Connect with us
[bsa_pro_ad_space id=12]

Alberta

Debate continues over an Alberta pension plan—but here’s a key fact

Published

4 minute read

From the Fraser Institute

By Tegan Hill

According to documents recently obtained by Postmedia, bureaucrats in Ontario’s Ministry of Finance believe the Smith government’s report released last year on an Alberta pension plan overstates what Alberta could withdraw from the Canada Pension Plan (CPP) to start its own plan. The report estimates that the province’s share of CPP assets is worth $334 billion, which is equal to 53 per cent of the CPP.

It’s not surprising that Ontario civil servants are debating this issue. If Alberta leaves the CPP and creates a provincial pension plan, the savings for Albertans would essentially cost workers in the rest of Canada (excluding Quebec, which already has its own standalone provincial pension). Given that Ontario is the second-largest net contributor to the CPP (behind only Alberta), those costs would fall heavily on Ontarians.

Albertans, like all workers outside Quebec, pay a basic mandatory CPP contribution rate of 9.9 per cent, typically every payday. According to the Smith government’s report, that rate would fall to 5.91 per cent for a new CPP-like provincial program for Albertans, which means each Albertan would save up to $2,850 in 2027 (the first year of the hypothetical Alberta plan). Critically, this lower contribution rate (i.e. tax) delivers the same benefit levels as the CPP.

Meanwhile, the basic CPP contribution rate for the rest of Canada (excluding Quebec) would increase to 10.36 per cent. In other words, smaller take-home paycheques for workers in the rest of Canada.

Currently, Albertans contribute disproportionately to the CPP and other national programs because the province has more workers (and less retirees) as a share of its population, higher employment rates and higher average earnings compared to the rest of Canada. In 2020, the latest year of available data, Albertans contributed about 16 per cent of total CPP contributions but received only 12 per cent of total CPP benefits.

And the federal legislation (Section 113(2) of the CPP Act), which governs the withdrawal of any province from the CPP and the asset distribution calculation, focuses on the amount paid into the fund by Albertans and the benefits paid out (taking into account investment returns and administrative costs).

Bureaucrats in Ontario, however, argue there are issues with the report’s interpretation of the formula. They claim, for example, that the asset distribution calculation fails to account for individuals who worked in Alberta but retired elsewhere. And regardless, they feel the formula should be updated. The Smith government has asked the federal government and investment board to respond to the report with its own interpretation and calculations.

While the debate about Alberta’s share of the CPP assets is sure to continue, it should not distract from the key fact that any reasonable split of CPP assets would result in lower contribution rates for Albertans and likely higher rates for the rest of Canada (excluding Quebec). If Alberta’s share of assets were less than half of what the government report estimates ($150 billion) in 2025, the contribution rate in Alberta would drop to 7.8 per cent, equal to an estimated $1,086 in savings annually per Albertan. Even if Alberta’s share of assets were just $120 billion in 2025, Alberta’s contribution rate would drop to 8.2 per cent and save approximately $836 annually per Albertan.

Clearly, Alberta’s withdrawal from the CPP would come with big savings in the province and increased costs in the rest of Canada.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Alberta

Alberta introduces bill banning sex reassignment surgery on minors

Published on

From LifeSiteNews

By Anthony Murdoch

Alberta Conservative Premier Danielle Smith followed through on a promised bill banning so-called ‘top and bottom’ surgeries for minors.

Alberta Conservative Premier Danielle Smith made good on her promise to protect kids from extreme transgender ideology after introducing a bill banning so-called “top and bottom” surgeries for minors.

“It is so important that all youth can enter adulthood equipped to make adult decisions. In order to do that, we need to preserve their ability to make those decisions, and that’s what we’re doing,” Smith said in a press release.

“The changes we’re introducing are founded on compassion and science, both of which are vital for the development of youth throughout a time that can be difficult and confusing.”

Bill 26, the Health Statutes Amendment Act, 2024 “reflects the government’s commitment to build a health care system that responds to the changing needs of Albertans,” the government says.

