Alberta budget includes changes to public pensions, expanded biosimilars initiative
The Alberta Teachers’ Retirement Fund Board will transfer all of its funds to the Alberta Investment Management Corp., according to the province’s latest budget.
The ATRF board, which administers pensions for all teachers in Alberta school jurisdictions and charter schools, said in a press release it was only made aware of the change when the budget was released late on Thursday afternoon.
“The ATRF board and management have a number of questions and are in the process of seeking information and answers to those questions,” the board said. “What we do know is that our commitment to plan members and employees is our utmost priority. To this end, we’ll continue to provide the superior investment management and service delivery our members have come to expect from ATRF.”
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The Workers’ Compensation Board and the Alberta Health Services will also be expected to transfer their funds to the AIMCo to reduce redundant administration.
“To build a ‘made in Alberta’ portfolio for healthy public investment, the volume of funds invested must be big enough to support optimum earnings and minimize costs,” the budget said.
The government will also reduce employer contributions for the Management Employees Pension Plan, which administers the pensions of many public sector employees, including those of the Alberta Energy Regulator, Alberta Pension Services Corp., the Government of Alberta, the Local Authorities Pension Plan Corp. and the Workers’ Compensation Board. The reductions are expected to save $65 million over the next four years. “This will not affect benefits but will reduce the costs for government contributions,” noted the budget.
In drug news, the provincial government said it plans to expand its biosimilars initiative and the maximum allowable cost pricing rules “to limit drug benefit coverage to lower-cost alternatives that are clinically appropriate,” though it did not clarify what actions it will take.
Read: B.C. government says expanding biosimilars will save nearly $100 million over three years