Thread by @yomeeks

So from the official Finance spokesperson the motivation for switching investment managers is: “reduced investment costs and, therefore, higher expected investment returns.” Straight up admission that AIMCo can’t provide a better gross investment returns. #abteachers

https://twitter.com/calgaryherald/status/1188470514215456768

Their impact would be by reducing costs and therefore (hopefully) increasing the net investment return. Sorry this is going to be a long thread. #abteachers #ABbudget
I will say that AIM Co would probably be able to reduce investment costs by maybe 5 basis points.

Success would then be predicated on AIMCo returning at least the same gross return as ATRF. Doubtful. Highly doubtful. Highly speculative. I will work on an analysis of ATRF returns vs LAPP (managed by AIMCo). Unfortunately, it is complicated by different year ends and the like.

My TI-85 is already smoking after calculating the (exceedingly low) probability of the same or better investment returns with AIM Co. Stay tuned. It might take me a day or two... #iamtheATA

Now on to the spokesperson again: “It is not a requirement to notify the ATRF of this change“. Really? Really? Joint sponsorship since 1939 and all @albertateachers gets is we are not “required”. As a final indignity ATRF is lumped in with the single sponsor plans with:

(paraphrase) “We didn’t tell them either.” Trying to cause serious confusion between pension plans where the Minister of Finance is the sole trustee and ATRF where he is NOT.

He is right in one sense, teachers did not need to be notified. Teachers needed to be CONSULTED.

The sole trustee plans, for instance, had their unfunded liabilities (in the 1990’s) paid off straight up by the GOA. With a joint trustee plan teachers were asked to shoulder (pay) 1/3 of the unfunded liability.

Funny how we are ”joint sponsors” only when there is a liability

#irony The GOA reminds us, in a pejorative fashion, when in the #ABbudget documents they add 3% onto the cost of a teacher to cover what they call the teachers’ portion of the unfunded liability.