APEX SUPPLEMENTARY PENSION PLAN

Notes to the Financial Statements

Year ended December 31, 2022

1. Description of the Plan:

The APEX Supplementary Pension Plan ("the Plan") was established on January 1, 2003 to enhance and supplement the Local Authorities Pension Plan ("LAPP") for eligible staff of participating municipalities in Alberta. A complete description of the Plan can be found in the Plan documents.

The Plan is a voluntary, contributory, defined benefit pension plan.

The Plan is a registered plan under the Income Tax Act (Canada) (''ITA'') and the Employment Pension Plans of Alberta Act ("the Act").

Pursuant to Section 3(1) of the Act, the Plan is considered to be a public pension plan, and, as a result, the employers are exempt from making solvency deficiency payments.

The key features of the Plan are a full 2% benefit accrual rate on all pensionable earnings that correspond to the participating member's best five years' consecutive earnings and a normal form pension that pays two-thirds to the surviving pension partner on the participating member's death. In the absence of a pension partner, pension benefits payable during the first ten years of retirement shall be paid to the participating member's beneficiary in the event of death of the participating member during that period.

The Plan is for contributory service on and following January 1, 2003. The Plan contributions are cost shared by both the employer and employee and are based on pensionable earnings up to $171,000 (2021 - $162,278) based on the current Canada Revenue Agency maximum annual pension accrual of $3,420 (2021 - $3,246).

2. Basis of preparation:

(a) Basis of presentation:

These financial statements, prepared on the going concern basis in accordance with Canadian accounting standards for pension plans of the CPA Canada Handbook, present the aggregate financial position of the Plan as a separate financial reporting entity independent of the Plan sponsor, Association of Alberta Municipalities ("ABmunis") and Plan members. They are prepared to assist Plan members and others in reviewing the activities of the Plan. They do not purport to indicate whether the assets of the Plan together with investment earnings thereon, plus future contributions, will be sufficient to finance all benefits to be provided under the Plan.

In selecting or changing accounting policies that do not relate to its investment portfolio or pension obligations, the Plan has a choice to comply on a consistent basis with either International Financial Reporting Standards in Part I of the CPA Canada Handbook, or Canadian accounting standards for private enterprises ("ASPE") in Part II of the CPA Canada Handbook, to the extent that those standards do not conflict with the requirements under Section 4600. The Plan has chosen to comply on a consistent basis with ASPE in Part II of the CPA Canada Handbook.