The Closed Plan
The Public Service Management Pension Plan (PSMPP) was established in 1972 to provide pension benefits for management employees of the Alberta government and approved agencies, boards and commissions. Effective August 1, 1992 the PSMPP was divided into two plans. The pension entitlements of active members of the PSMPP were transferred to the Management Employees Pension Plan (MEPP). The pension entitlements for pensioners who were receiving a pension and deferred pensioners who were not actively contributing to the PSMPP were transferred to the Public Service Management (Closed Membership) Pension Plan (Closed Plan).
The Closed Plan provides a pension of two per cent of the highest average salary multiplied by the pensionable service based accrued under the Closed Plan. Pensions payable by the Closed Plan are increased each year by an amount equal to at least 60 per cent of the increase in the Alberta Consumer Price Index.
Members of the Closed Plan who again become a management employee of the Alberta government or an approved agency, board or commission are enrolled in and receive their pension benefit for their new period of employment from MEPP. This means that these members will have separate accounts under the Closed Plan and MEPP and will receive separate pension benefits from each plan based on the pensionable service recorded in each plan. However, when determining benefits under MEPP, the service accrued in the Closed Plan will be aggregated with service accrued in MEPP for the purposes of vesting, calculating the highest average salary and calculating any early retirement reduction. Service accrued under MEPP is not taken into account for any purpose under the Closed Plan.
The MEPP Board has some legislated responsibilities for the Closed Plan. For more information on the roles and responsibilities of the Board and the President of Treasury Board and Minister of Finance, please see the Board Mandate and Roles document.
Financial Statements for the funding for the Closed Plan is the responsibility of the Government of Alberta. All benefits payable under the Closed Plan are guaranteed by the Government. Additional financial information is available from the Financial Statements of the Closed Plan which are published in the Alberta Treasury Board and Finance Annual Report.
Members of the Closed Plan, who are not yet receiving a monthly pension, should contact APS to ensure that their address is up-to-date.