An Alberta Pension Plan: What are the potential implications and consequences?

With Trevor Tombe (Professor of Economics and a Research Fellow at The School of Public Policy at the University of Calgary and co-director of Finances of the Nation) and Bernard Morency (Adjunct Professor, Retirement and Savings Institute, HEC Montréal).

The Alberta Government is currently seeking input from its citizens regarding the establishment of an Alberta Pension Plan (APP), which would be managed within the province and exist separately from the current Canada Pension Plan (CPP). Professor Trevor Tombe, one of Alberta’s most prominent economists, presented his recent research on the potential financial implications of an APP for Alberta residents. He discussed the long-term viability of such a plan, including the implications for contribution rates and benefit levels, using a detailed quantitative model. Additionally, the demographic and investment risks associated with an APP were explored. Bernard Morency then discussed the research results, considering the experience and learnings from managing the Quebec Pension Plan (QPP) separately from the CPP since 1966, and raised questions about the possible creation of the APP for the stakeholders involved.