April 17, 2012
Reality Check: PCs Wrong On The CPP
Earlier today at a Calgary Herald Editorial Board, Redford said that "the Wildrose promise to explore options such as…a provincial Alberta Pension Plan to replace the Canada Pension Plan "[doesn't] make financial sense."
(http://www.edmontonjournal.com/news/Alberta+Election+2012+Redford+accuses+Wildrose+having+small+Alberta+vision/6473537/story.html#ixzz1sL6t4VKv) These comments follow upon the PC release on the CPP a few days ago, in which the Redford PCs attacked the idea of replacing the CPP with a provincial plan. It's wrong to pretend that, whatever Alberta's share of CPP liability is, Albertans are not liable for it already. Since Alberta pays double what it gets back from the CPP at the moment, we're in fact covering far more than our share of the liability. Given the high birthrate in Alberta, combined with a high employment rate, this will be the case for the foreseeable future. A document http://archive.wildrose.ca/media/2012/04/APP.pdf prepared by the Finance department in 2007 presents projections of what would happen if Alberta replaced the CPP with a provincial plan. On page 2 we see that, whereas the CPP aims to hit 25% of its liability being funded in 2025, and plans only to remain at that level over the long term (2075), an Alberta Pension Plan that began in 2007 would be already be 50% funded by 2025, and 100% funded in 2075. We should note that the net projected liability of Alberta (offset by assets) in 2007 is only $78 billion according to this report prepared by Alberta Finance officials (pages 4-5). Either the net $104 billion PC number is considerably inflated, or the liability ratio in the CPP is worsening more than has been revealed to the public. Wildrose believes government should work for its citizens, not the other way around. The Redford PCs ensure they take the steps necessary to protect their own pocket books (voting themselves fat raises), but fail to think outside the box when it comes to ensuring hard working Albertans - our seniors in particular - are well cared for. Of course Wildrose is open to looking at whether a provincial pension plan would in fact draw an increased return for older Albertans and a more secure plan in the future for those still in the workforce. The only "reckless, unnecessary and enormous costs to the province for projects that make no sense, and gain Alberta nothing" (http://www.votepc.ca/admin/contentx/dpNews/launch.cfm?itemid=2496&r=10 187) are the billions of dollars in unbudgeted, and poorly costed campaign promises the Redford PCs have been making. Wildrose stands for free enterprise, less government, increased personal freedom, and democracy.