There have been a number of letters in The Albertan, criticizing the UCP government of Alberta and Premier Danielle Smith, in particular, for introducing the possibility of an Alberta Pension Plan.
It would be very informative for the writer(s) of these letters to visit www.albertapensionplan.ca.
Allow me to point out a few facts:
1. Under the federal Canada Pension Plan Act, Alberta can withdraw from the CPP by giving written notice it intends to set-up its own provincial pension plan. That plan must meet three conditions:
• Provide benefits which are at least as good as the benefits provided by CPP.
• Assume all liabilities for CPP members in Alberta.
• Be in place by the start of the third year after notifying the federal government.
I believe that we are all aware that this process is underway. The Engagement Panel was to report to the Alberta government by May 2024. This report will include analysis of cost, benefits, risks and considerations.
2. Contributions of Albertans to the CPP historically exceed the benefits paid to Albertans because of our younger working population, higher employment rates, and higher pensionable earnings compared to the rest of Canada.
3. Albertans would receive the same or better benefits they currently have under the CPP, at less cost.
4. The Alberta government passed the Alberta Pension Plan Protection Act in the fall of 2023 legislative session. The legislation locks in the government’s promise that a decision on the APP will be made by Albertans in a referendum.
It also guarantees the same or lower contributions, the same or better benefits, and ensures that the assets transferred can only be used for the provisions of a pension.
Perhaps an APP would not be too irrational after all!
