Thread by @yomeeks

This is your daily pension announcement: the Mike Ellis @MikeEllisUCP edition. Mike, as I am sure you know, is the MLA for Calgary-West. He had this missive published in a neighborhood gazette. Some of the facts are correct and some are just plain wrong. #ABLeg #ABEd

He is sticking to the old script that Travis put out months ago. Even Travis has changed his tune. For example @MikeEllisUCP says:

"Over a ten-year average, AIMCo outperformed ATRF at 9.4% vs 7.4%."
That statement is a half truth. #snap #ABLeg

Does it mean anything? Compare that to Travis' latest statement:

"The 10 year comparison is less relevant as ATRF’s portfolio was in a state of transition due to the assumption of all pre-1992 pension liabilities by the government during the first years of that period." #ABLeg

Yes you read that right.

EVEN THE MINISTER OF FINANCE WILL NOW TELL YOU THAT THE 10 YEAR NUMBER IS IRRELEVANT.

In fact, @MikeEllisUCP the minimum standard would be to compute a risk adjusted rate of return for the pension funds that AIMCo invests for comparison.

Come on @MikeEllisUCP get in the game. Use your critical thinking to ask yourself why you are comparing a ATRF to AIMCo overall and not the pension funds that it invests? In the same communication that I referenced above Travis also....
#ABLeg #handsoffmypension #awsnap

..provides a chart that clearly shows the 4, 5, and 6 year annualized returns (to Dec 31, 2018) for LAPP as 6.4%, 7.4% and 8.0%. The ATRF annualized returns for the same periods were 7.0%, 8.0% and 9.5%.

Travis then warns (and I agree with him here):

"It should be noted that the LAPP has an investment policy that is less risky than the ATRF investment policy and would be expected to earn a lower investment return in most years." #AbLeg

THAT IS WHY A BUSINESS CASE NEEDS TO BE WRITTEN THAT COMPARES RISK ADJUSTED RETURN.

And, to be clear, no one did.

So @MikeEllisUCP if the Mister of TBF is saying the 10 year numbers are unreliable...why are you putting them in the gazette? #why

@MikeEllisUCP you should ask yourself why you would use a 10 year number anyway. That would predate the current AIMCo CEO and most of his executive team. I would suggest that you only examine returns during Kevin's tenure as CEO. He has changed many things at AIMCo.

Let me throw some performance numbers at you from Kevin's tenure:

AIMCO private equity returned between 7% and 8% for the last 4,5, and 6 year periods; ATRF 19% to 23% over the same time periods. Same pattern in infrastructure and real estate returns. #ABLeg

@MikeEllisUCP I hate too repeat myself but:
The reason the other plans (LAPP etc) were given the ability to leave AIMCo was to give them the ability to address average returns and high executive compensation costs. #ABLeg #snap

Now on to @MikeEllisUCP claim that this move will save $41 million. Well where did that claim come from? AIMCo.

Never mind the fact that that number has no substantiation at all. AIMCo is in the mother of all conflict of interest by flying that canard. #conflictofinterest

The AIMCo executive pay is normed to assets under management. This move will pay them millions upon millions more dollars. Kevin's pay alone could go up by $1 million per year.

Democratic principles would demand an unconflicted analysis of this situation. #really

But the real insult that @MikeEllisUCP dishes out at teachers is at the end:

"We appreciate and recognize that teachers have worked hard on behalf of Albertans".

Bullshit. This entire affair has been a calculated insult to teachers and their professional association. #ATA

This pension plan has been a jointly sponsored plan between the Government and the ATA for 80 years. Not one word of consultation, not one study. You took money that does not belong to you and put it with a different manager. @MikeEllisUCP get your shit together. #ABLeg

Because you were in the house when Bill 22 was rammed through. The pension portion of the bill received 20 minutes of debate. This bill should have been in the house for a month or two allowing for the deconstruction of the specious claims that accompanied it. #ABLeg

Teachers are angry about this. So are nurses, firefighters and police officers. @MikeEllisUCP you participated in an assault on democracy. Why exactly you moved this investment manager remains to be seen. As I have screamed repeatedly teachers are more likely to lose money here.

All of these people contribute to their retirement plan.

All of them are aware that the GOA drops 13% of your pay into an RRSP contribution for your retirement. You don't have to contribute a single dollar. #goldplated

So anybody that lives or teaches in Calgary-West please schedule a visit with @MikeEllisUCP. He clearly needs some help understanding the magnitude of what he has done. #AbLeg

BTW @MikeEllisUCP, when Ministers and their press secretaries address Jason Schilling @schill_dawg they should use his title: President of the Alberta Teachers' Association. The pejorative dog-whistle of "teachers' union boss" being used is unbecoming of Ministers of the Crown.

@MikeEllisUCP if you want to talk to me just let me know. I would love to go through some pension facts and figures in a more detailed way. While I appreciate your positive tone in the Gazette, you do need to seek more facts here. #AbLeg #handsoffmypension #thanksfortheinsults