ASSOCIATION OF ALBERTA MUNICIPALITIES

Notes to the Consolidated Financial Statements

Year ended December 31, 2022

12. Pension and retirement plans:

During the year ended December 31, 2022, ABMunis made employer contributions to two pension plans, totaling $982,786 (2021 - $1,036,973), as follows:

(a) As per LAPP's annual report for the year ended December 31, 2021, LAPP reported net assets of $61.7 billion (December 31, 2020 - $53.6 billion) and disclosed an actuarial surplus of $11.9 billion (December 31, 2020 - $4.9 billion). The employer contribution rates for LAPP are 9.39% (2021 - 9.39%) on earnings up to the yearly maximum pensionable earnings ("YMPE"). LAPP rates for earnings above the YMPE up to the salary cap are 13.84% (2021 - 13.84%). There is no future accrued liability obligation in reference to LAPP. Total contributions by ABMunis to LAPP in 2022 were $816,678 (2021 - $877,143) and are included in salaries and benefits expense. Total contributions by the employees of ABMunis to LAPP in 2022 were $735,321 (2021 - $808,557).

(b) Contributions are made to APEX by the employees 2.61% (2021 - 2.61%) and by ABMunis 3.85% (2021 - 3.85%) of pensionable earnings up to $$171,000 (2021 - $162,278).

Total current service contributions by ABMunis to APEX were $166,108 (2021$159,830) and are included in salaries and benefits expense. Total contributions by employees were $112,609 (2021 - $108,352).

The actuarial liability of ABMunis’s MuniSERP retirement plan as described in note 1 is as follows:

The significant actuarial assumptions used in measuring ABmunis's accrued benefit obligations are as follows: