Agreement takes place immediately, replacing ministerial order
Sarah Rieger · CBC News · Posted: Sep 08, 2021
The ATA and AIMCo have reached an agreement over management of teachers' pensions.
(Josee St-Onge/ CBC)
The Alberta Teachers' Association has reached an agreement with the provincial government-owned investment manager that it says will give teachers a final say over investment decisions affecting their pensions.
The Alberta Teachers' Association has reached an agreement with the provincial government-owned investment manager that it says will give teachers a final say over investment decisions affecting their pensions.
The agreement replaces a ministerial order that had allowed government-owned Alberta Investment Management Corporation (AIMCo) to reject any changes proposed by the Alberta Teachers' Retirement Fund (ATRF).
"This is a huge victory for teachers and the Association," said ATA president Jason Schilling in a release on Wednesday.
"Teachers mounted a strong, wide-reaching, relentless campaign in defence of their pensions, which provided the ATRF with the backing they needed to negotiate an effective agreement that protects the interests of teachers."
Teachers repeatedly expressed concerns following the passing of Bill 22 in 2019, which transferred their pension investments under AIMCo's management.
Teachers association to take legal action against Alberta government over pension dispute
CEO leaving AIMCo in wake of $2.1-billion investment loss
The pension fund's previous CEO left last year after the fund reported more than $2 billion in investment losses. Some union leaders had also expressed concerns the investment manager was making decisions to prop up oil companies.
In fall 2020, AIMCo pulled out of negotiations with the ATRF when the two groups were unable to agree on key terms, and shortly after, Finance Minister Travis Toews passed a ministerial order that allowed AIMCo to veto the teachers' fund investment directions and said AIMCo would be the arbiter of disputes between the parties.
The ATA sued over the order, arguing it not only broke the law but contradicted previous assurances made by Toews that teachers would retain control of their pensions.
The new agreement, which will replace Toews' order, removes AIMCO's veto, which in turn prompted the ATA to drop its lawsuit against the government.
The court challenge had been heard in Court of Queen's Bench the previous week, and Schilling said in a release that he believed the timing was no coincidence, "noting that the judge remarked at one point that she was not buying the Government of Alberta's arguments related to certain sections of the [agreement.]"
Finance minister glad to see agreement
Sandra Johnston, ATRF board chair, said in a statement that the negotiated agreement "respects the role of ATRF."
She said it has the right accountability mechanisms, including protections and remedies ATRF will use if needed.
Opposition NDP Labour Critic Christina Gray said teachers and other public servants should have the right to choose who manages their retirement savings. "Until that time, the UCP has created a forced monopoly that gives AIMCo 'hostage' clients, regardless of their performance. This isn't fair," she said in an emailed release.
The finance minister said in an emailed statement that he's pleased to see an agreement was reached.
"Having AIMCo manage the investments of the ATRF eliminates duplication and reduces the cost of investment services for Albertans and teachers. This was our ultimate goal," Toews said.
AIMCo's new CEO Evan Siddall said he and his colleagues will now devote their attention to smoothly transitioning ATRF's assets.
"Today's agreement marks a point of departure for AIMCo as a multi-client investment manager," said Siddall.
The agreement takes place immediately, and the pension fund's assets are set to be transferred by the end of December.
Alberta teachers' union claims victory after reaching pension fund agreement with AIMCo
The Alberta Teachers' Association said the new terms remove a clause giving AIMCo a veto over investments, and president Jason Schilling called it a "huge victory for teachers" in a Wednesday release
Author of the article: Lisa Johnson
Publishing date:Sep 08, 2021 •
The Alberta Teachers' Association said the new terms remove a clause giving AIMCo a veto over investments, and president Jason Schilling called it a "huge victory for teachers" in a Wednesday release
Author of the article: Lisa Johnson
Publishing date:Sep 08, 2021 •
Alberta Teachers’ Association president Jason Schilling.
PHOTO BY SHAUGHN BUTTS /Postmedia, file
The Alberta Teachers’ Association is claiming victory after reaching an agreement last week to keep full control of the investment strategies guiding teacher pensions.
The new investment management agreement between the Alberta Teachers’ Retirement Fund (ATRF) and the government-owned investment manager Alberta Investment Management Corporation (AIMCo) replaces a previous order quietly signed by Finance Minister Travis Toews in December.
In a Wednesday news release, the ATRF said the new agreement allows its board to maintain “control over the strategic investment policy for the pension plans’ assets and that AIMCo must implement that policy.”
The Alberta Teachers’ Association (ATA) said the new terms remove a clause giving AIMCo a veto over investments, and president Jason Schilling called it a “huge victory for teachers” in a Wednesday release.
“Teachers mounted a strong, wide-reaching, relentless campaign in defence of their pensions, which provided the ATRF with the backing they needed to negotiate an effective agreement that protects the interests of teachers,” said Schilling.
With Toews’ ministerial order no longer in force, the teachers’ association said it’s dropping its legal challenge, filed in March, that argued for the government decree to be thrown out by the courts.
