CANADA - The Alberta government has agreed to fund C$6.4bn in liabilities in the Teachers' Pension Plan, removing the burden from taxpayers.
The decision will also abolish a 3.1% contribution to the underfunding paid from current teachers' salaries.
Both parties called this deal the catalyst for a period of stability until 2012. Only at this date could pension fund contributions be increased and should reflect requirements of a fully funded pension scheme.
Under this agreement, the Teachers' Pension Plan would be split into two funds after September 2009.
The memorandum of understanding has been submitted for ratification by ATA members.
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.