Conservative Leader Pierre Poilievre is encouraging Albertans to stay in the Canada Pension Plan (CPP)—but not without criticizing the prime minister for “attacking” the province with policies that strengthened its will to split from the federal retirement savings program.
“The division today on the CPP is entirely the result of Justin Trudeau attacking the Alberta economy,” said Mr. Poilievre in a statement to media outlets on Oct. 20. “His unconstitutional anti-development laws and painful carbon taxes have forced Albertans to look for ways to get some of their money back.”
Mr. Poilievre said a debate on CPP wouldn’t have started if he was the prime minister, as Alberta would not have been subjected to “carbon taxes, unconstitutional anti-energy laws and other unfair wealth transfers.”
The Epoch Times reached out to the Prime Minister’s Office for comment but did not hear back by publication time.
“As prime minister, I will protect and secure the CPP for Albertans and all Canadians, by treating every province fairly and freeing Alberta to develop its resources to secure our future,” Mr. Poilievre said in his statement. “I encourage Albertans to stay in the CPP.”
Ms. Smith responded by saying her province’s proposed withdrawal would not put Canadians remaining in the CPP program at risk.
“This is an opportunity Albertans are discussing that has potential to improve the lives of our seniors and workers without risk to the pensions of fellow Canadians,” she said in a statement to media outlets.
Savings
Released on Sept. 21, the independent report outlines how much the province could be entitled to if it leaves the CPP, and what moving to an APP might look like.The report, commissioned by the Alberta government and compiled by consultant LifeWorks, states that if Alberta gave the required three-year notice to quit CPP next year, it would be entitled to $334 billion, or about 53 percent, of the national pension plan’s pool by 2027.
The report calculated that the savings from moving to an APP could increase each senior’s monthly payment significantly or provide a $5,000 to $10,000 bonus payment on retirement. It also estimated that the move would save Alberta workers up to $1,425 a year in premium payment, which in turn would save businesses the same amount each year for each worker, as employers match premiums paid by employees to CPP.
In an open letter on Oct. 17, the CPP Investment Board said the province is not giving its citizens the true picture by failing to spell out the potential risks and drawbacks of one province going it alone on pensions.
‘Stoke Fear’
Mr. Trudeau said Alberta’s exit from the CPP would “weaken the pensions of millions of seniors and hardworking people” in Alberta and countrywide.The prime minister said his government would do “everything possible to ensure CPP remains intact” as Alberta’s withdrawal would expose Canadians to “even more uncertainty and instability.”
“External forces and events—from geopolitical unrest to climate change, and more—are having a direct impact on people here at home,” he said. “We will not stand by as anyone seeks to weaken pensions and reduce the retirement income of Canadians.”
She argued that experts who wrote the LifeWorks report estimated that if Alberta withdraws its share of net assets following the withdrawal formula in the CPP Act, the CPP would “return to the stability rating it enjoyed in 2013.”
In addition, in the event Alberta leaves the CPP, the fund’s current benefits and stability would stay the same for the rest of Canadians if the employee contributions increased by $175 a year, said the premier, citing the report’s estimation.
“The effects would not be remotely as severe as you imply,” she told Mr. Trudeau.
Any attempt to prevent Alberta from relying on the withdrawal provisions in the CPP Act “will be seen as an attack on the constitutional and legal rights of Alberta, and met with serious legal and political consequences,” she stressed.
