Alberta not in favor of expanding the Canada Pension Plan

Minister of Finance and Enterprise Ted Morton issued the following statement in response to proposed changes to Canada’s pension system, released by the federal and Ontario governments.

“Alberta does not support an expansion of the Canada Pension Plan because it is not a targeted response to the issue at hand. Rather, it is an overreaction.”

“Expanding the Canada Pension Plan may benefit the significant minority who are not saving enough for retirement, but it would also provide additional and unnecessary benefits to those who already have adequate income provisions, and at significant cost to both them and their employers. It would also hurt low-income workers, who would be required to make additional contributions during their working lives.”

“Alberta believes the solution is not to rely on future taxpayers to fund public income support systems, but to instead find ways to encourage Canadians to save for their retirement over the course of their working careers. Options worth exploring further include pension innovation and supplementary pension plans.”

“We should be looking for the right combination of private sector delivery with public oversight and monitoring. Alberta is already working with British Columbia on harmonized pension standards legislation that will help enable the private sector to innovate and enhance the retirement savings system.”

“Expanding the Canada Pension Plan is not the answer.”