
Nate Horner, the Finance Minister for Alberta, proposed that upcoming decisions on holding a referendum to potentially abandon the Canada Pension Plan (CPP) shall be guided by a “high level feeling obtained from diverse sources.” This will transpire post-consultation with the citizens of Alberta.
The UCP of Alberta has been contemplating secession from the CPP to establish an autonomous pension plan from 2020 onwards. Back then, a proactive step was taken in this direction by Premier Danielle Smith who, over the preceding few months, has been vigilantly acting upon this idea.
In a recent discussion, Smith hinted that the provincial administration intends to halt progression towards a referendum until Albertans are provided an unequivocal estimate of the monetary compensation they’d be eligible for, in case they withdraw from the federal plan. Displaying her readiness to take the legal route, she speculated on the sum the province would be owed if they decide to leave the CPP.
Meanwhile, former Alberta treasurer, Jim Dinning, has been appointed as the head of a panel charged with collecting Albertan feedback on the notion of departing from the CPP. Dinning’s panel has been reaching out to the citizens through town hall phone meetings, soliciting opinions on the matter. Additionally, a survey form has been made accessible on the province’s government website to facilitate the sharing of people’s thoughts on the subject.
In a recent conversation with Vassy Kapelos, CTV’s Question Period host, Horner confirmed that the government has not drawn any conclusions but is merely exploring this proposition. He expressed the need for citizen engagement, especially in obtaining their concerns and ideas on the subject. However, when probed further about a tangible measure to decide whether to hold a referendum, Horner admitted to the lack of one. He believed that a collective sentiment from the province will guide this decision.
Recognizing the sensitive nature of pension-related matters, Horner emphasized that the core intention is to gather public feedback without hurrying into an unsuccessful referendum. When questioned about the reliance on something less scientific than empirical evidence or facts for such a decision with wide-reaching implications, Horner proposed the use of “more than a feeling”. He foresees the contribution of polls, proposals, and objective data to inform these decisions.
Horner divulged that the driving force behind such a decision is a “high level feeling from many sources.” According to the Canada Pension Plan Act, any province considering withdrawal must reach a mutual agreement on the process with the federal government.
Meanwhile, predictions from consulting firm LifeWorks suggest that Alberta is entitled to receive $334 billion by its potential withdrawal from the CPP in 2027, accounting for over half of the total federal fund. When queried for his thoughts about negotiation possibilities with a sum smaller than $334 billion, Horner responded discreetly, mentioning that he isn’t in a position to comment.
Emphasizing that the LifeWorks report leverages the best publicly available data, Horner expressed Alberta’s openness to hearing the federal government’s analysis and counteroffer. He talked about their attempts to get a concrete figure from the federal government and stated his inability to speculate on the matter without their response.
Federal, provincial, and territorial finance ministers are expected to convene soon to discuss Alberta’s proposal to withdraw from the CPP. The call for this meeting follows Ontario Finance Minister Peter Bethlenfalvy’s claim that Alberta’s withdrawal could potentially cause “serious harm” to Canadians. Responding to these concerns in an interview with Vassy Kapelos, Bethlenfalvy dismissed any intention of diverting the focus from his province’s controversial issues.
Bethlenfalvy voiced his concerns about Ontario’s labor force and families and regarded the CPP as a beacon of stability. His chief agenda is to ensure a candid conversation involving all parties and preserving the stability anchored in this significant issue.