Public sector unions in the Canadian Province of Alberta say they will launch a legal challenge to a Ministerial Order, quietly signed over the Christmas holidays, that they say gives the Government more control over workers’ pensions.
One of four orders signed by Minister of Finance, Travis Toews changed the terms of the Alberta Teachers’ Retirement Fund (ATRF) to allow the Alberta Investment Management Corporation (AIMCo) to reject changes proposed by the pension manager in its investment policy.
Mr Toews had previously said that public sector pension boards, including the ATRF, would continue to have control over their investment strategies and decisions.
The Minister’s Press Secretary, Jerrica Goodwin, said the order was necessary as a temporary measure to ensure the pension plan remained appropriately managed.
“We are confident that ATRF and AIMCo will be able to come to an agreement,” Ms Goodwin said.
“Once the parties agree to a final investment management agreement, the Ministerial Order will no longer be in effect,” she siad.
However, President of the Alberta Federation of Labour (AFL), Gil McGowan (pictured) said the move was unconstitutional.
“AIMCo and the Finance Minister will be the deciders, and the hundreds of employers, and the hundreds of thousands of workers who actually pay into the plan, have to shut up, take what they are given and trust that the Government and AIMCo will do what’s best,” Mr McGowan said.
He said unions believed the Government’s end game was to use the pension funds to prop up oil and gas ventures in the Province that had difficulty raising money from international investors.
“The Finance Minister and Premier might call this an administrative reform. We call it theft,” Mr McGowan said, querying why a Ministerial Order signed in late December was not made public until 11 January.
Edmonton, 20 January 2021
