By Rebel News | Created at 2025-01-04 22:44:40 | Updated at 2025-01-06 20:36:46
1 day ago
Renowned columnist Lorne Gunter took the United Conservatives to task Thursday for not upholding its “grassroots guarantee.” He claims their failure to release the survey results on a prospective pension plan betrays their mantra.
“Either release the results or stop spending millions of taxpayer dollars on consultations and surveys,” he penned for Postmedia.
Albertans would pay a lower contribution rate in a separate pension plan while CPP contributions would likely increase elsewhere, according to the Fraser Institute.
— Rebel News (@RebelNewsOnline) December 20, 2024Should Alberta leave the Canada Pension Plan (CPP), the basic contribution rate for the rest of Canada would increase to 10.36%. That figure is based on the overzealous $334 billion asset transfer, outlined in a pension plan report last summer.
Some critics dispute Alberta’s entitlement, claiming the Smith government “understates” the report’s contribution rate for a new Alberta pension plan and “overestimates” the new CPP rate without Alberta.
“I don’t buy the math,” then-Employment Minister Randy Boissonnault, told reporters October 18, 2023.
Senator Donna Dasko, a Liberal appointee, earlier questioned the figures. “They are so incredible that who would ever believe them?” she said.
Based on the unsupported figure, Albertans would pay a contribution rate of 5.91% for their own plan. Nearly 10% of their paycheques go towards CPP premiums.
The Alberta Pension Plan (APP) report surfaced on September 21, peddling precisely what you’d expect: More Alberta, less Ottawa — prompting vehement opposition from Prime Minister Justin Trudeau in a strongly worded letter.
Lorne, in his column, claims that recent consultations show Albertans are not likely to risk their CPP benefits, despite the potential for greater returns with a provincial alternative. “Indeed, the consultations likely show Albertans are overwhelmingly opposed to a provincial plan.”
A recent Angus Reid poll says the size of that transfer drove skepticism in the province. Among Albertans, 48% want to remain in the CPP with 36% in favour of the APP. One in five (18%) are undecided as of writing.
The proposal garnered less than one-third of support from Québec (32%) and Saskatchewan (31%), whereas more than half of Canadians elsewhere opposed the idea. The former has operated its own pension plan since 1966.
“Refusing to release results — results bought and paid for by the public — is entirely self-serving,” claimed the columnist. “Trust the people,” he said. “Have the courage of your convictions, release the results and defend your position.”
— Rebel News Canada (@RebelNews_CA) July 3, 2024According to a 2019 analysis published by the Fraser Institute, the contribution rate for a pension plan in Alberta could be as low as 5.85%, while AIMCo’s 2019 estimate is slightly higher (6.85%). In contrast, economist Trevor Tombe pegged Alberta’s rate at 8.2%.
The Chief Actuary concluded Alberta’s share was closer to $150 billion as calculated by Tombe in 2023, Blacklock’s learned.
The Actuary, who did not release her own figures, approved of Tombe’s report The Alberta Pension Advantage? A Quantitative Analysis Of A Separate Provincial Plan.
Subsequent analysis by the Parliamentary Budget Office (PBO) is pending, reported the publication.
🧵Details on the equalization program.
This post created a lot of debate, and it became apparent very quickly that most Canadians don't have a clue about the difference between federal and provincial taxes, transfer payments, equalization payments and the complex relationship… https://t.co/ZOHxB8Cwt4 pic.twitter.com/TMU7ZCCcor
On a purely economic basis, Lorne says a provincial pension makes sense, claiming it would lead to more investments in oil and gas and other local industries.
Finance Minister Nate Horner last year promised considerable savings for retirees should Albertans follow through on a new plan. He cited yearly savings of $1,425 for workers and $2,850 for self-employed workers.
Alberta’s younger population, high employment rates and higher pensionable earnings suggest the province is getting a raw deal under the national plan. It was not clear whether a firm estimate would be forthcoming from the federal government, reported the Epoch Times.
Minister Horner quashed further conversations for a later date, stating a referendum would not happen without a widely-supported figure on the asset transfer.
Premier Danielle Smith Smith contends that a decision isn’t feasible without knowing the value of that transfer. The province has been waiting close to a year for the figure.
“If it is an amount that doesn’t allow for us to significantly reduce premiums or give a rebate to existing pensioners, then Albertans might decide it isn’t worth it,” she told the Canadian Press.
“If it allows for us to do both – increase the amount that pensioners can get as well as reduce contributions significantly – they might decide otherwise.”
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
