Premier Jason Kenney said his government is considering a “compelling case” for pulling out of the half-century-old pension plan. He said the province is Canada’s largest net contributor to the CPP, and that it might instead transfer its roughly $40-billion in premiums to the Alberta Investment Management Corporation (AIMCo). (The Canadian Press)
Talking point: The newly re-elected federal Liberal minority didn’t win a single seat in Alberta or Saskatchewan, and frustration with the federal government’s alleged mismanagement of the resource-dependent provinces is growing. CPP’s exit provisions give the province the right to pull out of the plan, as Quebec did soon after the plan was launched. Kenney is arguing that Alberta’s young workforce is paying unjustifiably high premiums for the benefits they receive. Pulling out would certainly increase the province’s control of its finances, but some analysts have criticized the proposal as a political jab rather than a sound economic move. An additional $40 billion for AIMCo—which already manages around $108 billion—would make it a veritable investment giant.