Finance Minister Chrystia Freeland confirmed she will be holding a special virtual meeting of provincial and territorial counterparts on Friday to discuss the Alberta Pension Plan (APP). “Like each of you, I have heard serious concerns from Canadians — including Albertans — regarding Alberta’s proposal to withdraw from the CPP (Canada Pension Plan),” said Freeland in a Tuesday letter to provincial and territorial finance ministers. “Canadians work hard with the promise that a secure pension will be there for them when they retire — and they know that Alberta’s proposed withdrawal is a threat to the pensions of people in Alberta and across Canada.”The APP could save Albertans billions of dollars each year, with lower contribution rates, higher benefits and stronger benefit security for families and retirees, according to a September 21 report conducted by LifeWorks. READ MORE: UPDATED: Report says Alberta provincial pension move could save people billions“This report shows a made-in-Alberta pension plan could put more money in the pockets of hard-working families and business owners and improve retirement security for seniors,” said Alberta Premier Danielle Smith. “We want to hear from you because it’s your pension, your choice.” For six decades, Freeland said the CPP “has been the bedrock of a secure and dignified retirement for Canadians from coast to coast to coast.” She added CPP Investments is a world-leading investment body which generates the best possible returns for Canadian pensioners. Over the past 20 years, CPP Investments has grown the CPP’s assets from $36 billion to more than $570 billion. Between 2013 and 2022, it delivered the highest ten-year returns of any pension fund in the world.While providing Canadians with world-leading returns on their pension contributions, she said the CPP ensures they can live, work and retire anywhere in Canada and protects their pensions from the risks of economic downturns in one province or territory. Alberta has the right to withdraw from the CPP should it choose to do so. But she said that choice “should be informed by a clear understanding of the risks posed by leaving the CPP — including of those stemming from the Government of Alberta’s flawed analysis of the share of CPP assets to which the government claims Alberta would be entitled.”As an illustration of some of the challenges with the formula, some estimates note if it were to be applied to BC, Alberta and Ontario, they would be entitled to 128% of assets. Freeland said such an outcome would be untenable and absurd. “Protecting the pension security of the Canadians we represent is a goal that I know each of us shares — and I look forward to discussing this with you on Friday,” she said. Employment Minister Randy Boissonnault said on October 22 Albertans can pull out of the CPP if they go to a referendum, “but it’s a one-way ticket.”READ MORE: WATCH: Employment minister says no going back for Alberta if it leaves pension plan“You don’t get to come back,” said Boissonnault. “That’s also very clear in this legislation.”
Finance Minister Chrystia Freeland confirmed she will be holding a special virtual meeting of provincial and territorial counterparts on Friday to discuss the Alberta Pension Plan (APP). “Like each of you, I have heard serious concerns from Canadians — including Albertans — regarding Alberta’s proposal to withdraw from the CPP (Canada Pension Plan),” said Freeland in a Tuesday letter to provincial and territorial finance ministers. “Canadians work hard with the promise that a secure pension will be there for them when they retire — and they know that Alberta’s proposed withdrawal is a threat to the pensions of people in Alberta and across Canada.”The APP could save Albertans billions of dollars each year, with lower contribution rates, higher benefits and stronger benefit security for families and retirees, according to a September 21 report conducted by LifeWorks. READ MORE: UPDATED: Report says Alberta provincial pension move could save people billions“This report shows a made-in-Alberta pension plan could put more money in the pockets of hard-working families and business owners and improve retirement security for seniors,” said Alberta Premier Danielle Smith. “We want to hear from you because it’s your pension, your choice.” For six decades, Freeland said the CPP “has been the bedrock of a secure and dignified retirement for Canadians from coast to coast to coast.” She added CPP Investments is a world-leading investment body which generates the best possible returns for Canadian pensioners. Over the past 20 years, CPP Investments has grown the CPP’s assets from $36 billion to more than $570 billion. Between 2013 and 2022, it delivered the highest ten-year returns of any pension fund in the world.While providing Canadians with world-leading returns on their pension contributions, she said the CPP ensures they can live, work and retire anywhere in Canada and protects their pensions from the risks of economic downturns in one province or territory. Alberta has the right to withdraw from the CPP should it choose to do so. But she said that choice “should be informed by a clear understanding of the risks posed by leaving the CPP — including of those stemming from the Government of Alberta’s flawed analysis of the share of CPP assets to which the government claims Alberta would be entitled.”As an illustration of some of the challenges with the formula, some estimates note if it were to be applied to BC, Alberta and Ontario, they would be entitled to 128% of assets. Freeland said such an outcome would be untenable and absurd. “Protecting the pension security of the Canadians we represent is a goal that I know each of us shares — and I look forward to discussing this with you on Friday,” she said. Employment Minister Randy Boissonnault said on October 22 Albertans can pull out of the CPP if they go to a referendum, “but it’s a one-way ticket.”READ MORE: WATCH: Employment minister says no going back for Alberta if it leaves pension plan“You don’t get to come back,” said Boissonnault. “That’s also very clear in this legislation.”
