Local Authorities Pension Plan Overview and Details

The Local Authorities Pension Plan is a valuable benefit for public sector employees. It's a defined benefit pension plan, meaning the amount of pension you receive is based on your salary and years of service.

Contributions to the plan are made by both employees and employers. In some cases, employers may also make additional contributions to the plan.

The plan is designed to provide a steady income stream in retirement, with benefits typically starting at age 65.

The Local Authorities Pension Plan (LAPP) is a public pension fund in Canada that was originally established in 1962 for the employees of local authorities. It now includes 437 employers from various sectors, such as healthcare, cities, and non-profits.

LAPP is overseen by a 12-member Board of Directors, which provides strategic guidance for the Plan and ensures its long-term sustainability. The Plan is registered under the Alberta Employment Pension Plans Act (EPPA) and is governed by a Sponsor Board, which makes decisions about plan design, employer eligibility rules, and contribution rates.

The LAPP Corporation has a fiduciary duty to act in the best interests of its members, and contributions are collected from employers and employees to invest in various assets, such as fixed income, equities, and real estate, through its investment management services provider, AIMCo.

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LAPP Corporation is overseen by a 12-director Board of Directors, nominated by employer and employee groups.

This Corporate Board and LAPP Corporation are responsible for the administration of the pension benefits and ensuring that retirement income is paid to members.

LAPP is registered under the Alberta Employment Pension Plans Act (EPPA), requiring it to meet the rules and standards set out by Employment Pension Plans Regulations.

A 12-member Sponsor Board, whose members are appointed as representatives of the members (employees) and employers, makes decisions about plan design, employer eligibility rules, and contribution rates.

LAPP Corporation has a fiduciary duty and responsibility to act in the best interests of LAPP's members.

The Joint Governance of Public Sector Pension Plans Act transitioned LAPP to joint governance effective March, 2019.

Contributions are collected from employers and employees and the money is invested provincially, nationally, and globally by its investment management services provider, AIMCo.

Here's a breakdown of the types of employers that are part of LAPP:

You can register for an online webinar session to learn about your LAPP pension and pension options.

The Local Authorities Pension Plan (LAPP) is accessible through their website, mypensionplan, or by using their pension estimator.

To reach out to LAPP for support, you can email [email protected] or call 1-877-649-5277.

The LAPP website is a great resource for members to stay informed about their pension plan.

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Allocations play a crucial role in helping local governments manage the cost of employee, police, and firefighter pension plans.

The General Municipal Pension System State Aid Program is administered to provide financial assistance to municipalities, regional police forces, and councils of government.

This program helps defray the cost of pension plans, making it easier for local governments to manage their finances and provide for their employees' retirement.

The program is a vital resource for local governments, allowing them to allocate funds more efficiently and effectively.

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The Local Authorities Pension Plan is managed by a team of experienced investment professionals who aim to achieve long-term growth and stability for members' funds.

The plan's investment strategy is based on a diversified portfolio of assets, including shares, bonds, and property, which helps to spread risk and increase potential returns.

The plan's assets are valued regularly, typically on a quarterly basis, to ensure that the fund's performance is accurately reflected.

The plan's investment returns have been consistently strong, with an average annual return of 4.5% over the past 5 years.

Investment decisions are made with the best interests of members in mind, taking into account factors such as risk, return, and liquidity.

The plan's investment policy is regularly reviewed to ensure that it remains aligned with the needs and goals of members.

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For municipalities with active pension plans, there's a new deadline to keep in mind. By law, the Office of the General Treasurer must receive the first actuarial experience study from each municipality by January 1, 2025.

Noncompliance with this deadline can have serious consequences, including the withholding of state aid. This is stated in R.I. Gen. Laws § 45-65-7 (1).

Municipalities will need to submit subsequent reports every three years, based on the date of the most recent actuarial experience study.

Local authorities pension plans are governed by various laws and regulations, designed to ensure their sustainability and longevity. The Pathway to Retirement Security for Locally Administered Pension Funds Act, passed in 2011, aims to preserve a reasonable and affordable level of pension benefits and prevent significant and unanticipated retirement benefit deductions.

The Act authorizes the creation of the Advisory Council to Locally Administered Pension Plans, which publishes an annual report assessing the fund performance, funded status, and administrative costs of each locally administered pension plan. The Advisory Council completed its most recent study in late April 2024.

Municipalities in Pennsylvania, on the other hand, must comply with the Municipal Pension Plan Funding Standard and Recovery Act, which requires them to certify certain information to the Department of the Auditor General each year. This includes the total number and earnings of full-time police officers, paid firefighters, and non-uniformed employees who are members of a municipal pension plan.

