One idea being discussed by the Alberta Next panel is a potential Alberta Pension Plan (APP), sparking support and concerns among residents.Some Alberta residents raised their hands in support of creating an APP at the Alberta Next Panel’s town hall that was held in Sherwood Park/ Edmonton last week. But others voiced concerns.“The Canada Pension Plan (CPP) is envied around the world for its independence, its excellent fiscal management, and consistent high returns,” said Nancy, a Sherwood Park resident.The panel says on its website that Alberta has a younger and more productive workforce, where workers pay about $3 billion more into the CPP each year than Alberta seniors get back in benefits.Alberta has the right to leave the CPP under the Constitution, according to the website. If Alberta chooses to do that, it would get a fair share of the CPP funds, according to federal law. These funds could be used to create a provincial pension plan, as long as the potential APP offers seniors similar benefits to what they would get from the CPP, according to the panel..What happens if Alberta stops making the equalization payments?.Quebec runs its own pension plan and has an agreement with the federal government to ensure that everyone still receives full pension benefits —no matter if they worked in Quebec, retired there, or did a bit of both.A professor of economics at Concordia University, Moshe Lander, told the Western Standard on Friday that Alberta’s younger population and higher employment rate contribute more to the CPP than they receive, but this could reverse as Alberta’s population ages.“So, we have in Canada what's called a pay-as-you-go system, so everybody who's currently working pays taxes that then pay for everybody who's currently retired. So, a lot of Canadians think that when you have money taken off for CPP, this is put into your personalized account, and when you retire, this money, which will have been invested, is going to pay for your retirement. It is absolutely not true,” Lander said while explaining how the CPP works.“When you retire, you will be paid for by those that are working at the time that you retire. So, if the demographics change among the working part of society, or if the demographics change among the retired part of society, then this can change the contributions that are necessary, or the payments that are made.”The potential separation from the CPP faces complex issues, such as the division of current CPP funds and the portability of pension contributions across provinces, according to Lander..Should Alberta have its own police force? What are the costs that come with it?.On its website, the panel answers frequently asked questions, such as whether an already retired citizen would lose their CPP payments if Alberta leaves the federal pension plan. It says in this scenario, the citizen wouldn’t lose any CPP benefits that have already been earned. It adds, If Alberta creates its own APP, it must provide benefits equal to or better than the CPP, noting that both provincial and federal laws require this.The panel says the Alberta government would work to develop agreements to ensure that people eventually receive one pension when they retire, even if they have worked and resided outside the province.“These agreements would ensure that you contribute to the correct pension plan, depending on your work and living experience. Other agreements would coordinate the payment of the benefits between the CPP, QPP (Quebec Pension Plan), and an APP for people who move to Alberta, or for Albertans who leave Alberta to live, work, or retire,” according to the panel’s website.“And finally, international social security agreements would be developed for Albertans who are working and living abroad.”“These agreements — often called reciprocal transfer agreements — are relatively common, particularly amongst public sector pension plans (including those in Alberta). Details of a transfer agreement between an APP and CPP would need to be negotiated.”.Alberta Next panel’s tax collection plan: Here's what you need to know.More information about the topic is available online.The Western Standard has reached out to the NDP’s office for comments.The panel will be hearing ideas from the public in town halls throughout the summer. The six topics that will be discussed are federal transfers and equalization, Alberta Pension Plan (APP), constitutional changes, provincial police force, immigration, and tax collection.Albertans will have the opportunity to decide on some of these topics as a referendum is coming in 2026.The next Alberta Next panel is set to take place in Edmonton on August 14..‘ALBERTA HAS AN OTTAWA PROBLEM ’: Smith, panel hear from the public in Edmonton
