Posted on Jun 22, 2020
PULLING OUT OF CANADA PENSION PLAN WOULD MEAN $133 BILLION IN UNFUNDED LIABILITY FOR ALBERTANS: GOVERNMENT ANALYSIS
EDMONTON - Internal government documents obtained by the NDP Official Opposition reveal the grave financial risk to Albertans if Jason Kenney moves ahead with his plans to pull out of the Canada Pension Plan.
The briefing note, dated September 5 and secured through a freedom of information request, contains a detailed analysis prepared by the Superintendent of Insurance, Pensions and Financial Institutions in the department of Treasury Board and Finance of the financial implications of withdrawing from the Canada Pension Plan.
If Alberta were to pull out, the province would be required to assume both assets and liabilities. According to the government analysis, “Alberta’s share is estimated to be $32.5 billion in assets and $165.5 billion in liability (resulting in a $133.1 billion unfunded liability).”
“Jason Kenney is being disingenuous when he says he will ‘study’ the prospect of pulling out of CPP,” said NDP Leader Rachel Notley. “The analysis has been done and the evidence is clear, pulling out of the CPP puts both the retirement savings and economic security of every Albertan at significant risk and would bury Alberta in a mountain of new debt.”
This analysis was provided in September of 2019. In November, Jason Kenney told a crowd of his party faithful that there was a “compelling case” to pull out of CPP.
Over the last few months, Albertans have spent at least $650,000 on the Fair Deal Panel, which neither presented, nor reported the findings of the government’s own analysis.
Treasury Board and Finance officials also reviewed the Fraser Institute Report, which the Fair Deal Panel relied on. The analysis demonstrates the significant limitations of the report, and concludes that the Fraser Institute projections are only tenable if the withdrawal provisions of the Canada Pension Plan Act are ignored, which they cannot be.
“Albertan’s have been sold a fairy tale by this Premier when it comes to the prospect of an Alberta Pension Plan,” said Christina Gray, NDP Opposition Critic for Labour. “I’ve heard from thousands of people from across the province and the message is clear: Albertans don’t want Jason Kenney’s hands anywhere near their pensions. I’ve tabled a private members bill that will protect Albertans’ pensions and I am calling on the UCP to ensure that bill is given the full consideration of the legislature.”
Bill 203, the Pension Protection Act will be discussed at the Standing Committee on Private Bills and Private Members' Public Bills on Tuesday June 23, 2020.