✍ Opinion Submission: Canada Pension Plan is the Safest Choice

 Letter to the Editor: Why the Canada Pension Plan Is the Safer Choice for Albertans

As an Albertan, I’ve been following the discussions about the possibility of our province leaving the Canada Pension Plan (CPP) to establish our own Alberta Pension Plan (APP) with great interest. At first, the idea of an APP didn’t seem entirely irrational. After all, having a pension plan tailored specifically to our province's needs sounds appealing. But after digging deeper into the facts and considering the potential consequences, I believe that staying with the CPP is the far safer and more reliable option—not just for me, but for all Albertans and Canadians.

One of the main points in favor of the APP is the claim that contributions would either remain the same or decrease, while benefits would increase. It’s an enticing promise, but can we really trust it? The strength of any pension plan hinges on smart investment strategies and stable demographics. The CPP has a massive, diversified investment pool and decades of experience, making it well-equipped to navigate economic fluctuations. In contrast, the APP would start with a smaller pool of funds, and there’s no guarantee that Alberta’s demographics will continue to support it in the long term. What happens if the APP underperforms? Would the Alberta government be willing—or even able—to bail it out? The potential financial risk to Albertans is significant.

Another concern is the possibility of political interference. Our Premier has suggested that an APP could be directed to invest more in Alberta’s economy. While that might sound like a good idea, it raises alarm bells for me. The primary goal of any pension plan should be to secure the best returns for its members, not to serve as a tool for political or economic objectives. The CPP operates independently, focusing solely on the financial well-being of its members. The risk of the APP becoming entangled in provincial politics could jeopardize its ability to deliver on its promises.

Then there’s the issue of liabilities. According to Lifeworks, if Alberta were to leave the CPP, we would be responsible for current CPP recipients living in the province. This doesn’t just include Albertans who have contributed to the CPP their whole lives, but also those who may have only lived and worked here for a short time—like fly-in workers or those who have since retired elsewhere. When you factor in these additional liabilities, the younger demographic advantage often touted by APP supporters might not be as significant as they suggest.

One of the most troubling aspects of this whole discussion is the lack of transparency from our government. They conducted a survey asking Albertans for their views on the APP, with 93,000 people responding. Yet, despite promises to release the long-form answers, we haven’t seen this information. Why the secrecy? If the responses were overwhelmingly supportive of an APP, wouldn’t they be eager to share them? This lack of transparency makes me question the motivations behind the push for an APP. Are they worried that the long-form comments might sway public opinion against it?

Ultimately, after considering all of these factors, I’m convinced that the Canada Pension Plan is the better, safer choice. The CPP has a proven track record, with a large, diversified pool of investments that helps ensure stability. It treats all Canadians equally, with benefits based on individual contributions, regardless of where they live. For Albertans, this means those with higher pensionable earnings will receive higher pensions upon retirement. And with Alberta’s strong employment rate, many of us are already benefiting from the security that the CPP provides.

While the idea of an Alberta Pension Plan might have some initial appeal, the risks and uncertainties are too great. The CPP offers the stability and reliability that Albertans—and all Canadians—deserve as we plan for our retirements. In a time of economic uncertainty, we need to stick with what we know works. For me, that means staying with the CPP.

Sincerely,

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