This is your daily pension announcement: The Pension War Room is trying to make sense of reducing our already low employment standards! Our standards are so low they are almost nonexistent. The best roundup is here. #ABLeg#AIMCOfail#milburned
In pension news Travis, who as one commentator put it, was supposed to be the adult in the room among cabinet ministers (thanks Daveberta). Well, not so much. Travis, in an email to concerned constituents, has doubled down on his pension delusions. #ABLeg#betheadult
To quote Travis: "Government has no intention of changing its policy of consolidating investment management under AIMCo. This policy will reduce costs paid by pension plans."
As I have shown so many times before, demonstrably false. #ABLeg
I will endeavor to explain how I reached this conclusion. #fail
Start on Page 11 of the Annual Report:
It isn't accurate to use 1 year numbers. So I will use the 5 year numbers in my example. Funnily enough that about equates to Kevin's time at the helm of AIMCO. #ABLeg
This is your daily pension announcement: The Pension War Room™️ seeks to expand your knowledge!
I want to be clear, I don't mean to disparage AIMCO. In fact, Kevin started this with his op ed. His job as an employee is to keep AIMCO out of the news. #fail#ABLeg
In my appearance before the standing committee I was asked why ATRF had never chosen to invest with AIMCO. I ran out of time after the first part of my answer. So, in the interest of full transparency, I will give a complete answer here: #ABLeg#AIMCOfail
ATRF never used AIMCO as an investment manager because: 1. None of their current clients would give them a good reference. (this is the one point I got out in the hearing) #ABLeg
2. Poor track record. (neg articles in financial press, poor during financial crisis) #ABLeg
This is your daily pension announcement. Get a load of this hot take from @jkenny! That is hardcore delusional to call the CPP a tax! Well actually, hardcore Fraser Institute. That is their language. #ABLeg#handsoffmycpp
BTW, CPPIB is one of the best performing supersized investment funds in the world. CPP, in studies coauthored by the Rudy Guiliani cosplayer @jackmintz, does an excellent job of keeping seniors out of abject poverty. This is what it is designed to do. #ABleg
In fact, personal finance gurus will recommend that low income Canadians do not necessarily need RRSP as a savings vehicle. (They are already in the lowest tax bracket and have CPP) #ABleg
Don't tell @jkenny the billions that AIMCO invests from their Toronto office.
This is your daily pension announcement: The Pension War Room™️ has had a full day! Time for the after action report.
Bill 203 The Pension Protection Act hit committee. Watch it below! (Skip ahead to 9:33 AM for the pension stuff) #ABLeg assemblyonline.assembly.ab.ca/Harmony/en/Pow…
Again, some stuff that was said was correct, some not so much. A couple of points: 1. The Deputy Minister (Athana) seems to act as a straight up politician. Not the usual for a committee meeting. 2. No detailed analysis of potential cost "saving" was ever done. #ABLeg
3. Comparative investment return data is complicated. But, not that complicated. She had a fellow there (Mulyk) who is an expert. 4. Nate Horner wanted an example of a plan where the GOA contributed >50%. Well, Nate that would be the old MLA plan where the GOA contributed 100%.
This is your daily pension announcement: The Pension War Room™️ has @SPhillipsAB bring the fire! Not only is the Private Member Bills committee meeting tomorrow AM, but the Public Accounts Committee is meeting too! @SPhillipsAB is the chair! Look what is on the agenda: #ABLeg
"In particular, I will be asking questions related to comparisons between ATRF’s past performance under its own management and the performance of the Local Authorities Pension Plan (LAPP), which has historically been managed by Alberta Investment Management Corporation (AIMCo)."
And "We now know that AIMCo executives stand to gain millions in bonuses from increasing the size of the organization’s portfolio, and that AIMCo pushed to take over the management of ATRF. "
The Pension War Room™️ comments on the Fair Deal Report: Wow, what a blatant pile of unconstitutional dog whistles reheated by that has-been Preston. I will try to stick to my lane, which is the (stupid) suggestion of pulling out of CPP. #ABLeg
The panel suggests that the idea of an APP needs to be studied. No. They need to read the study that was already done by a preeminent Canadian pension expert: #ABLeg (Sorry this might be a TL:dr) kpa-advisory.com/policy-papers/…
Or, if you want something shorter, read this for quotes from Malcolm Hamilton another top shelf pension expert: #ABLeg
Please, this is an announcement carefully planned for Friday at 4 PM. Travis is clear there will be no questions and no accountability on this. The good news is that Mark has no current ties to AIMCO so he will feel free to fire Kevin and the lot. #goodjob#ABLeg
But read this %&***# news release, it is suspect..... Maybe I will just give the pension army (and reporters) some questions that spring to mind...about an issue that clearly the GOA does not want to discuss. #ABLeg
This is your daily pension announcement: The Pension War Room™️ continues the glorious march to victory. Or, at least, the march towards common sense.
