Constitutional

The Canadian Constitution – including its Charter of Rights of Freedoms and sections on the division of powers between the federal and provincial governments – is foundational to our democracy.

The enforcement of the Constitution by governments and the courts ensures our rights and freedoms are protected, and that our provincial and federal governments generally function as they should.

But no document is perfect. Some things that made sense 150 years ago, may no longer make sense today. That is why the Constitution contains an amending formula that permits the Constitution to be altered should enough provinces and the federal government agree to it.

Over the last decades, several outdated and unfair problems with the Constitution have been identified, but no tangible progress has been made to fix them due primarily to a lack of federal and provincial leadership.

Take the Survey

Examples of proposed constitutional reforms include the following:

Amending the division of powers to indicate that core areas of provincial jurisdiction, including over natural resources and health, are immune from federal legislation, and to also ensure that in shared areas of jurisdiction, such as agriculture and immigration, provincial laws prevail over federal ones.

Imposing constitutional limits on the federal spending power in areas of provincial jurisdiction, including a provincial right to opt out of federal spending measures with proper compensation should they so choose.

Adhering strictly to representation by population in the House of Commons. Right now those living in smaller provinces are greatly over-represented when compared to those living in larger ones.

Either abolishing the Senate entirely, or having it actually represent provincial interests as originally intended, by mandating an elected Senate with the same number of Senators representing each province.

Allowing provinces to appoint their own King’s Bench and Court of Appeal justices – rather than having those appointments made by the federal government.

Expanding the Supreme Court to allow for more justices from Western Canada and making prior service on a province’s court of appeal a mandatory requirement of becoming a Supreme Court Justice.

Eliminating the Ottawa residency requirement for judges on federal courts to ensure more Western Canadian representation; and

Mandating provincial approval of the appointment of a Lieutenant Governor to a province by the federal government.

There are of course many other potential constitutional amendments that are worth discussion, but this is a start.

So, what are the benefits of Alberta choosing to withdraw from the CPP to create its own pension plan?

A big upfront payout

Alberta would get back a significant lump sum by exiting the CPP. The Chief Actuary in Ottawa has indicated our share would be at least $140 billion. That’s plenty to start and build a strong Alberta Pension Plan from day one.

Better Benefits for Seniors

Lower premiums for Alberta Workers

Thanks to our younger, more productive population, an Alberta Pension Plan could result in Alberta workers paying lower pension premiums on their paycheques or seniors enjoying higher pension benefits – or a mix of both.

Local control & boosting our economy

An Alberta Pension Plan would be managed right here at home, creating more jobs and growing Alberta’s financial sector. We would also be insulated from the economic and demographic decline in Canada. Our investment decisions could also be steered clear of ideological decision making, and instead remain focused on the long-term rate of return for Alberta pensioners.

But there are some risks to consider:

Uncertain payout

The CPP exit rules aren’t clear in the federal legislation, and Ottawa is notoriously anti-Alberta with its decisions, so the size of the lump sum Alberta is offered could be lower than it should be. This could result in a lengthy court battle with the federal government, and it could lower our ability to increase benefit payments for seniors or lower premiums for workers.

Long-term risk

As with any pension plan, if the plan is mismanaged or Alberta’s economy and demographics fall behind Canada, premiums would have to rise in the future in order to guarantee our seniors the same benefits they enjoy today under the CPP. Regardless, as with Quebec, Alberta’s government would still be able to guarantee that an Alberta Pension Plan provide the same or better benefits to Alberta seniors as they now enjoy under the CPP.

Portability concerns

The Quebec Pension Plan and CPP have an agreement in place to ensure pensioners get the same single pension regardless of where they worked or lived in Canada during their career. Alberta would expect a similar arrangement with Ottawa, but it is not guaranteed.

Ideas to assert Alberta’s sovereignty within a United Canada