Pension Points for Employers December 2022
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Message from the CEO
As the holiday break grows closer, I wanted to take this opportunity to thank our plan members and school boards for another excellent year working in partnership with you.
While it may seem like a lifetime ago, it was just this past spring when we re-opened our doors to the public and resumed in-person appointments.
Onboarding New Teachers
When you hire a new teacher, we are pleased to work with you to ensure your teachers have what they need to get started in the Teachers’ Pension Plans.
Terminating a Contract
There may be teachers in your jurisdiction or school that ask to end their contract in order to access their termination benefits, and then be hired back to the same position.
We understand this is a financially challenging time for many people, but there are some things you need to be aware of when completing these requests.
Welcome to New Employers
ATRF would like to extend a warm welcome to two new charter schools that joined the Teachers’ Pension Plan on September 1, 2022. This brings the total of participating employers in the Teachers’ and Private School Teachers’ Pension Plans to 98. We are very pleased to work with all of you.
Annual Plan Member Statements
Statements will be available for plan members over the coming weeks. Mailing dates for each school board’s employees are posted on the ATRF website as their respective mailings are completed. Remember to encourage your employees to sign up for MyPension for a secure and convenient way to view their statements. In MyPension, they can select their communication preference for their annual statements to receive them electronically instead of paper, helping the environment.
YMPE and Maximum Salary Update
The Year’s Maximum Pensionable Earnings (YMPE) has been set by the federal government for 2023 at $66,600. The Defined Benefit limit, set by Canada Revenue Agency (CRA), is $3,506.67 for 2023; therefore, the maximum pensionable salary is $195,313.50 for 2023. This information is reflected in the ATRF-CS Build #553. An email has been sent directly to all employers to access the new version of ATRF-CS.
Detailed tables are available on our website, providing information on the applicable contribution rates, YMPE, and maximum pensionable salary (salary cap) to ensure your payroll is up-to-date.
For more information about the 2022-23 contribution rates, be sure to watch for the annual report, coming out January 2023.
Offering Retirement Transition Programs
If you plan to offer a retirement transition program for teachers to retire and apply for their pension, followed by an immediate return to teaching, there are some things you need to keep in mind.
Employees Who Turn 71
Have any of your employees turned 71 this year? It’s important to remember that as stipulated in the Income Tax Act, employees are unable to contribute to their pension plan after the end of the calendar year in which they turn age 71.
ATA Teacher Counts
Every year, the ATA (Alberta Teachers’ Association) conducts a member count using the data that each school board reports for the month of November through ATRF-CS. This annual activity assists the ATA with budgeting and planning. ATRF and the ATA work in partnership to ensure accurate data is submitted in a timely manner. Please ensure your November 2022 data reporting has been submitted before the first week of January 2023.
Reporting December Disability Payouts and Leaves
If a member goes on disability or starts a leave of absence in December, the payout needs to be reported in January of the following year. If the payout record is reported in December, it may cause the member to earn more than one year of pensionable service for that year. Members cannot exceed one year of pensionable service in either a school or calendar year.
If the payout is reported in December, your ATRF Data and Employer Services representative will notify you to ‘DR – Delete Record’ the payout record reported in December and re-report the record in the month of January.
Holiday Closure
ATRF will be closed for services from December 24, 2022 through January 2, 2023, re-opening on January 3, 2023. Remember that the MyPension member portal and ATRF website are always available to our members. We wish you and your family a joyous holiday season and look forward to serving you again in 2023.