Thread by @yomeeks

This is your daily pension announcement: The Travis "speaks" edition. Well, Travis won't talk to the press about anything pension related. But he did send a letter to a teacher that had some crazy stuff in it. #ABLeg #ABEd #handsoffmypension

Remember that both Travis and Kevin have a strategy of keeping their yaps shut and hoping this pension anger dies down. My opinion is they don't understand this well enough to know how bad they have screwed up or what they need to do to fix it. #oops

A loyal reader of this tweet stream is an example to us all. He was persistent with his MLA demanding answers to his questions until fobbed off. Then, he was persistent in demanding answers from Travis. What do you know, he got a response! #Hallelujah

I won't reproduce it in its entirety here. I was asked to read and comment on the financial accuracy and logic of Travis' missive. Interesting, because the facts have changed. #newfacts #handsoffmypension #noireallymeanit

On the fact that AIMCo was in conflict in writing the business case:
"AIMCo was asked to develop a business case prior to the decision to put forward the legislation was made. AIMCo was asked to write the business case because they are government’s investment experts."

Really? What are the people at the ATRF? chopped liver?

A couple of problems with this claim:

1. People work for Travis at Treasury Board and Finance who have CFAs. Travis could have his employees do this work. It would take someone a couple of days max. #fail

2. The Auditor General of Alberta specializes complex financial decisions. You could have called the OAG for help. They are unbiased and they audit both AIMCo and the ATRF so they are familiar all the financial details.

3. Hire a consultant to do an analysis of the current and projected cost structure. This would be the best solution. Ol' Travis has thought of this:

"Also, hiring another firm to write a business case was found to be very difficult as the potential firms were in a conflict of interest. These firms had done work for both AIMCo and ATRF in the past and expect to be engaged by one or both of them in the future." #bullshit

"As such, it was not possible to hire these firms."

WTF? First, only one consultant works for both AIMCo and ATRF currently. There are a whole pile of firms that do this kind of work and are unconflicted. #manytochoosefrom

Second, even if you did use a conflicted consultant they would be less conflicted than AIMCo. So, Travis when presented with a small conflict and a large conflict of interest took the large one. It is the UCP way. #conflictofinterest

Third, working for AIMCo or ATRF in THE PAST is no bar to working for the GOA currently. Travis needs to look up conflict of interest in the dictionary. #really

Travis says don't worry, we have the rando from BC!

"The current Chair of the Board of Directors of the BCIMC (Mr. Peter Milburn) reviewed AIMCo’s business case and determined that the processes used and conclusions reached in the business case were reasonable."

Yeah. So Travis and Kevin realize this business case seriously deficient. So they allegedly get a rubber stamp from BCIMC.

1. Where is the written statement from Peter? I would be shocked if he thought this analysis was good. It violates even the minimum industry standard.

Excuse me if I am skeptical. Travis telling me what Peter thinks is different than Peter telling me. Give me a written statement from Peter stating the facts. Stating that risk adjusted rate of return is not required to compare funds.

And, that pulling 25 basis points of savings out of your ass is approved financial analysis.

2. Where does Peter tell you that any pension plan can leave BCIMC at any time? (Hey, be like BC except in the important ways!) #wrong #underestimatetheanger

3. How much did you pay Peter? Some people will do anything for money. I don't know Peter, but that might be him.
4. Peter might be in conflict depending on his relationship with Athana (the current DM of TBF). They well knew each other prior to this.

I mean if you need to get something through for political reasons, why not call your old friend for a rubber stamp? This, btw, is the worst kind of public policy making. #badpolicy

Finaly, Travis says in the letter something that I completely agree with:

"It is difficult to generalize performance of investment fund managers based on a simple comparison of return numbers. Comparing investment returns is an inherently difficult exercise, due to differences in factors such as strategic asset mixes, risk tolerances and year ends..."

THAT'S WHY YOU NEED A CAREFUL AND THOROUGH ANALYSIS. TALK TO YOUR PARTNER OF 80 YEARS. GET THE OAG TO REVIEW YOUR WORK. HIRE A CONSULTANT!

My opinion, after all this, is that this poor analysis was actually done after the decision was made. #wrongorder

Kevin should be embarrassed at the poor quality analysis he sent to Travis as the basis for moving $20 billion dollars. He should be ashamed that he has dragged the name of AIMCo into a purely political decision.

Travis has gone long on poor public policy. There is more in the letter, including a return comparison that, if accepted, infers that AIMCo offers no advantage at all.

I need to cool off before I say more.

Travis has turned my pension into a political football. #SuperBowl