Among changes to other Alberta statutes, Bill 17 proposes important changes to the Employment Pension Plans Act (EPPA).
Most importantly:
- Bill 17 proposes changes to the EPPA that would allow a reduction in accrued benefits as part of a conversion of the plan from a negotiated cost pension plan to a target benefit pension plan. Currently, collectively bargained multi-employer pension plans in Alberta are relying on an exemption from the otherwise applicable solvency funding rules that apply to those plans, and the changes in Bill 17 will provide a more appropriate and permanent funding approach for these plans;
- Bill 17 also adds an annuity discharge provision to the EPPA that provides that if the administrator complies with the legislative requirements, the plan will be discharged from liability in relation to the benefits for which the annuity has been purchased. Bill 17 also adds provisions that deal with the purchase of annuities on the wind-up of a pension plan. The conditions for an annuity purchase will be set out in the Regulations, so we will have to wait to see what conditions Alberta imposes for the purchase of an annuity that results in discharge of the plan’s liabilities.
In addition to those significant changes, Bill 17 makes other changes to the EPPA, including:
- Changes the amount of time below which an absence is not a “temporary absence” (from 52 to 78 consecutive weeks);
- Expands the test that can be used to determine eligibility to join a collectively bargained, multi-employer plan. The EPPA currently uses an earnings-based test (in each of 2 consecutive calendar years, 35% of the YMPE), and Bill 17 proposes to add an hours-based test if supported by the text for the plan (in each of 2 consecutive fiscal years, not less than 350 hours of employment);
- Clarifies the transfer options for individuals on the wind-up of a pension plan.
Plans registered in Alberta and plans with members reporting to work in Alberta should monitor Bill 17 closely. The changes are welcome, not only because they change the funding rules for collectively bargained multi-employer pension plans, but because they (for the most part) will result in the EPPA being more closely aligned with BC’s Pension Benefit Standards Act, which has been an important initiative of the Alberta and BC governments since the Joint Expert Panel on Pension Standards released their report 2008.
Bill 17 received first reading on March 10, 2026.