Thousands of Albertans learn how much pension changes will cost them
Online calculator at TruthAboutAlbertaPensions.ca
shows impact of destructive pension proposals
Edmonton – Public-sector workers all over Alberta are learning how much the Redford government's pension proposals could cost them.
In one week since the Alberta Labour Coalition on Pensions launched a web-based pension calculator, 3,375 members of the Local Authorities Pension Plan and the Public Sector Pension Plan have found out how much they stand to lose if early retirement provisions are eliminated and Cost of Living Adjustments (COLA) are reduced or suspended as the Redford Government has proposed. The calculator, which was created with the help of actuarial firm Brendan & George, can be found at www.TruthAboutAlbertaPensions.ca
"This pension calculator takes a complicated policy debate and makes the changes tangible and personal to the people who will be affected by the changes," Alberta Federation of Labour president Gil McGowan said. "These workers have earned their pensions, they've paid for their pensions, and now the government is cutting these pensions with no justification."
As an example, the calculator shows that someone born in 1980 who retires with 30 years of service at the age of 65 with a salary of $65,000 will see her retirement income reduced by as much as $794 per month in inflation-adjusted dollars by the time she's 75. Someone born a decade earlier, in 1970, who retired with only 20 years service with the same salary of $65,000, might see his pension cheques reduced by $364 each month.
"If you know anyone who is retired, and on a fixed income, you know that losing $364 a month would cause problems. Losses of $700, $800 or more each month could be disastrous," McGowan said. "For most Alberta voters, there's a difference between hearing that their pension will fall behind inflation. It's another thing to know that it will mean a specific number of dollars fewer in their pocket every month after their retirement. It's information that they need to know when they follow this debate."
In the fall, the government announced major changes would be made to Alberta's four public-sector pension plans, including the two biggest, the Local Authorities Pension Plan (LAPP) and the Public Service Pension Plan (PSPP). Taken together, these proposed changes would slash the value of pensions earned by Alberta public-sector workers by 25 per cent or more on benefits earned after January 1, 2016.
The Pension Calculator was commissioned by a coalition of unions and associations that have members in LAPP and PSPP. The coalition includes: the Alberta Federation of Labour (AFL), the Alberta Fire Fighters Association (AFFA), the Alberta Union of Provincial Employees (AUPE), the Amalgamated Transit Union (ATU), the Canadian Union of Public Employees (CUPE), the Health Sciences Association of Alberta (HSAA), the United Nurses of Alberta (UNA) and a number of smaller unions.
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MEDIA CONTACT:
Gil McGowan, President, Alberta Federation of Labour at 780.218.9888 (cell)
Olav Rokne, Communications Director, Alberta Federation of Labour at 780.289.6528 (cell) or via e-mail [email protected]
MEDIA ADVISORY-Leaders of largest public sector unions to unveil actuarial report showing pension plans in good shape
Redford government's proposed cuts to public-sector pensions are "unjustified, unfair and reckless"
Leaders of largest public-sector unions unveil actuarial report showing pension plans in good shape
EDMONTON – A new study prepared by an independent, professional actuary shows that Alberta's largest public-sector pension plans are healthy and well on the way to returning to fully-funded status – even without any changes to benefits will be released today.
What:Union Leaders Release report showing pension plans are healthy
When: 1:30 p.m. Tuesday, January 14
Where: UNA Offices (700 – 11150 Jasper Ave., Edmonton)
Who: AFL president Gil McGowan
AUPE president Guy Smith
HSAA president Elisabeth Ballermann
UNA president Heather Smith
CUPE Alberta president Marle Roberts
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MEDIA CONTACT:
Olav Rokne, Communications Director, Alberta Federation of Labour at 780.289.6528 (cell)or via e-mail [email protected]
Redford government’s proposed cuts to public-sector pensions are “unjustified, unfair and reckless”
New actuarial study demonstrates that Alberta pension plans are healthy and getting healthier – even without benefit changes
EDMONTON – A new study prepared by an independent, professional actuary shows that Alberta's largest public-sector pension plans are healthy and well on the way to returning to fully funded status – even without any changes to benefits.
The results of the study fly in the face of arguments used by the Redford government to justify its plan to roll back pensions covering almost 300,000 public-sector workers and pensioners in Alberta.
In the fall, provincial Finance Minister Doug Horner announced that major changes would be made to Alberta's four public-sector pension plans, including the two biggest, the Local Authorities Pension Plan (LAPP) and the Public Service Pension Plan (PSPP).
In particular, Horner said he would bring in legislation in the spring of 2014 that will allow him to eliminate guaranteed cost-of-living adjustments and all early retirement incentives for workers covered by plans like the LAPP and PSPP.
