Thread by @yomeeks

This is your daily pension announcement: The stock MLA response edition. Many (not all) of you have heard back from your MLA with a letter that demands rebuttal. Please respond to your MLA. Ask more questions. Use the following points as required. #ABLeg #handsoffmypension

First, in this most recent letter the GOA DOES NOT acknowledge that they make <50% of the contributions to a plan that has been joint since 1939 (teachers make >50% of the contributions). #controlinginterest #communistdictatorship

The GOA does not own the assets of the plan and they make less than half the contributions. Please forcefully make the point with your MLA and Travis that they had no grounds to unilaterally make any sort of change . #nogrounds #ABLeg #lessthanhalf

Second, in the email reply a link to the ON report is provided where a plan amalgamation occurred. Please inform your MLA and Travis that the report THAT THEY SENT details a consultation with ALL PARTIES by a financial expert, Bill Morneau.

That is what we want!!! #secondbest

Demand consultation by all parties significantly affected!!!! Good enough for Ontario but not good enough for 'berta? Travis knew what the right thing to do was and he failed to do it. MLAs sending this report out is a further insult. #readit #ABLeg #handsoffmypension

Third, MLAs repeat the canard that the report from ON shows economies of scale with pension funds reduce costs.

But it actually says the exact opposite. Please refer your MLA to page 10 where noted financial expert Bill Morneau opines:

"My research suggests the threshold to achieve economies of scale ranges from about $5 billion to $90 billion in assets under management, depending on the sample."

In other words, if the fund is too big (>$90 billion) no economies of scale are achieved.

At $108 billion (2018) AIMCo is already, by the GOA proffered research, too big to reap economies of scale.
With the addition of $19 billion from the ATRF they will achieve dis-economies of scale. #counterintuitive #oops #ABLeg

In fact, by this academic definition ATRF, being bigger than $5 billion, is able to achieve economies of scale on its own. We need an independent review of the likelihood of achieving the promised $41 million in savings.

NOT LIKELY. #notahopeinhell

This has been the most frustrating part of this whole situation. If you read the research the GOA uses to support this decision you come to the opposite conclusion.

This dis-economy of scale of super large investment funds is well known in the industry. #tellTravis #ABLeg

Fourth, a quote from the stock response: "AIMCo already successfully manages all other public sector pensions in Alberta". Ask the LAPP Board if their investment policy return objective has been met even once over the last 12 years. #askthem #ABLeg Go ahead and ask. Successful?

Fifth, another quote with my comments in(): "Transferring the investment management function of the ATRF to AIMCo will eliminate duplication (TRUE), reduce plan costs (MAYBE) and ensure the plan is in a better position to sustainably generate higher investment returns."

WTF? Are you guaranteeing higher investment returns? Can I get that in writing?

There you have it folks. Five points that you can take back to your MLA and copy Travis on. Use them at will. Demand answers. And an independent analysis of potential cost savings. #OAG #ABLeg

The pension war room stands by at action stations. Please continue to do the good work. #ABLeg #handsoffmypension #OAG