Re: Letter: Perhaps an APP would not be too irrational after all
I don’t think the proposal to leave the CPP was irrational, but upon reflection I think it is a bad idea.
The writer points out facts that are supposed to reassure us.
For example, saying that legislation locks in a referendum. The legislation does guarantee a referendum, but the government refused to make it binding. They are not required by law to follow the results.
We are told that the contributions will be the same or less and the benefits the same or greater. This is a hollow promise.
With the possibility of poor investment strategies, a smaller pool of money to invest than the CPP and no guarantee that demographics will remain the same in the future, there is no way to guarantee this unless the government is going to bail out the APP if it doesn’t perform as well as promised.
The premier has mused about directing an APP to invest more in Alberta. Would an APP remain independent, doing what is best for pensioners or would the government get involved in directing investments?
The CPP has a proven track record, a large pool of investments making it safer than a smaller pool.
All individual Canadians, wherever they live, are treated exactly the same according to individual contributions. Those Albertans with higher pensionable earnings will have higher pensions on retirement. Higher employment means more of us will have CPP on retirement.
We are told the fund would assume all liabilities for those receiving CPP and living in Alberta. According to lifeworks, the act also says Alberta would be liable for those who have contributed while working in Alberta.
That includes the fly in oil patch workers, temporary workers and those who moved or retired elsewhere.
When we are told of Alberta’s younger population, we don’t include those who retired elsewhere and are listed under the province or country they currently reside in. An APP would be liable for those people. When you include them, I wonder if our demographics are as rosy as stated.
I am also curious about the refusal to release the long form answers to the APP survey, information that belongs to Albertans, that the government is required to release and that our premier promised some time ago would be released. 93,000 Albertans shared their views.
What in those long form answers are they reluctant to let us see? They said they wanted Albertans to share their views, but now won’t let us know what they are? Are we to assume they do not support an APP? Are they afraid those on the fence might be swayed by the rationales in the long form comments?
Media reported FOIP documents that say the survey information was located in 15 minutes but not released because “it might have an impact on the ministry”. Huh?
So while the idea may not have been irrational, the so-called facts presented to persuade me that an APP would be far superior to the CPP are what I question. Answers to date have me convinced the CPP is a safer and more reliable option not just for me as an Albertan but for all Canadians.
S.M. Hogan,
Edmonton
