Contribution Information

The ATRF Board adjusts contribution rates as required following each actuarial valuation.

Contribution rates are set to cover the cost of plan benefits currently being accrued, including cost-of-living adjustments. Pensioners are eligible to receive an adjustment equal to 60% of the change in the Alberta Consumer Price Index for service prior to 1993 and 70% for service after 1992.

Active plan members and the Alberta Government or contributing employers share equally in funding for benefits related to service after August 1992, including the 60% cost-of-living adjustments. Active plan members are solely responsible for funding the additional 10% cost-of-living adjustments provided for service after 1992.

Deficiencies with respect to benefits earned after August 1992 must be funded over a 15-year period by additional contributions. These additional contributions are to be shared equally between active plan members and the Alberta Government or contributing employers. However, active plan members alone are required to fund all the actual cost with respect to that portion of deficiencies related to the additional 10% cost-of-living benefit for service earned after August 1992.

Contribution rates are also set to eliminate, by the year 2060, the unfunded liability under the Teachers’ Pension Plan for service before September 1992. Under the November 15, 2007 Memorandum of Agreement between the Alberta Government and The Alberta Teachers’ Association, the Alberta Government will pay 100% of the total contribution rate required to fund the unfunded liability until August 2009. Effective September 1, 2009, unfunded liability contributions will cease and the Alberta Government will move to pay-as-you-go funding of the unfunded liability by advancing sufficient funds to the plan to pay for all benefits for service before September 1992, as they come due. Prior to this Memorandum of Agreement, the Alberta Government paid 67.35% and the active plan members paid 32.65% of the total contribution rate required to fund the unfunded liability by 2060.