Further to our last update regarding the 2019 Provincial Budget, there is no new information to provide regarding pending changes to PSPP governance as the draft legislation detailing the changes has not yet been released. PSPP Corporation continues to await clarification on the statements made in the Government of Alberta’s 2019 Provincial Budget and Fiscal Plan.
Based on the information available, we understand that pending changes will not result in changes to pension benefits or contributions.
The pending changes are expected to limit the Corporation’s ability to select service providers for pension administration and investment management services. By legislation, Alberta Pensions Services Corporation (APS) and Alberta Investment Management Corporation (AIMCo) currently provide these services to the Corporation. On March 1, 2019, PSPP Corporation was granted the ability to choose its own service providers starting 2024. However, if the pending changes are passed, the Corporation will no longer have service provider choice and will be required to use APS and AIMCo as its exclusive service providers, permanently.
More updates will be provided as information becomes available.