Quote:
Originally Posted by crazy_eoj
Sorry just wanted to correct this; the Alberta Teacher's Pensions are certainly not self sustaining and is severely underfunded.
Premier Stelmach contributed 2 Billion dollars to the teacher's portion of the unfunded liability from the pension plan for labour peace in 2007. I believe currently the unfunded liability attached the the pension plan is now somewhere in the neighborhood of 10 Billion.
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November 2007 Funding Agreement Between the ATA and the Alberta Government
(A) Post-August 1992 Service Funding
Active teachers contribute one-half the cost of benefits, including the 60% cost-of-living adjustment for pensions.
The Alberta Government contributes the other-half of the cost of benefits.
Active teachers contribute 100% of the cost of an additional 10% cost-of-living adjustment for pensions related to pensionable service after 1992.
The funding of any deficiency is shared equally between the Alberta Government and teachers. However, teachers alone are required to fund all the added cost with respect to that portion of the deficiency related to the additional 10% cost-of-living benefit for pensionable service earned after August 1992.
(B) Unfunded Liability for Pre-September 1992 Service
From September 2007 to August 2009, the Alberta Government contributed 100% of the cost to amortize the unfunded liability as a level percentage of active teachers’ pensionable salaries on or before August 31, 2060.
Effective September 2009, unfunded liability contributions ceased and Alberta Government moved to pay-as-you-go funding by advancing sufficient funds to the Plan to pay for all benefits as they come due.