Finance Minister Chrystia Freeland cites ‘complicated’ nature of pensions
Finance Minister Chrystia Freeland declined to specify how long it might take to determine Alberta's entitlement from the Canada Pension Plan (CPP), citing the “complicated” nature of pensions and the necessity for all provinces and territories to weigh in on the matter.
Following a meeting with her provincial and territorial counterparts, Freeland informed the group that officials had reported on the progress of determining the entitlement on Friday. Freeland requested for this information from the chief actuary back in November.
Officials suggested the need for another meeting in January to discuss progress.
Alberta’s CPP exit
Alberta Premier Danielle Smith initiated efforts to withdraw from the CPP for an Alberta-only version in September. A Lifeworks report released by Smith estimated Alberta's entitlement at $334 billion, or 53 percent of the CPP, if it establishes its own pension program.
However, other economists, including those from the Canada Pension Plan Investment Board, believe Alberta's share is closer to its CPP membership percentage, which is around 15 percent.
Freeland aims to settle the debate by obtaining a specific figure from the chief actuary. However, when questioned for a potential timeline on, she refrained from providing one. “I learned during the North American Free Trade Agreement negotiations never to answer hypothetical questions. It's not a good idea for an elected political leader,” she says.
“What I think was very clear in the conversation today, when we heard back from officials, was how technical this work is...We agreed that we're going to do the work and define the tasking very carefully, very deliberately and crucially, really transparently,” Freeland adds.
Freeland noted that during discussions on the pension issue, certain ministers were “emotional” and emphasized the anxiety felt by many individuals.
Alberta Finance Minister Nate Horner agreed that “the chief actuary should rely on their own legal analysis and not what the federal government says. The decision to move forward with an Alberta pension plan is up to Albertans.”
Freeland asserted that any province or territory can leave the federal pension plan.
“There's no debate about that,” she says. “The federal government's contention, though, is first and foremost that we have a great system. We have a system that works, which actually is the envy of the world.”
