Laurie in Question Period
Local Authorities Pension Plan
Ms Blakeman: Thank you very much, Mr. Speaker. According to the minister of finance the local authorities pension plan has lost more than 9 per cent of its value between January 1 and September 30 of this year. This loss occurred before the worst of the financial crisis took hold and left the pension fund worth less than it was in 2007. My questions are to the minister of finance. Could this significant decline have been prevented if the changes to the LAPP asset mix classification had not been made in 2007?
Ms Evans: Mr. Speaker, the pension plans are not under the direct control or authority of this Legislature. They are managed by pension boards. They determine the level of risk. They determine what strategy should be in place on the broader policy context. They are regularly consulting with the principals at AIMCo, who are managing those funds on their behalf, and I’m sure they will continue to do so. Relative to any other losses or any other changes in finance, tomorrow there will be an ideal opportunity for me to release the second quarter report, and there maybe more information provided about what government is in charge of at that time.
Ms Blakeman: Under the Government Organization Act they do report to the minister.
Again to the same minister: since the minister receives hourly updates on Alberta’s investments, can the minister provide details on how much more has been lost in the local authorities pension plan during October?
Ms Evans: Mr. Speaker, it’s true that the organizations that report and for whom I’m legislatively responsible give me opportunities to interact with the folks from the LAPP and other boards. They do not themselves receive direction from me on the manner in which their funds are invested. That kind of information is available on the website I identified earlier. Those boards can be contacted, and they do contact and, in fact, have during this financial crisis contacted their members.
The Speaker: The hon. member.
Ms Blakeman: Thank you. Again to the same minister: well, given that the people that are impacted by this loss are our front-line workers working for the health authorities, municipalities, districts, counties, is the minister planning on just waiting until things get better, hopefully, or will specific actions be taken?
Ms Evans: Mr. Speaker, one more time: it will be the boards themselves that take action. But let’s make it clear to the people that are covered by these plans. These plans are defined benefit. They are defined in the benefits the member expected to receive before the downturn in the economy. They will be the same afterwards. That does not change even though these have been economically turbulent and rather miserable times for people with funds.
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