Provincial pension plan holds 'substantial benefit’ for Albertans, internal AIMCo report shows
By withdrawing from CPP, Albertans would see “a substantial benefit” as their costs to contribute to a provincial plan would drop, states the report, obtained by Postmedia.
The 19-page analysis was completed in September and calculates a sustainable pension contribution rate would fall to 7.21 per cent (and possibly lower) from current CPP base plan levels of 9.9 per cent, if an Alberta plan was established.
“An Alberta pension plan would lower contributions … relative to current CPP contributions for an equivalent set of benefits,” the report states.
Kenney said about $40 billion of Alberta premiums could be repatriated, while AIMCo, a provincial Crown corporation, would administer a provincial pension fund.
Alberta clearly has the population best suited to sustaining a pay-as-you-go pension plan with its high working-age population and relatively low retired population share,” it states.
Depending on how much would be transferred into the Alberta pension plan from CPP, a larger amount ($54.5 billion) would mean Alberta’s sustained contribution rate could be as low as 6.85 per cent, according to the study.
“This is … a substantial benefit for Albertans, reducing the effective level of taxation within Alberta and increasing Alberta’s tax advantage,” the report states.
If Alberta withdrew from the Canadian plan, contribution rates in the rest of the country would need to rise to 10.41 per cent, according to the report.https://calgaryherald.com/opinion/colum ... nmqW4ShTwQ
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