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The province says pulling out of the Canada Pension Plan to create its own pension fund would benefit Albertans. Here’s what to know.
In late September, Alberta Premier Danielle Smith opened a public online consultation on a proposal to withdraw the province from the Canada Pension Plan (CPP). Her announcement was tied to the release of a third-party report that claims, among other things, that Alberta is entitled to 53%, or $334 billion, of the plan’s total assets. Smith contends that Albertans could receive more and pay less with a provincial pension fund.
Yes. According to government documents obtained by Postmedia, the federal government would have difficulty blocking Alberta’s withdrawal from the CPP. Although the federal government is responsible for laws covering old age pensions and other benefits, it cannot overrule a provincial law on the same matter, the documents state.
The Alberta government believes pulling out of the CPP could lead to $5 billion in savings for the province, which it says could be used to boost Alberta seniors’ pension benefits. Its report says Albertans would also save on premiums.
The CPP board has questioned the figures presented in the report and the formulas used to arrive at them. Critics also question the overall feasibility of the proposal, arguing that while Alberta may leave the CPP if it wishes, the province is not entitled to $334 billion in funds, as reported. Many say Alberta’s share is much lower. Alberta’s opposition government has opened its own online consultation to understand where Albertans stand on the issue.
The report suggests that the APP would operate similarly to the Québec Pension Plan (QPP) in Quebec—for example, residents would be able to move throughout Canada without losing their benefits—but there is a considerable difference between the two projects.
Although the QPP is a provincially run pension fund, it was never a part of the CPP; it opted out when the federal fund was established in 1966. If Alberta leaves, it would be the first province to remove itself from the CPP.
The proposal is to have an Alberta Pension Plan (APP), a pension fund that is separate from the CPP and managed provincially rather than federally.
Details about how this would work are scant, but the government documents say the province would have to meet three criteria to go ahead: It would have to give three years’ notice before the change, enact legislation within one year after that, and create a pension plan that’s comparable to the CPP. The documents note it would be difficult to determine if the APP is “comparable” to the CPP, as such details are not clearly laid out in Canadian legislation.
Smith’s plan is built on receiving 53% of the total CPP investment, but since there is no indication that that money will be forthcoming, it’s unclear how the transition would be funded. There are significant costs associated with setting up and administering an investment fund, not to mention implementing new processes for contributions and withdrawals and overhauling Alberta’s tax infrastructure.
Albertans are now in the consultation process for this proposal and they’re encouraged to share their feedback at a public engagement session or online. Afterwards, an engagement panel will present its report to the Alberta government in May of 2024. Smith has promised a referendum on the question is possible in 2025 with an eye to a possible 2027 roll-out.
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If this results in more money less taxes we are totally in favour of CPP coming from the province instead of the federal government. I always thought I was getting less than what I should be getting .
I THINK DANIEL SMITH IS SELFISH AND TRYING TO MAKE A NAME FOR HERSELF! BECAUSE RIGHT NOW OUR PENSION IS FINE AT WHERE WE ARE! CANADIAN PENSION PLAN IS ONE OF THE BEST! DANIEL SMITH TRYING MAKE UNNECESSARY NAME FOR HERSELF! I’M PRAYING THAT WHENEVER THERE IS ANY REFERENDUM, THE PEOPLE OF ALBERTA WILL REJECT HER IDEA!
Leave my CPP where it is now. Forget about Daniel Smiths crazy ideas.
Sound great to me, sign me
I don’t see why any other province should care pay us are fair share bye, not a big deal
I am receiving g .y Canada Pension and without it l would be unable to afford my cost if living ..as far as l am concerned corned Daniel Smith should focus on othervisdues and l do not want her meddling g in my Canada Pension..that l have paid into for years..what is with her focusing on this and not figuring out where all the new people in Alberta are going to live..it’s rediculous..people fighting for a place to live.
Whst brain power woukd keep sending people into this province knowing we are already unable to house the people that are already here…SMITH KEEP YOUR PAWS OFF MY CANADA PENSION BENEFITS..notbto mention that you have no idea whatvis happening in the housing crisis..
