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Report finds Alberta deserves more than half CPP assets if it exits program

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A report commissioned by the Alberta government estimates that the province would be entitled to more than half of the Canada Pension Plan’s assets if it left the national retirement savings program and went it alone.

A third-party report compiled by consultant Lifeworks released Thursday calculated that if Alberta gives the required three-year notice to quit the CPP next year, it would be entitled to $334 billion, or about 53 percent, of the national pension plan in 2027.

Alberta will be the first province to quit CPP; Quebec never joined when it was founded in 1965.

Click to play video: 'Should Alberta opt out of the CPP and launch its own version?'

Should Alberta opt out of the CPP and launch its own version of it?

Finance Minister Nate Horner said that with Alberta’s young workforce and growing economy, the province has no choice but to let residents choose whether to have Alberta Pension Plan.

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“We have a responsibility to present these findings to Albertans and gather their feedback. Albertans will make the final decision on where we go from here. This is your pension, your retirement and your future,” Horner said. in a statement.

He said Alberta’s plan could save residents $5 billion in the first year.

Going it alone on pensions is a plan by former United Conservative premier Jason Kenney to fight for a “fair deal” in Ottawa. It also includes a potential Alberta police force and tax revenue agency.

Click to play video: 'Alberta government continues to explore exiting CPP'

The Alberta government continues to review leaving the CPP

The report estimates that setting up the plan in Alberta would cost between $100 million and $1 billion, depending on how much the province piggybacks on CPP mechanisms.

The cost of implementing the investment arm of a plan in Alberta would be another $75 million to $1.2 billion, again depending on how much the province leverages existing structures and expertise.

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Premier Danielle Smith, along with Horner and panel chair Jim Dinning, released the report at a news conference in Calgary on Thursday.

Smith said that regardless of the report’s conclusions, Albertans have the final say on whether to abandon the CPP in a referendum.

The provincial government says Albertans will be able to review an independent report on the potential creation of the Alberta Pension Plan before the province-wide engagement.

More to come.

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Albertans to vote on daylight saving time, fall equalization; pension and police TBA

© 2023 The Canadian Press


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