In the past few hours, a lot of metaphorical ink has been spilled on the duelling open letters about the Alberta Government’s scheme to pull the province’s still-skeptical population out of the Canada Pension Plan, the first from Prime Minister Justin Trudeau on Wednesday and the response from Alberta Premier Danielle Smith later the same day.

Alberta Premier Danielle Smith threatens “serious legal and political consequences” – but like what? (Photo: Alberta Newsroom/Flickr).

As is by now well known,* the PM’s letter warned that the UCP scheme “would weaken the pensions of millions of seniors and hard-working people in Alberta and right across the country.” Mr. Trudeau vowed not to sit by idly and let the Smith Government hurt Canadian and Alberta pensioners alike.

This is why, he continued, “I want to assure Canadians and Albertans that I will always defend their pensions and retirement security against any actions that would threaten its certainty and stability. I have instructed my Cabinet and officials to take all necessary steps to ensure Albertans – and Canadians – are fully aware of the risks of your plan, and do everything possible to ensure CPP remains intact.” (Emphasis added.)

Ms. Smith’s riposte adopted a whiny tone to complain “it is disingenuous and inappropriate for you to stoke fear in the hearts and minds of Canadian retirees on this issue” and went on to threaten “serious legal and political consequences.” 

The former statement is pretty rich given the obvious mendacity of the UCP’s publicly paid pension propaganda to date, especially given the legitimacy of the fears of Canadians who depend on the CPP for a dignified retirement. And who can forget that one of the authors of the strategy that animates the UCP’s pension plans, Calgary political scientist Barry Cooper, argued that its goal should be “to hurt the rest of the country … to inflict a little pain on Canada.” 

As for the latter threat, it just sounds like hollow posturing. Consequences? Like what?

Alberta political columnist Graham Thomson (Photo: David J. Climenhaga).

Still, it’s probably too soon to pick a winner in this initial exchange of, as University of Calgary political scientist Lisa Young described it in a delightful phrase, epistolary federalism.

That, of course, hasn’t stopped some pundits from trying. 

Columnist Graham Thomson, writing in the Toronto Star, asked rhetorically: “Did Prime Minister Trudeau just walk into a trap set by Alberta Premier Danielle Smith?”

Mr. Thomson seemed to think the prime minister had indeed blundered into a snare, because by merely responding to the UCP’s ridiculous argument that a province with 16 per cent of the country’s population is entitled to 53 per cent of the contents of the CPP investment fund he somehow lent credibility to the high-risk proposition of handing anyone’s retirement savings to the UCP.

Well, Mr. Thomson is usually a shrewd observer of the Alberta political scene, but this conclusion seems like a bit of a reach. 

University of Calgary political scientist Lisa Young (Photo: David J. Climenhaga).

Dr. Young’s observations had something of the same tone, suggesting that since the UCP’s long-term goal is “to foment separatist sentiment,” therefore the PM’s letter could let the premier persuade us Ottawa’s moves to protect pensioners were “yet another historic humiliation of Alberta.”

It seems to me more likely, though, that Ms. Smith’s pension machinations have handed the Trudeau Government – seemingly on the ropes if recent polls are to be believed, and they probably are – an excellent way to let the air out of federal Conservative Leader Pierre Poilievre’s tires. 

Anecdotal evidence suggests the UCP pension scheme is extremely unpopular in Alberta, and not just with the usual political types. The one available poll on the topic seems to support this observation. There’s sure to be more polling soon that either backs up this conclusion or disproves it. In the meantime, the Smith Government’s disingenuous and publicly funded propaganda campaign to win support for the idea doesn’t seem to be having much impact on a distrustful public. 

Probably nothing the federal Liberals say or do will win them enough support in Alberta or Saskatchewan to change much on the Prairies, but it still has the potential to wake up voters in the other eight provinces and two territories to the dangers of voting for a federal Conservative leader with his own problematic relationship to both the truth and the separatists in the UCP.

So what about it? Does Pierre Poilievre support Ms. Smith’s terrible, horrible, really bad idea? Or does he not? His only statement – reported by media this morning – is timid and ambiguous. The circumstances are such that he can run (for prime minister, or whatever) but he can’t hide.

