I sent the attached letter by regular mail to the federal Minister of Finance last week. My intention is to draw her attention to the private member’s bill, C-387 introduced by Edmonton-Strathcona M.P., Heather McPherson during the last sitting of Parliament.
The letter is self-explanatory. Ms. McPherson’s unreported Bill represents an important widening of the war front in fighting the Alberta government’s ill-advised foray into pension investment as part of its sovereigntist agenda.
At the foot of this post are earlier posts penned on the Alberta Pension Plan gambit. including a 30-minute interview with Ms. McPherson.
Edmonton, Alberta T6C 4R1
12 August 2024
The Honorable Chrystia Freeland, P.C., M.P.
Deputy Prime Minister and Minister of Finance
Member for Parliament, Toronto University-Rosedale
Ottawa, Ontario
Canada K1A 0A6
Dear Ms. Freeland
Re. Bill C-387
In the last sitting of the House of Commons, M.P. Heather McPherson, M.P. for Edmonton Strathcona tabled an important private member’s Bill C-387 which would limit the exclusive authority of the Minister responsible for administering the Canada Pension Plan (CPP) and the Governor in Council from allowing a province to withdraw from the pension plan.
This exclusive executive authority under section 4(3) of the CPP Act fails to recognize that the Act is a creation of both the federal government and participating provincial governments. As you know, the CPP is a cornerstone of retirement income for many Canadians. The proposal by the Government of Alberta to explore withdrawing from the CPP is alarming and, if allowed, might potentially have significant adverse implications for Canadians outside Alberta, besides Albertans.
This issue was discussed with your provincial and territorial colleagues at a meeting last year with the result that the Chief Actuary is being given directions on how to develop estimates of the quantum of assets which might be transferred to the Alberta government under current legislation.
The CPP Act has changed very significantly since its creation with the CPP initially used as an instrument for provinces to borrow from the fund based on its population’s contributions. This financing arrangement has not been the situation for over two decades with the establishment of a sophisticated institutional investor, the Canada Pension Plan Investment Board (CPPIB).
Significantly, at the time of the amendments to the CPP in the late 1990s, the new institution was purposefully designed to be insulated from political direction- federal or provincial.
This important element, the clear prohibition on political interference unfortunately is not built into the Alberta proposals which promise “More Alberta, Less Ottawa,” whatever that means. The Government of Alberta’s slick marketing campaign is highly problematic and misleading as the CPP Investment Board has documented in a letter to Jim Dinning, the panel chair looking into a CPP exit for Alberta.
Parenthetically, the Government of Alberta has also not been forthcoming with respect to Freedom of Information requests designed to learn what the public service was advising as well as survey results initiated by the provincial government.
Most Albertans are very worried about the prospect of an Alberta Pension Plan and for good reason. While the Alberta Pension Protection Act promises a plan would not be introduced without a referendum, the legislation can be repealed at any time.
Ms. McPherson’s elegant amendment to section 3 of the CPP Act would require agreement of at least two-thirds of provincial governments representing not less than two thirds of the population of all the provinces. This amendment is a simple and fair solution to a potentially thorny political problem. Moreover, this amendment is a long overdue solution to making antiquated withdrawal provisions current with the existing structure of the Canada Pension Plan.
I therefore strongly urge your government to consider adopting these provisions at the next session of Parliament.
Yours sincerely,
Robert L. Ascah
c.c. Heather McPherson, M.P.,Edmonton Strathcona
Related Posts
Exclusive Interview with M.P. Heather McPherson- CPP Act amendments
Frustrations of a FOIPP applicant- the case of the Alberta Pension Plan (Part 1)
Alberta Pension Plan- conversation with retired professors at UofA
What would Withdrawing from the Canada Pension Plan Mean to Albertans?