Thread by @yomeeks

This is your daily pension announcement: the fundamentally illogical edition. Tweeps, thank you for sharing your MLA responses with me about Bill 22. The response from the office of @NickMilliken MLA for Calgary-Currie really takes the stupid cake. #ABLeg #ABEd #illogical

Get a load of this:
"There are a number of reasons why there was no consultation on this decision to move the publicly funded pensions to AIMCo. In 2007, the government agreed to cover the cost of both what government owed the fund and what teachers owed the fund." #handsoff

"The teachers’ portion that government took responsibility for amounted to $2.2 billion at the time."

WTF is that logic? We could not consult on changing asset managers because years ago the UFL for this plan was finally dealt with?

You are being treated poorly because the plan had a UFL? Really @NickMilliken you want to swing that way?

To be clear, successive governments, mostly PCAA, ignored their legal responsibility to contribute to this plan. from the late 1950s until 1992. #handsoffmypension

Teachers agreed to help the GOA with this ethical lapse from 1992 until 2007. Let us review: if the Social Credit and the PCAA governments had made contributions to the ATRF that they were legally obligated to there never would have been a unfunded liability.

@NickMilliken continues:
"The Alberta Government is still paying down this debt. In 2018-19, the government made payments totaling $479 million. The Government has a vested interest in ensuring this doesn’t happen again." #handsoffmypension

YOU HAVE GOT TO BE KIDDING ME.
Sure the GOA is paying down the UFL.

Make the contributions that the GOA is obligated to on time and in full you will avoid any repeat.

This is the worst (historical) example of the GOA kicking the can down the road.

The implication that the ATRF can not set contribution rates nor invest money well.

Nothing could be further from the truth. During my time on the ATRF Board the fund went from being 33% funded to 95%. What nearly killed the plan in 1992 was a deadbeat sponsor.

I think if you live or teach in Calgary-Currie you need to have a chat with @NickMilliken.

But wait, he doubles down:

"There are market implications to many aspects of the budget. If this information had been made public, it may have jeopardized future investments or investment capabilities of ATRF."

Bullshit.

When Travis sent along the business case he included (as a supporting document) the consultation that William Morneau did in ON on a similar issue.

Hmm...financial markets work differently in Ontario?
#ruhroh #albertansdeserveless
#talkoutofyourmouthandass

But, Nick, this did not have to be public either. I, for one, would have been happy with an independent third party such as the OAG testing the veracity of AIMCo's claims.

The OAG can keep a secret, Nick.

The upshot is AIMCo's claim they can save $41 million each and every year is specious. As I have analyzed in great detail here they might be able to save 0.06%. And, if AIMCo returns less (a greater than 50% probability) those savings will be lost and possibly much more.

Please remind @NickMilliken ATRF is an excellent steward of the GOA contributions. Let him know that the ATRF Board just reduced contribution rates because of excellent investment returns. Savings to the GOA: $20 million dollars each and every year going forward. #illogical

No consultation on this and the other pension plan moves in Bill 22 was the insult it was intended to be. If you want to chat @NickMilliken just let me know.