NDP introduces plan to protect Albertans’ retirement
By Al Beeber - Lethbridge Herald on March 24, 2023.
LETHBRIDGE HERALDabeeber@lethbridgeherald.com The NDP will create a legal requirement for a public referendum before any government gives notice to leave the Canada Pension Plan if elected.That strategy is among others unveiled by Opposition leader Rachel Notley in Calgary Thursday.
An embargoed copy of the paper was given to media on Wednesday.
The paper says Albertans trust the CPP and rely on it for financial security, adding that for many contributing to it is their only contribution towards saving for the future.
The NDP is also proposing to let the private sector, including non-profit organizations, to access two Crown agencies – asset manager AIMCO and the Alberta Pensions Service – to set up their own workplace pensions.
“Many organizations want to deliver workplace pensions, but are limited by a lack of scale and administrative costs. In order to incent the development of private workplace pensions, we propose a new, voluntary model. The Government of Alberta will partner with any private sector employer to establish a workplace pension, and government will defray the marginal cost increase at APS to administer those new pensions. Employers would provide the cash contributions to the pensions, and assets would be invested/managed by AIMCo,” says the paper.
Alberta Pension Services presently provides services to 384,951 Albertans and 506 employers, says the report. The cost is $175 per pension/person annually.
“Adding 100,000 private sector workplace pensions would only cost the Government of Alberta $17.5 million, but would be transformative for the retirement security of Albertans,” says the NDP document.
If the NDP is elected, it intends to create a task force with AIMCO, APS and leaders in the private sector “to refine the model and develop an operational plan for implementation.”
The NDP says it will ensure the task force mission includes a commitment to the lowest barriers to entry for private sector employer participation.
The party is proposing a Defined Contribution pension plan which it says eliminates risk for government and employers, thereby increasing the likelihood of participation.
The NDP is also proposing a return the a model of joint governance for major public sector pension plans, saying workers must have a say on how those plans are government.
The NDP will also remove the power of the Finance Minister to direct individual investments at AIMCO to ensure investment returns are the driving force in decisions.
NDP for Lethbridge West and Finance Critic Shannon Phillips says in a preamble to the plan that “pensions are the cornerstone of this secure retirement — but for many Albertans they are getting further and further out of reach. Faced with rising costs and an uncertain jobs economy, it’s often retirement savings that are first to go. After all, there’s no winner when a parent is forced to choose between saving for retirement and putting food on the table for their kids.” Follow @albeebHerald on Twitter 4
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