MEPP is a contributory defined benefit pension plan for managers within Alberta’s public sector, approved agencies, boards and commissions. MEPP is established under the provisions of the Public Sector Pension Plans Act (PSPPA) and the Public Sector Pension Plans (Legislative Provisions) Regulation (A.R.365/93). MEPP Plan Rules are prescribed under the Management Employees Pension Plan Regulation (A.R. 367/93). The primary objective of MEPP is to provide members with the benefits they accrued under the terms of the Plan. As at December 31, 2024, MEPP has 21 employers and a total of 14,438 active and deferred members and pensioners with an active to pensioner ratio of 0.84:1. MEPP is financed by active member and employer contributions and by the investment earnings of the MEPP Fund. If investment return is insufficient, contributions may be adjusted; both past and future anticipated Plan experience will also affect the contributions required. Contribution rates are determined by the results of the Actuarial Valuation. A triennial Actuarial Valuation as at December 31, 2023, was completed in 2024, resulting in contribution rates remaining at 12.0% for both employers and members. Based on the Plan’s funding policy, the current service contribution rates are split equally between employers and active members. The next required valuation for the purposes of developing funding requirements should be performed no later than December 31, 2026. Financial reporting of MEPP operates on a twelve-month period ending December 31. As of December 31, 2014, MEPP’s financial statements indicated that the fair value of MEPP’s net assets available for benefits was approximately $7.267 billion, and the estimated pension obligations were $5.401 billion. This resulted in an accounting surplus of approximately $1.866 billion. MEPP assets are managed by Alberta Investment Management Corporation (AIMCo). The MEPP Fund has a diversified investment portfolio of domestic and foreign equities, interest-bearing securities and inflation-sensitive and alternative investments such as real estate, infrastructure, and real return bonds. For 2024, MEPP’s net return was 13.72% (net of fees), with total assets under management being $7.265 billion. The latest MEPP comprehensive Asset-Liability Study (ALS) occurred in 2021-2022. The ALS study serves as an important tool for the MEPB to determine a long-term asset mix which appropriately balances MEPP’s return requirements and risk tolerance for MEPP’s long-term sustainability. The MEPB is currently in the process of conducting another comprehensive ALS. APS, a Provincial Crown Corporation, provides administrative services to MEPP members, pensioners and employers, and is responsible for the day-to-day administration of MEPP. More detailed information about MEPP, including recent actuarial valuation reports and annual reports, can be found on MEPP’s website: www.mepp.ca.