It came after the UCP government’s Bill 22, implemented in November 2019, legislated the transfer of investment control of 82,000 practising and retired teachers’ pensions to AIMCo from ATRF by next December, along with control of three other large public sector pension plans.
Toews has said repeatedly that public sector pension boards, including the ATRF, would continue to control their own investment strategies and decisions. In January, his office said the order dictating AIMCo’s investment management agreement with the ATRF was a necessary, temporary measure.
On Wednesday, Toews said in a statement the government is pleased to see AIMCo and the ATRF come to a deal.
“Having AIMCo manage the investments of the ATRF eliminates duplication and reduces the cost of investment services for Albertans and teachers. This was our ultimate goal,” said Toews.
Toews did not respond to a question from Postmedia about whether or not the ATA’s legal challenge was a factor.
However, Schilling attributed the new deal in part to the prospect of the government losing in court.
“Our court challenge against the imposed (investment management agreement) — backed up by significant pressure from teachers — changed the game. I believe that we were on our way to winning in court. Under the new CEO (Evan Siddall), AIMCo appears to realize that they need to be responsive to clients and that they will be held accountable for their duty to teachers as the investment manager,” said Schilling.
NDP Opposition labour critic Christina Gray said in a statement Wednesday it was an important win for teachers and their pension fund, but other public sector funds moving under the umbrella of AIMCo because of Bill 22 deserve to choose their own management firms.
“Until that time, the UCP has created a forced monopoly that gives AIMCo ‘hostage’ clients, regardless of their performance. This isn’t fair. Albertans expect their government to fund classrooms, not spend money fighting teachers in court,” said Gray.
Siddall, who took the reins of AIMCo in July, said in a Wednesday release the investment manager’s top priority is to help clients secure long-term prosperity for the people they represent, and it will now focus on a smooth transition of ATRF’s assets.
“Today’s agreement marks a point of departure for AIMCo as a multi-client investment manager,” said Siddall.
The Alberta Teachers’ Association is claiming victory after reaching an agreement last week to keep full control of the investment strategies guiding teacher pensions.
The new investment management agreement between the Alberta Teachers’ Retirement Fund (ATRF) and the government-owned investment manager Alberta Investment Management Corporation (AIMCo) replaces a previous order quietly signed by Finance Minister Travis Toews in December.
In a Wednesday news release, the ATRF said the new agreement allows its board to maintain “control over the strategic investment policy for the pension plans’ assets and that AIMCo must implement that policy.”
The Alberta Teachers’ Association (ATA) said the new terms remove a clause giving AIMCo a veto over investments, and president Jason Schilling called it a “huge victory for teachers” in a Wednesday release.
“Teachers mounted a strong, wide-reaching, relentless campaign in defence of their pensions, which provided the ATRF with the backing they needed to negotiate an effective agreement that protects the interests of teachers,” said Schilling.
With Toews’ ministerial order no longer in force, the teachers’ association said it’s dropping its legal challenge, filed in March, that argued for the government decree to be thrown out by the courts.
It came after the UCP government’s Bill 22, implemented in November 2019, legislated the transfer of investment control of 82,000 practising and retired teachers’ pensions to AIMCo from ATRF by next December, along with control of three other large public sector pension plans.
Toews has said repeatedly that public sector pension boards, including the ATRF, would continue to control their own investment strategies and decisions. In January, his office said the order dictating AIMCo’s investment management agreement with the ATRF was a necessary, temporary measure.
On Wednesday, Toews said in a statement the government is pleased to see AIMCo and the ATRF come to a deal.
“Having AIMCo manage the investments of the ATRF eliminates duplication and reduces the cost of investment services for Albertans and teachers. This was our ultimate goal,” said Toews.
Toews did not respond to a question from Postmedia about whether or not the ATA’s legal challenge was a factor.
However, Schilling attributed the new deal in part to the prospect of the government losing in court.
“Our court challenge against the imposed (investment management agreement) — backed up by significant pressure from teachers — changed the game. I believe that we were on our way to winning in court. Under the new CEO (Evan Siddall), AIMCo appears to realize that they need to be responsive to clients and that they will be held accountable for their duty to teachers as the investment manager,” said Schilling.
NDP Opposition labour critic Christina Gray said in a statement Wednesday it was an important win for teachers and their pension fund, but other public sector funds moving under the umbrella of AIMCo because of Bill 22 deserve to choose their own management firms.
“Until that time, the UCP has created a forced monopoly that gives AIMCo ‘hostage’ clients, regardless of their performance. This isn’t fair. Albertans expect their government to fund classrooms, not spend money fighting teachers in court,” said Gray.
Siddall, who took the reins of AIMCo in July, said in a Wednesday release the investment manager’s top priority is to help clients secure long-term prosperity for the people they represent, and it will now focus on a smooth transition of ATRF’s assets.
“Today’s agreement marks a point of departure for AIMCo as a multi-client investment manager,” said Siddall.
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