The Impact of Labour Action on Teachers’ Pensions

​Alberta teachers withdrew their service for 16 days between October 6th and 28th, 2025, which was the largest labour action in Alberta history. Teachers collectively lost over 350 million dollars of salary, benefits and pension contributions. These 16 days cannot be purchased as pensionable service because the primary reason for the absence was a strike, even though a lockout followed. Since the Alberta Teachers’ Retirement Fund (ATRF) does not consider this period to be an employer-approved leave, it isn’t eligible for purchase under the plan rules. 

The only way to recover this lost service is by earning additional service time in the plan going forward. Since pensionable service is calculated to four decimal places, even short periods like this have a measurable, although relatively small, effect. 

Your ATRF pension is based on a formula that uses both your pensionable service and the average of your best 60 consecutive months of pensionable salary. The following calculation applies:
• 1.4 per cent of your average salary up to the five-year average Year’s Maximum Pensionable Earnings (YMPE) (the average YMPE in Canada for the five-year period from 2021 to 2025 is $66,580), plus
• Two per cent of your average salary above that amount.

These two amounts are added together and then multiplied by your pensionable service, which is calculated to four decimal places. For example, your current service is shown as XX.XXXX years. A reduction in pensionable service or salary such as what occurs during a strike, will have a small impact on your future pension. 

That said, ATRF is currently working on the calculations and adjustments. For active members, this means
• your reported 2024–25 annual salary and ATRF contributions for that year will be corrected; • there will be a further adjustment to your 2025–26 annual salary reported;
• the loss of 16 days’ earnings (approximately eight per cent) will be reflected in these adjustments for the 2025–26 annual salary reported. 

If a member is planning to retire soon, the new salary increases and the temporary earnings loss will both be applied to their annual salary reported if those years fall within their best 60 consecutive months. 

​Below is an example of the impact of the strike on the five-year average of a teacher retiring at the end of this school year: 

ATRF will adjust pension payments for retired members, as well as termination and transfer benefits, when applicable and if the adjustment threshold is met.   

While the effect on members’ future pension will likely be small, it is worth confirming your specific situation. Members can estimate their personal impact by logging in to their MyPension account and using the Pension Estimate Calculator. 

Teacher Employment Services will be hosting a second online seminar, “The Impact of Labour Action on Teachers’ Pensions,” at 7:00 PM on January 27th, 2026. Members interested in attending can register here.   

WORTH SHARING 
​Alberta teachers withdrew their service for 16 days between October 6th and 28th, 2025, which was the largest labour action in Alberta history. The Alberta Teachers’ Retirement Fund (ATRF) does not consider this period to be an employer-approved leave, so it isn’t eligible for purchase