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OTTAWA — Finance Minister Chrystia Freeland says she will meet provincial and territorial finance ministers later this week to discuss the possibility of Alberta's withdrawal from the Canada Pension Plan.
A letter from Freeland to her counterparts says she is convening the virtual meeting on Friday to speak to what she calls flaws underlying Alberta's proposed exit formula.
Alberta Premier Danielle Smith said last week her government stands by its assertion that the province deserves $334 billion if it leaves the CPP, which represents more than half of the plan's assets.
A throne speech from Smith's government on Monday did not mention the proposed withdrawal, and the premier said a promised referendum might not happen if public consultation suggests the idea isn't popular.
The Alberta government has been advertising the benefits that it says could come to Albertans with a transfer out of the CPP, but economists and the Canada Pension Plan Investment Board say the amount Alberta would get would be half of what is being advertised, at best.
Freeland says in the letter that some estimates note an analysis using the same formula would predict that Ontario, Alberta and British Columbia combined are entitled to 128 per cent of CPP assets — an outcome she calls "untenable" and "absurd."
"For six decades, the CPP has been the bedrock of a secure and dignified retirement for Canadians, very much including the people of Alberta," Freeland said at a news conference in Ottawa on Tuesday.
"Protecting the pensions of all Canadians is a priority for our government. And I look forward to an important conversation about this with my counterparts from across the country on Friday."
This report by The Canadian Press was first published Oct. 31, 2023.
Comments
Hurray, Finally smart people are going to explain the math to the Alberta Government.
Exactly!
It occurs to me that this could set some of the Conservative premiers at odds. I mean, they're all "Stick it to the feds" and have been very much on the same page, policy-wise. But if Alberta managed to get their mitts on over half of the CPP fund, that would mean all the other provinces would suddenly be left with less than half; even if they were imagining doing the same thing, if Alberta had already grabbed most of the fund there wouldn't be much left for them to loot. None of the actual voters in Saskatchewan or New Brunswick are going to be OK with Alberta taking all the dough and leaving none for them and maybe collapsing the CPP. So they'll have little choice but to hold their nose and side with the Feds against Alberta on this.
Could be fun to watch.
If I were a federal Liberal, I would also try to push Poilievre into taking a position on the issue.
Poilievre came out and supported the CPP. Danielle Smith is whistling into a strong wind.
Alberta is not as big and tough as it makes out to be. They won't be able to grab anything. Their filthy hands will be slapped away before they could touch the piggy bank. Bluster, hubris, threats and braggadocio are Alberta's trademark attributes when dealing with Canadian entities beyond its borders, nine times out of ten that would be the feds. Committing real acts of aggression are not, the odd failed convoy is no exception.