Benefits & Pensions
Alberta introduces legislation to guarantee APP won’t be launched without referendum
Alberta has introduced legislation to guarantee the government won’t launch an Alberta Pension Plan (APP), replacing the Canada Pension Plan, unless the public votes in favour of it in a referendum.
The Alberta Pension Protection Act would provide Albertans four guarantees to protect the pensions they have built up during their working careers under the CPP, according to the province. The legislation guarantees:
- Albertans must vote in favour of an Alberta Pension Plan during a public referendum before the government withdraws assets from the CPP.
- Contribution rates under an Alberta Pension Plan would be the same or lower than the rates for the CPP.
- An APP must provide the same or better benefits to Albertans.
- The entire asset transferred from the CPP would be used solely to set up and operate an Alberta Pension Plan.
“This legislation protects the interests of Albertans and provides them assurance that if they move forward with an Alberta Pension Plan, their pensions and their benefits will always be there for them,” said Nate Horner, Minister of Finance and president of Treasury Board. “This is their money, built up over years of hard work. We promise we would keep it safe and make sure it grows to provide retirement security for generations.”
An independent report by LifeWorks estimates an Alberta Pension Plan could be supported with lower contribution rates than the CPP, saving Alberta employees and employers up to $1,425 every year for each employee, according to the government.
The Alberta Pension Plan Engagement Panel is currently hosting regional telephone town halls, including three in November, to hear from Albertans. The public survey is open until Dec. 10.
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