ALBERS: Uncoupling from Ottawa and why we need an Alberta Pension Plan

If it has not already become apparent to most Albertans, our relationship with Ottawa has devolved into a hot mess. This should come as no surprise as Alberta, with a strong and growing economy, is demanding fairer treatment and an equal place at the table. We have believed, perhaps naively, that by paying more than our fair share into confederation we would receive in return some acknowledgement of that contribution and a correspondingly bigger voice.This has not been the case. Instead, Ottawa has become increasingly stringent in the creation of policies that disadvantage Alberta or in many cases cross the line between federal and provincial jurisdiction. Ottawa has gotten away with this until now because so many programs and functions of the provincial/federal relationship are intertwined thus making it difficult to take a stand.Alberta needs to take some lessons from our sister province of Quebec when it comes to asserting our place at the table. Quebec has decoupled from Ottawa in key areas that allow it to have the final say about issues such as pension plans, police forces and collection of taxes. This has given them actual authority in dealing with policies and positions coming out of Ottawa in that they have control of the key levers that Ottawa would normally use.So what about an Alberta Pension Plan? Let’s begin with some of the obvious benefits. We currently overpay to the tune of $60B per year, money that could be better used by us. We have a younger workforce and an APP would see those workers pay less each year with a savings of between $1,400 to $2,800 per worker per year. Again this would mean a significant bonus to workers and their families. As well, the savings made could mean real increases to the payments already being made to seniors in the province. Lastly, the APP would have a far more robust earnings portfolio than the CPP which currently is barely solvent. To quote the Clemens/Hill report for the Fraser Institute, “According to an analysis by Philip Cross, former chief analyst at Statistics Canada, the CPP’s cost at 1.07% of assets was higher than the other analyzed pension plans, which ranged from 0.34% at Healthcare of Ontario Pension Plan (HOOPP) to 1.02% at the Ontario Public Service Employees Union Pension Trust (OPTrust).”They are paying a dollar and seven cents out for every dollar of assets which sounds strikingly similar to other Ottawa programs.An Alberta Pension Plan represents an overall win for Albertans and a valid reason to uncouple from this Ottawa program. A strong provincial pension plan for our province, more money in the pockets of Albertans and less dependence on the “largesse” of Ottawa. We encourage Premier Smith to not “blink” on this promise and let’s get this pension in place!James Albers is a Calgary-based management consultant specializing in leadership development. He was formerly a school principal and teacher of history and active in conservative politics

ALBERS: Uncoupling from Ottawa and why we need an Alberta Pension Plan

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