Pension plan
December 10
What are you up to Premier Smith? Even the editorial board of the New York Times is curious about what’s going on in little old Alberta.
Several direct quotes from the New York Times last week…“Without any advance notice, the government of Alberta last week fired all 10 directors on the board of its pension fund, Alberta Investment Management Corporation (AIMCo), along with its chief executive and three of his most senior employees. Then, this week, it announced that Stephen Harper, the former Conservative prime minister, would serve as the fund’s chairman.”
“In my history of being in this space, it’s unique,” Keith Ambachtsheer, emeritus director of the Toronto-based International Centre for Pension Management, described the purge as “Soviet style and the change at AIMCo, which manages $161 billion Canadian, shook the pension world.”
He stated, “It’s a departure certainly in the eyes of not just Canada, but the world. The Canadian pension model has become the global standard for how you should think about these things and now we have a government that is kind of stepping outside those rules.
“The Canadian pension model is based on the principle that funds should be managed independently of both governments and unions and free of political interference. It calls for independent boards whose members are experienced in investments and finance. ”
Ambachtsheer also believes the report commissioned by Alberta is “fundamentally flawed, further undermining the province’s case for pension separation and estimates the actual amount to be 15 per cent, not 50 per cent.”
Are these latest small, but incremental, steps part of Premier Smith’s unstated plan to move Albertans from the Canadian Pension Plan (CPP) to an Alberta Pension Plan (APP) under the control of the provincial government?
AIMCo’s chequered history continues; in recent years, they posted a loss of $4 billion as they continually fall short of their investment goals plus their investments under perform when compared to the annualized return on investment (ROI) of the CPP.
PMs Chretien and Martin posted surplus budgets from 1997 thru 2006 followed by PM Harper who posted eight deficit budgets during the next 10 years that added more than $150 billion to our national debt.
I’m so old, it won’t affect my pension but…given Mr. Harper’s poor financial track record…what could possibly go wrong (for the sake of our children and grandchildren)?
Peter Lougheed and Lou Hyndman must be turning over in their graves.
Lynn Clark,
Camrose
What are you up to Premier Smith? Even the editorial board of the New York Times is curious about what’s going on in little old Alberta.
Several direct quotes from the New York Times last week…“Without any advance notice, the government of Alberta last week fired all 10 directors on the board of its pension fund, Alberta Investment Management Corporation (AIMCo), along with its chief executive and three of his most senior employees. Then, this week, it announced that Stephen Harper, the former Conservative prime minister, would serve as the fund’s chairman.”
“In my history of being in this space, it’s unique,” Keith Ambachtsheer, emeritus director of the Toronto-based International Centre for Pension Management, described the purge as “Soviet style and the change at AIMCo, which manages $161 billion Canadian, shook the pension world.”
He stated, “It’s a departure certainly in the eyes of not just Canada, but the world. The Canadian pension model has become the global standard for how you should think about these things and now we have a government that is kind of stepping outside those rules.
“The Canadian pension model is based on the principle that funds should be managed independently of both governments and unions and free of political interference. It calls for independent boards whose members are experienced in investments and finance. ”
Ambachtsheer also believes the report commissioned by Alberta is “fundamentally flawed, further undermining the province’s case for pension separation and estimates the actual amount to be 15 per cent, not 50 per cent.”
Are these latest small, but incremental, steps part of Premier Smith’s unstated plan to move Albertans from the Canadian Pension Plan (CPP) to an Alberta Pension Plan (APP) under the control of the provincial government?
AIMCo’s chequered history continues; in recent years, they posted a loss of $4 billion as they continually fall short of their investment goals plus their investments under perform when compared to the annualized return on investment (ROI) of the CPP.
PMs Chretien and Martin posted surplus budgets from 1997 thru 2006 followed by PM Harper who posted eight deficit budgets during the next 10 years that added more than $150 billion to our national debt.
I’m so old, it won’t affect my pension but…given Mr. Harper’s poor financial track record…what could possibly go wrong (for the sake of our children and grandchildren)?
Peter Lougheed and Lou Hyndman must be turning over in their graves.
Lynn Clark,
Camrose