UPDATE: Default fund selection under Alberta’s new pension legislation

September 14, 2015

Important: This update contains information you need to know about legislative changes that will affect plans registered under the Alberta Employment Pension Plans Act and members under those plans.

Late last year, Alberta announced that the new default fund requirements would be applicable to Alberta employed members of Alberta-registered pension plans and non-Alberta registered plans. Recently, the Alberta Treasury Board and Finance reversed its decision in consultation with British Columbia. Alberta officials have now confirmed the default fund requirements as follows:

  • For plans registered in Alberta, the default fund requirements would apply to ALL members, and
  • For plans not registered in Alberta, the default fund requirements would not apply to any member.

What do the changes mean for Plan Sponsors?

  • If a plan is registered in Alberta the default fund rules would apply to all members of the plan, regardless of where the member is employed. Where plan sponsors updated their default fund only for the Alberta legislatively employed members in the plan, they will now need to apply the default fund to all members.
  • If a plan is not registered in Alberta, the default fund rules will not apply to any member. Plan sponsors have the option - but are not obligated - to revert to their original default fund choice. If you would like to discuss your default fund selection and best practices, please contact your Sun Life Financial Group Retirement Services Representative.

Links to previous Alberta Legislative updates:

Questions?
Please contact your Sun Life Financial Group Retirement Services representative.