Alberta’s CPP exit would put millions of retirements at risk, Freeland says
Finance Minister Chrystia Freeland says Alberta’s proposed plan to withdraw from the Canada Pension Plan would put the retirement of millions at risk.
In an open letter to Alberta Premier Danielle Smith Wednesday, Freeland said that while the province has the right to withdraw from the plan, Albertans “deserve to know that doing so would be an historic, costly, and irreversible mistake.”
Freeland announced Tuesday that she will be meeting virtually with her provincial and territorial counterparts on Nov. 3 to discuss Alberta’s plan, saying she had heard concerns from “many Canadians” over the potential move.
Alberta Premier Danielle Smith proposed the idea earlier this year after a report commissioned by her government said it would be entitled to $334 billion from the existing CPP fund if it withdraws — more than half the current assets — though that number has been criticized.
The report cited the province’s relatively younger working population, higher incomes, fewer older adults drawing from the CPP and years of high contributions from people in the province.
But Freeland has said she doesn’t believe the figure is right and more analysis needs to be done, with the Canada Pension Plan Investment Board estimating Alberta is owed about 16 per cent of the fund.
In her letter Wednesday, Freeland said Smith’s proposal would “fundamentally alter (Albertans’) retirement plans.”
Freeland provided Smith and Albertans with a list of evidence supporting the CPP’s importance to Albertans and Canadians, saying it has been the “bedrock of a secure and dignified retirement” for six decades.
“CPP Investments—the Crown corporation which invests Canadians’ pensions—is a world-leading investment body which safely generates the best
Read more on globalnews.ca
