year-to-date return of 15.1% related to the Plan’s investments in equities was a key reason for the Plan’s overall good investment performance.
Looking forward, there continue to be challenges. There remain various goods and services where prices are still increasing too rapidly – for example, food prices and rent increases. Trade tensions between Canada and the United States persist, and there is some concern that investors may be too optimistic regarding the benefits of AI. Some wonder if the prices of some of these AI-related stocks may be set to fall if the potential benefits of AI do not unfold to the extent expected.
However, despite these potential headwinds, we are cautiously optimistic for 2026. Increased global spending on both AI infrastructure and defense, along with interest rate decreases in both Canada and the US, should help support economic activity worldwide.
The future cannot be predicted, and surprises can happen. The Corporate Board overseeing the investments of the Plan remains committed to its long-term strategy of diversification and stability. The Plan investments will remain diversified across a range of bonds, equities, and private market investments (like commercial real estate and infrastructure) to try to successfully navigate through whatever future conditions unfold and ensure the security of Plan members’ retirement benefits.
SFPP expands service transfer opportunities through new agreement
Important deadlines for eligible active, new, and deferred members
SFPP joined the National Transfer Agreement (NTA) on November 1, 2025, which allows transfers between SFPP and various other Canadian public sector pension plans.
This brings several benefits to eligible active, deferred, and new Plan members:
- A wider network of participating pension plans offers more options and greater flexibility if you change jobs.
- Transferring your prior pension benefit into SFPP will increase your pensionable service with us. The more pensionable service you have, the higher your monthly income and the sooner you may be eligible to retire from SFPP.
Read more about transferring service into SFPP and pension plans that participate in the NTA.
Active SFPP members
Application deadline October 31, 2026
If you are an active SFPP member and you
- worked for an employer that participated in any of the pension plans involved in the NTA prior to joining SFPP,
- and you left your pension benefit in that plan, meaning you’re a deferred member in your previous plan,
you may be able to transfer your pension benefit to SFPP.
Deferred SFPP members
If you are a deferred SFPP member, which means that you no longer work as a police officer for any participating SFPP employer, and
- you left your pension benefit in SFPP, and
- you are currently working for an employer that participates in the NTA,
you may be eligible to transfer your deferred benefit out of SFPP and into your new pension plan.
Connect with your new employer to determine eligibility and timelines.
SFPP members who joined the Plan after November 1, 2025
If you joined SFPP after November 1, 2025, and you left your pension benefit in your previous pension plan, you have up to one year following the date you joined the Plan to apply to transfer your pension benefit from a previous plan that participates in the NTA.
If you moved your pension benefit into a LIRA or RRSP before joining SFPP, you will not be eligible to transfer your pension benefit into SFPP. However, you may still be able to use your LIRA or RRSP to purchase service outside of the NTA. Contact your employer to determine eligibility.
Retired members
SFPP members who are already receiving their monthly pension are not eligible to transfer service.
Online information sessions coming in 2026
Your pension is a vital component of your overall retirement income. Understanding the value of your pension and how it works, and considering your own personal financial situation, retirement goals and health, are all important when deciding to start your pension. Mark your calendars: Eight virtual learning opportunities are coming in 2026.
Visit sfpp.ca/InformationSessions for more information and to book your spot.
General pension information session
Your pension is a vital component of your overall retirement income. Understanding the value of your pension and how it works, and considering your own personal financial situation, retirement goals and health, are all important when deciding to start your pension. Mark your calendars: Eight virtual learning opportunities are coming in 2026.
Buyback session
This session is for members looking to increase their SFPP pension by purchasing eligible service, such as leaves, prior service with an SFPP employer, service under a different plan, or transfers into SFPP. This session will help you understand the value of buying back service, the cost to purchase service, and your payment options.
Leaving the Plan, death before retirement
This session will help you understand how your SFPP pension remains secure if you are changing employers or face a difficult health situation. It covers a range of topics, including options available in the event of a career change or death.
Retirement group session
The retirement session will help you learn about your future pension, the pension estimator tool, the lifetime pension you’ll receive, how the bridge benefit works, and much more.
One-on-one retirement information session
If you plan to retire in the next two to three years, you can always sign up for a one-on-one retirement information session. These 30-minute sessions are available in person, over the phone, or online throughout the year. A session will help you understand your retirement options based on your individual situation and let you know what you need to do now to ensure everything is in order when you’re ready to start the retirement process.
In-person information sessions
If virtual learning is not for you, SFPP offers in-person learning opportunities. Talk to your employer or your Association about arranging a group information session at your place of employment.
Cost-of-living increases for pensioners and deferred members
We are pleased to announce a cost-of-living adjustment (COLA) for post-2000 service at 90% of the increase in the average Alberta Consumer Price Index (ACPI) effective January 1, 2026. This increase helps maintain the purchasing power of your pension over time. ACPI for the year was 2.0%.
More information on COLA for post-2000 and pre-2001 is provided below:
| Service Period | % of ACPI Granted | COLA Increase |
|---|---|---|
| Post-2000 | 90% | 1.80% |
| Pre-2001* | 60% | 1.20% |
COLA is automatically applied to your pension, and your January 2026 annual statement will reflect your new monthly amount.
*COLA applied to this service is contractually guaranteed at 60% of the increase in the average ACPI.
Calgary office to open in 2026
SFPP members in southern Alberta will soon have access to in-person services at the new Calgary office, expected to open this March.
The new location will offer similar in-person services to those already available in Edmonton, with a primary focus on one-on-one appointments to discuss retirement options.
Alberta Pensions Services, SFPP’s mandated pension benefit service provider, operates the new location.
Details about hours of operation and how to book a one-on-one appointment will be shared closer to the opening date.
Reminder for retirees: pension tax adjustments
In August, we shared details about changes to your pension payments following federal and provincial income tax rate reductions. Here’s a quick recap:
Federal: The base income tax rate dropped from 15% to 14% effective July 1, 2025. This was applied beginning with your July payment.
Alberta Provincial: In July 2025, Alberta’s provincial tax rate on earnings up to $60,000 decreased from 10% to 8%, retroactive to January 1, 2025. From July to December 2025, a prorated 6% tax rate was applied to pension payments to account for the retroactive change.
Starting January 2026, your payments will reflect the 8% provincial rate up to the new income bracket of $61,200. There have been no changes to the provincial tax rates applied to earnings above this threshold.
For retirees living in Canada but outside of Alberta, the federal change applies, and provincial tax is based on the province where you currently reside.
If you have questions about how these changes affect your pension, please contact us.