Albertans paying more than they’re receiving from CPP: Fraser Institute
Albertans are paying more into the Canadian Pension Plan than they receive, a report by the Fraser Institute has found.
According to the study, Alberta workers have paid almost $28 billion more into the CPP than retirees have taken out over the past 10 years.
In 2017, Alberta workers made 16 per cent of all CPP contributions and received only 10 per cent.
“With our bust lately in energy prices… there doesn't seem to be a change in this discrepancy, so I thought that was kind of interesting,” University of Alberta economics professor Joseph Marchand told CTV News.
Jason Clemens, an author of the report, offered one explanation for the inflated figures: “(Alberta has) a larger share of their population that's working. They have a relatively low unemployment rate.”
Canadians—save those in Quebec, which opted out of participating—have previously expressed disappointment with the plan.
Nation-wide displeasure was especially loud ahead of Jan. 1, when the employee portion of CPP contribution rose to 5.10 per cent from 4.95 per cent. The change was made one step of a multi-year plan to grow the contribution rate and income threshold.
As the changes were enacted, TV commercials promoting the Canada Pension Plan Investment Board were launched to improve public perception of the board. Instead, the advertisements were criticized as a waste of money.
Marchand expects the Fraser Institute report will “create a lot of dialogue” in a province where opinion is split over one other national program—equalization payments.
However, if Alberta ever wanted to, it could withdraw from the CPP like Quebec. Doing so would render the program unsustainable with its current tax rate and benefits, according to Clemens.
With files from Timm Bruch