Here is the committee that works on private members' bills. You know, like Bill 203 The Pension Protection Act. #ABLeg
Mr. Mike Ellis (Chair)
Mr. Joseph Schow (Deputy Chair)
Ms. Michaela Glasgo
Mr. Nate Horner
Member Janis Irwin
Mr. Nathan Neudorf
Mr. Chris Nielsen
Mr. Jeremy Nixon
Ms. Rakhi Pancholi
Ms. Lori Sigurdson
Mr. R.J. Sigurdson
Their next meeting is June 23. It would be helpful if people that live in their ridings would contact them and let them know that Bill 203 needs to be heard in committee.
Note: We don't need everyone contacting the MLAs above. Just constituents. #ABLeg
Returning -12.2% in one quarter when the benchmark returns -6.66% is bad real bad. Look Ma, I only lost double what an average manager did!
Of graver concern is the long term performance. It averages to 0.23% of value add (above benchmark) over 12 YEARS. #ABLeg@premiamgmt
Just so you know, pension plan investors have to score substantially above benchmark to earn the million dollar bonus. The return objective, and therefore the compensation threshold, is probably 0.75% above benchmark. This does not come close to that level. #ABLeg
This is your daily pension announcement: the addendum edition. At the link below you can add your voice of support to @ChristinaNDP's private member bill reversing the damaging pension provisions in Bill 22. #ABLeg
This is your daily pension announcement: The Pension War Room™️ has the final verdict. If ATRF had used AIMCO as the sole investment manager for the last 7 years we would have $1.3 billion dollars less in the fund. #ABLeg teachers.ab.ca/News%20Room/at…
This is, of course, the kind of work that Travis should have done before he started writing legislation. Too much to ask apparently. I can testify to the veracity of the numbers; this method is the industry standard to control for risk and portfolio composition. #ABLeg
So, any claim that Travis makes as to saving money with AIMCO is clearly a liar, liar pants on fire situation.
And to throw further salt on the wound this analysis came from the ATRF whose Board if half appointed by the GOA. #ABLeg
My favorite quote:
"As the Globe and Mail reported on May 6, in a story unfortunately hidden behind its paywall, AIMCo. has been significantly underperforming other pension managers for more than a decade." #ABLeg#handsoffmypension
"Of course, that fact didn’t stop Alberta Finance Minister Travis Toews from claiming last fall in a Postmedia op-ed accusing “union bosses” of “scaremongering” that AIMCo “regularly achieves spectacular investment performance.”" #ABLeg
To quote the sickest of burns:
"Edmonton-based AIMCo, on the other hand, has the dubious distinction of being among the worst-performing Canadian pension plans during the recent downturn, posting stats that would get a player cut from the Edmonton Oilers." #ABLeg#thathurts
And he doesn't let up:
"Contrasting its results to CPPIB – an apples-to-apples comparison – also shows the Alberta fund suffered outsized losses on investment strategies linked to market volatility."
The only financial mismanagement was a Gordon Dirks/Gene Zwosdesky decision from years ago. To be fair, there is some good things in it like bus cost rationalization and getting a board coach, but I suspect getting rid of the UCP candidate board member improved things. #ABLeg
This is your daily pension announcement: Good news for LAPP members! Not so good news for everyone else invested with AIMCO.... #ABLeg
Read the following message carefully where the CEO of LAPP rips AIMCO a new one: #owthathurts
A couple of germane points to be made. First, your pension benefits are safe. Even though LAPP have endured huge losses the plan is still 109% funded (down from118%, anything north of 95% is great). LAPP could have reduced contributions, but no. #ABLeg
This is a testament to the hard work and dedication of the LAPP Corporate Board. An excellent result.
And, no thanks to AIMCO.
(For teachers, just a reminder that your pension contributions will go down in the fall due to strong ATRF returns.) #ABLeg
To be clear this is the right thing to do, hiring someone of Ms Zvan's expertise and an accounting firm to independently tally losses. A little belated by the AIMCO Board, but nonetheless the right thing to do. #ABLeg#wheredidallthatmoneygo
To quote the press release...
"Oversight of AIMCo’s investment strategies and risk management is the responsibility of the Board of Directors." Yup, it sure is.
Two weeks before this became public Kevin was going to all the different pension plans breaking the news. #ABLeg