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 percent of CPP assets—an outcome she calls “untenable” and “absurd.”
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“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.”
