Is Stephen Harper, the man who holds Pierre Poilievre’s puppet strings, actually going to help Danielle Smith try to wreck the Canada Pension Plan?
Even considering how much trouble the Trudeau Liberals appear to be in nowadays, that seems like a weird flex for the former Conservative prime minister who surely would like to see Mr. Poilievre safely ensconced in the Prime Minister’s Office with as massive a majority in the House of Commons as possible.
Still, how else are we to interpret the certainty with which Postmedia is now reporting that Mr. Harper will indeed soon be named chair of the board of the Alberta Investment Management Corp. to help Ms. Smith implement his 23-year-old fever dream of owning the Libs by pulling Alberta out of the Canada Pension Plan and establishing its own provincial pension?
After all, Postmedia may not break many Alberta stories nowadays, but it acts as part of the United Conservative Party’s propaganda ecosystem, so we can assume the statements about Mr. Harper’s future in Calgary Herald political commentator Don Braid’s column yesterday come with the imprimatur of the Premier’s Office.
Mr. Braid’s column seems to confirm BNN Bloomberg’s scoop Tuesday, in the wake of Alberta Finance Minister Nat Horner’s unexpected Nov. 7 announcement he was sacking the Crown corporation’s CEO and its entire board for reasons that didn’t make much sense, and adds some spin helpful to the UCP.
Mr. Braid even dropped a hint about what the Smith Government’s strategy might be for getting older Alberta voters, who fear and hate the idea of an Alberta pension plan, to come around: “Before a referendum, the big incentive would be a promise of lifetime monthly payments higher than the CPP.”
Since the point of the plan appears to be to pump Alberta pensioners’ retirement savings into the sunsetting fossil fuel industry, that promise might be harder to keep than it is to file a political column on deadline, but with a scheme like this you only have to fool the voters once.
Over time, the change would almost certainly be exposed as bad news for folks from this province who don’t have a nice Parliamentary pension as generous as Mr. Harper’s.
Everyone one of us over 30 who lives here in Wild Rose Country knows someone who says they’re seriously considering fleeing the province if that’s what it takes to remain in the CPP, which has a history of being better managed than AIMCo’s holdings. Mr. Harper’s presence on the AIMCo board won’t change that.
An Alberta pull-out from the CPP Investment Fund would also be ugly news for all those other Canadians who will have to pay more for less – even if Premier Smith’s United Conservative Party doesn’t manage to get its paws on 53 per cent of the national fund, as Alberta preposterously claims it would be owed.
Any day now we should have the chief actuary of Canada’s estimate of what could really be expected by Alberta.
The chances of Alberta getting 53 per cent of the fund, of course, are zero, with or without Mr. Harper pitching in to this fundamentally unpatriotic effort. But even with a smaller payout, any Conservative politician who went along with this could expect to be reviled in the rest of Canada outside Quebec, which has had its own pension plan from the get-go. All the more so if Alberta pensioners managed to collect a little more for a spell.
Be that as it may, such an effort wouldn’t be completely off brand for Mr. Harper. He was one of the authors – perhaps the principal author – of the notorious Firewall Letter, the 2001 Alberta sovereignty-association screed that called for the province to quit the CPP, create a provincial pension plan, and adopt other measures that would amount to a half-step out of Confederation.
The Conservative premier of the day, Ralph Klein, sensibly tossed it into the recycler. Alas, now it’s being recycled anyway, and not as a clean sheet of typing paper.
Moreover, when he was prime minister, readers will recall that Mr. Harper was no friend of pensioners, trying in 2012 to raise the age of eligibility for Old Age Security and the Guaranteed Income Supplement to 67 from 65.
As a CUPE researcher pointed out in the leadup to the 2015 federal election, this would have been “the biggest cut ever made to Canada’s modest public pension system,” potentially pushing hundreds of thousands of Canadian seniors into poverty.
