On November 22, Bill 22, Reform of Agencies, Boards and Commissions and Government Enterprises Act, received Royal Assent, the final step required for a Bill to become an Alberta law. This Bill amends a number of different pieces of legislation including legislation related to the governance of PSPP.
Once Bill 22 comes into force, PSPP Corporation will become a Provincial corporation and the Auditor General of Alberta will become the auditor of the Corporation and the Plan. While becoming a Provincial Corporation affects the independence of the Corporation, the Plan itself will continue to be a jointly-sponsored pension plan. The PSPP Sponsor Board, consisting of representatives from employer and employee sponsor organizations, will continue to determine Plan rules, establish a funding policy and set contribution rates. PSPP Corporation will continue to be the Administrator and Trustee of the Plan and the Plan fund. The Plan will continue to provide the same pension benefit to Plan members and there is no change to contribution rates.
The Plan fund will continue to be invested by Alberta Investment Management Corporation (AIMCo) in accordance with the investment policy and asset mix set by PSPP Corporation. The day to day pension administration services will continue to be provided by Alberta Pensions Services Corporation (APS). What will change is that PSPP Corporation will no longer have the ability to select different service providers for these services if necessary in the future because Bill 22 legislates AIMCo and APS to be the permanent service providers.
While we work through the changes implemented by Bill 22, PSPP Corporation remains committed to managing the Plan in the best interest of PSPP members.