Re: Letter: APP push an egotistic-driven greed for power and Letter: Premier not listening to Albertans
Both of these letter writers seem to have the idea that leaving the Canadian Pension Plan and having an Alberta Pension Plan is somehow an “egotistic-driven greed for power” (Florence) and “ignoring the wishes of most Albertans on this matter.” (Thatcher)
Mr. Thatcher even states that, “Danielle Smith is not listening, just like she has not been listening to those folks who oppose the creation of an Alberta pension plan to replace CPP…”
I have to question Mr. Florence on how getting Albertans a better deal than we have had from Ottawa is an “egotistic-driven greed for power” when Premier Smith is doing this for all Albertans, including him.
I also question Mr. Thatcher when he says, “most Albertans.” Has he questioned enough Albertans to know that most are against the APP?
I think if both men chose to listen to some well researched information about the APP, they might have a change in thinking. Have either of them listened to any discussion of the positive aspects of an APP?
There have been at least two government run town hall meetings, accessible by phone or internet, just so Albertans can have their say in this matter. In my opinion, this shows that Premier Smith is, indeed, trying to listen to the wishes of all Albertans.
By the time this prints there will also have been four independent town hall meetings, offered by Project Confederation, accessible on the internet, presenting information about the APP. My take away from a Saturday Project Confederation town hall, supplemented with my own research, is below:
The CPP, a pay as you go retirement income system, was implemented on January 1, 1966. All provinces signed the contract with the federal government, accepting the terms set out, except Quebec which implemented the Quebec Pension Plan. Section 94A of the Constitution gives provincial jurisdiction to pension plans but the Canada Pension Plan Act sets out that while provinces may opt out of the CPP they must offer a comparable plan, meaning that the provincial plan must have at least the same benefits.
In May 2020, the Fair Deal Panel submitted a report to the Alberta government, recommending the government create a detailed plan for an Alberta Pension Plan, including withdrawal from the CPP. They also recommended that Albertans have the opportunity to vote for or against the plan, via a referendum.
The government hired human resources services and technology company, LifeWorks, then Morneau Shepell, an independent firm, to explore the benefits and risks, including the “actuarial, economic, legal, and technical information regarding the establishment and ongoing operation of an APP.” Travis Toews called LifeWorks “quite possibly the most credible HR and pension analytics firm.”
Section 113 of the Canada Pension Plan Act outlines the formula used to determine asset reassignment from the CPP to any prospective provincial pension plan. The $334 billion they estimated as the asset transfer from CPP to APP was calculated using this blueprint (total contributions from Albertans, plus the interest owed, minus the pension benefits paid out and minus administrative costs).
Alberta, due to its specific demographics (younger population, only 10 per cent of the retirees collecting benefits from the CPP, availability of higher paying jobs) has paid a significantly higher share of the contributions into CPP every year since its inception. Albertans are heavily subsidizing the CPP.
An APP would mean that, if the contributions stay the same as they are in the CPP, more money goes into the pockets of Albertans because we are no longer subsidizing pensions in the rest of Canada.
There is no doubt there must be safeguards in place to even consider moving to a provincial pension plan. The Canada Pension Plan Investment Board (CPPIB) is set up so there is no government interference in the decisions made around investments. One option for management and administration of an APP would be to have the CPPIB do it. If, alternatively, an Alberta Pension Plan Investment Board is created, they must have the same safety measures in place.
The Canada Pension Plan Act gives every province the right to leave the CPP, as long as it can provide at least the same level of benefits. The government of Alberta has provided, and will continue to provide, opportunities for Albertans to hear about, and give their opinions and thoughts, an APP.
How then is this an “egotistic-driven greed for power” and “ignoring the wishes of most Albertans”?
Deanne Trewin,
Didsbury
