Local Authorities Pension Plan

Last updated
LAPP
LAPP
Company type Private
Industry Pension fund
Founded1962;63 years ago (1962)
Headquarters Edmonton, Alberta
Area served
Participating employers and employees in Alberta, Canada
Key people
Troy Mann (President and CEO) [1]
Total assets C$70.7 billion [2]  (2024)
Parent LAPP Corporation
Website lapp.ca

LAPP, formerly known by its expanded acronym, the Local Authorities Pension Plan, is the largest pension plan in Alberta.

Contents

With 316,938 members and $70.7 billion in assets (2024), LAPP is a multi-employer jointly sponsored [3] defined benefit pension plan. Dedicated to helping every member retire with dignity, the plan provides a predictable and secure retirement income for life.

LAPP Corporation is the legal Trustee and Administrator of the Plan and is supported by the over 400 employees of its pension benefits services provider Alberta Pensions Services Corporation (APS) and the over 600 employees of its investment management services provider Alberta Investment Management Corporation (AIMCo).

Organization

Originally established in 1962 for the employees of local authorities, LAPP now includes 453 employers (2024) from the healthcare sectors, cities, towns, villages, summer villages, municipal districts, colleges, school boards, non-profits/not-for-profits, charities, other public sector entities, and for-profit corporations.

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 to ensure that retirement income is paid to members, which is done by providing strategic guidance for the Plan, managing risk, and ensuring the long-term sustainability of LAPP. A 12-member Sponsor Board, whose members are appointed as representatives of the members (employees) and employers, is legislated to make decisions about plan design, employer eligibility rules, and contribution rates.

LAPP is registered under the Alberta Employment Pension Plans Act (EPPA), [4] requiring it meet the rules and standards set out by Employment Pension Plans Regulations. [5] The Joint Governance of Public Sector Pension Plans Act transitioned LAPP to joint governance effective March, 2019.

LAPP Corporation has a fiduciary duty and responsibility to act in the best interests of LAPP's members. Contributions are collected from employers and employees and the money is invested provincially, nationally, and globally in fixed income, public and private equities, real estate, infrastructure, natural resources, bonds, and other investment vehicles by its investment management services provider, AIMCo, in accordance with LAPP Corporation's Statement of Investment Policies and Procedures (SIPP). Interest, investment returns, and contributions are used to pay lifetime retirement income (pension benefits, often termed the pension promise) to current and future LAPP retirees.

History

References

  1. "LAPP appointing Troy Mann as president, CEO". benefitscanada.com. 22 June 2023.
  2. "Annual Reports". lapp.ca.
  3. 1 2 "Public sector pensions – Joint governance". alberta.ca. 24 April 2024.
  4. "Employment Pension Plans Act". open.alberta.ca.
  5. "Employment Pension Plans Regulation". open.alberta.ca.
  6. Kagan, Julia (August 14, 2022). "Year's Maximum Pensionable Earnings (YMPE) Overview". investopedia.com.
  7. "Public Sector Pension Plans Act". open.alberta.ca.
  8. "Public Sector Wage Arbitration Act". alberta.ca. 24 April 2024.
  9. "Joint Governance of Public Sector Pension Plans Act". alberta.ca. 24 April 2024.