A report commissioned by the Alberta government has estimated that if the province were to exit the Canada Pension Plan (CPP) and establish its own retirement savings program, it would be entitled to more than half of the CPP’s assets. The third-party report, conducted by consultant Lifeworks, asserts that if Alberta were to give a three-year notice to withdraw from the CPP next year, it would receive approximately $334 billion, or about 53 percent, of the national pension plan’s pool by 2027. Quebec, which never joined the CPP when it was established in 1965, is the only province to have not participated in the program.
Finance Minister Nate Horner stated that due to Alberta’s young workforce and growing economy, the province must allow residents to decide whether they want an Alberta Pension Plan. Horner emphasized that the final decision on the matter will be made by Albertans. He also highlighted the potential cost savings, with the Alberta plan estimated to save residents $5 billion in the first year.
The decision to pursue an independent pension plan was part of former United Conservative premier Jason Kenney’s strategy to secure a “fair deal” for Alberta in its relationship with the federal government. This plan also included the possibility of establishing an Alberta police force and tax revenue agency.
According to the report, the establishment of an Alberta pension plan would require an initial investment of between $100 million and $1 billion, depending on the extent to which the province leverages CPP mechanisms. Additionally, the implementation of the investment arm of the Alberta plan would cost an estimated $75 million to $1.2 billion, depending on the level of reliance on existing structures and expertise.