Is Jason Kenney Ready to Bet Albertan Pensions on Failing Fossil Fuel Firms?
The UCP government is moving to take control of citizens’ savings — and they should be very worried.
Cautious. Reliable. Boring. Those are words that are appropriately associated with pension fund management. However, pensions have recently become a hot button political issue in Alberta, for some ominous reasons.
As international investment dries up for the fossil fuel sector, evidence mounts that Premier Jason Kenney may be eying up the retirement funds of public sector workers as a financial lifeline for companies in the oil patch.
The United Conservative Party didn’t mention sweeping pension reform in its election platform, but it has been a curious legislative priority since they were swept to power last year.
Bill 22 forced the Alberta Teachers’ Retirement Fund to hand over its $18-billion pension fund to Alberta Investment Management Corp. — a Crown corporation that just lost $1.9 billion of the Alberta Heritage Trust Fund’s assets. This bill also prevents the numerous public pensions under AIMCo control from ever taking their investment business elsewhere, regardless of poor investment results.
Kenney has also proposed pulling out of the Canada Pension Plan after a vote under his new referendum-on-anything bill. AIMCo could then be in charge of over $260 billion entrusted for the financial futures of millions of Albertans.The Tyee is supported by readers like you Join us and grow independent media in Canada
Legal firewalls are often in place to prevent political meddling in public pension management. If a politician even attempts to contact a Canada Pension Plan board member, it is a reportable offence.
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