The bill will amend the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”

It will also ban the “use of puberty blockers and hormone therapies for the treatment of gender dysphoria or gender incongruence” to kids 15 and under “except for those who have already commenced treatment and would allow for minors aged 16 and 17 to choose to commence puberty blockers and hormone therapies for gender reassignment and affirmation purposes with parental, physician and psychologist approval.”

Alberta Minister of Health Adriana LaGrange, the bill’s sponsor, said the province’s legislative priorities include “implementing policy changes to continue our refocusing work, position our health care system to respond to pressures and public health emergencies, and to preserve choice for minors. These amendments reflect our dedication to ensuring our health care system meets the needs of every Albertan.”

Earlier this year, the United Conservative Party (UCP) provincial government under Smith announced  she would introduce the strong pro-family legislation that strengthens parental rights, protecting kids from life-altering, so-called “top and bottom” surgeries as well as other extreme forms of transgender ideology.

With Smith’s UCP holding a majority in the provincial legislature, the passage of Bill 26 is almost certain.

While Smith has done far more than predecessor Jason Kenney to satisfy social conservatives, she has been mostly soft on social issues such as abortion and has publicly expressed pro-LGBT views, telling Jordan Peterson that conservatives must embrace homosexual “couples” as “nuclear families.”

This weekend, thousands of UCP members will gather for the party’s annual general meeting, where Smith’s leadership will be voted on along with many other pro-freedom and family policy proposals from members. Smith is expected to pass her leadership review vote with a large majority.

Continue Reading

Alberta

Alberta court upholds conviction of Pastor Artur Pawlowski for preaching at Freedom Convoy protest

Published on

From LifeSiteNews

By Clare Marie Merkowsky

Lawyers argued that Pastor Artur Pawlowski’s sermon was intended to encourage protesters to find a peaceful solution to the blockade, but the statement was characterized as a call for mischief.

An Alberta Court of Appeal ruled that Calgary Pastor Artur Pawlowski is guilty of mischief for his sermon at the Freedom Convoy-related border protest blockade in February 2022 in Coutts, Alberta.

On October 29, Alberta Court of Appeal Justice Gordon Krinke sentenced the pro-freedom pastor to 60 days in jail for “counselling mischief” by encouraging protesters to continue blocking Highway 4 to protest COVID mandates.

“A reasonable person would understand the appellant’s speech to be an active inducement of the illegal activity that was ongoing and that the appellant intended for his speech to be so understood,” the decision reads.

Pawlowski addressed a group of truckers and protesters blocking entrance into the U.S. state of Montana on February 3, the fifth day of the Freedom Convoy-styled protest. He encouraged the protesters to “hold the line” after they had reportedly made a deal with Royal Canadian Mounted Police to leave the border crossing and travel to Edmonton.

“The eyes of the world are fixed right here on you guys. You are the heroes,” Pawlowski said. “Don’t you dare go breaking the line.”

After Pawlowski’s sermon, the protesters remained at the border crossing for two additional weeks. While his lawyers argued that his speech was made to encourage protesters to find a peaceful solution to the blockade, the statement is being characterized as a call for mischief.

Days later, on February 8, Pawlowski was arrested – for the fifth time – by an undercover SWAT team just before he was slated to speak again to the Coutts protesters.

He was subsequently jailed for nearly three months for what he said was for speaking out against COVID mandates, the subject of all the Freedom Convoy-related protests.

In Krinke’s decision, he argued that Pawlowski’s sermon incited the continuation of the protest, saying, “The Charter does not provide justification to anybody who incites a third party to commit such crimes.”

“While the appellant is correct that peaceful, lawful and nonviolent communication is entitled to protection, blockading a highway is an inherently aggressive and potentially violent form of conduct, designed to intimidate and impede the movement of third parties,” he wrote.

Pawlowski was released after the verdict. He has already spent 78 days in jail before the trial.

Pawlowski is the first Albertan to be charged for violating the province’s Critical Infrastructure Defence Act (CIDA), which was put in place in 2020 under then-Premier Jason Kenney.

The CIDA, however, was not put in place due to COVID mandates but rather after anti-pipeline protesters blockaded key infrastructure points such as railway lines in Alberta a few years ago.

Continue Reading

Trending

X