As Alberta eyes more than half of CPP assets, what could a split look like?
Alberta Premier Danielle Smith‘s push for her province to establish its own pension plan and break away from the Canada Pension Plan (CPP) leaves many questions swirling for Canadians across the country.
Prime Minister Justin Trudeausaid earlier this week he is “deeply concerned” over the proposed plans, and that he has instructed his cabinet and officials to do “everything possible” to ensure the CPP remains intact, warning that an Alberta exit would cause “undeniable” harm.
“Alberta’s withdrawal would weaken the pensions of millions of seniors and hardworking people in Alberta and right across the country,” Trudeau said in an open letter.
“Withdrawing Albertans from the Canada Pension Plan would expose millions of Canadians to greater volatility and would deny them the certainty and stability that has benefitted generations.”
Smith quickly pushed back, saying, “Alberta agreed to those provisions in good faith when the legislation was enacted, and in the event that Albertans decide to withdraw from the CPP, they expect the CPP Act and its withdrawal formula to be followed.”
“Any attempt to do so will be seen as (an) attack on the constitutional and legal rights of Alberta, and met with serious legal and political consequences,” she wrote in a letter to Trudeau shared online.
But what is going on, and is an Alberta withdrawal actually possible?
There is an exit clause inthe Canada Pension Plan’s legislation, which allows provinces to pull out of the national program if they have their own old age security program.
Currently, Quebec is the only province not part of the CPP, but unlike what Alberta is proposing, Quebec never took part in the CPP, which was created in 1966.
Political scientist Duane Bratt compares the
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