Will the UCP move away from the CPP and into an APP?

The type of pension plan that Albertans will have has been a hot topic of discussion for the last several months.

Premier Smith's UCP has been exploring the possibility of moving away from the Canadian Pension Plan (CPP) and creating our own provincial pension plan.

The Alberta Pension Plan Engagement Panel was tasked with speaking to the public and getting input about the possibility of switching to an Alberta Pension Plan (APP).

Between October and November, over 76,000 Albertans tuned into five separate telephone town hall meetings to provide their input, with over 94,000 additional Albertans completing an online survey.

During a news conference on December 8th, we heard the results from the conversations the Engagement Panel had with the Albertans that participated.

"It's fair to say, that we heard from many Albertans who oppose the idea of exiting the Canada Pension Plan and moving to an Alberta Plan. Many of them quite passionate," Jim Dinning, Chair of the Engagement Panel explains. "There is no doubt that this is a sensitive issue for a lot of people, but especially those who worry about a vital source of their retirement income."

"But we also heard from a number of Albertans who are entirely in favour of an Alberta Pension Plan," said Dinning "Some of them supporters of the government taking greater control of the province's destiny."

Dinning adds that those in favour of an APP are thinking that the new pension would help Alberta's financial sector and help keep more money in senior's pockets.

"There are many people, many people, who still need more information before deciding. They're concerned about how an Alberta Plan Investment Fund would be managed, whether their pensions would remain portable, and of course the big question is the number. What is Albertans share of the Canada Pension Plan Assets, if an Alberta Plan is established?" Dinning explains.

"From the panel's perspective, uncertainty around the asset transfer is a barrier to moving our engagement discussions forward in a meaningful way," says Dinning. "It is hard for Albertans to provide concrete perspectives when many variables concerning an Alberta plan depend upon the size of that asset transfer."

The Engagement Panel was planning to have in-person engagement sessions following each townhall session, and have another in-person session in December, but decided to wait until Albertans get more clarity on the asset transfer number.

"The federal government has committed to ask the office of the Chief Actuary for its perspective in this regard," says Dinning. He adds that while the perspective from the Chief Actuary office won't necessarily settle the matter, it will provide additional context that will help the panel have more productive conversations with the public.

While Albertans are anxiously waiting for more information, the Alberta Government is giving the Chief Actuary of Canada the necessary time to release its findings.

In the meantime, the panel will continue to work to get more information on different aspects related to managing investment funds.

"I would like all Albertans to know that our government understands the concerns and questions related to the possibility of a provincial pension plan," explains Nate Horner, President of Treasury Board and Minister of Finance, at the news conference. "When I was first briefed on the Lifeworks report, I had many of the same questions. I did see the potential, and now understand the importance of province wide deliberation on the promise the report holds, but I also saw the need for assurances while we have these important discussions."

Because of that, Minister Horner introduced the Alberta Pension Protection Act, to ensure Albertan's retirement is secure.

"We have been clear all along. Albertans will choose what happens with their pensions. We will put the interest of Albertans first and respect whatever choice they make," Minister Horner says.

For more information on the Alberta Pension Plan, visit the Alberta Pension Plan website.

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