Government and the Alberta Teachers’ Association working together on solution to the teachers’ unfunded pension liability
Edmonton – Premier Ed Stelmach is accelerating discussions with the Alberta Teachers' Association (ATA) to find a lasting solution to the teachers' unfunded pension liability.“If we are going to find a long-term solution to this issue, we need the Alberta Teachers' Association at the table. We have heard the ATA's concerns and are responding,” said Premier Stelmach. “As a demonstration of government's commitment and a sign of good faith, we will be working with the ATA on how the $25 million previously announced could best be distributed.”
Government and the ATA will continue to work together to find a lasting solution to this issue. The work of the Task Force will continue, with options to be submitted to the Education Minister by October 31, 2007.
“I have consistently said that my primary goal is to find a solution to the teachers' unfunded pension liability that meets the needs of both Alberta's teachers and taxpayers. Education and ATA officials have held several meetings to find common agreement on issues and those meetings will continue throughout the summer,” said Education Minister Ron Liepert. “The Task Force will continue its work of ensuring that both education stakeholders and the general public are also able to share their perspectives on this issue.”
“During his leadership campaign, the Premier had promised to resolve the unfunded pension liability issue. What he has announced is a good step towards achieving that goal,” said Frank Bruseker, ATA President. “Teachers look forward to achieving a long-term, lasting solution to this problem.”
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 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 discussions 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.
