Quebec pensions safe despite Caisse losses: minister

The Charest government is trying to reassure Quebecers thatmassive losses at the province's pension fund manager will not affect retirees or force a hike in pension contributions.

The Caisse de dpt et placement du Qubec suffered the worst investment losses in its history in 2008, losing $39.8 billion or one-quarter of the fund's total assets, which as of the end of last year sat at $120.1 billion.

The Caisse manages the Quebec Pension Plan,the Quebec equivalent of the Canadian Pension Plan.

Quebec's minister responsible for the QPP, Sam Hamad, said Thursday that Quebecers need not worry about the security of their public pensions.

"They will receive their cheques as usual,"Hamad said at a Liberal caucus meeting in Lvis, Que.

He added that public pension contributions will not go up, at least not for now.

Pierre Plamondon,chief actuary of the QPP, said public pensions are protected because of a long-term strategy adopted several years ago.

The QPP has built up a substantial surplus as a result, said Plamondon.

"We have a long-term perspective. So, we can stand negative returns for [a number of] years. We have time to recover from the loss," he said.

Debate heats up over public hearings

Meanwhile, the Liberals and the Opposition Parti Qubcois are locking horns over who will be asked to testify at special hearings on the Caisse's performance.

The government announced Wednesday that top officials of the pension fund manager will be called to testify before a special legislative committee. No date has been set.

'There is a measure of partisan politics that needs to be put aside on this issue.' Jacques Dupuis, Liberal house leader

FormerCEO Hnri-Paul Rousseau, who was in charge whenmany ofthestrategic investment decisions were made,said he will appear if invited.

However,Premier Jean Charest and Finance Minister Monique Jrme-Forget have said they will not testify, despite calls from the Opposition.

Liberal House Leader Jacques Dupuis said the government does not want to politicize the issue.

"There is a measure of partisan politics that needs to be put aside on this issue," said Dupuis.

However, PQ officials are demanding Charest appear, accusing him of concealing his knowledge of the weakening position at the Caisse during last fall's election campaign.

Caisse executives attribute the 2008 financial losses to a number of factors, among them a decision to invest heavily in asset-backed commercial paper that was almost obliterated by the U.S. subprime housing crisis.

With the market for the short-term debt frozen, ABCP accounted for $4 billion of the Caisse's total losses for the year.