Government appoints third member to teachers’ unfunded pension task force
Edmonton - The provincial government has appointed Allan Scott of Edmonton as the third member of a provincial task force to review options to address the teachers' portion of the pre-1992 unfunded pension liability.Scott joins former educator Betty Evans of Calgary and Edmonton-Castle Downs MLA Thomas Lukaszuk on the three-member task force that will provide recommendations on the unfunded pension liability mandate. Scott is well known in the business and volunteer communities in the Edmonton region and recently retired from his position as President and Chief Executive Officer of Edmonton Economic Development Corporation where he served for five years. Previous to that he was chairman of Luscar Coal Income Fund, led EDTel Inc. through its transition to TELUS and worked at Canadian Utilities Limited, including 14 years in a leadership role as vice president. He currently serves as volunteer board chair of both the Edmonton Art Gallery and St. Paul's Foundation.
"Allan brings a perspective of business and community to the task force and I look forward to him getting to work with Betty and Thomas to address the teachers' portion of the unfunded pension liability issue," said Education Minister Ron Liepert. "One of the most critical gifts that we can provide our children is a high quality education and this is only possible with talented teachers in the classroom. We need to recruit and retain these teachers for the benefit of our students and the future."
The terms of reference for the task force are finalized and focus on three main areas: examine options to address the teachers' portion of the pre-1992 unfunded pension liability that provide maximum benefit to taxpayers and teachers; examine options which will support recruitment and retention of teachers; and work towards consensus recommendations. The recommendations from the task force are to be submitted to the Minister by October 31, 2007. The complete terms of reference are available at www.education.gov.ab.ca/teacherspension/.
The pre-1992 teachers' unfunded pension liability is currently $6.4 billion. Prior to 1992, the amounts contributed by both sponsors were insufficient to meet future obligations of the pension. In addition, changing demographics, lower-than-expected investment returns, and changes to pension benefits without an increase in contributions to fund them contributed to this liability. In 1992, the government assumed two-thirds of the liability ($4.3 billion) and the teachers' assumed one-third of the liability. At current rates, the liability will be covered by 2060.
Initiating negotiations on options for a reasonable long-term solution to the teachers' unfunded pension liability issue is one of the initiatives under Premier Ed Stelmach's priority to build a stronger Alberta. Other priorities are to: govern with integrity and transparency, manage growth pressures, improve Albertans' quality of life, and provide safe and secure communities.
