25 years ago, I signed the Firewall Letter. We proposed an Alberta Pension Plan. And we imagined a comparable plan to Quebec’s Pension Plan. We thought it would begin like the QPP, where Quebecers subscribed to the provincial plan from the start. We saw a full transition. I forgot to ask: Could Alberta create an option for Albertans to choose a pension? Could we see a choice between a Federal plan and a Provincial Plan.
Perhaps we should aspire to a new Alberta Pension Plan that I could opt into. This change would allow me to request that all the capital I am entitled to under the Canada Pension Plan be transferred to the Alberta Pension Plan, and that all future contributions be made to my APP account. All benefits would come from the APP, not CPP.
This would allow a person-by-person migration.
That opt in process would create pension plan competition, and competition is never a bad thing. And it would allow an APP to develop and grow organically over time.
Plus, Albertans who opt in would realize the demographic savings we are entitled to receive. We might even increase benefits to seniors, again capitalizing on our Alberta demographic advantage.
Some might argue that it would involve duplicating costs. There might be a partial duplication, but it would be worth it. Choice and comparability would bring the virtues of competition: lower risk, higher returns and capturing the Alberta demographic advantage.