June 17, 2024
Provincial pension plan holds 'substantial benefit’ for Albertans, internal AIMCo report shows
Premier Jason Kenney has said his government's "fair deal" panel will examine a number of proposals to advance Alberta's interests, including the potential creation of a pension plan. An internal AIMCo report finds a provincial plan could offer 'substantial benefit.'
Premier Jason Kenney has said his government’s “fair deal” panel will examine a number of proposals to advance Alberta’s interests, including the potential creation of a pension plan. An internal AIMCo report finds a provincial plan could offer ‘substantial benefit.’

Would Albertans really be better off with a new provincial pension plan, replacing the Canada Pension Plan?

It’s a critical question the Kenney government will grapple with in the coming months, but an internal report by the Alberta Investment Management Corp. (AIMCo) tackles the issue and indicates a case can be made.

By withdrawing from CPP, Albertans would see “a substantial benefit” as their costs to contribute to a provincial plan would drop, states the report, obtained by Postmedia.

The 19-page analysis was completed in September and calculates a sustainable pension contribution rate would fall to 7.21 per cent (and possibly lower) from current CPP base plan levels of 9.9 per cent, if an Alberta plan was established.

“An Alberta pension plan would lower contributions … relative to current CPP contributions for an equivalent set of benefits,” the report states.

“However, we note that the result is very sensitive to how certain assumptions play out over the years.”

The idea of Alberta opting out of CPP has been discussed for years, but regained momentum last month after Premier Jason Kenney said a “compelling case” could be made for the shift.

On Saturday, Kenney said his government’s new “fair deal” panel will examine a number of proposals to advance Alberta’s interests, including the potential creation of a pension plan.

Provinces have the ability to opt out of CPP and provide comparable benefits. While Quebec set up its own pension plan in the 1960s, no province has opted out of CPP since it was created.

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See Also:

(1) Kenney says his caucus to get free vote on controversial conscience rights bill

(2) ‘Reject this arrogance’: Jason Kenney has message for Quebecers amid dispute with Bloc leader

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