Minister of Finance and President of the Treasury Board Nate Horner during a news conference on November 2, 2023. (Photo: Government of Alberta - YourAlberta on YouTube)

By Justin Goulet

Province proposes legislation aimed at protecting Albertans’ pensions

Nov 2, 2023 | 4:08 PM

EDMONTON, AB – New legislation proposed by the province would guarantee that the government would not launch an Alberta Pension Plan (APP) unless Albertans voted in favour of it in a referendum.

The Alberta Pension Protection Act would province residents four guarantees to protect their pensions they have built up under the Canada Pension Plan (CPP).

According to the province, the legislation guarantees the following:

• Albertans must vote in favour of an APP during a public referendum before the government withdraws assets from the CPP.
• Contribution rates under an APP would be the same or lower than the rates for the CPP.
• An APP must provide the same or better benefits to Albertans.
• The entire asset transferred from the CPP would be used solely to set up and operate an APP.

Nate Horner, Minister of Finance and President of the Treasury Board said, “This legislation protects the interests of Albertans and provides them assurance that if they move forward with an Alberta Pension Plan, their pensions and their benefits will always be there for them.”

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“This is their money, built up over years of hard work. We promise we would keep it safe and make sure it grows to provide retirement security for generations.”

The new legislation, according to the province, would guarantee that Albertans would pay the same or lower contributions rates than under the CPP. An independent report conducted by LifeWorks estimates that an APP could be supported with lower contribution rates than the CPP, which could save Alberta employees and employers up to $1,425 every year for each employee.

Officials said the proposed Act would “provide certainty to Albertans that an Alberta Pension Plan would provide the same or even better benefits than under the CPP.” Currently, the Canada Pension Plan Act requires a provincial pension plan to provide benefits comparable to the CPP to qualify for withdrawal.

The province said Alberta could use some of the estimated $5 billion in annual savings to further improve APP benefits. Additionally, officials said the Alberta Pension Protection Act would ensure the assets transferred to Alberta from the CPP could only be used to set up a pension plan.

READ MORE: Province claims leaving Canada Pension Plan could save Albertans billions

Federal Finance Minister Chrystia Freeland is set to meet with provincial and territorial finance ministers on Friday, November 3, 2023 to discuss Alberta’s potential withdrawal from the CPP.

READ MORE: Freeland to meet with provincial finance ministers on possible Alberta CPP withdrawal

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