Conservative Leader Pierre Poilievre has publicly voiced his stance on Alberta’s contentious proposal to withdraw from the Canada Pension Plan (CPP). In a statement exclusively sent to the National Post, he said, “Albertans are seeking to get some of their money back,” and encouraged Albertans to remain in the CPP.
The backdrop to this divisive issue is the perception among many in Alberta that the province’s economy has been attacked by the policies of Prime Minister Justin Trudeau. “The division today on the CPP is entirely the result of Justin Trudeau attacking the Alberta economy. His unconstitutional anti-development laws and painful carbon taxes have forced Albertans to look for ways to get some of their money back,” Poilievre remarked. He further claimed that if he were the prime minister today, the CPP debate would not be taking place, as Alberta would be “free from carbon taxes, unconstitutional anti-energy laws, and other unfair wealth transfers.”
The proposal has ignited political tensions, notably after Prime Minister Trudeau sent a strongly-worded open letter to Alberta Premier Danielle Smith. He emphasized the need to defend the CPP and warned against Alberta’s possible withdrawal. Trudeau wrote, “Alberta’s withdrawal would weaken the pensions of millions of seniors and hardworking people in Alberta and right across the country. The harm it would cause is undeniable.” Smith swiftly responded with her own open letter, expressing concerns over Trudeau’s perceived threat to block the withdrawal. She stated, “If Albertans choose to withdraw from CPP, I expect that you will respect their choice.”
Alberta Premier Danielle Smith at a news conference on Sept. 20, 2023. PHOTO BY DARREN MAKOWICHUK/POSTMEDIA
In supporting evidence for the withdrawal, Premier Smith released a report last month from LifeWorks, a human resources company. The report concluded that Alberta could potentially claim up to $334 billion if it secedes from the CPP—equating to over half the national pension fund’s assets. However, this figure has stirred debates among economists and politicians alike, with the Alberta New Democrats and the Alberta Federation of Labour among the vocal opponents of the proposal.
Advocates for Alberta’s independent pension plan argue that the young demographic in the province would lead to reduced CPP contributions from paychecks. Moreover, a separate pension fund could potentially offer heightened retirement benefits for seniors. Despite these claims, concerns remain, especially after CPP Investments, responsible for managing the CPP, criticized the Alberta government’s consultation process as it seeks opinions on the withdrawal.
Duane Bratt, a political scientist at Calgary’s Mount Royal University, speculated that Trudeau’s open letter was, in part, a move to prompt Poilievre to reveal his position on the issue. Bratt opined, “It’s not going to help (Trudeau) in Alberta. But I think Trudeau did that, in part to call out Poilievre.”
Poilievre’s popularity is evident in Alberta, with recent Angus Reid Institute polls showing 55% of Albertans holding a favourable view of the Conservative leader. Poilievre asserted, “As prime minister, I will protect and secure the CPP for Albertans and all Canadians.” Premier Smith reciprocated the sentiment, anticipating a collaborative effort with Poilievre “to restore respect for the constitutional rights of provinces to the economic benefit of all Canadians.”
Bratt, commenting on the broader implications, said, “If you’re going to be prime minister of Canada, how can you not support the Canada Pension Plan?”
