‘Many Provinces’ Worried About Alberta CPP Exit Proposal: Trudeau

Prime Minister Justin Trudeau looks on as Deputy Prime Minister and Finance Minister Chrystia Freeland speaks in Ottawa on Oct. 7, 2022. (The Canadian Press/Adrian Wyld)

Alberta’s request to pull out of the Canada Pension Plan (CPP) has “many provinces” worried about the ramifications for the rest of Canadians, says Prime Minister Justin Trudeau.

“The idea that Alberta might not just make their own pensioners poorer by pulling out, but impact Canadians from coast to coast to coast, is not something that most Albertans would want, let alone most Canadians,” Mr. Trudeau told reporters on Oct. 25.

The prime minister’s comments came the same day that Finance Minister Chrystia Freeland confirmed she would meet with provincial and territorial finance ministers to discuss Alberta’s proposal to opt out of the CPP and explore its own provincial plan.

Alberta has said it would be entitled to $334 billion from the existing CPP fund if it were to withdraw—53 percent of the plan’s current assets.

Ms. Freeland said she has spoken with Nova Scotia Finance Minister Allan MacMaster—whose province is currently chairing the Council of the Federation—and confirmed that a meeting will happen, although she didn’t specify when it will take place.

“We will be convening a special meeting of the provincial, territorial, and federal finance ministers to talk about the Canada Pension Plan,” she said.

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Ms. Freeland said the CPP “works really, really well for all Canadians, for all Albertans, and I am looking forward to the opportunity to discuss that further with the finance ministers of all the provinces and territories in the days to come.”

Her announcement came after Ontario Finance Minister Peter Bethlenfalvy “urgently” requested a meeting with Ms. Freeland to discuss Alberta’s proposal.

“We believe this proposal could cause serious harm over the long term to working people and retirees in Ontario and across Canada,” Mr. Bethlenfalvy said in a letter to Ms. Freeland posted on X.

“At a time when economic challenges are putting pressure on household budgets, the people of Ontario and Canada should not have to worry about the security of their retirement savings or the possibility of costly increases to contributions.”

Bethlenfalvy isn’t alone in his concerns. Mr. Trudeau has warned Alberta Premier Danielle Smith of the dire effect the province’s pullout could have and has vowed that he will find a way to block the proposal.

“I have instructed my Cabinet and officials to take all necessary steps to ensure Albertans — and Canadians — are fully aware of the risks of your plan, and to do everything possible to ensure CPP remains intact,” Mr. Trudeau said in an open letter. “We will not stand by as anyone seeks to weaken pensions and reduce the retirement income of Canadians.”

Ms. Smith was quick to respond to the prime minister with her own letter saying it was “disingenuous and inappropriate” for Mr. Trudeau to “stoke fear in the hearts and minds of Canadian retirees on this issue.”

She said any attempt by the federal government to block Alberta’s exit from CPP would “be seen as an attack on the constitutional and legal rights of Alberta, and met with serious legal and political consequences.”

Ms. Smith’s United Conservative government has launched a provincial debate about the CPP issue. Albertans have been invited to review the findings of an independent third-party report on a potential Alberta Pension Plan (APP).

The province is obtaining public engagement through online surveys and a panel that will obtain feedback from Albertans through a series of telephone town halls scheduled from Oct. 16 to Nov. 22.

The independent report commissioned by the Alberta government, which was compiled by pension consultant Lifeworks, was released on Sept. 21. The report found that “due to Alberta’s younger population, higher pensionable earnings, and higher employment rates, contributions by Albertans to the CPP have historically exceeded the benefits paid to Albertans.”

The Canadian Press and Marnie Cathcart contributed to this report.