Remarks by the Deputy Prime Minister following a special meeting of provincial and territorial finance ministers to discuss the Government of Alberta’s proposed withdrawal from the Canada Pension Plan

November 3, 2023 - Ottawa, ON

Good afternoon.

Today I convened a special meeting of provincial and territorial Finance Ministers to discuss the Canada Pension Plan and the importance of protecting Canadians’ pensions from coast to coast to coast.

For six decades, the CPP has been the bedrock of a secure and dignified retirement for Canadians—very much including the people of Alberta.

I have heard the concerns of many Canadians—including many Albertans—about the Government of Alberta’s proposal to withdraw Albertans from the CPP.

The Calgary Chamber of Commerce has said that altering Alberta’s pension system could compromise labour mobility, stability for businesses and consumers, and investor confidence.

The Alberta Federation of Labour has said that the proposed move to a provincial pension plan would be “truly scary for anyone contemplating a safe and stable retirement.”

Of course, Alberta has the right to withdraw from the CPP should it so choose. All of the ministers recognize that today, and every single minister, including me—a proud daughter of Alberta—spoke about our respect for the people of Alberta and for the absolutely essential role Alberta plays as an economic engine for our whole country.

But Alberta’s choice about the CPP also implicates every single Canadian. So, it was important for all of us, as the federal government and the provincial and territorial Finance Ministers, to be present and to discuss together what the consequences for the whole country would be if Alberta were to leave the CPP and what the consequences would be for people across the country, including for the people of Alberta.

That includes the financial reality for a province that decides to withdraw from the CPP. And that’s why I told ministers today that I would ask the Chief Actuary to provide an estimate of the asset transfer based on a reasonable interpretation of the provisions in the CPP legislation. Our officials will work together to define the precise taskings for this work.

One of the other points that I raised in our meeting, and that was raised by many other ministers, was the issue of portability. The CPP allows Canadians to live and work anywhere in Canada without jeopardizing their retirement. Many ministers spoke personally in this meeting. They talked about their own lives, living and working across Canada, and they talked about the lives of members of their family and how portability had been really important.

If Alberta were to withdraw from the CPP, the federal government would need to issue a regulation recognizing comparability with the CPP, and Alberta would need to negotiate complex, time-consuming portability agreements with the CPP and with the Quebec Pension Plan.

Furthermore, if Alberta were to choose to leave, the Government of Alberta would also need to negotiate international social security agreements to ensure similar treatment of contributors who spend part of their careers abroad.

As an example, Quebec has negotiated its own social security agreements with 39 countries and Canada has negotiated with 60. This would be a complex and multi-year process. And it would be taking place at a time of real uncertainty—geopolitical uncertainty and global economic uncertainty around the world.

I truly believe, as Deputy Prime Minister and as Finance Minister of Canada, that adding to that uncertainty right now is not something that would help Albertans or any Canadians. Because at the end of the day, this conversation is all about the wellbeing and the financial security of all Canadians.

Since the CPP was founded nearly 60 years ago, no province has ever left. This action is unprecedented, and it would be very complicated, and it would come at a time of great uncertainty and complexity.

Protecting the pensions of every single Canadian is a priority for our government. We will always stand up for the Canada Pension Plan and for the secure and dignified retirement it provides for all Canadians—a point I made clear in today’s meeting. 

This is just the beginning of a national conversation and I expect to meet with my ministerial counterparts in person in the coming weeks.

Thank you.