Over the past several years the Teachers' and the Private School Teachers' Pension Plans have experienced very solid investment returns. Over the four years ended August 31, 2015 the Fund has earned an annualized average return of 12%. These strong returns have resulted in a significant decrease in the unfunded liabilities of the Plans and a material improvement in their overall funded positions. As a result, contribution rates for both Plans will be reduced effective September 1, 2016.
Contributions for the Teachers' Pension Plan will be reduced by 1.48% of total teacher salaries; 0.78% for teachers and 0.70% for the Government of Alberta.
Contributions for the Private School Teachers' Pension Plan will be reduced by 1.66% of total teacher salaries; 0.90% for teachers and 0.76% for private school employers.
The tables below show the current contribution rates and the rates that will be in effect commencing September 2016.