AUPE Pensions Update: January 2006

The Labour Coalition on Pensions

The Labour Coalition on Pensions is an alliance of unions whose members participate in the Alberta Local Authorities Pension Plan (LAPP). The Coalition monitors the performance of the plan, the LAPP Board and government management of the plan. The coalition advocates for improvements to the LAPP, and actively opposes any moves to reduce pension benefits.

In the summer of 2005, the Coalition was approached by representatives of the Alberta Society for Pension Reform (ASPR), an advocacy group pushing for changes to the LAPP, the Public Service Pension Plan, and the Alberta Teachers Retirement Fund. The Society asked the Coalition to give financial and other support to a lawsuit they have launched against, among others, the Government of Alberta and the LAPP Employers.

The lawsuit raises issues that are complicated and important. The Coalition was obliged to exercise due diligence on behalf of its members, and to do a careful examination of the issues and the legal merits of the suit. In performing this due diligence, the Coalition analyzed the Statement of Claim from the suit and documentation submitted by the Society. The Coalition sought legal advice from a law firm recognized for its experience with pension matters.

At the end of this process, the unions making up the Coalition voted unanimously not to support the Society’s lawsuit. While there were many reasons for this decision, they can be summed up as follows:

1. While the Society’s literature and the lawsuit raise a number of interesting arguments about the structure and history of the LAPP, we disagree fundamentally with parts of the Society’s analysis of the plan.

2. The Coalition believes there are some serious legal problems with the lawsuit, and thinks it is unlikely to succeed.

3. The Coalition believes that there are more important issues to be addressed, including potential threats to the benefits currently offered by the LAPP, and the Government’s continued control of a plan paid for entirely by members and the Employers.

The members of the Labour Coalition on Pensions take these matters very seriously. In a letter to members, the Coalition says: “While we welcome the actions of the ASPR in lobbying for improved pensions, we do not agree with all their positions, nor do we believe that this lawsuit is well-advised.”

For a more detailed explanation of the Coalition’s objections, please see the document entitled “Questions and Answers Regarding the ASPR Lawsuit” prepared by our Coalition.

Click here for a link to Questions and Answers Regarding the ASPR Lawsuit.