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:
Alberta’s government is helping students discover their skills and interests today, to help them find careers for tomorrow.
If passed, Budget 2025 will provide more than $100 million over three years for school boards to grow career education programs, including funding for more collegiate and dual-credit programs across Alberta.
“We are working to set students up for success by strengthening job-focused education. This money is helping schools partner with businesses, universities and colleges to create programs that will help students hit the ground running after they graduate.”
Career education helps students gain credits towards graduation while earning hands-on experience in fields like the trades, computer programming, health care, agriculture, culinary arts and more. These career education programs support a strong economy by helping students learn the skills they need to get in-demand jobs.
Collegiate schools
Collegiate schools work with businesses, universities and colleges to offer classes that give students pathways to education and careers in the job of their choice. There are 12 collegiate schools in Alberta, offering many different types of programming for grades 7-12, including aviation, graphic design, trades and more.
If passed, Budget 2025 provides more than $21 million to school boards to help fund special classrooms like carpentry workshops, film and media rooms, science laboratories, heavy equipment simulators and aircraft hangars. Another $6 million is being invested to support the start-up costs for new collegiate schools.
Dual-credit programs
Budget 2025, if passed, also provides $4.6 million in 2025/26 to start new or improve existing dual-credit programs. In partnership with universities and colleges, dual-credit programs give students a head start on rewarding careers by allowing them to earn high-school and post-secondary credits at the same time. Of the $4.6 million, $550,000 is being provided by Alberta Seniors, Community and Social Services for new and improved dual-credit health care aide programs.
“Health care aides play a critical role in ensuring Albertans receive the continuing care services they need to maintain their health, independence and quality of life. Our investments into career pathways for health care aides will provide opportunities for young Albertans to develop the skills they need to build a rewarding career in Alberta’s continuing care workforce.”
Another $1.4 million is being invested to support students participating in off-campus career education programs through CAREERS. This non-profit connects students to jobs in high-demand fields, such as the trades, technology, health, forestry and agriculture.
“Investments in collegiate and dual-credit programming are significant for Calgary Catholic as they further strengthen our collegiate and dual-credit programming. This programming will open opportunities for our students and help them to realize their full potential.”
“Before Fusion Collegiate, I felt lost and wasn’t really sure what to do after high school. Thanks to its career-focused learning and the opportunities through Fusion and The Educational Partnership Foundation, I’m now working as a first-year apprentice plumber with Mr. Rooter. The hands-on trades training, high school credits, safety certifications, and real-world skills I picked up completely changed my life. I’m excited about where my career is headed and really thankful for the support that helped me get here.”
Budget 2025 is meeting the challenge faced by Alberta communities with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick facts
- If passed, Budget 2025 invests $102.4 million over three years to provide sustainable, predictable career education funding, and to increase access to career education for Alberta students.
- This includes $8.4 million over 2026-27 and 2027-28 to raise awareness among students and families of career education programs and pathways available to Alberta students.
- Career education in Alberta includes career and technology courses, Career and Life Management (CALM), dual-credit courses, collegiate schools, apprenticeships and off-campus education programming.
- Since 2013, more than 95,000 high school students participated in at least one dual–credit course.
- In spring 2025, Alberta Education will engage with education partners on best practices to bring more career education opportunities to students.
- Since 2022, education partners and almost 5,000 Albertans have provided their feedback on career education and workforce needs.
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Alberta
Photo radar to be restricted to School, Playground, and Construction Zones as Alberta ends photo radar era
Alberta’s government is fulfilling its promise to end Automated Traffic Enforcement (ATE) in select locations while enhancing safety with a new Traffic Safety Fund.
For years, Alberta has had the most ATE sites of any jurisdiction in Canada with many serving as a “cash cow,” generating millions of dollars in revenue with no clear evidence they were improving traffic safety. Now, following thorough consultation and review of existing ATE sites, Alberta’s government is making significant changes to restore public trust in the use of photo radar.
Effective April 1, the updated ATE Technology Guideline will prohibit photo radar on numbered provincial highways and connectors, restricting it only to school, playground and construction zones. Intersection safety devices in Alberta will also be limited to red light enforcement only, ending the “speed-on-green” ticketing function.
“We have officially killed the photo radar cash cow and the revenue-generating “fishing holes” that made Alberta the biggest user of photo radar in Canada. The updated guideline will ensure that photo radar is used for safety only. The new provincial traffic safety fund will support municipalities in physical improvements at key intersections, helping to reduce traffic risks and enhance safe roads.”
Alberta’s government has also created a new $13-million Traffic Safety Fund for municipalities to upgrade local roads and intersections that pose demonstrated safety risks. Details will be made available on how to apply for the Traffic Safety Fund, once the application process has been finalized.
“This shift ensures that photo radar is used where it matters most – near schools, playgrounds and construction zones. Traffic enforcement should be about protecting people, not generating revenue. The new Traffic Safety Fund gives municipalities the tools to make targeted improvements to roads and intersections with real safety concerns. Keeping Edmontonians safe on our streets must always remain the priority.”
“Shifting photo radar to playgrounds and construction zones enhances safety where it matters most – protecting our children and workers on Calgary’s roads. I’m proud to back this important step toward safer communities.”
“The Traffic Safety Fund is a welcome addition to the overall funding available to municipalities. The Rural Municipalities of Alberta support a dynamic approach to managing traffic safety.”
Municipalities are encouraged to use traffic calming measures instead of photo radar but may request provincial approval for an exemption to the photo radar ban in high-collision locations. To do so, municipalities must submit a business case detailing high-collision frequency and severity at the site, relative to similar locations, and demonstrate how other safety measures are not possible or will be ineffective. To be approved for an exemption, they must also commit to audit the exempted site every two years to assess the effectiveness of photo radar in reducing collisions at that location.
The updated ATE Technology Guideline also includes parameters around equipment testing and maintenance, data collection and reporting requirements, traffic safety plans, signage and public communication of photo radar locations.
Quick facts
- On April 1, the new ATE 2025 Technology Guideline comes into force.
- The newly created Traffic Safety Fund will provide $13 million over three years to help municipalities re-engineer intersections to reduce collisions:
- $1 million in 2025-26
- $2 million in 2026-27
- $10 million in 2027-28
- Alberta first introduced photo radar in 1987.
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