The Government of Manitoba wants to cut the amount of money paid to investment managers who handle public sector pensions, by merging management services.
Premier Pallister stated that public servant pensions are operating in silos that result in lower returns for investors. He is challenging the managers of those pensions to work together to lower the fees being paid.
“It’s an enormous amount of money every year, and pension plan managers will appreciate having a better and more consistent degree of transparency,” said Pallister.
Pallister estimates that the proposed move could mean $200 million more in annual returns that will ensure that the funds remain strong.
The Premier swore that the move wasn’t trying to force everyone to have the same pension plan. He said it was about respecting the different divisions among pension plans and having public pension funds becoming “better and smarter shoppers” when they invest.
He went on to say that the government will be meeting with pension fund managers soon. The managers have been told to report back to the province with a joint recommendation by March.
Alberta, B.C., Ontario, and Nova Scotia have merged aspects of their public sector pension plans
