Connect with us

Alberta

Risk or Reward: The Alberta Pension Plan according to the UCP and the NDP

Published

8 minute read

Submitted by The Free Alberta Strategy Team

A Positive Pension Plan

There’s been a lot of misinformation swirling around Alberta politics in the last few months, and with the election now underway, it’s only ramped up even further.

Perhaps no issue, though, has been as misrepresented as the idea of an Alberta Pension Plan.

 

As of right now, the UCP says they are still studying the issue, and that any actual implementation of an Alberta Pensions Plan would be conditional on the holding of a referendum after all the research has been done and the reports that have been commissioned have been received and publicised.

The NDP, meanwhile, has completely dismissed the idea entirely, before the research has even been finished, and has spread some pretty crazy ideas around about what a provincial pension plan would mean.

We’ve heard that the provincial government is trying to “steal” Albertans’ pensions.

We’ve heard that the government would gamble all our pensions away.

We’ve heard that they’d take the money and give it to their friends.

We’ve also heard a bizarre theory that if you had an Alberta Pension Plan, you wouldn’t then be able to go and work or retire in any other province.

And all of that is, of course, simply nonsense.

No one is suggesting doing any of those things.

No one has ever suggested doing any of those things.

And, perhaps clearest of all, none of those things happen in Quebec – who already have their own pension plan, remember!

Instead, the plan is actually quite simple.

Right now, the Canada Pension Plan (CPP) is administered by an arm’s-length agency of the federal government.

The idea would be to replace that arm’s-length agency of the federal government with an arm’s-length agency of the Alberta government.

But, if the idea isn’t to bring the money back to Alberta in order for the Alberta government to “steal” your pension, why exactly would we want to do it?

The main reason to switch to an Alberta Pension Plan is actually fairness for Albertans.

The fact is that the Canada Pension Plan, as it is currently structured, is essentially just another massive wealth transfer from Alberta to the rest of Canada.

Remember, the “Canada Pension Plan” isn’t actually a personalized pension with your name on it.

The federal government doesn’t keep each Canadian’s money in an individual account and then pay you back with your own money when you retire.

Rather, it’s just another tax that you pay, all the money gets lumped in together, and then when you retire you get a maximum of about $15,000 back each year.

So, Alberta’s young, talented, and hard-working population ends up subsidizing the pensions of workers in the rest of the country.

And it isn’t a small subsidy either – the total subsidy between 2008 and 2017 adds up to $27.9 billion.

As of 2017, Albertans were contributing 16.5% of all pension contributions, while our retirees only accounted for 10.8% of pension payments.

And remember, that was in the middle of Alberta’s biggest economic downturn in a generation.

When we get more updated figures, the subsidy is likely to be even more significant.

Albertans are paying not only for their own pension, but also for a large share of the pensions of everyone in the rest of the country.

Creating an Alberta Pension Plan would instantly remove this subsidy, and Albertans would only pay for their own pensions, instead of for everyone else’s.

And with the subsidy gone, the Alberta government could immediately reduce pension contributions while retaining the exact same benefits retirees receive right now.

Or, they could keep the same contribution levels, while increasing the benefit payments retirees receive, or do something in between the two.

All without the Alberta government interfering in the administration of the pension plan itself.

Certainly, the concept of an Alberta Pension Plan needs much more detailed research before it can be implemented.

A significant amount of work will need to be done to ensure proper risk management and governance practices will be implemented.

And this is all work that the UCP has committed to do before making any final decisions.

But given the significant financial benefits, the fact that the NDP is willing to completely rule out the idea before even seeing the details is incredibly short-sighted.

Their opposition seems entirely based on the idea that the Alberta government would somehow “take over” and “steal” people’s pensions – without any explanation of why that would be possible with an arm’s-length provincial organization in a way that isn’t currently possible with an arm’s-length federal organization managing the money.

It’s also incredibly ironic given that, when the NDP were in power in Alberta, their government did interfere in the administration of the various government employee pensions that are currently managed by AIMCO.

(That’s a whole other story for a whole other email, but the short version is that they took away the requirement for AIMCO directors to be experienced investors, they appointed a bunch of NDP allies to the board, and then set about forcing those directors to invest the money in a bunch of environmental projects that the NDP favoured, until the UCP reversed those changes and restored the independence of AIMCO.)

An Alberta Pension Plan is one of the many proposals in the Free Alberta Strategy that can be used to protect the financial future of Albertans.

