Western Standard columnist and show host Cory Morgan said an Alberta Pension Plan (APP) would contribute to a more decentralized government. “I want to stop seeing this Canadian trend of moving money to people and incentivize moving people to the money,” said Morgan at a Saturday panel at the Canada Strong and Free Network Regional Conference. “With plans that represent the local demographics, the local economy, the local needs, we can see a better migration of business capital and people around the country, because they’ll see more motivation to move to those areas that can fund better plans.” .Morgan started off by saying the nuts and bolts of the Canada Pension Plan (CPP) are dry to most people. Since the Alberta government is talking about the APP, he said people have learned more about their pensions. Because of the reports coming out and columns from he and other people, he said there is a misconception the CPP is fully funded. The CPP used to be pay as you go until the late 1990s. Former prime minister Jean Chretien separated that by raising premiums and reducing benefits. One-third of its assets are unfunded liabilities. He called it “a large social welfare program in a way.” If it is going to be funded this way, it will be like Old Age Security. The columnist went on to say it stunts migration in Canada. By nature, he said it drains the prosperous jurisdictions and sustains economies when people should have migrated outwards. If Alberta pulled out of the CPP, he said it might make the Canadian government fiscal conservatives. It bled Western Canada when it enacted the National Energy Program (NEP). Former prime minister Brian Mulroney campaigned on ending the NEP, but it took him a few years to do. Canadian politicians have supported programs favouring Central Canadian needs. He acknowledged the Alberta government leaving the CPP is within provincial purview. All of the provinces agreed to this when the Canada Pension Plan Act was enacted. The Ontario government said there should be an escape clause to enable provinces to assert themselves. The Canadian government does not have exclusive domain over pensions. Morgan said the best managed pension funds in the world are in Denmark, Iceland, and the Netherlands. These funds are smaller ones. “I was told bigger wasn’t always better,” he said. Project Confederation Executive Director Josh Andrus acknowledged Quebec has its own pension plan. “There is already jurisdiction here,” said Andrus. “The Quebec Pension Plan (QPP) is entirely portable.” .From his vantage point, he said the APP could inspire investor confidence. Once Alberta goes through the legal processes and votes on it, he predicted people will support it if the government has solid numbers. University of Calgary economics professor Trevor Tombe concluded by saying the QPP does not work. “They pay more to get the same benefits,” said Tombe. “And that’s partly because of adverse demographics, and they never had a fund to maximize returns.”.While the LifeWorks and Tombe’s reports outline challenges, he said there are benefits. He called for the Alberta government to do engagements and analysis, “because this is going to be a policy until the end of this century and beyond.” 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 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.”
Western Standard columnist and show host Cory Morgan said an Alberta Pension Plan (APP) would contribute to a more decentralized government. “I want to stop seeing this Canadian trend of moving money to people and incentivize moving people to the money,” said Morgan at a Saturday panel at the Canada Strong and Free Network Regional Conference. “With plans that represent the local demographics, the local economy, the local needs, we can see a better migration of business capital and people around the country, because they’ll see more motivation to move to those areas that can fund better plans.” .Morgan started off by saying the nuts and bolts of the Canada Pension Plan (CPP) are dry to most people. Since the Alberta government is talking about the APP, he said people have learned more about their pensions. Because of the reports coming out and columns from he and other people, he said there is a misconception the CPP is fully funded. The CPP used to be pay as you go until the late 1990s. Former prime minister Jean Chretien separated that by raising premiums and reducing benefits. One-third of its assets are unfunded liabilities. He called it “a large social welfare program in a way.” If it is going to be funded this way, it will be like Old Age Security. The columnist went on to say it stunts migration in Canada. By nature, he said it drains the prosperous jurisdictions and sustains economies when people should have migrated outwards. If Alberta pulled out of the CPP, he said it might make the Canadian government fiscal conservatives. It bled Western Canada when it enacted the National Energy Program (NEP). Former prime minister Brian Mulroney campaigned on ending the NEP, but it took him a few years to do. Canadian politicians have supported programs favouring Central Canadian needs. He acknowledged the Alberta government leaving the CPP is within provincial purview. All of the provinces agreed to this when the Canada Pension Plan Act was enacted. The Ontario government said there should be an escape clause to enable provinces to assert themselves. The Canadian government does not have exclusive domain over pensions. Morgan said the best managed pension funds in the world are in Denmark, Iceland, and the Netherlands. These funds are smaller ones. “I was told bigger wasn’t always better,” he said. Project Confederation Executive Director Josh Andrus acknowledged Quebec has its own pension plan. “There is already jurisdiction here,” said Andrus. “The Quebec Pension Plan (QPP) is entirely portable.” .From his vantage point, he said the APP could inspire investor confidence. Once Alberta goes through the legal processes and votes on it, he predicted people will support it if the government has solid numbers. University of Calgary economics professor Trevor Tombe concluded by saying the QPP does not work. “They pay more to get the same benefits,” said Tombe. “And that’s partly because of adverse demographics, and they never had a fund to maximize returns.”.While the LifeWorks and Tombe’s reports outline challenges, he said there are benefits. He called for the Alberta government to do engagements and analysis, “because this is going to be a policy until the end of this century and beyond.” 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 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.”
