MLA leads mid-morning chat on Alberta Pension

The conversation on the Alberta Pension Plan (ABP) proposal was explored at the Legacy Centre on Thursday as Vermilion-Lloydminster-Wainwright MLA Garth Rowswell met with seniors for a mid-morning chat.

The audience heard that Alberta wants to take its share of the Canadian Pension Plan or CPP which it estimates to be about $334 billion dating back to 1966 and set up an Alberta plan for retirees. That number is 53 per cent of the total based on the equation that the provinces agreed to, says Rowswell.

“People might disagree on that number, so, we have asked the federal government what number do you think it is. So, we are waiting for them to come back with a number from their perspective.”

The province is one of five provinces between 2008 and 2017 that is a net contributor to CPP. That figure has dropped to about three provinces that are currently net contributors to CPP.

“We are saying, if we were to get the $334 billion, based on our numbers, that seniors would be able to get roughly $1,400 more a year in payouts, and workers and employers would be able to put in $1.400 less.”

Rowswell said the meeting gave them an even three-way split among people saying, “Yes, no, and unsure.”

The meeting is coinciding with town halls across the province and Rowswell says if they find out there is no appetite to go forward with the move then they won’t bother to even have the proposed referendum.

Rowswell said they estimate that about 20 per cent of people across the province want to switch to an Alberta plan and he feels with more information that number could grow.

He noted that the UCP government campaigned on this issue on its platform, and he supports an Alberta Pension, but if the numbers don’t come back as favourable then there would be no point.

On the issue of fallout from the rest of Canada if Alberta leaves CPP Rowswell says that comes down to values.

“They can be upset. Alberta is upset because of equalization. We still participate as Canadians in the country. Our contribution to confederation of $20 billion a year is money in and money back – and ours is a net $20 billion one way,” says Rowswell.

The MLA says they are waiting on the federal government to reply, and if they can agree on the size of Alberta’s contribution then the discussion will proceed further.