So Premier Smith, God bless her, has handed Prime Minister Trudeau a wedge he can drive deep into the federal Opposition’s support at a moment when things have been looking pretty bleak for him.

What’s more, since Quebec has its own pension plan (as the UCP keeps reminding us, although it helps the Alberta case less than it appears), federal Liberals don’t have to risk support in that province to score points against the Conservatives elsewhere on the pension issue. 

It seems likely that Ms. Smith’s pension campaign is also bound to drive a wedge into UCP support in Calgary – and, more dangerously for her right now, within her own caucus, where Calgary MLAs have to be worried about the implications of this screwball pension campaign.

How could they not be worried? Remember, like the message on your car’s wing mirrors, the results of the last Alberta provincial election were closer than they appear – in Calgary alone, where the election was won and lost, about 49 per cent for the UCP and 48 per cent for the NDP. Five Calgary ridings saw the UCP and NDP come within about 1 per cent. 

This could be just the kind of issue that gets Calgary voters thinking they made a big mistake last May – and MLAs for both parties know it. Expect the inevitable jitters that result to have an impact on caucus unity. 

NOTE: This story has been updated to reflect federal Conservative Leader Pierre Poilievre’s statement this morning on the Alberta Pension Plan. Additional commentary on his remarks soon. DJC

*The past week has been an extremely busy one, keeping me from being able to respond to breaking news as quickly as I would have liked. It kills me to let other commentators provide all the hot takes, but sometimes needs must! DJC 

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33 Comments

  1. Federal Conservatives do seem to have trouble with electoral math. A previous leader Scheer, still hanging around, so Poilievre must not mind him too much, racked up the vote in parts of the west, but fell short in seats and votes in vote rich Ontario. Even though he ran in Saskatchewan, he should have known better, as he really lived much of his life in Ottawa, Ontario. Interestingly, their current leader is an Ottawa MP, but really hails from Calgary. What an interesting fun house of mirrors these Federal Conservative leaders are, where nothing is as it appears to be!

    Now, is the pension dust up, that Smith created and Trudeau is full taking advantage in responding to, likely to gain the Conservatives votes in Ontario? Nope.

    Perhaps there is something to Smith’s political strategy here, but only if she is playing checkers and Trudeau is playing chess. Yes, whipping up anti Ottawa sentiment does sometimes shore up or build provincial conservative support in Alberta, but I am not sure holding our pensions hostage is going to help in this case. On the other hand you can imagine how unsettling it must be for Ontario voters to contemplate agrieved, but still well off Alberta, running off with a disproportionate part of the national pension fund. The only thing they will find even more unsettling will be the Federal Conservative’s tepid response.

    Poilievre might recently fancy himself to be a bit of a political Johnny Appleseed, but politically the apples in Ontario have already been planted long ago and if the CPP pension fund becomes an issue they may continue to belong to someone else.

  2. Given PMJT’s endless state of blundering these days, it would seem that maybe he did walk into another blunder in trying to play Capt. Canada in the face of Danielle Smith’s Alberta Uber Alles lunacy. However, Smith’s assorted crazy is a pretty small fight compared to the other, more pressing issues he should be dealing with. Is Trudeau that desperate for a win that he’s going to even bother to give Smith more time to yap about Alberta’s right to FreeDUMB?

    It would have been better if Trudeau would have just said something along the lines of Moses’ declaration from the movie The Ten Commandments…

    “There is nothing without the Law…who is on the Lord’s side? Let him come to me.”

    Now would be a great time for Trudeau to go all Charlton Heston, while Danielle Smith screams to Alberta, “I show you a calf of gold…”

    But rather than smashing the tablets and letting the UCP horde be cast into the fiery bowels of the earth — which is a pretty worthy fate for them if you ask me — Trudeau should present a choice: disprove Smith’s wild lies, but let the idiots follow Smith into oblivion. The drama would have been perfect.

    “Blasphemers! Idolaters! For this, you shall drink bitter waters. Those who will not live by the Law, shall die by it!”

    The Biblical drama would certainly appeal to the fever dreams of the UCP’s Evangelical lunkheads. But I get the feeling Trudeau may know he’s running out of time and feeling the pinch of his own mortality. This is not a good time for him.

