Alberta Premier Jason Kenney said Wednesday the Treasury Board and Finance will develop a detailed plan analyzing the costs and benefits of Alberta withdrawing from the Canada Pension Plan and creating its own provincial pension fund.
The analysis is to be completed and released next year, although Alberta "would only proceed with the creation of a provincial pension plan if supported by a majority of voters in a referendum," said a news release from office of the premier.
The move follows a May report from the Fair Deal Panel, which was established by Mr. Kenney in November to give the province a stronger economy and role within Canada. In the report, the panel made 25 recommendations that included the government creating an Alberta Pension Plan and leaving CPP, as well as establishing an Alberta Police Service to replace the Royal Canadian Mounted Police.
"According to experts consulted by the panel, nearly three million Albertans contribute to the CPP," the May report said. "Alberta's younger population, higher incomes and historically higher rates of employment — relative to Canadian averages — means that Albertans contribute disproportionately to the CPP."
In 2017, Alberta workers represented 16.5% of the total contributions to the CPP, while Alberta retirees consumed 10.6% of CPP expenditures, the report said. This resulted in a net contribution of C$2.9 billion ($2.1 billion) by Albertans in 2017, and C$27.9 billion in net contributions between 2008 and 2017, the report said.
In its 2020 annual report, the C$409.6 billion Canada Pension Plan Investment Board, Toronto, said: "Even as the likelihood, nature and timing of Alberta leaving the CPP remains uncertain, we are monitoring developments and their potential impacts."
