The truth regarding an Alberta Pension Plan

Over the last five years I have sent thousands of emails to influential Canadians regarding the CPP’s huge surplus, the considerable benefits of a surplus distribution and the three industries that have selfishly covered up the news of this surplus.

The emails have been sent to 334 MPs twice, every provincial Minister of Finance, hundreds of top government administrators, 200 employees of the soon-to-be- defunded CBC, 200 chapters of the Canadian Chamber of Commerce and many, many more. The impact has been minimal. The tentacles of the financial industry are powerful.

However, Alberta’s premier, Danielle Smith, is a big defender of Alberta and very suspicious of federal politicians. Because a CPP surplus distribution would bring huge benefits to Albertans and their sputtering economy, one of my emails has probably reached her. Every email recommends a deserved, no-risk $10,000 CPP surplus distribution to 17 million Canadians. This $10,000 surplus distribution value can also be found on the Alberta Pension Plan website, which states an Alberta Pension Plan could add an:

“increase to each senior’s monthly pension payment, or even a $5,000 - $10,000 bonus payment at retirement…save Alberta workers up to $1,425 every year while maintaining the same level of benefits for seniors.”

Ms. Smith probably first queried our Finance Minister on why the CPP surplus is not being distributed. Then Ms. Freeland probably gave Ms. Smith an evasive, unsatisfactory answer as ten top Canadian actuaries have given me. It is unlikely Ms. Freeland spoke what is probably the truth:  

“We can’t distribute the CPP’s surplus because we have been paid by the financial industry and actuaries to never mention the CPP’s surplus, let alone legislate changes.”

As a competent, no-nonsense premier, Ms. Smith decided to combat the feds’ stonewall and exercise Alberta’s right to take their fair share of our CPP fund and then give these deserved surplus benefits to millions of Albertans and the Alberta economy.

Perhaps she was not aware that actuaries are complicit in this coverup. This is because the CPP, with ongoing outstanding investment success (which is likely), could give an average 25-year-old a $100,000 CPP pension in 2023 dollars. The need for other pension funds, and hence actuaries, would then plummet.

Ms. Smith hired Lifeworks, Canada’s preeminent actuarial firm, to assess how much of the CPP’s fund Alberta deserves. Lifeworks’ actuaries knew the news of the CPP’s surplus and potential was getting closer to being known by millions of Canadians. They needed a distraction. They needed to make Ms. Smith appear reckless and unreasonable. They likely found some obsure mathematics in the founding CPP legislation of the 1960’s that let them mathematically justify Alberta deserving a 53% share of Canada’s CPP fund.

This 53% is absolutely wrong. Based on population, Alberta’s share of the CPP’s fund is 16%. For complex reasons, it could be slightly higher than 16% but nowhere near 53%. Actuaries should be castigated for publishing such confusing data.

However, instead of actuaries being castigated, the media made it appear that Ms. Smith is responsible for the 53% claim. They painted her as an out-of-control premier who should be dismissed. And her correct claim that the CPP’s surplus could give all Canadian seniors $10,000 each has been somewhat buried by a complicit media.

Nevertheless, when all provincial finance ministers met Ms. Freeland in November 2023, the following must have been put forward by provincial finance minsters:

 "The CPP has a huge surplus. It could really help my province. Why aren't you distributing it?"

 Receiving no viable response from Ms. Freeland, other premiers may join Ms. Smith in threatening to leave the CPP. Time will tell.