The EDCSRP provides additional retirement income for Board designated University of Alberta members of the Universities Academic Pension Plan (UAPP) who have pensionable earnings that exceed the maximum salary covered by the UAPP. The EDCSRP is a non-registered defined contribution supplementary plan that covers pensionable earnings that are above the UAPP salary cap up to a specified EDCSRP salary cap. An annual contribution equal to a percentage of eligible EDCSRP pensionable earnings (the earnings above the UAPP cap to the specified EDCSRP cap) is credited to a notional account at the end of each year. Pensionable earnings are earnings for performing regular job duties and include base pay and market supplement. The federal Income Tax Act limits the earnings that can be used to calculate registered pension plan benefits to a maximum amount (the UAPP pensionable salary cap) that increases each year.
Notional accounts exist only on paper and don’t contain actual funds. Although the EDCSRP is an unfunded plan, the University is required to maintain reserves for plan liabilities (earmarked assets for the liabilities growing in the notional accounts). When you leave the University, the balance in your EDCSRP account is paid out of the general assets of the University of Alberta. You are not allowed to make contributions to the notional account.
To participate in the EDCSRP, you must be a member of the UAPP and a University of Alberta employee in a position designated by the Board of Governors as a member of the EDCSRP. You become an active member following any calendar year in which your pensionable earnings exceed the UAPP salary cap. Membership status is determined in January following the calendar year end.
If in any calendar year after you become an active member, your pensionable earnings are not above the UAPP salary cap, you will become an inactive member until after a calendar year in which your earnings once again exceed the UAPP salary cap.
If you become ineligible due to a change in appointment, you will be considered a suspended member. Inactive and suspended members are not eligible to receive annual notional contributions. Existing notional accounts for inactive and suspended members continue to be credited with annual investment returns. An active member of the EDCSRP cannot participate as an active member in the Academic Supplementary Retirment Plan (ASRP). EDCSRP benefits are not paid until after you are no longer employed by the University.
Annual contributions are based on EDCSRP points. Your EDCSRP points are equal to your age plus years of continuous service (including any leaves of absence) in an designated EDCSRP position as at December 31 of each year.
Annual Contribution Rate Percentage rate applied to earnings above the UAPP salary cap up to any specified EDCSRP salary cap
|Less than 55 points
|55 to less than 80 points
|80 points or more
Your eligible EDCSRP salary is your pensionable earnings in excess of the annual UAPP maximum salary up to the EDCSRP supplemental salary plan cap in a calendar year. Eligible salary for EDCSRP members who are on a period of sabbatical leave is based on their unreduced salary (as opposed to reduced salary while on leave). Eligible salary for EDCSRP members who are receiving disability benefits is based on their pre-disability salary.
To be a member of the EDCSRP, eligible staff must have pensionable earnings that exceed the annual UAPP maximum salary in the plan year.
The annual UAPP maximum salary is available at www.uapp.ca or on the Human Resource Services website at www.hrs.ualberta.ca.
UAPP Annual Pensionable Salary Maximum
EDCSRP Investment Returns
At the end of each calendar year, average annual notional contributions for the year are credited with interest based on the DEX Canadian 91 Day Treasury Bill return. Accrued notional account balances were also credited with interest based on the DEX return.
EDCSRP accrued notional account balances will be credited each year with the annual return (positive and negative) of the TD Emerald Balanced Fund. Average annual contributions will continue to be credited with the DEX return.
Plan members will have an irrevocable one-time option to change the basis for the investment returns calculation on their accrued notional account balance from the TD Emerald Balanced Fund to the Canadian DEX 91 Day Treasury Bill return.This change can be made by submitting an Investment Change form to HRS. Change requests are effective first day of the month following receipt of form.