EDMONTON: In its submission to the Task Force on Teachers' Unfunded Pension Liability, the Canadian Taxpayers Federation (CTF) is pointing out if taxpayers agree to take over the teachers' portion ($2.1-billion) of their unfunded pension liability it will cost the average Alberta family of four an additional $2,400.
CTF-Alberta director Scott Hennig presented the report this morning in a closed-door meeting with the members of the Task Force. The report, entitled "Chalking up a new debt for taxpayers " calls on the Task Force to urge the government to reject any offer from the Alberta Teachers' Association (ATA) that does not benefit taxpayers.
"The ATA has asked the taxpayers to take over their $2.1-billion debt, but has yet to offer anything in return," said Hennig. "That's the equivalent to about $600 per man, woman and child in Alberta or $2,400 per family of four. The government has a duty to reject any offer from the ATA not giving Alberta families at least that much in return."
The CTF has also recommended the Task Force not consider labour peace as a negotiating tool.
"Historically, teacher strikes are few and far between in Alberta, so the biggest beneficiaries of labour peace are politicians," continued Hennig. "Plus, if the government is concerned about teacher strikes interfering with the education of Alberta students, they can do what 37 of the 50 US states have done and ban them."
The CTF further recommended the Task Force investigate the benefits of pension reform for new teachers from a "defined-benefit" pension plan to a "defined-contribution" pension plan.
"The current 'defined-benefit' plan does not offer stability, predictability and assurance of no future tax increases to cover new unfunded liabilities," stated Hennig.
Lastly, the CTF has recommended the Alberta government require a full public vote prior to signing any new agreement.
"If it's going to cost taxpayers money, they should have the final say, especially considering the enormity of this potential expense," concluded Hennig.
Copies of the CTF submission can be found on-line at: Chalking up a new debt for taxpayers or by contacting the Alberta office at 1-800-661-0187.
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