Alberta should expect 'complex and multi-year process' if it leaves CPP: Freeland

If Alberta wants to leave the Canada Pension Plan (CPP) and create its own, it should be prepared for a long and complicated process according to Canada’s finance minister, who met with her provincial counterparts on Friday.

“Alberta has the right to make its choice, but it is an issue that involves and touches on every single Canadian,” said Finance Minister Chrystia Freeland.

“It would be a complex and multi-year process and it would be taking place at a time of real uncertainty, geopolitical uncertainty, global economic uncertainty.”

The meeting of finance ministers comes the day after Alberta introduced a bill laying the groundwork for a possible stand-alone program.

The bill mandates a referendum be held before the province leaves the national pension plan, but does not require the government to accept the result of the vote.

Alberta asked Ottawa to give an estimate of which portion of assets the province would get, and today the federal government said it’s working to get that number.

“Appreciated that the feds have finally agreed to get the opinion of the chief actuary of what the asset withdrawal would be,” said Alberta Finance Minister Nate Horner

A report commissioned by the Government of Alberta estimated the province is due 53 per cent of the CPP's funds. However, economists and the CPP investment board said the figure is more likely to be between 16 to 20 per cent.

Ottawa says another number to consider is how many international social security agreements it would need to negotiate to cover workers who spend part of their careers abroad. Quebec has social security agreements with 39 countries and Canada has 60.

Quebec created its own pension plan at the same time CPP was created over 60 years ago. No province has ever left.

Some Albertans are wary of a possible change, including unionized labour.

“The working Albertans who we represent have made it really clear that they don't support this crazy notion of pulling Alberta out of the Canada Pension Plan at all,” said Gil McGowan, president of the Alberta Federation of Labour.

Premier Danielle Smith said she would not call a referendum on the CPP departure until there is a finalized number on how much the province would get if it left the federal plan.

“We've thrown it out there in the public to have a conversation about: ‘Is this something we should pursue?’” said Horner.