Alberta not entitled to $334 billion of CPP assets, Ottawa says
The UCP's Alberta Pension Plan proposal has again fallen under scrutiny from Ottawa.
A new report from Canada's chief actuary disagrees with Alberta's claim that it is entitled to more than half — $334 billion — of CPP assets.
The actuary's position aligns with the views of University of Calgary economics professor, and UCP sceptic, Trevor Tombe, who estimated Alberta's share to be between 20% and 25% of the CPP fund.
The report was commissioned last November by former federal Finance Minister Chrystia Freeland under the authority of Prime Minister Justin Trudeau. The Trudeau Liberals have been described by pundits as openly antagonistic towards Alberta Premier Danielle Smith and the UCP.
"Albertans decide their future and no one else," Smith said in a post on X at the time. "A new Alberta Pension Plan would mean higher benefits for seniors and bigger paycheques for workers."
Alberta officials say the province over-contributes to the CPP due to its younger workforce and higher average incomes. The APP would allow Alberta to keep the contributions within the province, potentially leading to better benefits or lower contribution rates for Albertans.
Some say an APP would save Alberta billions in contributions, with projections suggesting annual savings of up to $1,425 per worker and increased benefits for retirees.
The Alberta Pension Protection Act was passed in 2023 to "protect the rights of Albertans" in the context of potentially pivoting to an APP in the future.
The APP, and Smith, are being criticized by Alberta's NDP opposition under Naheed Nenshi.
"Danielle Smith's plan for an Alberta Pension Plan is yet another example of the UCP focusing on something no one is asking for," he said.
"The vast majority of Albertans do not want the provincial government messing with their pensions, and we have to continue to push back."
Canada's chief actuary is a senior federal government official responsible for providing "unbiased" actuarial valuations, advice, and services related to various public pension and social security programs.
