Workers born in 1993 or later can expect a real rate of return of just 2.5 per cent from the CPP.
Albertans have higher average incomes, which means there’s a higher level of premiums paid into the fund.
Specific legislation governs the withdrawal of any province from the CPP.
Each Albertan would save up to $2,850 in 2027, the first year of the hypothetical Alberta plan.
The CPP investment board has more than 1,800 employees, mostly in Toronto.
Alberta workers accounted for 16.5 per cent of total CPP contributions while Alberta retirees consumed 10.8 per cent of CPP expenditures.
Alberta Premier Jim Prentice has warned Albertans that the current fiscal year’s projected surplus has turned into at least a $500 million deficit and that next year’s budget will sink deeper into red-ink territory.
In Alberta, almost twice as many workers in the government sector possessed defined benefit pension plans in 2011 when compared with private sector employees. That might explain why so many government employees unions, from the Alberta Union of Public Employees to the United Nurses of Alberta, vociferously oppose modest pension reforms proposed by Finance Minister Doug Horner.