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Yesterday, the provincial government introduced Bill 17, the Fiscal Measures Statutes Amendment Act, an omnibus bill that includes important amendments to the Employment Pension Plans Act that IUOE 955 has been requesting for quite some time.

"Alberta’s new pension legislation boosts flexibility and security—strengthening retirement funds for operating engineers and other tradespeople. We thank the province for making these important amendments our union has been asking for,” said Chris Flett, Business Manager, IUOE 955.

The amendments allow Collectively Bargained Multi-Employer Plans (CBMEPs) to be governed under target benefit plan legislation.

Currently, CBMEPs fall under Defined Benefit pension legislation, which does not fully reflect how these plans function. Of the current structures, the target benefit structure most closely matches the way CBMEPs function.

When benefits fall under 100% funded, the plan is required to reduce benefits. When the plan is in a sufficiently strong position, the Board can elect to increase benefits. Contributions are fixed and the benefits are targeted based on the ability of the plan to cover benefits.

CBMEPs are currently operating under an indefinite solvency moratorium. This moratorium is in place as it recognizes the long-term outlook of these plans and the strength of a structure where plans are not dependent on a single employer.

Changing the legislation to allow CBMEPs to operate under target benefit legislation would provide a permanent framework that recognizes their long-term funding view and permanently remove the solvency funding requirements by removing any ambiguity around plan funding.