Opinion: Alberta’s case for taking half CPP’s assets

financialpost.com:

By Travis Toews

Since the release of the Alberta Pension Plan report, I’ve read with interest the steady stream of commentary and opinion and, while there have been some thoughtful pieces, much of it has been ill-informed and misleading.

Doubt has been cast on the credibility of the firm that researched and delivered the report. Questions have been raised about the relevance of the formula used to calculate the transfer amount. And there seems to be general disbelief that a province with only 12 per cent of the nation’s population could have title to 53 per cent of the assets of the Canada Pension Plan (CPP).

Albertans will only be able to properly weigh the risks and opportunities of an Alberta Pension Plan (APP) when these questions of credibility are settled. The real issues — how the APP will be administered and will invest, how the province’s demographics will evolve and, finally, how to assure the stability and competitiveness of a made-for-Alberta pension plan — deserve the focus.

Credible information is critical when considering a monumental decision such as a pension plan. It is no accident, then, that LifeWorks (formerly Morneau Shepell), quite possibly the most credible HR and pension analytics firm in Canada, conducted the research embodied in the APP report over many months and drew its own conclusions. While many commentators have casually cast aspersions, I suggest greater deference be given to the experts at LifeWorks than to the opinions of journalists at the Toronto Star.

Assertions following the report’s release that Alberta pulled an asset transfer amount basically out of thin air show that too many critics have given the report only a cursory review. The fact is the formula used to calculate the