But, like any policy proposal, it requires robust research to ensure it is implemented properly.

We have a small team of researchers, funded entirely by grassroots donors like yourself, and we need your help to continue developing and promoting detailed solutions.

If you’re in a position to do so, please consider making a donation:

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Alberta

Unified message for Ottawa: Premier Danielle Smith and Premier Scott Moe call for change to federal policies

Published on

United in call for change: Joint statement

“Wednesday, Alberta’s and Saskatchewan’s governments came together in Lloydminster to make a unified call for national change.

“Together, we call for an end to all federal interference in the development of provincial resources by:

  • repealing or overhauling the Impact Assessment Act to respect provincial jurisdiction and eliminate barriers to nation-building resource development and transportation projects;
  • eliminating the proposed oil and gas emissions cap;
  • scrapping the Clean Electricity Regulations;
  • lifting the oil tanker ban off the northern west coast;
  • abandoning the net-zero vehicle mandate; and
  • repealing any federal law or regulation that purports to regulate industrial carbon emissions, plastics or the commercial free speech of energy companies.

 

“The federal government must remove the barriers it created and fix the federal project approval processes so that private sector proponents have the confidence to invest.

“Starting with additional oil and gas pipeline access to tidewater on the west coast, our provinces must also see guaranteed corridor and port-to-port access to tidewater off the Pacific, Arctic and Atlantic coasts. This is critical for the international export of oil, gas, critical minerals, agricultural and forestry products, and other resources. Accessing world prices for our resources will benefit all Canadians, including our First Nations partners.

“Canada is facing a trade war on two fronts. The People’s Republic of China’s ‘anti-discrimination’ tariffs imposed on Canadian agri-food products have significant impacts on the West. We continue to call on the federal government to prioritize work towards the removal of Chinese tariffs. Recently announced tariff increases, on top of pre-existing tariffs, by the United States on Canadian steel and aluminum products are deeply concerning. We urge the Prime Minister to continue his work with the U.S. administration to seek the removal of all tariffs currently being imposed by the U.S. on Canada.

“Alberta and Saskatchewan agree that the federal government must change its policies if it is to reach its stated goal of becoming a global energy superpower and having the strongest economy in the G7. We need to have a federal government that works with, rather than against, the economic interests of Alberta and Saskatchewan. Making these changes will demonstrate the new Prime Minister’s commitment to doing so. Together, we will continue to fight to deliver on the immense potential of our provinces for the benefit of the people of Saskatchewan and Alberta.”

Continue Reading

Alberta

Calls for a new pipeline to the coast are only getting louder

Published on

From Resource Works

Alberta wants a new oil pipeline to Prince Rupert in British Columbia.

Calls on the federal government to fast-track new pipelines in Canada have grown. But there’s some confusion that needs to be cleared up about what Ottawa’s intentions are for any new oil and gas pipelines.

Prime Minister Carney appeared to open the door for them when he said, on June 2, that he sees opportunity for Canada to build a new pipeline to ship more oil to foreign markets, if it’s tied to billions of dollars in green investments to reduce the industry’s environmental footprint.

But then he confused that picture by declaring, on June 6, that new pipelines will be built only with “a consensus of all the provinces and the Indigenous people.” And he added: “If a province doesn’t want it, it’s impossible.”

And BC Premier David Eby made it clear on June 2 that BC doesn’t want a new oil pipeline, nor does it want Ottawa to cancel the related ban on oil tankers steaming through northwest BC waters. These also face opposition from some, but not all, First Nations in BC.

Eby’s energy minister, Adrian Dix, also gave thumbs-down to a new oil pipeline, but did say BC supports expanding the capacity of the existing Trans Mountain TMX oil pipeline, and the dredging of Burrard Inlet to allow bigger oil tankers to load Alberta oil from TMX at the port of Vancouver.

While the feds sort out what their position is on fast-tracking new pipelines, Alberta Premier Danielle Smith leaped on Carney’s talk of a new oil pipeline if it’s tied to lowering the carbon impact of the Alberta oilsands and their oil.

She saw “a grand bargain,” with, in her eyes, a new oil pipeline from Alberta to Prince Rupert, BC, producing $20 billion a year in revenue, some of which could then be used to develop and install carbon-capture mechanisms for the oil.

