Albertans should want to remain part of the Canada Pension Plan, says investment manager

CPP Investments chief says Albertans will only benefit from maintaining the Canada Pension Plan, arguing the safety and security of a national plan is “indisputable.”

CEO John Graham, who heads the professional organization that manages the Canada Pension Plan fund, made his pitch to Calgary business leaders at the Alberta Energy and Growth Forum on Tuesday.

While briefly alluding to the “noise” created by the Alberta government considering a possible exit from the CPP in favor of a provincial pension plan, Graham focused his remarks on how he believes the national plan provides stability that can weather economic storms and change. demographics.

“In a world of constant uncertainty, Albertans must protect their financial future,” he said. “Access to the CPP is a way for Canadians living in Alberta to protect themselves against an unpredictable economy.

Story continues below advertisement

“The commercial and political benefit of remaining with an established global investment fund with a proven track record of investment performance is unquestionable. »

Graham said about $6 billion of the CPP fund’s $576 billion in a*sets is invested in Alberta’s oil and gas sector. The organization also invests in renewable energy and other energy businesses in the province, which benefits the local economy.

He said the organization’s broad portfolio provides the benefit of risk pooling and diversification, giving the CPP the scale needed to provide stability for retirees.

This stability has gained international recognition as a “national treasure,” he added.

“The CPP is truly admired around the world as a secure and stable retirement plan — one that we can be confident will serve us well in retirement,” he said.

Story continues below advertisement

He added that the CPP is also portable, meaning Albertans can take their pension with them if they choose to retire outside the province, and Canadians who move to Alberta can do the same.

In September, Alberta Premier Danielle Smith launched a province-wide consultation on whether to leave the Canada Pension Plan and instead create an Alberta Pension Plan, while releasing a report estimating that the province deserves more than half of the CPP a*sets.

The third-party report says Alberta stands to receive $334 billion, or 53 per cent of the CPP, if it leaves the program in 2027 after the required three-year notification period.

However, the plan has faced criticism, including from Alberta business groups, investors and political opponents, who say it would create significant instability and uncertainty.

Federal leaders, including Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland, have warned that removing Alberta from the national pension plan would put millions of pensions across Canada at risk and cause “undeniable” harm .

Story continues below advertisement

— with files from the Canadian Press

&copy 2023 PKBNEWS, a division of Corus Entertainment Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button