Western Canada: Debate swirls around Alberta’s proposed pension plan

Hi everyone, Mark Iype in Edmonton today.

Maybe the art of letter writing isn’t dead.

The debate around the proposed Alberta Pension Plan has been front and centre this week with perhaps predictable sniping back and forth between Ottawa and Alberta in the form of letters written by the various players involved in the issue.

First up was the Canada Pension Plan Investment Board, which criticized the Alberta government’s messaging around the desire to establish a provincial pension plan, alleging it shows “undisguised” bias and aims “to direct opinions rather than seek them.”

As The Globe and Mail’s James Bradshaw and Kelly Cryderman reported, the CPPIB sent a letter to Jim Dinning, the former provincial treasurer, who is leading the process to gather feedback from Albertans.

The letter sent Tuesday calls out “troubling elements that in our view undermine the transparency, fairness and integrity of the consultation process that has been put forward to the public so far.”

The CPPIB specifically pointed at an online survey commissioned by the Alberta government that it says has major shortcomings and “does not present balanced information.”

The government responded by saying the CPPIB “has a vested interest in maintaining the status quo.”

As Kelly points out in her column, however, Dinning has distanced himself from the survey and is insistent the consultation process is fair.

He says the CPPIB is welcome to make a submission and everyone’s input will inform whether a provincial referendum will actually happen.

But as Kelly points out, he is relying on a report commissioned by the government that is “untested by the world of politics, the law, or other actuaries.” And that his panel was established by “a provincial government that plays down the potential financial risks of a seismic pension shift.”

Of course on Wednesday, the missives continued.

Prime Minister Justin Trudeau and Alberta Premier Danielle Smith exchanged their own letters, with Trudeau warning the province that his government will “do everything possible” to keep the CPP intact.

Trudeau said in his letter to Smith that the provincial proposal “would weaken the pensions of millions of seniors and hard-working people in Alberta and right across the country.”

He went on to say that his cabinet ministers are under instructions “to take all necessary steps to ensure Albertans – and Canadians – are fully aware of the risks of your plan, and to do everything possible to ensure CPP remains intact.”

Penning her own letter in response, Smith told Trudeau it is “disingenuous and inappropriate for you to stoke fear in the hearts and minds of Canadian retirees on this issue.”

Never one to back down from a fight with Ottawa, she went on to say that any attempt to stop the province from leaving the CPP would be seen as an “attack on the constitutional and legal rights of Alberta” that would be “met with serious legal and political consequences.”

Of course, the week was capped with a statement Friday (no word on why it wasn’t in the form of a letter) from Conservative Party leader Pierre Poilievre.

Poilievre blamed Alberta angst over Trudeau’s environmental policies as the reason why the province is looking to go it alone on pensions. But as the Globe’s Carrie Tait reported, he then swung back around and sided with the Prime Minister on keeping the CPP intact.

“I encourage Albertans to stay in the CPP,” he said. “As Prime Minister, I will protect and secure the CPP for Albertans and all Canadians, by treating every province fairly and freeing Alberta to develop its resources to secure our future.”

While the federal Conservative leader’s support for CPP would appear to be a dangerous blow to the Smith plan, she mostly ignored that part, and focused on their shared distaste for Trudeau’s vision of Canada.

“We very much look forward to working with Pierre Poilievre and the Conservative Party of Canada caucus to restore respect for the constitutional rights of provinces to the economic benefit of all Canadians,” she said.

This is the weekly Western Canada newsletter written by B.C. Editor Wendy Cox and Alberta Bureau Chief Mark Iype. If you’re reading this on the web, or it was forwarded to you from someone else, you can sign up for it and all Globe newsletters here.