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To be eligible for state aid or the Foreign Fire Insurance Tax, municipalities must complete the online AG-385 certification form and personnel roster data, which must be received by the Department of the Auditor General no later than March 31, 2024.

Here are some key dates and requirements for municipalities to keep in mind:

The Pathway to Retirement Security Act was passed in 2011 to promote the sustainability and longevity of pension plans established and administered by municipalities. Its main goal is to preserve a reasonable and affordable level of pension benefits.

The statute aims to avoid significant and unanticipated retirement benefit deductions, diversion of resources to satisfy pension obligations, and financial downgrade of municipal bond ratings. It also encourages ratings agencies to take positive credit actions on Rhode Island municipal bonds.

To accomplish this goal, the statute authorized the creation of a five-member advisory council, the Advisory Council to Locally Administered Pension Plans. This council ensures responsible management of locally administered pension plans.

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Each year, the Advisory Council publishes an annual report that includes a comprehensive assessment of the fund performance, funded status, administrative costs, assumed rate of return, and budgetary capacity for each locally administered pension plan. The Advisory Council completed its most recent study in late April 2024.

Access to municipal pension information is crucial to gain a complete understanding of municipal pension management. An actuarial experience study is a periodic review and analysis of the actual experience of the plan relative to assumptions necessary to test their accuracy and make periodic adjustments accordingly.

The Advisory Council's annual reports will now reflect a comprehensive review and assessment of municipal pension practices, including data reported in actuarial experience studies.

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The Type A Actuarial Form is a crucial document for municipalities to complete. It's used for pension plans without defined benefits.

For municipalities that are responsible for completing their own Act 205 Actuarial Valuation Report, a step-by-step guide is available to help with this process. This guide walks you through each step of completing the form.

The Type A Actuarial Form can also be completed by an actuary or third-party administrator on behalf of a municipality. In this case, the actuary is responsible for completing the municipality's Act 205 Actuarial Valuation Report.

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Local authorities are required to submit a Plan Declaration by October 15th of each odd-numbered year, as stated in the Municipal Pension Reporting Program Forms. This declaration certifies whether the municipality maintains a pension plan for its employees and/or retirees.

The Act 205 Actuarial Valuation Reports will become available after the Plan Declaration has been submitted. Municipalities must submit the Act 205 reporting form(s) by March 31st of the following year.

For pension plans with defined benefits, a Type C Actuarial Reporting Form must be completed, and a step-by-step guide is available to assist actuaries in this process.

The Municipal Reporting Program is a crucial process for municipalities to follow. Municipalities must login and submit a Plan Declaration by October 15, 2023, to certify whether they maintain a pension plan for their employees and/or retirees.

The Plan Declaration must be submitted online, and it's a step-by-step process that's explained in a guide available on the website. This process replaces the previous Act 205 Questionnaire and Reporting Form.

After submitting the Plan Declaration, municipalities will have access to the Act 205 Actuarial Valuation Reports. These reports will become available after the Plan Declaration has been submitted, and the actuarial reporting form(s) must be submitted by March 31, 2024.

The Act 205 reporting period operates on a two-year filing basis, with the next reporting period beginning in April 2025. The Plan Declaration for the next period will be due by October 15, 2025, and the Act 205 Reporting Forms will be due March 31, 2026.

Noncompliance with the Municipal Reporting Program may result in withholding of state aid, so it's essential for municipalities to stay on top of their reporting requirements.

The AG-385 Form is required for Pennsylvania municipalities participating in the General Municipal Pension System State Aid Program. To be eligible for an allocation of general municipal pension system state aid or the Foreign Fire Insurance Tax for 2024, municipalities must complete the online AG-385 certification form and personnel roster data by March 31, 2024.

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The form requires municipalities to certify certain information, including the total number and earnings of full-time police officers, paid firefighters, and non-uniformed employees who are members of a municipal pension plan. This information is crucial for the Department of the Auditor General to accurately assess the municipality's pension plan.

Municipalities must also certify whether their fire protection service is provided solely by paid or volunteer firefighters, or a combination of both. If provided by both, they must specify the percentage of actual fire protection service provided by each type of firefighter.

The AG-385 Form is an essential document for municipalities participating in the General Municipal Pension System State Aid Program. Failure to complete and submit the form by the deadline may result in the municipality being ineligible for state aid or the Foreign Fire Insurance Tax.

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The Calgary Firefighters Supplementary Pension Plan (FSPP) is available to eligible firefighters.

You can find more information about the plan on their website at Firefighters Supplementary Pension Plan.

To get in touch with them directly, call 1-877-351-5911 (TELUS Health).