Deputy Prime Minister and Minister of Finance Chrystia Freeland will convene the country's various finance ministers for a virtual meeting to discuss Alberta's pension ambitions.Sean Kilpatrick/The Canadian Press
Provincial and territorial finance ministers will gather virtually with federal Finance Minister Chrystia Freeland on Friday to discuss Alberta’s proposal to pull out of the Canada Pension Plan, an idea that has drawn concern and criticism.
In announcing the meeting, Ms. Freeland denounced Alberta’s possible action bluntly in a letter sent to the ministers who will be present for the online gathering.
She wrote about the Western province’s “flawed analysis” of the share of CPP assets it would be entitled to. “Canadians work hard with the promise that a secure pension will be there for them when they retire – and they know that Alberta’s proposed withdrawal is a threat to the pensions of people in Alberta and across Canada.”
Ms. Freeland said she wants the discussions on Friday to speak specifically to the “flaws” underlying Alberta’s proposed exit formula.
Were that formula applied to Alberta, Ontario and British Columbia, Ms. Freeland said, some experts have concluded that the three provinces would be entitled to 128 per cent of CPP assets. “Clearly, such an outcome would be untenable and absurd.”
Ontario Finance Minister Peter Bethlenfalvy, who proposed the gathering, welcomed the opportunity for ministers to discuss the issue.
“We in Ontario have great respect for Alberta and Albertan workers. We have serious concerns about their proposal to withdraw from the CPP,” he said in a statement. “At Friday’s meeting I am interested to see the federal government’s analysis of Alberta’s proposed exit formula and hear the concerns of my colleagues. In a period of economic uncertainty, no Ontarian – or Canadian – should have to worry about the security of their retirement savings.”
British Columbia Finance Minister Katrine Conroy said she would continue to work with colleagues across Canada to support a strong CPP for everyone.
“As it stands, the Canadian Pension Plan is well-funded, well-managed and secure. It allows people and their families to live, work and retire whenever they chose. I will continue to work to protect pension benefits for people,” she said in a statement.
Alberta Finance Minister Nate Horner said he is disappointed the meeting won’t be held in person in Calgary, a possibility he had raised, allowing for discussion on other topics such as equalization, the fiscal stabilization formula, and carbon pricing.
Alberta Premier Danielle Smith has proposed establishing a provincial pension plan after withdrawing from the CPP.
The idea has been informed by a report the Alberta government commissioned from the human-resources company Lifeworks, The report suggested Alberta could be entitled to withdraw $334-billion from the CPP – more than half of its current $575-billion in assets.
Ms. Smith has said an Alberta pension plan is “the right decision for our province,” but ruled out proceeding without the approval of Albertans through a provincial referendum, if necessary.
But the proposal has been slammed by various critics, including Prime Minister Justin Trudeau and other members of the federal government.
Federal Conservative Leader Pierre Poilievre has urged Alberta to stick with the CPP, saying, if he is prime minister, that he would protect and secure the CPP for Albertans and all Canadians.
The investment arm of the Canada Pension Plan – the Canada Pension Plan Investment Board – said Alberta’s claims that it could withdraw more than half of the pension fund’s assets is based on an “invented formula” divorced from reality.