Newsrelease

July 27, 1999
Edmonton, Alberta

"Our continued conservative approach to fiscal management has allowed us to eliminate the debt of the Public Service Pension Plan. With the surcharges dropped, an employee earning $35,000 will have an extra $108 to bring home every year."

Public Service Pension Plan's unfunded liability is eliminated

Alberta taxpayers will save $12 million this year now that the Public Service Pension Plan (PSPP) is fully funded, Provincial Treasurer Stockwell Day announced today. And the job was done in record time, saving taxpayers about $444 million over the next 37 years - the scheduled time to wipe out the PSPP's unfunded liability.

"Employees can feel secure that they will get the pension that they were promised," said Provincial Treasurer Stockwell Day. "Now that the PSPP is fully funded, Alberta taxpayers can feel good that they are no longer paying to fix the past problems of another pension plan."

Employers and employees will save about $7.2 million in combined surcharges every year. This is the second public sector pension plan to have eliminated its unfunded liabilities in record time. Last year, the Local Authorities Pension Plan became fully funded, 38 years ahead of schedule.

"The improvement in the financial status of Alberta's public sector plans can be credited to a number of factors including government cost control, better than forecast returns on investments, and the pension board's sound financial management," Day said. The impact of eliminating this pension liability funding will be reflected in the province's First Quarter Report, which will be released at the end of August".

The PSPP has 36,000 active members, 15,000 pensioners, and includes about 60 employers.

For further information, please contact:

Shannon Taylor
Communications Director
Alberta Treasury
(780) 427-5364

Return to: Alberta Treasury News Releases - | - Alberta Treasury Home Page - | - Government of Alberta Home Page