Is Alberta Mulling an Exit From the Canada Pension Plan?

Alberta premier Danielle Smith is once again touting ideas to make the province even less dependent on Ottawa, this time reigniting a plan to withdraw from the Canada Pension Plan and enroll Albertans in a unique provincial plan instead.

The idea of an Alberta Pension Plan (APP) has been contemplated for more than 20 years; however, the notion of withdrawing from the Canada Pension Plan (CPP) has gained noticeable momentum in recent months. The principal argument favouring an APP is demographic— given Alberta’s younger population base, a provincial plan could potentially provide similar benefits to the CPP but require smaller contributions.

But, given that a province has never left the CPP, several questions arise about how Alberta would carry out this process. There are three conditions stipulated by CPP legislation that Alberta would need to fulfill: first, give three years’ notice of its intent to withdraw; second, assume all accrued obligations and liabilities; and third, enact legislation within one year after the notice is provided. Additionally, a federal regulation would need to pass, recognizing the provincial pension plan as “comparable” to the CPP.

In a letter to Finance Minister Nate Horner, Smith has instructed that a report be commissioned on consultations with Albertans on whether or not a referendum should be held to create an APP, as well as to determine the benefits, if any, of establishing an Alberta Revenue Agency to collect the province’s tax revenues.

Information for this story was found via CTV News. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

2 Responses

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Trudeau Government Orders 35% Emissions Cut from Oil Giants by 2030

Canada will force its energy sector to slash greenhouse gas emissions by 35% over the...

Tuesday, November 5, 2024, 12:17:00 PM

Moe Gives Trudeau Ultimatum: No Carbon Tax From Saskatchewan If Ottawa Doesn’t Extend Home Heating Oil Exemption To All Canadians

Saskatchewan Premier Scott Moe has issued a firm ultimatum to Ottawa, stating that his province...

Tuesday, October 31, 2023, 11:12:37 AM

Former Alberta Premier Jason Kenney Speaks Out Against Separatism

Former Alberta Premier Jason Kenney criticized federal policies while defending Alberta’s approximately $20 billion annual...

Friday, May 2, 2025, 03:46:00 PM

Ottawa Vs. Alberta: The Canada Pension Plan Pullout Debate

Prime Minister Justin Trudeau has expressed concerns about Alberta Premier Danielle Smith’s push to withdraw...

Thursday, October 19, 2023, 04:44:00 PM

Danielle Smith Under Fire for Appeal to US as Canadian Election Looms

Alberta Premier Danielle Smith has found herself facing intense scrutiny after audio emerged suggesting she...

Monday, March 24, 2025, 11:41:00 AM