Why would anyone in their right mind entrust any government in Alberta with their pension savings.? Just look back at the financial track record of previous conservative governments,Heritage Saving Fund decimated to a shadow of its self by ill planned expenditures like the Natural Resources Rebate of King Klein. The Vencap Capital Fund a thé venture capital fund set up by the Conservatives in 1982 to attract investment in the province. It was sold in 1995. To say both had limited success is an understatement. They were both poorly managed , often under the influence of politics and the self interest of the Conservatives. Why risk your future pension on a promise of attracting short sighted investment. The sole purpose of a pension plan is to have a secured future. Investors will have no interest in the future of any individual Albertan. Why fix what isn’t broken. This is a high risk with a government that has a zero for two track record. What financial comfort is there in that?
G. Be
Canadian CPP is one of the best in the world, and there is no reason to destroy it just because the conservative government of Alberta wants to pull out of the Canadian CPP and have our money to invest in their preferred industries.
I’m wondering if she’s considering the people on CPP disability?
Is it true that the formula that alberta used to come up with $334 billion as the amount they are entitled from CPP act itself? Is it true that the formula was included in the act in 1965 on the request of the Ontario government ?
What would make the Alberta government think it is owed 53% of the CPP? One province, really, give me a break! Ontario and British Columbia have always been have provinces as well. I see corruption and con written all over this. What happened to Alberta’s Heritage Fund? The Alberta conservative government (no matter what its current name) was in too long without adequate opposition. There is no accountability and frankly they better recost their plan at a much lower percentage that is realistic.
This is crazy she has to go smith does
Leave my CCP alone !!!!!!
Leave my Cpp alone. We are seniors and are not working. How in the world are we going to receive alberta pension we didn’t earn in Alberta. Don’t compare alberta withQuebec. They had their own pension probably 50 or more years
As far as l am concerned being a pensioner l absolutely see nothing wrong with Alberta having their own pension fund. As we have all witness the present CPP fund is not managed properly because if it was this fund should be self sufficient at this point.
Hmmmm. I wonder if she consulted with people in the USA, who have advised her on how the Alberta Medical should be run?
We have our own donnie, mtg, rudy, sydney, gaetz, and gym jordan all rolled into 1 Qanon cultess!
Two things: 1. unfortunately the Alberta Government has an abysmal track record of investing – AIMCO, Heritage Savings Trust Fund, etc etc. 2. They’re just not trustworthy: the “engagement” survey never asks nor provides opportunity to state whether I want or don’t want to leave CPP.
Looksk like an APP is already a conclusion for Danielle Smith.
Leave my CPP ALONE!!!
The role of the government of Canada was to administer the pension from contributions made by employees and matched by employers. It is not and never was their money, yet is looked at as their money as can be seen by the calculation on net debt, where it is listed as an asset of the government. It’s already at significant risk! Then look at the abysmal if not negligent returns provided by the federal government administering it and you see utter incompetence. Do your own math, it’s shameful. Then add to their horrible returns the fact that not all monies paid in are paid out due to death. An Alberta pension is the only way forward and can’t happen fast enough.
To time is now to challenge Alberta’s plan by the Federal government and the other provincial governments and not wait to see what Albertains think. After all Albertains elected Smith.
Alberta doesn’t not want to leave the CPP, this is a disaster created by the UCP and Danielle Smith who mostly gave no idea how the CPP works , it’s a golden pension that could never be managed properly with trusting this group with any pension management , if you believe the fairy tale that you will pay less & get paid more buy swamp land instead
Leave our CPP alone!!!
I don’t trust her!
What would this mean (if anything) for people that lived in Alberta (example: I lived and worked there from 1992-2018 (retired) but moved to my home province of Manitoba in 2019.
What does this mean for those already collecting CPP, or CPP disability, or the CPP orphan fund or child of a person on CPP disability?
You can clearly see who is from what province. Maximum return with minimum input.
Alberta has been the work horse of Canada for to long. Its time Alberta takes care of it self.
