Alberta government holds referendum, results of which will not be considered
The debate over the province's pension plan continues.
Alberta's Conservative government has rejected a proposal by the Democrats to consider the views of the province's residents when deciding on pension reform.
It's about a referendum that the government announced in September. At that time, the government presented a report on the pension savings of the region's residents and reported on the likely benefits to the population if they leave the Canada Pension Plan.
What's the referendum?
The Ministry of Finance and Treasury estimates that the province will save about CA$ 5 billion in the first year by switching to its own pension plan. The issue of such a reform has been put to a referendum, which is scheduled for spring 2024. But there is a nuance — the results of the referendum will not directly affect the government's final decision.
The Alberta opposition New Democratic Party, represented by MP Shannon Phillip, proposed an amendment to the Alberta Pension Protection Act that would have forced the government to abide by the results of such a plebiscite. However, the United Conservative Party used its majority to block the proposal.
Alberta Finance Minister Nate Horner said the point of the referendum is to get the opinion of the province's residents without tying the government's hands.
Discussion of reform in the province and at the federal level
The pension debate has been raging for more than two months, after Alberta Premier Danielle Smith concluded in September, based on a government-commissioned report, that the province would benefit from withdrawing from the Canada Pension Plan. Critics of the project have questioned the calculations from the report as grossly exaggerated.
The Conservatives' project is particularly fiercely resisted by the Democrats, who openly declare that they are going to block the law by all means. The main argument of the opposition is that the new plan does not clearly state what the "surplus" money will be used for. The Democrats express fear that the funds will be used for political projects of the ruling party.
Federal authorities have warned of the risk to the stability of CPP if Alberta withdraws. The government of Prime Minister Justin Trudeau has commissioned Canada's chief actuary to make the appropriate calculations.
