In the fall of 2019, Alberta s government launched the Fair Deal Panel to advance Alberta s economic interests and look at ways that Alberta could achieve a fair deal in Confederation. One of the items the panel considered and discussed with Albertans through a series of town halls was an Alberta Pension Plan. Was it possible that Albertans could receive better pension benefits by contributing to a Made in Alberta Pension plan? And if so, what would that look like?
00:00:52.520LifeWorks' report shows that creating our own pension plan could benefit all Albertans.
00:00:57.920According to their analysis, an Alberta pension plan could increase benefits for seniors,
00:01:02.600reduce premiums for workers, and protect the pension interests and benefits of all Albertans.
00:01:08.100The LifeWorks' analysis estimates that Albertans could save more than $5 billion in the first
00:01:13.720year alone if we moved from the CPP to an Alberta pension plan.
00:01:18.040That's because hard-working Albertans have paid much more into the CPP than Alberta's seniors get back in pension benefits.
00:01:25.040What does $5 billion in savings mean for Albertans?
00:01:28.220Well, there are a few potential scenarios.
00:01:30.220$5 billion could mean more money for seniors who could see larger monthly pension benefits.
00:01:35.720Seniors might even receive a $5,000 to $10,000 bonus payment when they retire if that's how Albertans want to design the pension.
00:01:43.040There's more money for their household at a critical time.
00:01:47.720$5 billion could mean larger paychecks for employees.
00:01:50.040If we put the entire amount towards reducing premiums, Alberta's workers would pay $1,425 less in annual premiums to an Alberta pension plan than they do right now in CPP premiums.
00:02:04.040Even a portion of that would be a major affordability boost for families struggling to buy groceries and pay for other priorities.
00:02:11.040And because employers match the CPP premiums their employees pay, it would also mean savings for our businesses and less of their earnings being sent to Ottawa.
00:02:22.720That's annual savings of $1,425 per year per worker could be invested back in the company or used to hire more workers, strengthening the Alberta advantage.
00:02:33.720Another important benefit of an Alberta pension plan is it would be more stable than the current federal plan.
00:02:39.720With a potential transfer of over $300 billion in assets from the CPP, an Alberta pension plan would be able to deliver benefits over the long term at a lower cost than the CPP.
00:02:50.720This is possible because Alberta's younger demographic and strong labour force.
00:02:54.720According to the analysis, an Alberta pension plan would have a much bigger pool of assets compared to its number of retirees.
00:03:02.720And that means great pension security for Albertans.
00:03:06.720With an Alberta pension plan, Albertans would not only have more money in their pockets, that money would be portable.
00:03:12.720So employees would be able to move and work throughout other provinces and territories without disrupting their benefits.
00:03:19.720Just as it is with Quebec's provincial pension plan.
00:03:23.720Alberta's government would work with our partners in the Quebec pension plan and the CPP so that whether you live in Alberta or move across the country,
00:03:30.720you would still receive your pension benefits with no disruption or decrease.
00:03:34.720The reality is since the inception of the CPP, Albertans have been paying much more into it than they've gotten back during that same time.
00:03:55.720Alberta is the economic engine of Canada.
00:03:57.720And our young population, our nation-leading employment rate and higher pensionable earnings means that we're providing an outsized contribution to CPP.
00:04:06.720And as our population continues to grow, so do the number of Albertans contributing to a pension plan.
00:04:12.720As more people see Alberta as a desirable place to find a job and raise a family, an Alberta pension plan would become even more secure from having more workers contributing to the plan.
00:04:22.720Alberta's prosperity has been made possible by the hard work and pro-growth policies of our government.
00:04:28.720We already subsidized many federal programs because of our productivity, but we can choose to have our pension contributions stay in Alberta to ensure it's there when we retire.
00:04:38.720I believe that an Alberta pension plan would be fairer and could make life more affordable for all Albertans.
00:04:44.720It could bring more benefits for seniors, higher take-home pay for workers, and strengthen the Alberta advantage to attract business.
00:04:50.720I believe it's the right decision for our province.
00:04:53.720But I also believe in making sure that every Albertan has their say.
00:04:56.720We want to hear what you believe. It's your pension. So it's your choice.
00:05:00.720As we have always said, we won't make any decisions on establishing an Alberta pension plan until Albertans have their say.
00:05:08.720Now that we have this report with the most up-to-date numbers, we're turning the discussion over to Albertans and a panel led by former Finance Minister Jim Dinning.
00:05:16.720We want to hear your thoughts and concerns through this panel.
00:05:20.720And if we hear that Albertans are interested and supportive of taking next steps, we will work toward providing you with the opportunity to choose an Alberta pension plan in a referendum.
00:05:30.720I will now turn it over to Minister Nate Horner to provide.