Alberta
Risk or Reward: The Alberta Pension Plan according to the UCP and the NDP
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Submitted by The Free Alberta Strategy Team
A Positive Pension Plan
There’s been a lot of misinformation swirling around Alberta politics in the last few months, and with the election now underway, it’s only ramped up even further.
Perhaps no issue, though, has been as misrepresented as the idea of an Alberta Pension Plan.
As of right now, the UCP says they are still studying the issue, and that any actual implementation of an Alberta Pensions Plan would be conditional on the holding of a referendum after all the research has been done and the reports that have been commissioned have been received and publicised.
The NDP, meanwhile, has completely dismissed the idea entirely, before the research has even been finished, and has spread some pretty crazy ideas around about what a provincial pension plan would mean.
We’ve heard that the provincial government is trying to “steal” Albertans’ pensions.
We’ve heard that the government would gamble all our pensions away.
We’ve heard that they’d take the money and give it to their friends.
We’ve also heard a bizarre theory that if you had an Alberta Pension Plan, you wouldn’t then be able to go and work or retire in any other province.
And all of that is, of course, simply nonsense.
No one is suggesting doing any of those things.
No one has ever suggested doing any of those things.
And, perhaps clearest of all, none of those things happen in Quebec – who already have their own pension plan, remember!
Instead, the plan is actually quite simple.
Right now, the Canada Pension Plan (CPP) is administered by an arm’s-length agency of the federal government.
The idea would be to replace that arm’s-length agency of the federal government with an arm’s-length agency of the Alberta government.
But, if the idea isn’t to bring the money back to Alberta in order for the Alberta government to “steal” your pension, why exactly would we want to do it?
The main reason to switch to an Alberta Pension Plan is actually fairness for Albertans.
The fact is that the Canada Pension Plan, as it is currently structured, is essentially just another massive wealth transfer from Alberta to the rest of Canada.
Remember, the “Canada Pension Plan” isn’t actually a personalized pension with your name on it.
The federal government doesn’t keep each Canadian’s money in an individual account and then pay you back with your own money when you retire.
Rather, it’s just another tax that you pay, all the money gets lumped in together, and then when you retire you get a maximum of about $15,000 back each year.
So, Alberta’s young, talented, and hard-working population ends up subsidizing the pensions of workers in the rest of the country.
And it isn’t a small subsidy either – the total subsidy between 2008 and 2017 adds up to $27.9 billion.
As of 2017, Albertans were contributing 16.5% of all pension contributions, while our retirees only accounted for 10.8% of pension payments.
And remember, that was in the middle of Alberta’s biggest economic downturn in a generation.
When we get more updated figures, the subsidy is likely to be even more significant.
Albertans are paying not only for their own pension, but also for a large share of the pensions of everyone in the rest of the country.
Creating an Alberta Pension Plan would instantly remove this subsidy, and Albertans would only pay for their own pensions, instead of for everyone else’s.
And with the subsidy gone, the Alberta government could immediately reduce pension contributions while retaining the exact same benefits retirees receive right now.
Or, they could keep the same contribution levels, while increasing the benefit payments retirees receive, or do something in between the two.
All without the Alberta government interfering in the administration of the pension plan itself.
Certainly, the concept of an Alberta Pension Plan needs much more detailed research before it can be implemented.
A significant amount of work will need to be done to ensure proper risk management and governance practices will be implemented.
And this is all work that the UCP has committed to do before making any final decisions.
But given the significant financial benefits, the fact that the NDP is willing to completely rule out the idea before even seeing the details is incredibly short-sighted.
Their opposition seems entirely based on the idea that the Alberta government would somehow “take over” and “steal” people’s pensions – without any explanation of why that would be possible with an arm’s-length provincial organization in a way that isn’t currently possible with an arm’s-length federal organization managing the money.
It’s also incredibly ironic given that, when the NDP were in power in Alberta, their government did interfere in the administration of the various government employee pensions that are currently managed by AIMCO.
(That’s a whole other story for a whole other email, but the short version is that they took away the requirement for AIMCO directors to be experienced investors, they appointed a bunch of NDP allies to the board, and then set about forcing those directors to invest the money in a bunch of environmental projects that the NDP favoured, until the UCP reversed those changes and restored the independence of AIMCO.)
An Alberta Pension Plan is one of the many proposals in the Free Alberta Strategy that can be used to protect the financial future of Albertans.
But, like any policy proposal, it requires robust research to ensure it is implemented properly.
We have a small team of researchers, funded entirely by grassroots donors like yourself, and we need your help to continue developing and promoting detailed solutions.
If you’re in a position to do so, please consider making a donation:
Alberta
New children’s book demonstrates how the everyday world is connected to natural resources
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From the Canadian Energy Centre
‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’
After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.
Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.
“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.
“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.
The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.
Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.
Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre
“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.
“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”
Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.
She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.
Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.
Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.
“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”
Richens’ books can be purchased on her website at tcrenvironmental.com.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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