Remember as well that the 2011 Harper Conservatives promised in their election platform not to cut pensions, but reversed course less than a year later with a ready-made plan. This certainly suggests a hidden agenda item that was there all along.
Soon after coming to power, thankfully, the Trudeau Liberals reversed the Harper pension cuts before they took effect, but it’s something for Albertans to think about if they’re wondering how confident they can be about Alberta-managed pension funds, with or without Stephen Harper setting AIMCo’s strategic direction.
But – who knows? – maybe Mr. Harper will throw his Ottawa protégé over the side if that’s what it takes to realize his Firewall fantasy and further undermine the principle of keeping Canadian seniors out of poverty.
AIMCo board member compensation
If you’re wondering what AIMCo’s board members are paid, there are some interesting figures on pages 83 and 84 of the Crown corporation’s 2022 annual report. Annual base retainers of $20,000 ($50,000 for the chair) and per-meeting payments of $1,000 may not sound like much in this era of multi-million-dollar C-Suite salaries, but one imagines that if Mr. Harper joins the board the UCP will find a way to ensure he is paid considerably more. Meanwhile, the multi-million-dollar executive salaries are listed on page 78.
Don’t expect them to shrink under the UCP’s more congenial replacement regime, coming soon after a new CEO is named, notwithstanding Mr. Horner’s complaints about costs at AIMCo.
Former Alberta NDP chief of staff lands in Saskatchewan
Readers will be interested to note that Jeremy Nolais, the Alberta NDP’s chief of staff from 2019 until the party leadership changed and on leave as former justice minister Kathleen Ganley’s leadership campaign manager last spring, has landed on his feet in Saskatchewan.
Mr. Nolais has taken up duties as chief of staff to Opposition Leader Carla Beck and the Saskatchewan NDP Caucus.
It’s like watching a train wreck from an almost safe distance.
“You can’t stop, you can’t slow down, you can’t rewind.”
Hello DJC and fellow commenters,
I think that the answer to your question is “yes”.
A couple of things that might be relevant. I wonder if rural Albertans who work in the agriculture industry have as much to lose as urban residents. I would imagine that many farmers and ranchers are self-employed and, therefore, may not be obliged to pay into CPP. I think that paying into CPP is an option if you are self-employed. However, the payments are greater for self-employed individuals because they would pay both the employer and employee portion whereas those who are employed by someone else make only the individual contribution. I’m not sure if farmers and ranchers would consider it worthwhile to contribute to CPP.
The UCP can make any promise they like, but it is not really enforceable by anyone unless it is included in legislation. If the UCP promise higher payouts and don’t include it in the legislation, there isn’t much you can do.
Was it you who said that the government has recently set up/?plans to set up? a corporation to deal with some government of Alberta investments? If so, are they planning to use a corporation, as they did for the War Rofm that was impervious to FOIP requests? IF this turns out to be the strategy, then the public likely would never know what S Harper and his associates are paid.
My personal opinion is that contributions to CPPplus the investment income earned on these contributions are the property of the individual to be invested by the CPP board and that the Alberta government does not have the right to any part of those contributions. In my view, the CPP should not give any money at all to the Alberta government or any arm of it for an APP or for nay other purpose.
If the Alberta government establishes a pension plan to replace CPP, then, maybe workers would have a choice of whether to invest in the CPP or the APP or maybe, after the date of establishment of the APP, workers in Alberta would have to contribute to the APP. But, before that, there should not be any transfer of contributions and the investment income from them to the APP. Contributing to an APP should not, in effect, be retroactive.
APP contributions are workers’ money, and it is completely unreasonable to arbitrarily change the rules without the consent of the contributors. We did not sign up for an Alberta Pension Plan and did not consent to having our contributions used for any purpose other than to fund the CPP.
The CPP has the contributions in trust, as it were, and I’m not sure that they could give the contributions and income from them to a different entity.
It will be interesting to see what a court would decide.
I don’t see how my pension agreement with CPP can be highjacked retroactively.
