Task force to address teachers’ portion of unfunded pension proceeds
Edmonton – Education Minister Ron Liepert expressed his disappointment in the Alberta Teachers' Association's (ATA) decision not to participate as a member of the task force established to seek long term solutions to the teachers' portion of the pre-1992 unfunded liability issue which currently sits at $2.1 billion.On April 19, Liepert announced two provincial initiatives to address the teachers' portion of the unfunded pension liability: establish a task force with representation from the public, government and teachers and $25 million to address teacher contributions to the pre-1992 pension liability on a pro-rated basis for one year, reflecting the fact that new entrants to the profession are least able to contribute to the teachers' portion of the pre-1992 liability.
“This issue took decades to create and will not be resolved overnight. Now is the time to move forward and plan for the future for the sake of our teachers and students,” stated Liepert. “We are talking about a $2.1 billion liability - equivalent to 36% of this year's education budget - and I have a responsibility to act on this issue in a completely open manner on behalf of the taxpayers of Alberta.”
Since it was established in the late 1930s, the teachers' pension fund has been underfunded by its two primary sponsors - the ATA and the provincial government. In 1992, the Government of Alberta accepted responsibility for two-thirds of the liability (now $4.3 billion), while teachers accepted responsibility for one-third (now $2.1 billion).
“The task force is a responsible first step in the negotiation process and provides an opportunity for both stakeholders and the general public - particularly Alberta taxpayers - to provide their perspectives that will influence recommendations to the government,” said Liepert. “The government is prepared to address this long-standing issue which both the government and ATA agree is impacting recruitment and retention of teachers.”
Betty Evans of Calgary , a former principal and educator, was appointed task force chair and Edmonton-Castle Downs MLA, Thomas Lukaszuk will represent the government on the task force which will provide recommendations to the Minister of Education by October 31, 2007.
Liepert added, “The work of the task force will proceed.”
Initiating negotiations on options for a reasonable long-term solution to the teachers' unfunded pension liability issue is one of the initiatives under Premier 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.
