Finance Minister Nate Horner has stated that if Alberta decides to abandon the Canada Pension Plan (CPP) and establish its own independent fund, it will not adopt Quebec’s model. The Quebec model emphasizes optimizing returns while also investing in the province. Premier Danielle Smith previously mentioned that the government wants to consult with Albertans before deciding whether to follow Quebec’s model. Horner affirmed this stance during an interview on the Ryan Jespersen online show, stating that the Alberta investment model would be solely for the operation of the pension plan.
Horner announced that legislation will be introduced in the fall to eliminate the use of the Quebec model and make it clear that any pension assets will only be used for the pension plan. The goal, according to Horner, is to go big and go broad when it comes to mitigating risk for pension plans. He emphasized the need for a comprehensive global investment profile to manage risks and achieve certainty in pension plans.
The Quebec model was one of the options considered in a report commissioned by the Alberta government to examine the feasibility of a standalone pension plan. However, concerns have been raised that adopting this model may put the fund at risk, particularly due to potential investments in the oil and gas industry with a phase-out timeline.
The government’s consultation process includes an online survey that began on September 21. Albertans are being asked for their input on how the fund should be managed and to weigh the priorities of maximizing returns and investing in Alberta. The panel, led by former finance minister Jim Dinning, will assess public sentiment and report back in the spring. Telephone town-hall discussions will also be held to gather feedback from different regions.
The Opposition NDP has criticized the government’s consultation process, arguing that Albertans have already expressed their opposition to touching the CPP in numerous public surveys. The NDP is conducting its own online consultation on October 19. If the panel determines there is public support for an Alberta pension plan, Smith has stated that a referendum will be held, requiring a majority of Albertans to approve the plan.