Finance Minister Chrystia Freeland has announced that she will hold a meeting with provincial and territorial finance ministers later this week to discuss the potential withdrawal of Alberta from the Canada Pension Plan (CPP). In a letter addressed to her counterparts, Freeland stated that she plans to convene a virtual meeting on Friday in order to address what she perceives as flaws in Alberta’s proposed exit formula.
Last week, Alberta Premier Danielle Smith asserted that her government firmly believes the province is entitled to $334 billion if it chooses to leave the CPP. This amount represents over half of the plan’s total assets.
A recent throne speech delivered by Smith’s government made no mention of Alberta’s proposed withdrawal, and the premier mentioned that a promised referendum on the matter might not take place if public opinion suggests that the idea lacks popular support.
The Alberta government has been promoting the potential benefits for Albertans that it claims would arise from withdrawing from the CPP. However, economists and the Canada Pension Plan Investment Board argue that the actual amount Alberta would receive would be at most half of what is being advertised.
Freeland’s letter also references estimates indicating that, by using the same formula, Ontario, Alberta, and British Columbia combined would be entitled to 128% of CPP assets. She describes this outcome as “untenable” and “absurd.”
During a news conference in Ottawa on Tuesday, Freeland emphasized the CPP’s role in providing a secure and dignified retirement for Canadians, including residents of Alberta. She stated that protecting the pensions of all Canadians is a priority for the government, and she looks forward to engaging in significant discussions on the matter with her counterparts from across the country during the meeting on Friday.