Federal briefing note cites issues with creation of Alberta pension plan, says referendum unlikely until 2022 at earliest
Federal officials believe Alberta won't hold a referendum on creating its own pension plan until 2022 at the earliest, citing a lack of public support and administrative obstacles, according to a briefing note.
Civil servants drafted the document in 2020 for Minister of Seniors Deb Schulte. It was obtained by CTV News through an access to information request.
"It is unlikely that the Alberta government will be moving forward with a referendum on withdrawal from the CPP [Canada Pension Plan] in 2020 or 2021,” it reads.
- Next step on Alberta pension plan in spring, but no change without referendum: Kenney
- What could Alberta's own pension plan look like?
- Equalization, provincial pensions and the RCMP: What Alberta’s Fair Deal Report recommends
Last summer, the province's Fair Deal Panel included the creation of a provincial pension plan among its recommendations, citing cost savings due to Alberta’s relatively young population and province's ability to manage its own assets.
The briefing note for Shulte challenges those findings, arguing the panel’s report falls short in a number of respects.
"In general the Panel’s report presents a positive case for withdrawing from the CPP, downplaying the potential risks of such a move."
Premier Jason Kenney said in March that his government would make a decision in the spring of 2021 on whether to pursue the creation of an Alberta pension plan and eventually withdraw from the CPP.
A spokesperson for the premier's office says a decision hasn't yet been reached and "work is ongoing to complete a full analysis" of an potential Alberta pension plan.
"The premier has always been clear that such a consequential decision would need to be put directly to voters."
'HIGHER LEVELS OF RISK'
The Fair Deal Panel's report suggests that an Alberta pension plan would have a contribution rate of 5.85 per cent compared to the national contribution rate of 9.9 per cent.
It also cites a policy briefing from Keith Ambachtsheer with the C.D. Howe Institute claiming Alberta would receive between $40 billion and $70 billion from the CPP Fund as part of its withdrawal.
While the panel used the Howe Institute’s report to estimate the amount of funds, it excludes other parts of the same report that paint a less optimistic picture of withdrawing from CPP, according to the federal briefing note.
“Ambachtsheer also warned that the departure from the CPP’s asset management governance would result in Alberta’s pension fund being exposed to higher levels of risk.”
The note argues the panel’s report fails to address issues around pension portability, and stresses the need for three-way negotiations with the governments of Canada and Quebec should Alberta elect to withdraw from the CPP.
“The report suggests that some or all of the Alberta’s plan’s funds could remain the management of the Canada Pension Plan Investment Board (CCPIB), despite the fact this would counter to CPPIB’s mandate - and changing the mandate to allow it would require the consent of two thirds of provinces.”
The note's authors argue the panel's report also ignores the need to create new infrastructure to collect and pay benefits around an Alberta plan.
"In fact, a later recommendation advises against the creation of an Alberta-only provincial revenue agency."
The note cites the panel's own polling data showing 58 per cent of respondents didn't believe that withdrawing from CPP would help improve Alberta's place in federation, and another poll showing 36 per cent of respondents supported withdrawing.
It also notes both polls occurred before the COVID-19 pandemic in March of 2020, and April 2020 reporting on the Alberta Investment Management Corporation's loss of up to $3 billion due to its volatility strategy.
Quebec was the only province to opt out of the CPP when it was created in 1966.
CTVNews.ca Top Stories
Trudeau and Harris? Poilievre and Trump? Here's who Canadians think would work best with: survey
As Americans prepare to elect their next president on Tuesday, new data from the Angus Reid Institute suggests Canadians hold differing views as to which federal party leaders would be best suited to deal with either Donald Trump or Kamala Harris.
B.C. port employers launch lockout at terminals in labour dispute with workers
Employers at British Columbia ports say they are going ahead with locking out more than 700 foremen across the province after strike activities from union members began.
Months after VRBO booking, Taylor Swift fan told home 'not available' during Vancouver concert
A frustrated Taylor Swift fan is speaking out after being pushed from a short-term rental she booked for the upcoming Vancouver leg of the superstar’s Eras Tour.
Felonies, assassination attempts and a last-minute change on the ticket leads voters to Tuesday's U.S. election
A campaign that has careened through a felony trial, incumbent being pushed off the ticket and assassination attempts comes down to Election Day on Tuesday.
Measles cases in New Brunswick more than double in three days
A measles outbreak declared in New Brunswick’s Zone 3 last week, which includes Fredericton and the upper Saint John River Valley, has more than doubled since last week.
Prison sentences handed down for sexually abusive London, Ont. parents
In handing down the sentences for two London parents, Justice Thomas Heeney told the court, "The facts of this case were the most egregious that I have encountered during my 26 years on the bench."
She was diagnosed with Type 2 diabetes about a year ago. Here's how her condition was reversed
A year ago, Lorraine O'Quinn was coping with stress, chronic illness and Type 2 diabetes. Then she discovered a health program that she says changed her life.
Surprise swing state? Iowa poll has Harris suddenly leading
Based on victories in the past two elections and polls leading up to Tuesday’s election, Donald Trump had seemed almost certain to win Iowa, but a new poll has Kamala Harris with a sudden three-point lead.
Russia suspected of sending incendiary devices on US- and Canada-bound planes, Wall Street Journal reports
Incendiary devices that ignited in Germany and the United Kingdom in July were part of a covert Russian operation that aimed to start fires aboard cargo and passenger flights heading to the U.S. and Canada, the Wall Street Journal (WSJ) reported Monday, citing Western security officials.