She noted that the Pathways Alliance, six of Canada’s largest oilsands producers, proposed in 2021 a carbon-capture network and pipeline that would transport captured CO₂ from some 20 oilsands facilities, by a new 400-km pipeline, to a hub in the Cold Lake area of Alberta for permanent underground storage.

Preliminary estimates of the cost of that project run up to $20 billion.

The calls for a new oil pipeline from Bruderheim, AB, to Prince Rupert recall the old Northern Gateway pipeline project that was proposed to run from Alberta to Kitimat, BC.

That was first proposed by Enbridge in 2008, and there were estimates that it would mean billions in government revenues and thousands of jobs.

In 2014, Conservative prime minister Stephen Harper approved Northern Gateway. But in 2015, the Federal Court of Appeal overruled the Harper government, ruling that it had “breached the honour of the Crown by failing to consult” with eight affected First Nations.

Then the Liberal government of Prime Minister Justin Trudeau, who succeeded Harper in 2015, effectively killed the project by instituting a ban on oil tanker traffic on BC’s north coast shortly after taking office.

Now Danielle Smith is working to present Carney with a proponent and route for a potential new crude pipeline from Alberta to Prince Rupert.

She said her government is in talks with Canada’s major pipeline companies in the hope that a private-sector proponent will take the lead on a pipeline to move a million barrels a day of crude to the BC coast.

She said she hopes Carney, who won a minority government in April, will make good on his pledge to speed permitting times for major infrastructure projects. Companies will not commit to building a pipeline, Smith said, without confidence in the federal government’s intent to bring about regulatory reform.

Smith also underlined her support for suggested new pipelines north to Grays Bay in Nunavut, east to Churchill, Manitoba, and potentially a new version of Energy East, a proposed, but shelved, oil pipeline to move oil from Alberta and Saskatchewan to refineries and a marine terminal in the Maritimes.

The Energy East oil pipeline was proposed in 2013 by TC Energy, to move Western Canadian crude to an export terminal at St. John, NB, and to refineries in eastern Canada. It was mothballed in 2017 over regulatory hurdles and political opposition in Quebec.

A separate proposal known as GNL Quebec to build a liquefied natural gas pipeline and export terminal in the Saguenay region was rejected by both federal and provincial authorities on environmental grounds. It would have diverted 19.4 per cent of Canadian gas exports to Europe, instead of going to the US.

Now Quebec’s environment minister Benoit Charette says his government would be prepared to take another look at both projects.

The Grays Bay idea is to include an oil pipeline in a corridor that would run from northern BC to Grays Bay in Nunavut. Prime Minister Carney has suggested there could be opportunities for such a pipeline that would carry “decarbonized” oil to new markets.

There have also been several proposals that Canada should build an oil pipeline, and/or a natural gas pipeline, to the port of Churchill. One is from a group of seven senior oil and gas executives who in 2017 suggested the Western Energy Corridor to Churchill.

Now a group of First Nations has proposed a terminal at Port Nelson, on Hudson Bay near Churchill, to ship LNG to Europe and potash to Brazil. And the Manitoba government is looking at the idea.

“There is absolutely a business case for sending our LNG directly to European markets rather than sending our natural gas down to the Gulf Coast and having them liquefy it and ship it over,” says Robyn Lore of project backer NeeStaNan. “It’s in Canada’s interest to do this.”

And, he adds: “The port and corridor will be 100 per cent Indigenous owned.”

Manitoba Premier Wab Kinew has suggested that the potential trade corridor to Hudson Bay could handle oil, LNG, hydrogen, and potash slurry. (One obvious drawback, though, winter ice limits the Hudson Bay shipping season to four months of the year, July to October.)

All this talk of new pipelines comes as Canada begins to look for new markets to reduce reliance on the US, following tariff measures from President Donald Trump.

Alberta Premier Smith says: “I think the world has changed dramatically since Donald Trump got elected in November. I think that’s changed the national conversation.”

And she says that if Carney wants a true nation-building project to fast-track, she can’t think of a better one than a new West Coast oil pipeline.

“I can’t imagine that there will be another project on the national list that will generate as much revenue, as much GDP, as many high paying jobs as a bitumen pipeline to the coast.”

Now we need to know what Mark Carney’s stance on pipelines really is: Is it fast-tracking them to reduce our reliance on the US? Or is it insisting that, for a pipeline, “If a province doesn’t want it, it’s impossible.”

Continue Reading

Trending

X