October 6, 2016
LAPP 2017 Contribution Rate Advisory
The LAPP Board advises LAPP members and employers that there will be no contribution rate increase for 2017 and none is currently proposed for 2018, based on expectations of how economic and demographic factors will impact the Plan over the next two years. The decision is part of the Board's unanimous approval of its 2015 valuation, which will be posted to the website as soon as the document is completed by the actuary.
The Board's practice is to set rates far enough in advance to allow employers and members time to budget. As such, there is some small possibility that 2018 rates might need to be modified in a future valuation if the funded position of the Plan varies significantly from what is currently projected. However, that does not appear to be an issue today.
The rates for 2016 (current rates) along with the proposed rates for 2017 and 2018 are as follows:
- LAPP Contribution Rates 2016 2017 2018
- Members' Rate up to YMPE* 10.39% 10.39% 10.39%
- Members' Rate over YMPE 14.84% 14.84% 14.84%
- Employers' Rate up to YMPE 11.39% 11.39% 11.39%
- Employers' Rate over YMPE 15.84% 15.84% 15.84%
*YMPE refers to the Year's Maximum Pensionable Earnings level determined by the Canada Pension Plan annually. In 2016, the YMPE is $54,900.
This past weekend we implemented a number of fixes into the Compass system which will improve the reliability and processing capabilities of the Employer Portal, the Ariel database and our back-end financial system. We are confident that these improvements will address a large number of the issues that are preventing the processing of transactions in the Employer Portal and prevent them from not completing in the future.
When you have a moment, please review any of your data collections and remittances that have not processed to re-validate them. For data collections and remittances that remain in a certain state and are not progressing, we will continue to address them through running scripts. Your Employer Services Representative will communicate with you once this has been completed.
Please reference the "What's New" section of the e-guide for a list of the software updates.
Year-end Training is now underway. Our trainers are brining you informative fall sessions to help you feel more comfortable with the new year-end processes. Registration dates have been published in the Employer Portal.
Topics covered in the fall sessions include:
- Employer Portal Updates
- Annual Reporting Process
- Audit Prep
- Leave Reporting
Throughout the sessions, we will be gathering Frequently Asked Questions, and will share the most common with you here, on Pension e'news.
Please don't hesitate to contact your Employer Services Representative with any questions or concerns.
Sincerely, TROY DIAKOW Executive Director, Client Services