CARP Calgary stands with other seniors’ organizations against the UCP push for an Alberta Pension Plan. In this email, we bring you some truths to counteract some of the misinformation that is out there right now.
First, some facts around the CPP Investment Board (CPPIB):
=> Canada is the 9th largest economy in the world but is the leader in pension fund management (CPPIB)
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The CPP Investment Fund is currently over half a trillion dollars. It is projected to be $1 trillion by 2030 and $3 trillion by 2050.
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The CPPIB has offices in 8 countries and invests in more than 50 countries.
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The CPP is “ring fenced” so no government can reach in and allocate the pension funds to their will or interfere in investment decisions.
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The CPP has been independently verified to be sustainable and able to meet its obligations for at least 75 years.
Second, some specific misinformation is being spread by the UCP and others.
=> Misinformation: Because of Alberta’s higher wages, we pay more into the CPP than other provinces.
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Fact: The maximum contribution to CPP happens when you make $66,600. Any additional earnings do not increase contributions. Even though we have a higher average wage, we don’t pay more than anyone else on an individual basis.
=> Misinformation: Alberta pays into the CPP.
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Fact: CPP premiums are paid by employees and employers. Other than in their role as an employer, the Provincial Government does NOT pay into the CPP.
=> Misinformation: Alberta is owed 53% of the value in the CPP.
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Fact: Alberta employees and employers have made 16% of the contributions to the CPP. Not 53% of the contributions. Any amount to be recovered from the CPP by Alberta will only be decided after lengthy negotiations (and likely court challenges) and is estimated to be around 16%.
=> Temporary situation: Alberta has a younger population and, therefore, pays more into the CPP than it receives.
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Alberta does have a younger population, so we have more people contributing than withdrawing. That was true in Quebec when the province decided to set up its own plan. Now their demographics have changed. That means Quebec employees and employers are paying more into the QPP than the rest of Canada pays into the CPP to get the same benefit. The projection from the Government of Alberta website shows our demographics are going to change just like Quebec’s did.
=> Misinformation: The CPPIB doesn’t invest in Alberta like it should.
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Fact: About 16% of the CPPIB’s Canadian portfolio is currently invested in Alberta, even though Albertans make up about 12% of the Canadian population.
If you support CARP’s position, here are a few links where you can join the fight:
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