Bill to alter AIMCO board shut down in committee

A bill that would have added representatives from four major Alberta pension plans to the board of AIMCO is essentially dead after a government-dominated committee voted against it being debated in the legislature.

The standing committee on private bills and private members' public bills heard from speakers in favour of NDP MLA Shannon Phillips' bill Monday morning before voting 6-4 along party lines that the bill should not be given a full debate.

“Today's decision is yet another example of the UCP ignoring the legitimate concerns of Albertans, and moving ahead with their ideological agenda,” Phillips said in a statement afterward.

Bill 208, the Alberta Investment and Management Corporation Amendment Act, would have bumped the size of AIMCO'S board from 11 to 15 by adding representatives from the Alberta Teachers Retirement Fund, Special Forces Pension Plan, Local Authorities Pension Plan and Public Sector Pension Plan. Those four pensions are now legally required to be managed by AIMCO following legislation passed late last year.

The government argued the consolidation would allow for better economy of scale with lower costs overall but unions have expressed distrust in AIMCO'S management and worries they were giving up control.

Greg Meeker, former chair of the Alberta Teachers Retirement Fund, argued Monday that without representation on the board, all teachers could do if they were upset by an AIMCO decision was write a “strongly worded letter.”

UCP MLA Shane Getson said he was worried adding extra seats would potentially give undue influence to some by having a client able to influence their own specific pension at the board level.

Meeker said adding four seats to AIMCO'S board would not provide a particular advantage.

“That's not an ability to issue edicts to AIMCO. That's not the ability to issue an order to the investment staff to prioritize the ATRF investments,” he said.

Brad Readman, the president of Alberta Fire Fighters Association, said his members' pensions are part of the LAPP, which is currently handled by AIMCO, but the current legislation takes away the option to ever leave.

He said while the current members' pensions won't change there is a responsibility to protect future members and that Phillips' bill should be debated.

“Let's make sure the long-term pension plans and retirement security of firefighters, first responders, teachers, are protected,” he said.

Government officials have said public sector pension boards would continue to control their own investment strategies even under AIMCO'S management though the Alberta Teachers Association has promised to sue over a ministerial order they say takes away their control.

Bill 208 would have also removed a provision in the existing law that allows the government to give AIMCO investment directives.

The bill would have also required a referendum if Alberta launched a provincial pension plan and AIMCO was chosen to manage that money.

Members on both sides of the aisle acknowledged hearing concerns from their constituents about how pensions are managed under the government's new rules. UCP MLA Whitney Issik blamed this on a “hyperbolic misinformation campaign” and pointed out that the LAPP, managed by AIMCO, is ranked among the top plans in Canada.

NDP members argued that the level of concern was all the more reason to give the issue a full debate.

“It needs to have a proper debate where we can hear from the minister of finance, where we hear from other ministers where we can hear from the opposition, and government, and independent MLAS,” said NDP MLA Thomas Dang.