Trudeau says ‘many provinces’ worried about Alberta CPP exit proposal

Finance Minister Chrystia Freeland agreed to convene a meeting with the finance ministers to discuss Alberta’s proposal to withdraw from the Canada Pension Plan.

It comes after Prime Minister Justin Trudeau said he’s heard from “many provinces” that are concerned about Alberta exploring an exit.

“The idea that Alberta might not just make their own pensioners poorer by pulling out, but impact Canadians from coast to coast to coast is not something that most Albertans would want, let alone most Canadians,” Trudeau told reporters on his way into question period on Wednesday.

2:05 Federal, provincial, territorial finance minister meeting to come amid Alberta’s potential CPP exit: Freeland

Speaking in Calgary Wednesday, Freeland says she’s spoke with Ontario Finance Minister Peter Bethlenfalvy, who requested a meeting to discuss Alberta potentially leaving the CPP.

Freeland added she spoke with Nova Scotia’s finance minister, as the chair province in the Council of the Federation this year, and says a meeting of the finance ministers will happen.

“It is absolutely my conviction that the CPP works really, really well for all Canadians, for all Albertans and I am looking forward to the opportunity to discuss that further with the finance ministers of all the provinces and territories in the days to come.”

2:14 Debate heats up as Albertans weigh in on provincial pension plan proposal

A report commissioned by the Alberta government says they would be entitled to $334 billion from the existing CPP fund if they withdraw — more than half of the current assets — though that figure has been criticized.

That reported cited Alberta’s relatively younger working population, higher incomes, fewer seniors drawing CPP and years of high contributions from people in the province.

Freeland said she doesn’t believe that figure is right and more analysis needs to be done.

The Canada Pension Plan Investment Board has estimated Alberta is owed about 16 per cent of the fund.

0:28 CPP investment board criticizes ‘troubling’ Alberta survey on potential plan exit

The issue reappeared during question period, when Trudeau used Premier Danielle Smith’s proposal to attack federal Conservative Leader Pierre Poilievre during a response to a question on more seniors struggling amid the cost of living crisis, where Poilievre linked it to the carbon tax.

“We’re going to stand and defend their pensions as well while his Conservative colleagues are attacking the CPP, he’s finally realized that perhaps the CPP is a good thing, he’s finally come out in defence after a decade of attacking seniors and their pensions,” Trudeau said in the House of Commons.

“Not only have we always defended the CPP, the number of seniors that required food banks was drastically lower while we were in government,” Poilievre said in response.

Last week, Poilievre issued a statement calling on Albertans to remain in the CPP.

Bethlenfalvy wrote to Freeland to ask for a federal-provincial-territorial meeting of finance ministers and is calling for a “rigorous analysis” of the assumptions Alberta is using to justify its plan.

“At a time when economic challenges are putting pressure on household budgets, the people of Ontario and Canada should not have to worry about the security of their retirement savings or the possibility of costly increases to contributions,” he wrote.

In Edmonton Wednesday, Alberta Premier Danielle Smith told reporters she is happy to have a meeting of finance ministers, with issues such as the carbon tax and equalization part of the discussion.

“The pension contributions are just one aspect of how federal programs consistently disadvantage Alberta,” Smith said.

“Alberta is always paying more and always receiving less in benefits. It just so happens that the Constitution under Section 94 allows us to be able to make a decision to have our own pension.”

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Nate Horner, Alberta’s finance minister and president of the Treasury Board, wrote in his own letter Wednesday to Freeland suggesting that the next finance ministers’ meeting be held in Calgary.

“I recommend that Alberta’s potential establishment of an Alberta Pension Plan be on the agenda, and we welcome a good-faith, rigorous analysis of the CPP Act withdrawal formula in advance of that meeting,” he wrote.

0:33 Alberta’s proposed Canadian pension exit would be ‘destabilizing’: employment minister

• Alberta’s proposed Canadian pension exit would be ‘destabilizing’: employment minister
• CPP investment board criticizes ‘troubling’ Alberta survey on potential plan exit
• Pierre Poilievre urges Alberta to stay in the Canada Pension Plan
• Debate heats up as Albertans weigh in on provincial pension plan proposal
• NDP launches counter survey on potential Alberta Pension Plan
• NDP criticizes provincial government for ‘biased’ Alberta Pension Plan survey
• Alberta releases report on proposed provincial pension plan
• Alberta to debate Canada Pension Plan, says it deserves half if it leaves
• Some worry Alberta Pension Plan not as reliable
• Alberta releases report into possible provincial pension plan

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—With files from Allison Jones, The Canadian Press