    Mo’ popcorn.

  3. Times like this David, are like a kid in the candy store, for awake, astute and alert scribblers of political events. Go get ’em kid!

  4. Hello David,
    Thank you for outlining the perspectives on the pension issue. I would not want the UCP or any other Alberta government to have any control over a pension along the lines of the CPP. I wasn’t aware of Barry Cooper’s comments about intentionally affecting people in the rest of Canada in a negative way. I think that Cooper’s comment should be reported more widely.
    I took a look at the link you provided. Cooper seems to have many grievances against the federal government and the so-called Laurentian elites, but he does not offer solid evidence to back up his complaints.
    I don’t know how the CPP is structured and whether or not a province can withdraw from it. However, since contributions to the fund are made directly by individuals, it would seem surprising that a provincial government could commandeer CPP funds for their own purposes. It would seem to me that all contributions to the fund plus the assets accrued from investments of this money would belong to the contributors and would remain in the CPP. Contributors would be entitled to receive their CPP according to the rules in place when they are eligible for their CPP pensions.
    I also don’t know what power the other provinces (except Quebec with its own pension arrangement) and the territories have, but I would expect that, at the least, they would exert moral pressure on the federal government in an effort to prevent Alberta from having control over any portion of the CPP’s assets.
    Whether the government of Alberta could realistically set up its own pension fund, I don’t know.
    I think that it is unfortunate the the UCP seems to be determined to encourage dissension in many areas rather than tackling the actual concerns of people who live int Alberta. Public health care (not privatized to enrich the few) along with public health need attention and probably could be improved, especially issues of education of more health care professionals and retention of the health care workers. we have. Access to more housing available at more affordable prices could also be improved. These are 2 areas that require good policy, implementation of the policy, and financial resources to carry this out. Danielle Smith seems intent on tearing the province apart and pays little attention to ways to improve the lives of the citizens who live here.

    1. Hi Christina. To help our host, here are two sources for you to consider. Jared Wesley is an economist who’s commented on the Alberta Pension Plan in the Tyee:
      https://thetyee.ca/Analysis/2023/10/04/Debunking-Alberta-Pension-Plan/

      And here’s a link to Trevor Tombe’s oft-referenced paper:
      https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4576950

      Obviously, I don’t believe a word Smith et al say about the Alberta Pension Scam. Tombe’s paper is the most honest assessment I’ve seen to date.

  5. Good article. Bet I am not the only senior that isn,t a bit concerned. What craziness goes on in Alberta should not affect the rest of Canada.
    The voters in Alberta appear to have elected a real nutbar.

    1. Chuck: Oh, we’ve elected a nutbar, alright. Alas, she does have the power to hurt those of you elsewhere in Canada. DJC

      1. She may be a nutbar but she is just the kind of nutbar this county needs. You sound just like all the others who are fearful of the light she sheds on our useless tyrannical PM. Obviously the drama queen you seem to worship is not doing anything but destroying national unity.

    2. Coming from an eastern liberal. East can start complaining about the quality of the meal when they start picking up their share of the tab !!!!!

  6. Quebec has its own pension plan so I am only guessing Albert should be able to have there own. Now if this does harm to the rest of the pension plan I did not have enough knowledge to say

  7. I am happy that someone is brave enough to drive a stake into the heart of the vampire that is the proposed Alberta Pension Plan. If need be, I have a supply of homegrown hardneck garlic for further extinguishment.

  8. David, you are right about Thomson’s over-reach. Trudeau had no choice but to weigh in. The rest Canada is none too pleased that Alberta wants to steal 53%+ of the CPP loot. He’s winning support over his tough stance. Of course, he’s not winning or losing any support in Alberta, but that is always the case. For Trudeau Alberta is a wasteland that doesn’t really affect the outcome of the next election. He knows he needs to appear tough to the rest of intelligent Canadians outside Alberta. That’s where most of the votes are. If its a trap, it’s one that benefits the Liberals at the expense of PeePee and Batshit lady.

  9. I see that Peter Rabbitfur* blamed Trudeau this morning for directly causing Alberta to look for more dough. He sort of missed the lack of a PST and the lowest royalty rates in the known galaxy. But please don’t let facts get in the way.

