Alberta’s United Conservative Party Has Seized Control of Its Public-Sector Pension Funds
As part of its anti-union agenda, Alberta’s right-wing government has wrested control of workers’ retirement funds from a joint board that gave them a guaranteed say. Workers in the province are preparing to mount a legal challenge to the power grab.
Alberta finance minister Travis Toews (L) shakes hands with the province’s premier, Jason Kenney (R), at their 2019 swearing in. (Alberta Government)
In 2019, Alberta’s United Conservative Party (UCP) passed surprise legislation making the publicly owned Alberta Investment Management Corporation (AIMCo) the sole investment manager of public-sector pension funds in the province. Previously, pension fund boards could choose between different investment managers. The legislation, Bill 22, also deregulates certain areas — new energy projects, for example, can be streamlined.
This move enraged Albertan workers. Teachers represented by the Alberta Teachers Association (ATA) have been the most vocal opponents of the new legislation. A joint committee, the Alberta Teachers Retirement Fund (ATRF), had managed their funds for almost eighty years. The ATRF safeguarded its contributors’ interests by ensuring that teachers accounted for 50 percent of board member positions.
Now, the investment management of pension funds worth C$18 billion are being transferred, in the name of cost saving, to AIMCo, an institution whose judgement and credibility have frequently been questioned. There are serious concerns about how much influence the ATRF will have over what’s being done with its members’ money.
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