Alberta introduced new legislation on Tuesday that would prevent public sector pension plans from suing the Alberta Investment Management Corp. over losses from a trading strategy that failed in 2020.
Three public sector pension plans have been seeking to recover roughly $1.3 billion through arbitration after AIMCo lost $2.1 billion on a volatility trading approach, CBC News reported. A 2023 court decision determined that both AIMCo and the provincial government would be responsible for covering the losses if the pension plans prevailed. Finance Minister Nate Horner said the legislation shields taxpayers because AIMCo lacks reserves to pay potential claims.
NDP finance critic Court Ellingson questioned who would ultimately cover the pension losses if not AIMCo, suggesting workers might face higher premiums to ensure retirement benefits remain intact.
The Canadian Press reported the bill would also safeguard companies from legal action when they make honest disclosures about climate-related matters, with the Alberta Securities Commission evaluating each case.
The Financial Statutes Amendment Act includes several other changes:
A new Alberta Disability Assistance Program allowing people with disabilities to earn the country's highest employment income while maintaining benefits
Enhanced powers for the Alberta Securities Commission to address misleading financial information circulating online
Penalties for purchasing, storing or selling illegal tobacco
Modernized guardianship and trusteeship laws
A levy on large data centres
Increased funding limits for the Alberta Heroes' Fund supporting first responders
