The Alberta government wants out of the Canada Pension Plan — and the province wants to take more than half of the pot with it. Andrew Chang breaks down how Alberta arrived at its $334 billion take-home figure — and why some experts say the province needs to double check its math.
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The province of Alberta has been making headlines recently with its claims that it is entitled to half of Canada’s Pension Plan. This has, understandably, caused some controversy and raised questions about the reasons behind Alberta’s assertion.
The Canada Pension Plan (CPP) is a social insurance program that provides Canadian workers and their families with a measure of financial security in retirement. It is funded through payroll deductions and employer contributions, and is managed by the CPP Investment Board.
The issue at the heart of Alberta’s claim to half of the CPP revolves around the province’s contribution to the plan. Alberta contends that it has contributed significantly more to the CPP than it has received in benefits, and as a result, it feels entitled to a larger share of the plan’s assets.
According to Alberta’s Finance Minister Travis Toews, the province has contributed $28 billion more to the CPP than it has received in benefits over the past 10 years. Toews argues that this disparity is unfair to Albertans, and that the province should be entitled to a greater share of the plan’s assets to compensate for this discrepancy.
Alberta’s position has sparked debate within the country, with some arguing that the province’s claims are unfair and unfounded. Critics of Alberta’s stance argue that the CPP is a national program designed to provide retirement security for all Canadians, and that dividing the plan’s assets along provincial lines undermines the spirit of solidarity and collective responsibility that underpins the program.
However, Alberta is not the only province to raise concerns about its contributions to the CPP. Ontario has also expressed dissatisfaction with the current arrangement, citing similar grievances about the disparity between its contributions and benefits.
The issue of provincial entitlement to CPP assets has become even more contentious in light of demographic and economic shifts in Canada. With an aging population and rising pension costs, there is growing concern about the sustainability of the CPP and how best to manage its assets to ensure the financial security of future retirees.
As the debate over Alberta’s claims to half of the CPP continues, it is clear that this is a complex and sensitive issue with far-reaching implications for the future of the plan. It is crucial for all stakeholders to engage in constructive dialogue and collaboration to find a fair and equitable solution that upholds the principles of the CPP while addressing the concerns of contributing provinces like Alberta.
Go ahead and invent your own system, Alberta. Cut loose and go it alone. After all, you're a bunch of rugged individualists. With all the cowboy hats, open space, and energy production, you're the Texas of Canada! And your cowboy retirement system will fare just as well as their energy grid.
the second arguement is actaul a good one. the first one is not the failure of other provinces to be net contributors is mute, thats their problem
There is no way that one province should greedily attempt to take over half of the Canada Pension Plan. There are ten provinces in this country and the benefits need to be spread around fairly. Alberta has a lot of nerve!
It's a federation. Sharing is important. In 50 years when they'll be out of oil, they will be happy the rest of canada is paying for them…
This in not Albertas money, it is the money of Canadians. The only reason Daniel Smith is trying to do is is for personal gain. Daniel Smith is not telling us in Alberta is not the whole story. Daniel Smith is playing the us against them we are all Canadians.
The larger the asset the safer it is against resections.
That's some bad math assumptions, that assumes all the money they put in has been gathering interesting for 50 years.
As an Albertan… "Alberta" doesnt want out .. "Alberta" doesnt say we get half ..
A few nut jobs who conned too many voters say this stuff.
My parents as farmers paid both sides of CPP, dad passed, mom gets half, where does the other half go? Why do we get less than half of what we contribute, if its "invested" properly?
Doesn't this mean that CPP is a ponzi scheme ?
I never knew that a state/province could be a Karen…… I lie!!!! Texass obviously is a Karen and Alberta is its Canuckistani Best Friend apparently…. I realize it's mainly the right wing that is openly hostile to the other provinces, just like here in the states. Crazy how the world is becoming.
6:20 So the CPP is kind of like a ponzi scheme?
Wow so what your saying is because the federal goverment mismanaged the pension funds with gross incompetence, that Alberta should pay for that? really?
Excellent coverage Andrew! Someone give this man a raise.
Leave canada and join the usa
.. we'll give you new york
When you say you spent 'hours' doing something youre telling me you made no effort.
It seems to me that if entities can pull out of the fund then their share should have always been tracked and published in yearly statements.
Are you kidding? Albert’s share of contributions on a quarterly or annual basis FIRST have to be reduced by the payouts, in early years these likely EXCEEDED inputs, then apply the investment income multiplier to that amount.
halarious. people from provinces that take albertas money complaining..
Ontario should take it’s half immediately!
It is amazing how time after time we have observed in history, that whenever leaders for the sake of short term political gain without common sense and regard for how it really affects people, things have always slid down the wrong path. Short term thinking and absolute arrogance at its finest for nothing.
5:00 they added the interest and THEN removed what was paid out. Ummmmm….. If that was the math you used, then you did that incorrectly.
Oil sands, i live here in Edmonton Alberta
So why don't citizens have a bank account that they contribute too instead of sharing so much and you draw off of the money you contributed and your work contributed so that we don't have this issue? Same deal with employment insurance and if you don't draw EI you could take it out at retirement
Alberta proposing that 20% of the population are entitled to 50% of the pension defies any reasonle logic or math. Danielle Smith has shown more than once again that she has liitle clue about reality. I fear for the future of Canada with these people in charge. Federal politicians should look a Alberta's proposal quickly and turn it down flat.
Even if Alberta has to use its own revenue to baseline and just the input from the plan, in the long run it will be better. Alberta has to stop bankrolling the takers in the east.
Alberta when oil runs strong screw you Canada , and don’t reinvest in their infrastructure. When times get tough oh Canada where’s my handout . Never forget let the ‘#$@&’ freeze . Get elected in Alberta simply get negative and blame the federal govt . Harper wanted to extend retiring to 67 . Sad.
The video should be titled why Alberta isn't entitled to 53%.
Signed, an Albertan that isn't brain-dead.
why are so many Canadians scared about Alberta APP??? is it because Alberta has been paying more than their fair share ? in this and Equalization payments ??? bite me…. you dont like it …..move to Alberta
excellent video
She's dreaming in Imax, 3d technicolor and is doing this to disrupt True-Dough.
I'd let any province leave so long as they agree to any number of other provinces leaving first by the same calculation. Gotcha!
To get a proper calculation you would need to review almost every month and person per person for the past 60 years which is an impossible endeavour
Come on people we are stronger together. This individualism is very toxic
After spending their Heritage Fund, they will waste those monies.
Why do you want to stay in a an abusive relationship?
First, never trust the CBC, they are state sponsored liberal media hacks. 2nd, even if I believe you, which I don't, no problem, all transfer payments can now stop. The east has been robbing the west for decades and it's time for you guys to pay your own way.
wow people being lied to for 50plus years? who knew the government would do that
"The needs of the many outweigh the needs of the few" – Mr. Spock.
Now that the oil industry is in upheaval the Alberta government is trying to cover up the fact they wasted their money when they had it.
exposing the biggest ponzi scheme in history