Thread by @yomeeks

This is your daily pensions announcement: The Dr. Bob edition. Yesterday I introduced you to Dr. Bob Ascah and his blog, AB Pol Econ. What did he have to say about Bill 22? Let's take a look.... #handsoffmypension #ABLeg #abed

abpolecon.ca/2019/11/28/bil…

He deals with all parts of Bill 22, so feel free to skip ahead to the pension parts, that is after you read the stinging intro.... #thisisgoingtohurt #zinger

I quote:

"Before commenting on the details in Bill 22, it is important to note that in the UCP’s election platform, there was no mention of pensions, ATB, ACFA or AIMCo."

#musthavebeenanoversite

I would also point out they also did not mention resuming the cronyism of the PCAA when it came to agency, board, and commission appointments.

In any event, skip ahead to the writing of a respected academic on our current situation... #icantwait

Dr. Bob starts with: "The amendments to the Alberta Investment Management Corporation Act, may have enormous implications for boards like the Local Authorities Pension Plan (LAPP)." That's right ENORMOUS, as in no small thing. #bigthing

So when Travis tells you this is no big deal. And, that he is "curious" as to why LAPP, PSPP, and SFPP members are expressing concern about being locked in with AIMCo for eternity, please know you are being gaslit. #gaslighting #righttobeworried

But then Dr. Bob breaks out the whoop-ass:

"...changes introduced in 2018 by the former government, LAPP and other public sector pension plans were granted the ability to move investment funds out of AIMCo at a certain future date. "

"The logic behind this change, recommended in my 2016 paper published by the Institute for Public Economics, was that if the monopoly AIMCo enjoyed was revoked, this measure would improve both the investment performance and responsiveness of AIMCo’s management to their clients"

There you have it from the academic that studied AIMCo's performance in detail....

Allowing pension plans to leave AIMCo should be done to encourage AIMCo to improve to improve investment returns and customer service.

After all in a free market economy we need some competition for capital, don't we?

(I will say that Kevin (CEO for 5 years or so) has effected some changes at AIMCo to improve customer service and responsiveness. If you want details, wait until I have a day off.)

But, Travis says we will save $41 million ($500 per teacher!!!!). Dr. Bob has the same feelings as I do...
"These measures will take time and, with severance costs and complex information systems converted, it is no sure thing that the promised savings will be realized."

IS THAT NOT WHAT I HAVE BEEN SCREAMING SINCE THE BUDGET!

The source and amount of savings of these pension moves are uncertain at best. They deserve serious analysis by the Auditor-General or other independent party prior.
#studythis #OAG

I have much more to say...but I don't want to get any more worked up on a Sunday morning.

AIMCO needs encouragement to improve investment returns and customer service. Travis has delivered a monopoly instead. He did not campaign on any of this. #democracyispissedon