    * Poile = skin. Lievre = rabbit.

    And what’s with Alberta Views, a slightly left of centre pub, having a full page ad for Ryan Jesperson? Strange bedfellows.

  10. So it appears that Poilievre has tried to cover himself and has come out saying that he’s encouraging Albertans to stay with CPP. But, also, saying that “Alberta’s premier is only picking a fight with Ottawa because the Liberal government has saddled the province with carbon taxes, unconstitutional energy laws and other unfair wealth transfers.” Would Premier Smith agree? As a retired, CPP-collecting Albertan, I believe what is driving the Smith UCP more, is there desire to get their hands on ‘the/our money.’ I say ‘No’ to an APP and indicated as much on both the UCP and NDP surveys.

  11. I tuned into the NDP on-line consultation regarding the idea of an Alberta Pension Plan. Out of 1 and a half hours callers indicating they are very opposed to getting out of CPP, there was only one that tried to spin this into a half hearted exit, with Alberta keeping one foot in the door. The program was very well done and dispelled many of the lies and spin the UCP is feeding us to try and get us to buy into their ridiculous idea.

    1. I wonder how Jim Dinning’s phone-in “town hall” meetings compare? Anybody bother to listen to that?

      1. Don’t know, probably only callers that support the idea were allowed to speak. There was one caller in the NDP forum that indicated she was not allowed to speak at the UCP event, but was at the NDP one and offered the same negative reaction as almost all the callers. The UCP obviously do not want to listen to the negative side of this.

    1. The vipers have begun to fang each other. Smith is a closet separatist, so she won’t care what her antics do to Poilievre’s chances of election. But PP better care, and every Con MP in Qberduh, too. It’s early days, but if Smith doesn’t smarten up, she’ll cost PP the election in non-prairie Canada.

  12. In attempts at implementation, (PR)schemes usually require the assistance and endorsement of celebrity ‘ringers’ [sham, fake, phoney, pretender, deciever, ect.: “one who makes false claims”] and ‘smooth talkers’ [“One who is exceptionally confident, persuasive, and charming in speech, especially with the intent of manipulating or deceiving others.”]. For example, people that like to use phrases such as “gnarly public policy debates”, with the real motivation being: “. . . the possibility of being a game-changer. It could bring “the infusion of a third of a trillion dollars into the investment sector.” Or, in other words, “I was having ‘gnarly’ pipe dreams.” Sadly, or not depending upon one’s ‘perspective’, this particular pipe is still smoking along with the dreams of ‘easy money’.

    https://www.youtube.com/watch?v=V-JRiiv9MHY

    As more revelations unfold, the ‘drama’ has all the features of an adolescent Clouseauesque comedy sketch that is falling apart from the outset, for example:

    “The research group held Alberta’s engagement up against principles for deliberative democracy, in which informed and reasoned discussions are used for democratic decision-making. Innovative found Alberta’s process failed to uphold the principles of transparency, access to information, unbiased information, agenda setting by participants, representation and equality, and providing sound reasons.”

    https://globalnews.ca/news/10031716/alberta-pension-engagement-report-cppib/

    Perhaps better ‘script’ writers are needed.

    Beyond the obvious odious features of the UCP pension PR scheme are the similarities to other common investment scams and their ‘red flags’ such as [and where it is noted that, [“Becoming a victim of investment fraud can be devastating. And it’s easier than many people think for scam artists to con you out of your hard-earned money.’]:

    1. “Guaranteed high returns with no risk sounds too good to be true because it is.”

    2. “Don’t miss this opportunity.”

    3. “Insider tips.” [Lifeworks report.]

    4. “Celebrity (political, academic, former/current lobbyists, ect.) endorsements.”

  13. To be exposed the constant bombardment of Danielle Smith’s marketing, you would think she is proposing an Alberta Pension Plan dropped into place complete and fully formed. A “settled plan,” as it were.

    But to read the LifeWorks report that she relies on exclusively, her idea of a fully formed APP seems anything but. Here’s now the LifeWorks report hedges its bet on key elements of some future APP, and demonstrates how dangerous it is to plan a whole new pension system on the basis of a single report:

    — Executive summary (Page 1):
    “This report does not contain any recommendations or endorsements relating to the creation and operation of an APP; nor does it contain any opinion or recommendation in relation to the current or future operation of the Canada Pension Plan.”

