Alberta has only a small claim on this fast-growing pool of CPP money
As the bickering begins over how much of the Canada Pension Plan fund Alberta would be entitled to if it pulls out of the national pension scheme, there is a fast-growing pool of money managed by CPP Investments on which all appear agreed the western province would have a much smaller claim.
The separate investment pool run alongside the CPP fund’s core assets since 2019 is part of an “enhanced Canada Pension Plan” created when Ottawa and the provinces agreed to overhaul the scheme, a change that included additional phased-in contributions and additional benefits down the road. By the beginning of 2027, this additional CPP pool is projected to grow to around $92.5 billion from just over $11 billion in 2021, according to the latest report from the Office of the Chief Actuary, which reports to the federal government on pension plans and social programs.
That pool of funds was not the main focus of reaction to a report by Lifeworks, made public by Alberta Premier Danielle Smith’s government on Sept. 21, which stunned many with the conclusion that Alberta could walk away from involvement in the CPP with a $334-billion asset transfer. The report used a formula to determine Alberta would be entitled to 53 per cent of the base CPP fund’s projected value of nearly $636-billion by January 2027, the year by which the province could realistically start its own separate pension.
However, when it comes to the additional post-2019 CPP fund, including contributions and investment returns, the Lifeworks report notes that Alberta would be entitled to only about 17 per cent — or $16 billion of that $92.5 billion in 2027. That’s because assumptions that Albertans have historically paid more than their fair share into the CPP due to
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