The federal government has delayed estimates for what share Alberta will receive from the Canada Pension Plan according to the province’s Finance Minister Nate Horner. The government is opposed to the move of establishing a separate pension plan for Alberta and has tasked Canada’s chief actuary to estimate Alberta’s share should the province decide to leave the national plan. The chief actuary has set up a panel to interpret the asset transfer formula, and the panel’s assessment is expected by spring with Alberta receiving the calculation in the fall.
The estimated amount of Alberta’s share of the CPP’s value is considerable, and the potential impact on Alberta and the rest of the country is significant. At $334 billion or 53% of the CPP’s value, the advantage for Alberta workers could result in significant savings on contributions when compared to the CPP. There is still debate on the percentage of Alberta’s withdrawal for the CPP, with some disagreeing on the 53% and estimating around at 20%.
The complexities of the issues could lead to court challenges as Mr. Tombe pointed out. He stated that the act’s ambiguities could require judicial interpretations, and navigating a complex political landscape is challenging due. A special government committee continues to receive input from Albertans on establishing a provincial plan. A referendum on the issue is expected.
Finally, Alberta’s potential withdrawal from the CPP could be a challenging issue to navigate, and discussions about Alberta’s role in the country and its energy sector continue. The question remains, can a province actually withdraw from the CPP? No province has ever done so since 1965.