AWE reflecting private and public sector data, it tends to be stable and isolated from direct political influence. For example, in 1992 and 1993, when teachers and other public servants were forced to benefit from 5 per cent pay cuts over two years, Alberta AWE increased by a further 2.98 per cent in the first year and by 1.70 per cent in the second year. AWE may decrease; But this is rare and would only happen in times of significant economic decline. In any case, the Memorandum of Understanding states that teacher salary increases will never fall below zero. Does the Memorandum of Understanding mean that teachers no longer contribute to the retirement plan? The MoU provides for 62 collective agreements between 62 school authorities and their ATA bargaining units. School authorities represented by SBEBA must negotiate before 31 January 2008, like all other school authorities. In the first phase, TEBA negotiates with the Alberta Teachers` Association (ATA) on provincial affairs that involve all teachers and employers to establish a provincial Memorandum of Understanding. Are retired teachers who currently receive pensions affected by this agreement? Any teacher who, as of April 30, 2008, has entered into a collective agreement with one of the 62 separate public and separate school authorities under fixed-term, probationary, provisional or continuing contracts will receive up to $1500 prorated on the basis of their full-time equivalence (RTD). It`s possible. Contribution rates are based on many factors, including interest income, expected salary increases, and teacher demographics. The Memorandum of Understanding does not modify any changes in contribution rates on the basis of regular assessments. Changes to the structure of the plan as a result of the agreement may also result in an increase in contributions. This potential increase in contributions is mitigated by the gradual introduction of changes to the plan, as agreed in the agreement.
Teachers` contributions due to structural changes to the plan can increase by up to 1.5%, most likely in 2011 or 2012. In Alberta`s 2007/2008 budget, the government allocated $25 million to UFL payment facilities for teachers prior to 1992. This money is used to pay teachers` UFL contributions before 1992 from September to December 2007. If no agreement had been reached, these contributions would have been taken up by the teachers in January 2008. In accordance with the Memorandum of Understanding, the government assumes responsibility for these payments forever. Teachers will no longer pay to the UFL until 1992. However, teachers` contribution rates will not change, given that the reduction was already in effect since September. . . .