Notley pledges to enshrine CPP in law

Alberta's place in the Canada Pension Plan (CPP) needs to be ratified with legislation to protect it from “rogue political risk,” says NDP Leader Rachel Notley.

Notley pledged Thursday that she would do just that if she's returned to the premier's seat in the May election, as Premier Danielle Smith and her United Conservatives continue to toy with the idea of pulling out of the CPP to start a provincial pension plan.

“Seemingly from Day 1, the current government sought to hijack public pensions and mused about pulling out of the (CPP) despite widespread polling showing everyday Albertans and businesses alike don't support that kind of dangerous move,” Notley said.

Notley said an NDP government would enshrine the province's participation in the CPP in law, preventing any future Alberta government from leaving the federal plan. She says the CPP is tough to change, requiring seven provinces to sign on for any amendment.

“That means any change to CPP is immune from rogue political risk. But if Danielle Smith gets her way, political risk skyrockets,” said Notley. “Smith and her UCP cabinet could change benefit levels or the retirement age in one cabinet meeting behind closed doors. That is an unacceptable level of risk for Albertans when their retirement security is what's at stake.”

Smith has argued in the past that Albertans overcontribute to the CPP, and she'd like to see pension dollars stay in Alberta to better support local seniors.

She directed Finance Minister Travis Toews to make a recommendation on whether Alberta should move to a provincial pension plan shortly after she won the UCP leadership last year.

While there is no firm release date for the finance ministry's analysis of the matter — a third-party expert is still working to compile the report — Toews told Postmedia on Thursday the initial impressions look “favourable.”

“As (the) premier and I have stated repeatedly, once the final report is released to the public, our government will listen to what Albertans have to say about its findings and how best to proceed,” he said in a written statement.

“To be clear, the Government of Alberta will not replace the CPP with an Alberta Pension Plan unless Albertans first vote to do so through a referendum. It's Albertans' pension — it must be Albertans' choice.”

Smith said in December it's unlikely a referendum would make it to ballots during this spring's election.

The 2023 provincial budget didn't contain any funding for the proposal, nor the party's other contentious ideas of implementing an Alberta revenue agency or a provincial police force.

Quebec is the only Canadian province that doesn't participate in the CPP, having opted out to create its own province-based pension at the same time Ottawa rolled out CPP in the mid-1960s.

The NDP also promised Thursday to reform the governance of public-sector pensions and expand private-sector pensions by removing barriers and costs for businesses to establish pension plans.