CPPIB officials address Alberta's potential departure from CPP in a public meeting, highlighting plan strengths
Hundreds of people gathered Wednesday night at a downtown hotel to attend a public meeting hosted by the Canada Pension Plan Investment Board (CPPIB) to discuss the state of the national retirement plan, as reported by The Edmonton Journal.
This meeting, required to be held in each province at least once every two years, followed a similar event in Calgary the previous evening.
At the meeting, which drew about 400 attendees including government MLA Jason Stephan and Opposition MLA Lorne Dach, CPPIB Senior Managing Director Michel Leduc praised the Canada Pension Plan (CPP) as a “public policy success story” and a “national treasure” admired internationally.
Throughout the 90-minute session, Leduc fielded 27 questions from attendees, many of which touched on Alberta’s considerations of establishing its own provincial pension plan.
Leduc expressed respect for Alberta's right to decide its future with CPP but did not delve into the specifics of a potential Alberta pension plan.
Instead, he highlighted the CPP's advantages, such as its large size and pooled assets, emphasizing, “When it comes to pensions, there are strength in numbers,” and assured the plan's sustainability for at least the next 75 years.
Questions also arose regarding the level of government involvement in the CPP. Leduc reassured the audience that CPP assets were “strictly segregated” from political influence, a statement that was met with applause.
Attendee reactions varied, with some expressing strong support for the CPP. Fred Dieno, who travelled from Red Deer, held a sign reading “hands off our CPP,” reflecting his satisfaction with the current system. Alice Campbell, however, left with lingering doubts about the feasibility of Alberta leaving the CPP.
Other attendees expressed skepticism about the CPP's operations, questioning its staffing, expenditures, and returns. In response, Leduc cautioned against comparing the pension plan’s long-term investment strategy to short-term savings, citing a decade-long return on investment of 10 percent.
The discussion also touched on the unlikelihood of CPPIB managing a potential Alberta plan, noting that legislative changes would be required.
Such changes would need approval from seven out of ten provinces, representing at least two-thirds of the population, with Ontario potentially vetoing any move for Alberta to exit the CPP.
As Alberta continues to explore the idea of a separate pension plan, the final decision will await further analysis, with results from the chief actuary expected in the fall.
Meanwhile, Finance Minister Nate Horner indicated that any move towards a provincial plan is on hold until then, describing CPPIB as “good managers” but acknowledging the complexities involved in potentially transitioning to a provincial plan.
