Federal Finance Minister Chrystia Freeland has warned of a complex process should Alberta leave the federal pension program. (The Canadian Press)

By The Canadian Press, CHAT News Today Staff

Pensions

Alberta exiting CPP requires ‘complex and multi-year process’, says Freeland after meeting ministers

Nov 3, 2023 | 5:53 PM

OTTAWA, ON – Federal Finance Minister Chrystia Freeland said Friday, November 3, 2023, that if Alberta were to quit the Canada Pension Plan, it would need to launch a “complex and multi-year process” of negotiating international social security agreements to deal with contributors who work abroad.

Freeland listed that effort among other steps she says the Alberta government, as well as the federal government, would need to take if Premier Danielle Smith decides to withdraw the province from the federal retirement plan and set up its own program.

Her remarks came after a virtual meeting Friday with provincial finance ministers, in which she said they discussed the consequences of Alberta going ahead with its proposal.

Freeland, who called herself a “proud daughter of Alberta,” said she is hearing from Albertans who are concerned about the idea and is asking the chief actuary to look into the details of such an asset transfer.

The Alberta government argues that its workers have contributed an oversized share to the national fund and would be in line for big savings and payouts if it were to leave the CPP.

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Smith had planned to hold a possible referendum on leaving the CPP in 2025, but now says she won’t go ahead with such a vote until governments or the courts deliver a hard number on how much Alberta will get if it leaves the plan.

HORNER: ALBERTA COMMITTED TO PROTECTING ‘FELLOW CANADIANS’

Alberta’s finance minister Nate Horner said the province is focused on making sure a withdrawal from the Canada Pension Plan does not destabilize the federal program.

“To be clear, Alberta is committed to making sure that any potential creation of an Alberta Pension Plan will not leave our fellow Canadians without a stable pension and its associated benefits,” Horner said in a statement Friday following the premiers’ meeting with Freeland.

He also reiterated Alberta will only move forward with creating its own pension plan if Albertans approve the move in a referendum.

While not revealing many details from the meeting, Horner said he was encouraged to hear the federal government commit to a study to find out how much Ottawa would hand over to Alberta if the province left the CPP.

“We’ve been asking for this for several weeks,” Horner said.

“It is critical for the ongoing discussion of an Alberta Pension Plan that we have a firm asset transfer number – and the potential benefit increases to Albertans stemming from that transfer amount – upon which Albertans can make an informed decision.”

– with files from The Canadian Press and CHAT News.