Strength in Diversity: What We Can Learn from BC’s Target-benefit Plans
With the significant decline in single-employer defined-benefit (DB) pension plans in the private sector, it’s important to understand other alternatives. One such alternative is the target-benefit plan. The regulation of target-benefit plans (TBPs) in all provinces across Canada can be made more straightforward and effective using lessons learned from real-life experiences. With target-benefit plans currently […] Pension Roulette: The Risks and Consequences of Alberta Leaving the CPP
In the fall of 2023, the Alberta government released a report proposing the creation of an Alberta Pension Plan (APP) funded initially by the province’s withdrawal from the Canada Pension Plan, taking with it $334 billion in assets. This E-Brief examines the financial assumptions of the proposed APP, assesses their reasonableness, and outlines the […] Bob Baldwin – How to Resolve the Alberta Pension Plan
From: Bob Baldwin To: Canada Pension Plan Observers Date: November 20, 2023 Re: How to Resolve the Alberta Pension Issue Many commentators, including the prime minister and leader of the opposition, have now weighed in on the downsides of Alberta withdrawing from the Canada Pension Plan (CPP) and creating its own Alberta Pension Plan (APP). The Alberta […]Travis Toews – In Defence of Alberta’s Pension Report
From: Travis Toews To: Canada Pension Plan Observers Date: November 23, 2023 Re: In Defence of Alberta’s Pension Report Since the release of the Alberta Pension Plan report, I’ve read with interest the steady stream of commentary and opinion and, while there have been some thoughtful pieces, much of it has been ill-informed and misleading. Doubt has been cast on […]We need to clarify the CPP’s exit rules – Financial Post
Many commentators, including the prime minister and leader of the opposition, have now weighed in on the downsides of Alberta withdrawing from the Canada Pension Plan (CPP) and creating its own Alberta Pension Plan (APP). The Alberta proposal puts at risk a plan that has been providing secure retirement, survivor and disability benefits for nearly 60 years.
Much of the criticism and concern revolves around the $334 billion that a report prepared by the actuarial firm LifeWorks for the government of Alberta says the province should claim in compensation for assuming responsibility for paying the future benefits Albertans earned while their province was part of the CPP. The amount is 53 per cent of CPP’s current…
Alberta’s case for taking half CPP’s assets – Financial Post
Since the release of the Alberta Pension Plan report, I’ve read with interest the steady stream of commentary and opinion and, while there have been some thoughtful pieces, much of it has been ill-informed and misleading.
Doubt has been cast on the credibility of the firm that researched and delivered the report. Questions have been raised about the relevance of the formula used to calculate the transfer amount. And there seems to be general disbelief that a province with only 12 per cent of the nation’s population could have title to 53 per cent of the assets of the Canada Pension Plan (CPP).
Albertans will only be able to properly weigh the risks and opportunities of an Alberta Pension Plan (APP) when these…
William B.P. Robson – Retirement Savers Should Face No Offshore Investment Limits
From: William B.P. Robson To: Retirement Savers and Fund Managers Date: November 13, 2022 Re: Retirement savers should face no offshore investment limits Is the federal government thinking of limiting the foreign assets Canadians can own through their pension plans and RRSPs? Rumours to that effect are spreading among Canada’s pension plans and investors. The rumours are plausible. As […]Don’t limit Canadian investors’ access to foreign assets – Financial Post Op-Ed
Is the federal government thinking of limiting the foreign assets Canadians can own through their pension plans and RRSPs? Rumours to that effect are spreading among Canada’s pension plans and investors.
The rumours are plausible. As a recent C.D. Howe Institute report documents, business investment in this country has been so weak that capital per worker has actually been falling. That deadens productivity growth, which causes living standards to stagnate. A government that puts populist intervention ahead of principled economic policies, as this one often does, might want to force Canadian savers to invest more in Canadian assets.
How might it do so? Pension funds and other institutional investors have a…
Strengthening Retirement Income Security: Fairer Tax Rules and More Options Needed
Simple changes to tax rules can improve retirement security for Canadians, as well as make the retirement system more equitable among different classes of savers, and more efficient at managing longevity risks for capital decumulation. This E-Brief provides a discussion of needed retirement-related tax changes impacting members of capital accumulation plans, such as RRSPs and […]