Taken together, Horner's proposed changes would slash the value of pensions earned by Alberta public-sector workers by 25 per cent or more on benefits earned after January 1, 2016.
Horner has said the changes are necessary to ensure the sustainability of Alberta's pension plans. However, the report from actuaries at Vancouver-based George & Bell Consulting shows that both the LAPP and PSPP are sustainable and healthy over the long-term without any changes.
The George & Bell study concludes that, under the most likely economic scenario and with no major changes to benefits, both the LAPP and PSPP will return to fully funded status within nine years.
The total costs of the plans are also expected to drop. Costs for the LAPP will drop to the equivalent of 20 percent of payroll (split between employers and employees) and costs for the PSPP will drop to 16 percent (also split between employers and employees).
Even under the most pessimistic scenarios, the study shows that both the LAPP and PSPP will dramatically improve their funding status and keep costs under control – without having to resort to any of the deep cuts proposed by the Redford government.
The George & Bell study was commissioned by a coalition of unions and associations that have members in LAPP and PSPP. The coalition includes: the Alberta Federation of Labour (AFL), the Alberta Fire Fighters Association (AFFA), the Alberta Union of Provincial Employees (AUPE), the Amalgamated Transit Union (ATU), the Canadian Union of Public Employees (CUPE), the Health Sciences Association of Alberta (HSAA), the United Nurses of Alberta (UNA) and a number of smaller unions.
The study was recently submitted to the Minister Horner in support of a brief from the Coalition opposing the government's plan to make major changes to pension plans like the LAPP.
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MEDIA CONTACT:
Olav Rokne, Communications Director, Alberta Federation of Labour at 780.289.6528 (cell) or via e-mail [email protected]
Link: Backgrounder - Fast Facts on Pensions
Commentary from Union Leaders
"These pension plans are the cornerstone of retirement security for hundreds of thousands of Albertans. If the government is going to unilaterally undermine that security, then they had better have a damn good reason. What this study shows is that they government hasn't managed to get its facts straight. They've failed to make the case for the big rollbacks they're proposing." - Gil McGowan, President, Alberta Federation of Labour
"Despite all heated rhetoric that the government has been using to justify their slash-and-burn plan for pensions, the reality is that there is no crisis. Our pension plans are healthy. In fact, they're on track to getting even healthier without making any major changes." - Guy Smith, President, Alberta Union of Provincial Employees
"The government's plan for pension cuts is unjustified, unfair and reckless. In the name of sustainability, they're actually going to make the plans less sustainable by tying the hands of the people who manage the plans and undermining the confidence of the workers and employers who participate in the plans." - Heather Smith, President, United Nurses of Alberta
"There's an old saying that if something isn't broken, you shouldn't try to fix it. This is a perfect time for Albertans to be reminded of that saying." - Elisabeth Ballermann, President, Health Sciences Association of Alberta
"Where's the government's evidence? We've commissioned an independent actuarial study showing that Alberta pension plans are healthy and getting healthier, even without cuts or changes. Why hasn't the government released its own actuarial study? Could it be that their actuary came to the same conclusion as the actuaries at George & Bell?" - Marle Roberts, President, Canadian Union of Public Employees (Alberta Division)
December 2013: Anti-worker Bills 45 and 46-FAQs, fact sheets, news releases; Labour leaders stand up for retirement income; did you know-facts on retirement income, AFL Open House
Urgent Action
Alberta Federation of Labour Open House
On Tuesday, February 11, the Alberta Federation of Labour invites you to attend our annual open house.
The open house, which is usually held in December each year, was postponed so that we could move into our new offices, which are located at #300, 10408 – 124 Street, Edmonton.
We are looking forward to seeing everyone in the New Year in our new offices.
When: Tuesday, Feb. 11 from 4:30 to 7:00 p.m.
Where: AFL Offices (#300, 10408 – 124 Street, Edmonton)
RSVP: 7 80-483-3021
Download the invitation here...
News
AFL and allies gearing up to fight unconstitutional anti-worker bills
Alberta's union movement is responding to a new assault on worker rights.
In early December, the province brought in laws impeding the ability of public-sector unions to negotiate with the government, and muzzling anyone who calls for those workers to strike. The unpopular new laws, which are being widely criticized by the media, will be challenged by the Alberta Federation of Labour.
"Workers in Alberta have a fight on their hands. It's not a fight of their choosing, but one forced on us by the reckless, punitive and unconstitutional anti-worker laws that Redford brought in," Alberta Federation of Labour president Gil McGowan said.
The Federation of Labour, affiliated unions and unaffiliated allies will be collaborating to oppose the laws through legal action, but warn that the battle for workers' rights can't be left to the courtrooms.