The only one wanting to leave CPP is Smith to make a name for herself. She said when campaigning she would drop this topic. Her federal boss Pierre P does not agree with it. Why isn’t this dropped if he doesn’t agree. The people never asked for it, so no need to vote on it. The UCP are saying how great it is going to be, more money for everyone and people are believing anything to get more money and defy the federal government . How can you trust this primer when she supported the truckers and any other disruptive activity. Their polls don’t have anyway to say you don’t agree with it, just how it should be implemented like it is going to happen regardless. We as individuals should be able to stay with CPP if we want.
i am not in favor of this. what makes alberta so mubetter than the majority of canada. we are one nation and these isolationist views are exactly and politicians are exploitng peoples this, and other issues for itheir political gain i read all about danielle smith and she learned these technique when she enrolled in a school in the united states and among other things she learned about bow to win elections. and ,by the way, it was a far right school with far right ideas the schools was also attended by mike pence and mitch mcconnell who both have far right beliefs. what canada and all the provinces should be seeking to do is come together for one common goal and not divide itself from each other. after all,just look at that politicians have done in the united states.they are so divided that they have trouble coming to an agreement in order to run thier government. danielle smith is dangerous for not only alberta and canada as a whole.
Why is it that some know what everyone else thinks? I have read the replies and some are saying that ‘no one’ wants this…. That alone is wrong!!!
Speak only for yourself!!! Pierre P. may be Danielle Smith’s boss and disagree with what she is proposing but why would you stop there and not ask yourself why? Could it be that Pierre P. cares more about what Justin T. thinks than what is best for Alberta?? That is only one question that I have asked myself, there are many more to come.
I have not made my own decision, as I need to do more research of my own but I do need more knowledge before making a decision on such a big life changing move.
Do your own research and just because you hear someone say something, regardless of who is saying it, don’t believe it without digging deep for the real truth..
”could be used to increase payments to seniors” COULD but not that it would be used. We are CANADIANS 1st and ALBERTANS second. Leave the money with the Federal Government and stop trying to SEP ERATE us from the rest of the Country, One Canada One Pension Plan.
Over the past 26 years Alberta and Norway have produced about the same amount of oil. Both have invested their royalties in sovereign wealth funds for the benefit of their citizens. Norway’s fund is now 70 times greater than Alberta’s. It is worth $1.48 Trillion compared to Alberta’s at $ 21.2 Billion. Now, in the face of such remarkable incompetence at managing Albertan’s wealth, the Alberta government wants to opt out of the CPP and take about $330 Billion of the CPP with it. It is not clear why Canadians, and particularly Albertans, would ever consider such an absurd proposal.
The UCP and Smith are not going to be able to keep their hands off Alberta’s pensioner’s money. They don’t care about retirees. They don’t care about elders. All they care about is themselves. I want to see at least three independent reports from three different sources before I even begin to consider this stupid idea. I wonder WHY they are pushing so hard for this. They’ve cared nothing for Alberta before, for the rights of individuals to diversification to education to health care. Mark my words – this is a horrible, horrible mistake.
I am a senior and quite happy the way my pensions are taken care of by the Federal Government. I do not trust Daniel Smith and her government. There’s too much money involved in this transaction. I am NO for this and hope that Albertans vote the same. Leave the CPP alone.
Is she considering the people on CPP Disability? Would it remain the same?
1. I want to see how Alberta is entitled to 53% of CPP’s assets. Did Albertans make 53% of contributions? I doubt it.
2. How is an Alberta Pension Plan going to achieve cost savings over what CPPIB spends? Show me.
3. LifeWorks was paid by Alberta for the report. LifeWorks was not a disinterested party, and is sucking up to Alberta politicians.
4. If Alberta wishes to establish a replacement provincial pension plan, why are they looking at grabbing the majority of CPP? Why don’t they establish a new pension plan from scratch? As of a certain date Albertans would start contributing to that, and for a generation, retiring Albertans would be paid both from the Alberta plan and CPP – as years progress, retirees would receive a rising entitlement from an APP and a declining entitlement from CPP.
Based on some research, here are some of the potential advantages and disadvantages of Alberta moving from the Canadian Pension Plan (CPP) to an Alberta Pension Plan (APP):
Advantages ( quoted by Premier and UCP Party) :
Lower Contributions: The Alberta government believes that an APP could lead to $5 billion in savings for the province, which could be used to boost Alberta seniors’ pension benefits. The report estimates that Albertans could save over $5 billion in the first year alone by moving from the CPP to an APP.
Higher Benefits: The $5 billion in savings realized by an Alberta Pension Plan could be used to boost the annual pension benefits for Alberta seniors. This could include a significant increase to each senior’s monthly pension payment, or even a $5,000 – $10,000 bonus payment at retirement.
