ARTA Pension Policies and Directions

ARTA Pension Committee
by Ken Brown

The Pension Committee is an ARTA standing committee with retired teacher representation from around the province. The committee meets four times a year, usually in Edmonton, and usually the day before the Board of Directors meetings. The committee chairman reports to the Board.  Most branches have a pension representative with an interest in and knowledge of teachers' pensions. The committee worked hard to prepare a "wish list", for want of a better term, on issues the ATA could negotiate on our behalf during the unfunded liability discussions with the government representatives.  We were shut out of those meetings and not one of our items was mentioned in the Memorandum of Agreement between the ATA and the Government. Subsequently, ARTA asked for, and received, a meeting with Hon. Dave Hancock, Minister of Education, and presented a brief on pension issues to him. The four major issues, in no particular order of importance, included representation, rollbacks, cost of living adjustment (COLA) and a bridging clause. Allow me to explain briefly each of these issues and let you Know what you can do to help us achieve them.

Representation

Currently there are 22,899 retired teachers receiving an Alberta teachers' pension. They range in age from 55 to 102. Still, we have no voice at the negotiating table. The ATA represents us but none of the ongoing discussions take into account the concerns of those of us who are retired and encountering difficulties.

We need ARTA's officers to speak for us since each of them faces the same day-to-day pension issues that we do. The ATA represents only the active teaching force in the province. There are no costs attached to this request as ARTA would pay all of the expenses of our representatives. There seems little use to speak of representation when the two parties have only met twice since 1992 for formal discussions. ARTA advocates that an annual meeting take place with all parties. Issues concerning pensions and retired teachers arise more often than every 16 years.

Cost of Living Adjustment (COLA)

Currently our COLA payments are calculated on the following formula:

• Pre-1992 service x 0.6 x Alberta Consumer Price Index (ACPI)
• Post-1992 service x 0.7 x ACPI

The extra 0.1 in the post-1992 service is being paid by active teachers, not by the government. Other provinces provide a higher COLA payment to their teachers. We are asking the government to look at ways of improving the COLA payment so that retirees can keep up with the rising costs of goods and services. Under the current Memorandum of Agreement, neither the ATA nor the government can negotiate any money issues for the next five years - another reason for representation!

Rollbacks

Those of us who were still teaching between 1993 and 1998 had our salaries rolled back five percent. The then premier, Ralph Klein,promised it would be paid back when Alberta rose from the ashes of debt and destruction. Those times did return. However, anyone who retired in those years had their pensions calculated on a lower five will always be less. When others attained the rollback in later years, these pensioners did not. ARTA is willing to work with the government to find an equitable solution to this problem.

A Bridging Clause

This process blends pension income with Canada Pension income for those teachers who retire between the ages of 55 and 64 with the full 85 index (age plus years of service). Historically teachers' pensions were based on 35 years of service and age 65 an index of 100. The pension calculation was straightforward - two percent per year of service x 35 years = 70 percent on the best five year average. Over the years, the index of years of service and age has dropped to 85 with no other adjustments. A bridging clause would give teachers with 35 years of service, but less than age 65, a full two-year pension. The "bridge" would be in effect from age 55 to any age up to 65. At age 65 the Canada Pension payments would start and the teachers' pension payment would be reduced accordingly. Alberta and Manitoba are the only two provinces that don't have a bridging clause in effect today.

What Can We Do?

One or more of these four issues affect each Alberta retired teacher in some way. All of us can make choices and become proactive when it comes to issues affecting our pension. We have some of our older colleagues (older than 85, for example) whose pension income is very meagre. We need a voice! Find out about pension issues, talk about them at your daily or weekly gatherings, attend your branch functions, invite your branch pension representative to speak to your group, invite your MLA to meet with you and explain to him or her about your needs as retired Alberta teachers or join a political party and volunteer in the constituency office. Spread the word! Become involved!

Branch Pension Representatives

Each branch society of the Alberta Retired Teachers' Association (ARTA) is invited to have a representative to serve as Branch Pension Representative (BPR).  The main responsibility of the BPR is to promote communication regarding issues or pension related matters with its membership, with active teachers and with the general public.

The major BPR role is to inform their local branch and teachers and aid them in participating in issues concerning their present or future retirement. In this regard the BPR will become familiar with:

Alberta Retired Teachers' Association (ARTA) pension policies.

• major pension issues and retirees concerns.
• he history of teacher pensions in Alberta.
• and be aware of changes to the pension plan.

They will be familiar with the pension plan in order to talk to teachers, who are contemplating retirement regarding the following concerns:

• the process involved to roll over from salary to pension.
• the options and terminology of choices available.
• the need to seek information from financial planners. accountants, pension seminars, ARTA website, Alberta Teachers' Association (ATA) and Alberta Teachers' Retirement Fund (ATRF).

This information may be shared with teachers through:

• local branch meetings,
• convention sessions and workshops,
• staff meetings,
• ATA local council meetings,
• ATA seminars,
• newsletters,
• small coffee groups,
• and specific pension meetings.

The BPR will liaison with the ARTA Pension Committee to share pension issues:

• with the general public,
• government officials,
• and the media.

The information may be shared through:

• letters to editors,
• discussion with MLA's,
• media,
• newsletters,
• and seniors' magazines.

Information sharing may occur at meetings with:

• government officials,
• media representatives,
• parents,
• local interest groups,
• and the public during social activities.

Participants in all relevant functions may be encouraged to write original letters to government officials and letters to editors.

It is important to network with teachers who have political connections. Political action directions, to be taken by the Alberta Retired Teachers Association, will be generated by the board and communicated to all committees and branch representatives by the president of ARTA.

In the process of disseminating information BPR's will receive feedback about specified issues as well as participants' issues and concerns. This feedback should be shared and relevant follow-up planned by ARTA.

Created and revised by ARTA  BPR's and Pension Committee, May 2009