"We have the Canadian Charter of Rights and Freedoms on our side, but the process of challenging these laws in court will take time. It will take years," McGowan said. "In the meantime, we're going to see several unions, and hundreds of thousands of workers facing unfair bargaining tactics and diminished rights. We will have to work together, with direct action and with effective advocacy to ensure these workers are heard."
Frequently asked questions on Bills 45 and 46
AFL press release on Bills 45 and 46 –AFL Release November 29, AFL Release December 4, AFL Release December 5
Letter from Union Leaders to the Premier
Fact Sheet 1 – Breaking a Promise and the Law: Rollbacks
Fact Sheet 2 – Breaking a Promise and Breaking the Law: Supreme Court
Fact Sheet 3 – Alberta Economy Booming
Fact Sheet 4 – Breaking a Promise and the Law: Public Sector Wages
Fact Sheet 5 – Breaking a Promise and the Law: Public Services Stretched
Fact Sheet 6 – Alberta has a Revenue Problem
News
Labour leaders stand up for retirement security
Alberta's labour movement is opposing the scaling back of the province's pension plans, while urging that the Canadian Pension Plan be expanded.
In September, Finance Minister Doug Horner announced the government was planning to bring in sweeping changes to public service pension plans. If the changes are implemented, as Horner indicated he is determined to do, the bottom line is that Alberta public employees will have diminished pensions. Members of Alberta's public service pension plans would have to work longer to retire, and when they retire their benefits will be reduced. In addition, their retirement incomes will more rapidly fall behind inflation.
"There are currently about 300,000 people paying into the plans in question, working in health care, universities, colleges, municipalities and various departments of the provincial government. There are another 90,000 retirees currently receiving benefits from the plans," Alberta Federation of Labour president Gil McGowan said. "That means that 15 percent of Alberta's workforce and about 20 percent of Alberta retirees will be potentially be affected by these changes. The retirement plans of thousands of thousands of Albertans will be affected and a majority of Alberta families will be touched in one way or another."
The real crisis in retirement is that so many Albertans have no retirement security – Only one in three Albertans has put anything into an RRSP. Canada needs to expand the highly successful Canadian Pension Plan that has helped so many seniors.
"Minister Horner has said he's disappointed that Ottawa has closed the door on CPP expansion," McGowan said. "Perhaps if he'd presented a united front with all of the other provincial finance ministers who were all calling for CPP expansion, the Federal government would have had to listen."
Read AFL release here
Did you know ...
• 1 in 4 Alberta seniors receive the Guaranteed Income Supplement (GIS) because they do not have enough income.
• 2 out of every 3 working Albertans don't make RRSP contributions.
• Only 1 in 3 Albertans has an employer-sponsored pension plan of any kind.
• The average income for a woman senior citizen in Alberta is $20,000.
Events
• December 20: Day of International Solidarity
• January 13-18: AFL/CLC Winter Labour School
• February 11 & 12: AFL Executive Committee & Council
• February. 11: AFL Open House
Money Talks, Thanks For Listening
Wealthy Canadians Praise PM’s Promotion of Plutocracy
Calgary – Policies that are gutting the Canadian middle class are awesome, according to the nation’s ostentatiously wealthy.
At a rally at 1:00 p.m. sharp on Halloween (Oct. 31), affluent activists are gathering outside the BMO Centre in Calgary to thank 2013 Conservative Party of Canada Convention delegates for supporting policies that suppress wages, gut retirement security, and place an unfair burden on middle-class families.
“How could I enjoy my grotesque wealth if average people wouldn’t fight over the scraps from my table?” Canadians For Inequality campaign chair Remmington Smythe said. “We want to thank Stephen Harper for helping make so many Canadians so delightfully poor.”
Smythe, an entirely fictional character, will be played by Calgary-based actor Wally Houn at the protest, which is organized by the Alberta Federation of Labour, the province’s largest worker advocacy organization. Organizers have hired costumed actors to portray Canada’s 1%, who will be holding protest-style placards with lighthearted messages that take aim at Conservative Party policies.
“Our protest may only draw one per cent of the number that you would see at one of those proletarian rabble gatherings,” Smythe said. “But trust me, we have one hundred per cent of the voice.”
The event is intended to satirize how Canada’s governing party has made decisions in the interest of corporations and prosperous individuals, and lavished supporters with lavish perks such as seats in the Senate. Organizers say that policies they’re taking aim at include the expanded Temporary Foreign Worker program, the selling of Canadian natural resources to state-owned foreign firms, and the attack on unions.
“These are very serious issues, but we wanted to tackle them with humour, rather than anger,” Alberta Federation of Labour president Gil McGowan said. “Sometimes satire is the best form of protest.”
Click here for formatted PDF of the release.
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MEDIA CONTACT:Olav Rokne, Communications Director, Alberta Federation of Labour at 780.289.6528 (cell) or via e-mail [email protected]