More Control: The proposal is to have an Alberta Pension Plan (APP), a pension fund that is separate from the CPP and managed provincially rather than federally.
Disadvantages:
Feasibility Concerns: Critics question the overall feasibility of the proposal, arguing that while Alberta may leave the CPP if it wishes, the province is not entitled to $334 billion in funds, as reported. Many say Alberta’s share is much lower.
Risk of Instability: A small rate reduction might be possible in the short term thanks to Alberta’s economy and relatively favorable demographics. But what’s more important is the stability of contribution revenues.
Public Opposition: According to the first major poll conducted since Smith began her persuasion pitch to remove Alberta from CPP, the proposal remains about as widely opposed as it was before.
Recommendation: While the APP presents potential benefits such as lower contributions and higher benefits, it also comes with significant risks and uncertainties. It’s crucial to consider the long-term stability of the pension plan and the feasibility of the proposal. Given the current public opposition and the potential risks involved, it might be prudent to conduct further studies and engage in more extensive public consultation before making a decision. Ultimately, the decision should be made in the best interest of all Albertans.
Seems like a lot of people like smoke blown up there
What government is out to make you rich ?
If I’m not mistaken I believe you have to live for at least 4 years of collecting cpp to get what you paid into it ,then it comes out of government funds
We have an Alberta government that’s got no experience in dealing with our pension that we’ve paid into and if they screw up that’s it
I doubt they can balance there own bank accounts
All I’ve heard is ,could be this and could be that,nothing concrete
Cpp always inform you
I want Smith to leave our CPP where it is.
Capitalism is class war between the rich and poor — highly detrimental to civilized society, but is camouflaged by the assets the powerful rich countries obtained by the poor countries — and gave us a fairly high standard of living. However, its all based on propaganda and unfounded evidence.
The ruling class in recognizing the coming end of capitalist exploitation as in the past, they are now initiating feudalism — a system of indentured debt that existed for a thousand years before capitalism. Now however, with another great depression coming, the process is to increase debt and finance — ideally of destitute people accepting “indentured servitude” from the feudal rentier of shelter, food and other needs for their survival. This is in exchange for their labor and other obligations, just as with the serfs in the past. However, more destitute people are needed, and Sharlene Harper’s proposal is to increase poverty so the new feudalism can become the next step in development of societies — a society of stagnant capitalism and a rentier system of indentured servitude.
J.J. Rousso, author, Capitalism, World’s Greatest Fraud, Fascism or Socialism Next
I don’t care what political party you are. But this is something all Albertans need to pay attention to. I’m sorry but if people are so blindly trusting something that will effective no only yourself but others and future generations. Start demanding more. Danielle Smith has displayed she is more a dictator. #1 Puts out a survey that doesn’t get the opinion of the Albertans she works for. Not made just for Alberta residents. #2 No plan on how the APP will be run, not a clue of the factual money, when you listen to with words they use “potentially” that is not good enough for me. #3 Putting a bill through that gives her the final say if we are leaving the cpp, regardless if they hold a referendum. ( Here’s your sign if you need one) #5 The CPP cannot be touched by the federal or provincial governments, the company that invests it are investors that handle that kind of money. It was created for Canadians not for the government. Don’t be so easily fooled and use what common sense you have. Smith can keep her hands off my CPP
I think it is sick that the federal government can continue to raise CPP contributions every year. Now even a second limit to the CPP. They make terrible investments and continue to lose money or embezzle it whichever takes place first. The liberals have stolen so much from the people. Our own leader and his scandals should be put in prison. Any normal person in this country would of all ready been in prison. I’m 9 years from retirement and now a second ceiling to the pension to promise me more money. Guaranteed it will never increase in value. It’s just another way to take from the middle class to be able to pay the pensions of the retired people because the federal government has spent it all or stole it you decide. I’m all for the APP how can they make it any worse. Liberals need to go and quick. Can not believe our prime Minister can see everything around him and the unrest in the people and chose to stay as our leader. He is probably the worst prime Minister that canada has ever had. Only reason I can see he stays is to steal as much as he can from this country before its actually time to go. Canada is the laughing stock of the world because of him and dragon lady Freeland.