MARRIOTT: How to personally get to “Yes” or “No,” on the Alberta Pension Plan

Forget about the broader debate, the petty politics, the political grandstanding. You, my fellow Albertans, have a personal decision to make. And your decision doesn’t need any extra information beyond what you already know. Better yet, you don’t have to be an actuary.First, some necessary background. Pensions are a provincial responsibility under Canada’s constitution. That is why Quebec chose not to join the national program when the Liberal federal government decided to 'bigfoot' into an area they probably should have left to the provinces. That is also why the then Ontario government insisted on an 'escape clause' should any province decide to leave the national plan. It is this escape clause and its ambiguous withdrawal formula that are causing all the current political angst. The courts have little case law on which to decide the issues so when it goes to court, I don’t envy the Supremes.But on to the algorithm you need to make up your mind.The first decision is to vote or not to vote. Democracy suffered a bit of a decline in the last provincial election, with barely 60% of eligible voters bothering to vote, (a decline of 8%.) And, Albertans seem not to be much enamoured with direct democracy. The 2018 Calgary plebiscite on holding the Olympics in 2026 only garnered 40% participation, while the 2021 provincial referendum on equalization got slightly less at 38.7%. If you don’t vote then the old rule that “silence is consent” doesn’t really apply. They say that in democracy you get the government you deserve. But in a free society you also get the democracy you preserve. Get out and vote.Second, how old are you? If you are over 55 the decision should be easy. The CPP Act requires that any province that leaves must maintain similar benefits. And under the APP your pensions contributions will not increase. But more than that, you are either shortly about to receive benefits or probably are already receiving benefits. That means that your contributions will not change because you don’t have any. You shouldn’t be bitter that you may have over-contributed in the past. But you might want to do younger Albertans a favour by ensuring that they will not have to over-contribute in the future. (This is me and I took early CPP at age sixty and have been collecting for more than a decade. For me, this alone would be enough for a ‘Yes’ vote, but I have other reasons outlined below.)Third, are you a recently naturalized immigrant or immigrant to Alberta from elsewhere in Canada? Why did you come? If it was the promise of employment and economic freedom then you came to the right place. What must shock you is the level of taxes including payroll taxes that are deducted from your paycheque. The CPP is a payroll tax that you cannot avoid except by incorporating and keeping your employment income to a minimum. These contributions are going to increase as time goes on and Canada’s economic performance continues to deteriorate. If you want to stop that and vote directly into your taxation future you should vote ‘Yes.’Finally, should Albertans continue to subsidize the pensions of all Canadians? This is a much harder question to answer. That the current system causes younger, more fully-employed, higher-paid Albertans to over-contribute, relative to other Canadians, is, as Justin Trudeau said, “undeniable”. But, was the system designed specifically to exploit Alberta as part of the great Liberal Laurentian 'rip-off?' Probably not, as the Ontario and BC economies were the strongest at the time and manufacturing was still seen as the most viable economic development option for the future. However, sixty years later things have changed dramatically. Most of North American manufacturing has moved to China and is unlikely to ever return. The environmental movement has decided that exploiting natural resources is a desecration of Mother Nature and must be stopped. And Venezuelan-style socialism, which actually hasn’t benefited Venezuela very much, has become the vogue in North America.Will these political and economic trends continue for the next sixty years? Stephan Dion’s Green Shift, so successfully thwarted by Stephen Harper, re-emerged with a vengeance. This is a policy that is supported in Ontario, Quebec and the Maritimes. Except now it looks more like a very angry Green Hulk and is not interested in taking any prisoners. Pierre Poilievre can probably reverse the course of the current Liberal/NDP alliance. But how long before the natural governing party in Canada takes power again? If you adhere to the Alberta doctrine as the proper future for Canada you should vote ‘Yes.' If you believe the Laurentian doctrine will dominate our future you should also vote ‘Yes.’ Even if we don’t get what we are entitled to as we exit the CPP, it is time to cut our losses and be the authors of our own future. William D. Marriott is a retired economist who specialized in public policy analysis of the oil and gas industry..This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.

MARRIOTT: How to personally get to “Yes” or “No,” on the Alberta Pension Plan

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