PREMIER SMITH: Alberta's discuss the Alberta Pension Plan for a moment.

The concept of an Alberta Pension Plan (APP) is based on the notion that Alberta could potentially manage its pension funds more effectively and in a way that better serves the province's interests than the Canada Pension Plan (CPP).


Advocates argue that with a younger and more productive workforce, Alberta could create a plan that offers the same or better benefits than the CPP while possibly charging lower premiums to workers. Additionally, they suggest that managing the fund locally would boost Alberta's economy and provide more control over investment decisions, potentially leading to a more prosperous future for the province.

One of the key points raised is that if Alberta were to exit the CPP, it would be entitled to a significant share of the CPP's assets. This lump sum could be used to establish the APP, with the goal of ensuring comparable or better pension benefits for Alberta's seniors. This idea is not new, as Quebec has its own provincial pension plan, the Régie des rentes du Québec (RRQ), which operates alongside the CPP. However, it is important to note that even though Quebec has its own plan, it still contributes to the CPP and has an agreement with the federal government to ensure that its residents receive full pension benefits regardless of where they work or retire in Canada.

The proposed APP would be managed within Alberta, which could mean more jobs in the financial sector and investment decisions made with a focus on the province's economic interests. The argument is that without the need to consider federal objectives such as emissions reductions or diversity and inclusion goals, the APP could potentially generate higher returns for pensioners.

However, there are risks and challenges associated with this idea. The most significant is the uncertainty surrounding the lump sum Alberta would receive from exiting the CPP. Federal legislation does not provide clear guidance on the process, and given the historical tension between Alberta and Ottawa, negotiations could be difficult. This could lead to legal battles and impact the ability of the APP to offer the promised benefits.

Furthermore, the long-term sustainability of the APP would depend on careful management and favorable economic conditions. If Alberta's economy or demographics decline relative to the rest of Canada, the APP might face pressure to increase premiums to maintain benefit levels, which could be a burden on future generations of workers.

Portability concerns are also important. While a similar agreement to the one between the RRQ and CPP could be negotiated, it is not guaranteed. This means that workers who move between provinces might face complications with their pension benefits, potentially receiving less than they would if the plans were fully integrated.

In summary, the idea of an Alberta Pension Plan presents both opportunities and risks. It offers the potential for greater local control, tailored investment strategies, and potentially better outcomes for Alberta's pensioners. However, the uncertainty of federal negotiations, the challenges of setting up and managing a new plan, and the need to ensure long-term sustainability must be thoroughly considered before any decisions are made. The upcoming provincial referendum in 2026 will be crucial in determining the future of Alberta's pension system. It is essential for Albertans to stay informed and actively engage in the debate to ensure the best possible outcome for the province's seniors and workforce.
Danielle Smith