Claims of bias and manipulation of public opinion surround the consultation process initiated by Alberta about the possibility of exiting the Canada Pension Plan (CPP). This concern was voiced by the CPP board, who suggested the exercise wasn’t just about gathering information but carried ulterior motives. Alberta’s Finance Minister, Nate Horner, disagreed and claimed the CPP was no innocent party, pointing to the considerable share of assets accrued from Alberta.
The criticisms about Alberta’s move towards a pension exit emerged following an open letter to Jim Dinning, who leads a panel collecting public opinion on Alberta’s potential CPP departure. CPP Investment Board’s Senior Managing Director, Michel Leduc, authored the letter, expressing concern over the survey’s transparency and fairness.
Leduc’s ire was drawn to Alberta’s online consultation survey, launched on September 21, coinciding with Premier Danielle Smith’s announcement of the debate to create a separate Alberta pension plan. He criticised the fact that the survey did not question Albertans about leaving the CPP, but instead focused on their preferences for an independent pension plan for Alberta.
The CPPIB, for its part, felt deceived and challenged the government’s $7.5 million advertising campaign meant to educate Albertans about the pension debate, deeming it distinctly biased towards the proposed Alberta Pension Plan. The group also felt the government had fallen short of offering a balanced perspective by promising impressive returns without outlining any potential risks involved.
Moreover, recent comments by Horner have raised additional questions about the fairness of the process. Despite initially ruling out the Quebec investment model for an Alberta pension plan, Horner’s department reversed its stance, without explanation. The CPPIB interprets Horner’s vacillations as a suggestion that the Alberta government isn’t sincerely engaging in the public consultation process.
There are calls for the CPPIB to present its insight on the potential risks and repercussions associated with Alberta breaking away from the CPP—an action that would leave Alberta with only about 16% of the CPP’s total assets.
In response, Horner welcomes debate but seeks tangible, verified information. He argues the CPPIB has reason to resist change given Alberta significantly contributes to the assets they manage. Horner is particularly concerned about the lack of factual evidence to dispute the LifeWorks report’s findings. He stated he would be keen to see any expert actuarial analysis from the CPPIB relating to the creation of an Alberta pension plan.
In the coming months, the panel led by Dinning will continue to gather public opinion, after which they will recommend whether or not there is public sentiment for a stand-alone Albertan Pension Plan. Should there be positive public sentiment for such a plan, Premier Danielle Smith intends to send the matter to a referendum.
