Conservative Leader Pierre Poilievre has stepped into the pension debate between Alberta and Ottawa, blaming the dispute on the prime minister and urging Albertans to remain in the Canada Pension Plan.┬а
“The division today on the CPP is entirely the result of Justin Trudeau attacking the Alberta economy,” Poilievre said in a statement.┬а
“His unconstitutional, anti-development laws and painful carbon taxes have forced Albertans to look for ways to get some of their money back.”
Last month, Alberta Premier Danielle Smith released a long-awaited report by consultant LifeWorks claiming that if Alberta pulled out of the CPP, it would be entitled to $334 billion тАФ more than half of the fund’s assets.
Smith has long called for Alberta to leave the CPP and told reporters after the release of the LifeWorks report that “an Alberta pension plan would be fairer and could make life more affordable for all Albertans.”
Prime Minister Justin Trudeau responded this week with an open letter criticizing that claim, insisting that pulling out of the CPP would only “introduce even more uncertainty and instability.”
The prime minister said that in a time of high inflation, climate change and conflict, political leaders should strive for certainty over instability. He vowed to challenge Smith’s CPP plans.
“I have instructed my Cabinet and officials to take all necessary steps to ensure Albertans тАФ and Canadians тАФ are fully aware of the risks of your plan, and to do everything possible to ensure CPP remains intact,” he said.
“We will not stand by as anyone seeks to weaken pensions and reduce the retirement income of Canadians.”
Stay in CPP: Poilievre
The Conservative leader’s statement said that Alberta’s premier is only picking a pension fight with Ottawa because the Liberal government has saddled the province with “carbon taxes, unconstitutional anti-energy laws┬аand other unfair wealth transfers.”
“I encourage Albertans to stay in the CPP,” Poilievre said, adding he will “protect and secure the CPP for Albertans and all Canadians” by being a fair prime minister that lets Alberta “develop its resources to secure our future.”
After Trudeau’s open letter, Smith published her own open letter rejecting Trudeau’s description of the impacts Alberta’s withdrawal would have on the CPP. “It is disingenuous and inappropriate for you to stoke fear in the hearts and minds of Canadian retirees on this issue,” Smith wrote.
Smith responded to Poilieve Friday, saying that she appreciates his “tone and sentiment,” agreeing with the Conservative leader’s statement on the “destructive policies the Liberal-NDP coalition have imposed on the Albertan and Canadian economies.”
“As it relates to the Alberta Pension Plan; this is an opportunity Albertans are discussing that has potential to improve the lives of our seniors and workers without risk to the pensions of fellow Canadians,” she said.┬а┬а
“After this broad consultation and discussion are complete, Albertans will ultimately decide whether or not to pursue this opportunity further,” Smith added.┬а
LifeWorks numbers challenged
Meanwhile, critics have ripped into the math underlying the conclusions in the LifeWorks report.
University of Calgary economist Trevor Tombe published a paper estimating that Alberta is entitled to only about 20 to 25 per cent of the fund.
“I think it was a little problematic that the government’s hanging its hat on half the CPP assets, which …┬аis kind of transparently unreasonable and not going to fly anywhere else in the country,” he said.
Michel Leduc, senior managing director of the non-partisan Canada Pension Plan Investment Board, which manages the fund’s assets for Canadians, immediately dismissed the $334 billion claim as an “impossible figure.”
“It’s basically invented, and then you end up with this very, very large figure that would not work,” said Leduc, adding that his organization respects the rights of provinces to withdraw and create their own pension plans.
A 2019 briefing note from Alberta’s Finance Department to Travis Toews, who served as finance minister to┬аboth Smith and former premier Jason Kenney, estimated Alberta’s slice of CPP assets at less than 12 per cent.
Alberta has floated the idea of holding a referendum on withdrawing from the CPP as early as 2025.
According to the first major poll conducted since Smith began making the pitch to take Alberta out of the CPP, the proposal is widely opposed by Albertans.
Fifty-two per cent of Albertans polled by Abacus Data said they think it’s a bad or very bad idea, compared to 19 per cent who think it’s a good or very good one┬аand 15 per cent who are in the middle.
The few who support it are overwhelmingly younger Albertans тАФ those furthest away from receiving pensions, and therefore less vulnerable to dramatic changes to the retirement fund.
