LAPP reduces member and employer contribution rates

The Board of Trustees of the Alberta Local Authorities Pension Plan (LAPP) has unanimously voted to reduce contribution rates by members and employers by 1 per cent each, effective January 1, 2018.

The reduction will result in a reduction of $600 per year in the amount paid by an individual member earning $60,000 per year, the LAPP said in a news release published Friday, November 1, 2017.

The LAPP noted that this is the first contribution rate reduction for plan members and employers in 20 years.

Most United Nurses of Alberta members, including employees of Alberta Health Services and Covenant Health, are enrolled in the LAPP pension.

The savings for members and employers are possible because of “prudent planning and effective risk management” that together “significantly improved the funded position of the plan over the past few years,” the news release said.

Click here to read the full LAPP news release.