    — Uncertain contribution rates (Page 1)
    “ . . . (A) final APP contribution rate based on actual data including asset amounts and individual CPP membership data as well as a different methodology/philosophy for funding benefits could produce different outcomes.”

    — Uncertain contribution rates, again (Page 12):
    “Both the length of the projection period and the number of assumptions used create a significant amount of potential uncertainty, and actual experience will likely not evolve in accordance with the projections, in which case, the actual contribution requirements may deviate (significantly) from those provided in this report.”

    — Uncertain contribution rates, yet again (Page 12):
    “There are risks to achieving and maintaining a lower cost plan for Albertans versus the CPP, which include:
    “The calculation of the initial asset transfer amount from the CPP to an APP;
    “How Alberta’s economic and demographic profile changes relative to the rest of Canada’s over time;
    “How differences in an APP asset return versus the CPP will impact contributions and benefit levels over time.”

    — Uncertainty of subsequent events (Page 19):
    “The COVID-19 pandemic and increased worldwide uncertainty have impacted the global and Canadian economies and populations. These events have had an impact on market returns, inflation and unemployment rates on the economic front, immigration and mortality on the population front . . . .
    “The projections in this report have not taken into account the potential future impacts of these events.”

    — More analysis needed (Page 35):
    “While we believe our estimates for an APP are reasonable based on the publicly available data, the Province could attempt a more detailed analysis based on more refined data from the Office of the Chief Actuary. This would include individual membership data, and a more accurate accounting of contributions and benefits attributable to Alberta for the purposes of determining the asset transfer amount.”

    Does this sound like a “settled plan”? Or a pig-in-a-poke that could be insolvent in a decade?

  14. I see Millhouse is taking both a suck and blow position on Smith’s Alberta pension plan, for votes. “Hey Canada look at me, I disagree with Danielle Smith BUT I blame it all on the Prime Minister. So we’re good, right?”

    It is a clever enough move as Peepee won’t lose any votes in the Prairies for disagreeing with Smith. Tribalism to the rescue and he is hoping that if voters in the rest of Canada hear the same lies about the PM a thousand times, it will become the truth.

  15. Poilievre is in trouble. He’s trying to convince the non-prairie provinces that he’s a good choice for the next Prime Minister. Doug Ford’s pork-barrel politicking in the Green Belt is bad. Scott Moe is worse, using the notwithstanding clause to dump on non-binary kids (and did you notice he included “You-can’t-sue-me” clauses, too?). But Smith takes political hysterics to a totally new level of crazy; I wonder if she thinks Marjorie Taylor-Green is a role model? None of this is good for Pierre Poilievre, the Man Who’s Would-be PM.

    At the moment, Trudeau has nothing to lose and everything to gain by accepting Smith’s declaration of war. The trick will be for him to limit his personal involvement. The best tactics for Trudeau now are to 1) declare his intention to fight and 2) leave the actual fighting to the cabinet minister(s) most affected. He’s already accomplished point 1. Now he should turn loose Dominic LeBlanc (Intergovernmental Affairs), Chrystia Freeland (Deputy PM, and Alberta-born), Seamus O’Regan (Seniors), and Randy Boissonnault (Employment, and Edmonton MP) to take the fight to Smith.

    Meanwhile, we’ll all have to fight back against every separatist and rage-farming trick this mis-government party inflicts on us.

    1. I see George Chahal tweeting lately. As chair of the Standing Committee on Natural Resources, he can invite witnesses to appear, though they can refuse I guess. Anyway, he may have some influence in this area.

  16. I think Smith and Poilievre work together; note her mild reply to his statement, while she shrieks with outrage every time Trudeau so much as glances in her general direction. Maybe when her attempts to brainwash Albertans about this fails, they will try to portray it as Poilievre saving the CPP for Canadians by pretending to be diplomatic and respectful of Alberta’s head whiny rightwinger.

    Meanwhile some brilliant person tweeted something like this which all Albertans should tell Smith: We don’t want a referendum about it, we want an election about it.

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