Feds want 'cash cow' Alberta to stay in Canada Pension Plan
Alberta tabled a Pension Plan (APP) report last summer, outlining billions in annual savings. However, without an agreed-upon CPP asset transfer, a referendum is unlikely.
Canada's chief actuary would not say how much Albertans should get for leaving the Canada Pension Plan (CPP), according to media reports. The province has been waiting close to a year for the figure.
"We received their interpretation of the legislation, but it did not contain a number or even a formula for calculating a number," reads an emailed statement from Alberta’s Finance Ministry.
Alberta tabled a Pension Plan (APP) report last summer, outlining billions in annual savings. However, without an agreed-upon asset transfer, a referendum on the contentious issue may not come to fruition.
The premier told the Canadian Press that getting a firm number "does matter," as it would determine whether Alberta leaves the CPP or not.
"If it is an amount that doesn’t allow for us to significantly reduce premiums or give a rebate to existing pensioners, then Albertans might decide it isn’t worth it," Smith said.
"If it allows for us to do both – increase the amount that pensioners can get as well as reduce contributions significantly – they might decide otherwise."
Based on the report’s $334-billion figure, Albertans would save $5 billion in the first year alone. Finance Minister Nate Horner put yearly savings of $1,425 for workers and $2,850 for self-employed workers.
Alberta’s younger population, high employment rates and higher pensionable earnings suggest the province is getting a raw deal under the national plan. It was not clear whether a firm estimate would be forthcoming from the federal government, reported the Epoch Times.
Alberta’s Finance Ministry said a review of the chief actuary’s report is ongoing, tabling any conversation of a referendum for a later date.
Experts, including economists, other provincial premiers, and the CPP Investment Board have put the figure much lower. The province paused consultations until the chief actuary could provide figures on the asset transfer.
The CPP Investment Board puts the value at close to $100 billion.
A recent Angus Reid poll says the size of that transfer drove skepticism in the province. Among Albertans, 48% want to remain in the CPP with 36% in favour of the APP. One in five (18%) are undecided as of writing.
The proposal garnered less than one-third of support from Québec (32%) and Saskatchewan (31%), whereas more than half of Canadians elsewhere opposed the idea. The former has operated its own pension plan since 1966.
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
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COMMENTS
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Lynne Osborne commented 2024-12-21 23:18:09 -0500One easy way to figure what Alberta’s share of the plan would be, a baseline anyway, would be to calculate what every working and retirement (dead and alive) resident of Alberta has paid into the plan, times two for the employer contribution then factor in interest over the years on money “invested” minus payouts. Include the dearly departed as a lot of them got nothing from their years of contributions. Everyone who legally worked in Canada and now lived in Alberta has submitted annual income tax returns with CPP numbers included in it. What is the total number? CPP used to calculate what each Canadian contributed and sent each taxpayer and annual report. They stopped doing this a few years back, for some reason, so the numbers are in a data base. -
Bernhard Jatzeck commented 2024-12-20 19:51:19 -0500Alberta was always considered a cash cow to be milked by the east, even after it entered Confederation. Why stop now?
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Bruce Atchison commented 2024-12-20 18:17:34 -0500Albertans need two things. First, we need our own pension plan. Secondly, we need the fear mongering media and NDP to shut up. I’m tired of financing duds like Quebec and Ottawa’s reckless spending. Are you tired too?
