Update on Bill 22 and Pensions
The security of their pensions is a priority issue for NASA members. The government is making changes that impact your pension plan. We will be working to keep you updated as things progress. This will include email updates and Lunch and Learn sessions on pension issues.
Less than a year ago the PSPP (and other public sector pension plans) moved to a model called joint governance. This means that since both employees and employers pay into the pension plans employees and employers have equal numbers of seats on the new joint boards. NASA holds one seat on the PSPP Sponsor Board and one seat on the PSPP Corporation Board.
Bill 22 is making changes that allow the government control over who sits on those Boards by requiring an Order in Council for the appointments. This changes the balance of power which should ideally be 50-50 between the employers and employees in overseeing the funds held in trust for members' retirement.
You may have heard in the news that the government is forcing the teachers’ pension plan to move their investment management to AIMCo. The PSPP funds were already being managed by AIMCo but the option to use other fund managers after a transition period has been removed. There is worry that the government may use its power to direct AIMCo to make investments with people's pension money that are not in the best interests of the members of the pension plans.
In addition, you have likely heard the bluster about removing Alberta from the Canada Pension Plan. The CPP gets better returns than any other fund manager, including AIMCo. Canadians also have mobility with the CPP. Someone could live their first 30 years in Nova Scotia, move to Toronto for 5 years, then head out to Alberta for their next 30. At 65 they might then decide to retire in BC. With the CPP they pay the same percentage of their wages into the plan no matter where they live, work, or retire, and they are entitled to the same retirement benefit based on those contributions wherever they live. That is part of the beautiful fairness of the CPP.
NASA is not alone in this fight. Unions across Alberta are standing together to protect our pension plans. When Allison Redford tried to come after pensions Albertans said no, and they said it loud and clear. Redford backed off. It is time to stand up again and say "Hands Off Our Pensions". NASA is on it, and we will do everything we can to protect you and your pension!