Interest and criticism of proposed Alberta pension plan voiced during telephone town hall

Questions about the specifics of Alberta's proposed pension plan were raised on Thursday when Calgarians got their chance to voice opinions to the panel tasked with gauging interest in a potential new deal.

At a telephone town hall held specifically for residents of Calgary and southern Alberta, panel chair and former provincial finance minister Jim Dinning, along with panel members Mary Ritchie and Moin Yahya, heard concerns regarding contributions, risks, management and oversight.

"When my pension got established in Alberta, the Quebec Pension Plan effectively transferred some assets to the CPP so that they would be able to pay for those two years that I worked in Quebec," Dinning said in response to a question about moving between provinces.

"The same kind of portability and reciprocity agreements would be established, would be negotiated … it is complex, but it can be done."

The town hall comes the same week as newly released polling suggests 27 per cent of Albertans surveyed support the idea of an Alberta pension plan, up six percentage points from April.

However, the Leger online survey of 1,001 Albertans, conducted from Oct. 27-30, also found that 48 per cent of those respondents do not believe the provincial government should create a new pension plan to replace the Canadian Pension Plan (CPP).

Nearly a quarter of respondents — 24 per cent — say they don't know whether the Alberta government should go it alone.

Alberta's share

The government released a long-awaited report on Sept. 21 on the possibility of establishing an Alberta-only pension plan, claiming the province is entitled to a $334-billion asset transfer from the Canada Pension Plan in 2027.

That figure is more than half of the fund's estimated total net assets. The third-party report, compiled by consultant group LifeWorks, attributes the figure to Alberta's high employment rates, young population, and higher pensionable earnings.

The consultant claims those factors mean the province has sent billions more into the CPP compared to what it has received.

Since the report was released, various other calculations have drawn attention. A 2019 briefing note for then-Alberta finance minister Travis Toews estimated the province's share of CPP assets was less than 12 per cent.

Trevor Tombe, an associate professor of economics at the University of Calgary, has suggested Alberta would be entitled to 20 to 25 per cent of CPP assets in an analysis report published last month.

According to Dinning, a definitive figure will be arrived at prior to any decisions being made.

"Premier Smith announced that Albertans will have a hard number before they're asked to vote in any kind of a referendum about an Alberta plan," Dinning said to listeners and callers.

"There's still plenty of debate and negotiation to be done, but at least we will have a second actuarial calculation on the table because so far the only actuarial study that's been done is the [LifeWorks] report." 

APP support strongest among UCP backers: poll

Leger's online survey, which indicates support for an Alberta pension plan has risen in recent months, suggests support for the idea is strongest among UCP voters.

Overall, 27 per cent of Albertans support the idea, while 54 per cent of UCP backers said they were in favour of it.

On the other hand, the survey found that, overall, 48 per cent of Albertans currently oppose the government's plan to withdraw from the CPP. 

"Opposition is greatest among NDP voters (82 per cent oppose), retirees (58 per cent), and those aged 55 and older (55 per cent)."

A margin of error cannot be associated with a non-probability sample represented by a survey panel. However, for comparative purposes a probability sample of 1,001 respondents would have a margin of error of plus or minus 3.1 per cent, 19 times out of 20 for a population size equivalent to Alberta's.

Meanwhile, the Alberta pension panel will take the input from this town hall and others being held across the province and give its feedback to the provincial government by May of next year.

At that point, a decision is to be made on whether to hold a referendum on the issue.