Alberta’s Local Authorities Pension Plan is now allowing defined benefit pension plan sponsors to join by transferring their existing assets and liabilities into the LAPP.
The Alberta Teachers’ Association is the first plan sponsor to join the LAPP in this way, by transferring its plan for office staff. These members will now have access to a wide range of additional services offered by the LAPP, including online services, retirement planning tools, one-on-one member sessions and member education.
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The move to the LAPP will also support the ATA’s talent attraction and retention strategy, says Sharon Vogrinetz, the association’s chair. “The transfer is a recruiting tool for us because if you work for another employer that offers the LAPP, those employees can come work for us and continue to earn benefits [under the LAPP].”
John Bercsenyi, vice-president of pension policy and funding at the LAPP, says feedback from ATA employees on the transfer has been very positive.
“We did onsite and virtual sessions with employees to answer their questions. When we did the session with the members, it was interesting to see how excited they were that they could go directly to the website and find out more about their pension plan online. ATA employees now have a secure portal that they can send inquiries to a messaging center and get answers back within two business days.”
The transfer will also support members’ financial wellness and retirement readiness by offering stable returns on investments. “Due to our sheer size, the LAPP can select from a wide range of investments not available to smaller pension plans, which enhances our expected return and lowers the anticipated long-term cost for our members and employers.”
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