Alberta
Here’s why the rest of Canada doesn’t want Alberta to leave the CPP
From the Fraser Institute
By Tegan Hill Associate Director, Alberta Policy, Fraser Institute
Provincial and territorial finance ministers recently met with federal Finance Minister Chrystia Freeland to discuss a hot topic—Alberta’s potential withdrawal from the Canada Pension Plan (CPP). According to Nova Scotia Finance Minister Allan MacMaster, “there was real consensus” from his peers that they want Alberta to stay in the CPP. This is unsurprising; while an Alberta pension plan would benefit Albertans, it would come at great cost to the rest of Canada.
Why might Albertans want to leave the CPP?
Albertans pay a basic CPP contribution rate of 9.9 per cent, typically deducted from their paycheques. According to a report commissioned by the Smith government, 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) while maintaining the same retirement benefits. In sharp contrast, to keep the CPP afloat without Alberta, the basic contribution rate for the rest of Canada would increase to 10.36 per cent. In other words, smaller paycheques for the rest of Canada.
The report’s calculation is based on several assumptions, which some analysts have criticized, arguing that Alberta’s estimated share of CPP assets—$334 billion—is not fair or realistic. To be clear, this share (equal to 53 per cent of the CPP) is based on specific legislation that governs the withdrawal of any province from the CPP. But, even if the share of assets to Alberta were much lower, the province would benefit from reduced contribution rates with an Alberta pension plan.
For instance, if Alberta left the CPP and received merely 25 per cent of the CPP’s assets in 2025 ($150 billion), the contribution rate in Alberta would fall from 9.9 per cent to 7.8 per cent, which would mean $1,086 in savings annually per Albertan. Meanwhile, the contribution rate for the rest of Canada would have to increase. If you dropped Alberta’s share to 20 per cent ($120 billion in 2025), Alberta’s contribution rate would fall to 8.2 per cent, equivalent to approximately $836 in savings annually per Albertan.
Put differently, even if Alberta’s share of assets were less than half the report’s estimate, Albertans would benefit from lower contribution rates for the exact same benefits while the rest of Canada may pay higher contributions to maintain current benefits. Why does Alberta mean so much to the CPP? Because Alberta generally has higher employment rates and a comparatively younger population, which means more workers pay into the fund and less retirees take from it. Albertans also have higher average incomes, which means there’s a higher level of premiums paid into the fund. As such, Albertans have paid significantly more into the CPP than its retirees have received in return.
It’s not surprising that the rest of Canada doesn’t want Alberta to leave the CPP for an equivalent provincial plan because—even if Alberta’s share is less than $334 billion, Alberta’s withdrawal would come with big costs for other Canadians across the country.
Author:
Canada and Alberta’s new net-zero energy deal is being promoted as progress, but it also brings rising costs. In this video, I break down the increase to Alberta’s industrial carbon price, how those costs can raise fuel, heating, and grocery prices, and why taxpayer-funded carbon-capture projects and potential pipeline delays could add even more. Here’s what this agreement could mean for Canadians.
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Alberta’s government will introduce a motion under the Alberta Sovereignty within a United Canada Act to defend law-abiding firearms owners.
A new motion under the Alberta Sovereignty within a United Canada Act will, if passed by the legislature, instruct all provincial entities, including law-enforcement agencies such as municipal police services and the RCMP, to decline to enforce or implement the federal gun seizure program. The motion also makes clear that Albertans have the right to use reasonable force to defend themselves, their families and their homes from intruders.
This builds on the steps Alberta has already taken to reduce crime, strengthen public safety and assert provincial jurisdiction over firearms. This includes passing the Alberta Firearms Act to establish the Alberta Chief Firearms Office, along with the Alberta Firearms Regulation and the Seizure Agent and Provider Licensing Regulation.
“It’s time for Ottawa to stop targeting the wrong people. Albertans have the right to protect their homes and their families. No one should hesitate to defend themselves when faced with a threat at their own doorway. Law-abiding citizens, hunters, farmers and sport shooters are not the source of violent crime, yet the federal government wants to confiscate their property while illegal guns pour across our borders. Alberta will not stand by while responsible gun owners are treated like criminals. This motion is about using every legal tool we have to protect their rights, uphold public safety and push back on federal overreach into provincial jurisdiction.”
“When someone breaks into your home, the law recognizes that you have enhanced rights to protect yourself and your family. Alberta is making that principle unmistakably clear: lawful, reasonable self-defence will be respected, not criminalized.”
“As an experienced former law enforcement officer, law-abiding gun owners have never been an issue, in my own personal experience, nor has there been any data to support that law-abiding gun owners are the ones that are committing violent gun crimes. The illegal guns that you see being used by criminals are typically being smuggled in from the United States. The federal government should help us strengthen the border, helping us to stop illegal guns from coming into Canada. This would further enhance safety and security for the people of Alberta and Canada as opposed to going after lawful gun owners.”
Under the Alberta Firearms Regulation, municipalities, law enforcement and police commissions must obtain approval from Alberta’s Minister of Justice before accepting funding to participate in the Assault-Style Firearms Compensation Program.
“Misguided federal initiatives such as the handgun transfer ban and the Order in Council firearms prohibitions of 2020, 2024 and 2025 have had a devastating impact on the safe, legitimate activities of the firearms community and the businesses that support it, while having no discernible effect on criminal activity. I am proud to see that the Alberta government is pushing back and supporting lawful firearms owners through these measures.”
“Licensed gun owners and all Albertans can rest assured that their government, under the leadership of the UCP, is laser focused on protecting law abiding citizens while prioritizing real public safety.”
“The Alberta Hunter Education Instructors Association will continue to support our government and the Alberta chief firearms officer in our joint quest to use safety training and education as the key tools to ensure we have safer streets and communities. Safe and responsible use of firearms in Alberta is a key part of our heritage, culture, and our rich and precious heritage.”
Key facts:
- Pursuant to the Attorney General’s recent guidance protocols, Alberta’s prosecutors will decline to prosecute offences under the federal gun seizure program when it is not in the public interest.
- The Attorney General’s recent guidance protocol directs prosecutors to not prosecute home defence offences when it is not in the public interest.
- Total spending on the federal Assault-Style Firearms Compensation Program is expected to exceed $750 million.
- The firearms motion considers the Alberta Bill of Rights, the Constitution Act, 1867 and the Criminal Code.
- Currently 10 per cent of adult Albertans are licenced to use and own firearms. There are 381,900 firearms licences in Alberta.
- Alberta has 638 licensed firearms businesses, 138 shooting ranges and 91 shooting clubs.
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