Enact an APP program now and see who joins and see who prefer to join the CPP.
My legitimate contract with Canada doesn’t get a do over so cherookee dan can own the libs.“
It also seems that to use Alberta’s’ calculation of entitlement, if used by all players, requires 4 to 5 times the current amount in the kitty. Not being able to do simple division by client is not a great sign of success of financial managent.
This makes sense to me too. Then my next question is, “Are Alberta pensioners with AIMCo owed some kind of legal due diligence?”
My, & my employer’s LAPP contributions, were a) part of a series of legal agreements to manage contributions on behalf of pensioners, and b) made to a specific legal entity with the stated goal of managing a long-term fund on behalf of our collective future. How can it be legal for a government minister to arbitrarily swoop down & break these agreements?
No matter how much people love Stephen Harper, this seems incredibly shady.
Christina: farmers and ranchers must also contribute to the CPP whether they are self-employed or incorporated. Many, if not most, farmers and ranchers continue working long past retirement age (its a farmer/rancher thing) and usually the CPP is “clawed back” because they continue to earn income from their work.
You have to remember; this is the same entity that brought Mr. Trump back to the White House.
Just read both your Tyee and this article. I see the years have not been kind to you. I read the words of a befuddled old man display his lack of logical abilities.
Age tends to emphasize the emotions over the rational mind. Ranting away, but utterly failing to tell us why Harper is a bad pick. Maybe he is. Maybe he isn’t. The function of a pension board is to make money for its contributors. Period. Full stop. Not to fulfill a social justice agenda. Maybe Harper’s connections will be of benefit to grow the fund. Maybe they won’t. Tell us exactly why they won’t if that’s what you think.
It’s the same kind of besotted left wing analysis on the Harris side that let Trump sheak by and capture the working classes in the swing states and coast to victory. Meanwhile, back at the ranch, Harris spent over 1 BILLION dollars to no effect other than to make Oprah and Beyonce a little bit wealthier. The left wing doesn’t need any more old fools to lead it to disaster by publishing [EXPLETIVE DELETED, with apologies to Rose Mary Woods – Ed.] like this.
BK: Well, it’s true, I’m limping a little today, the result of showing off to the young ‘uns at karate last night. Should’ve known better. Otherwise, all good. Thanks for your concern, though. As for your man Trump, as someone famously observed, “Hegel remarks somewhere that all great, world-historical facts and personages occur, as it were, twice. He has forgotten to add: the first time as tragedy, the second as farce.” For that reason, I’m not so worried about Mr. Trump’s second term, which is already descending into farce. I appreciate you making the sacrifice of reading my articles. Every time you click on one it positively impacts the bottom line. $$$ DJC
I’ll tell ya. Even for a young man, let alone a student of a Sensei! The lower body is the first to go! But if you’ve ever connected? The feeling is sublime!
B. kluge. You do know that Stephen Harper has never been a true Conservative and those of us who were strong conservative supporters when Lougheed’s energy minister Bill Dickie was a brother in-law of one of my uncle’s haven’t forgotten the lies Reformer Harper fed the people about the Income Trust Investment, promising not to tax them if elected and then doing just that. Taxpayers lost $31 billion and a lot were conservative relatives of mine. He took Canada from a $12 billion surplus to a $151 billion debt by helping the rich become richer, just like we have seen these Reformers do in Alberta. Then in true Reform Party fashion he tried to destroy our Public Health Care System by taking $36 billion off the transfer payments to the provinces that got them kicked out and Trudeau elected in the first place. I haven’t forgotten what former conservative MLAs taught me don’t ever trust a Reformer and Danielle Smith and Pierre Poilievre are perfect example of why you shouldn’t. The lies they have been spreading is just plain stupid. The millions she has been wasting while filling her Reform Party pals pockets with our money is sickening and enough is enough. It’s not hard to understand why so many conservatives are now supporting the NDP is it.
Alan K. Spiller: That’s correct. That image of Ralph Klein is is not so good. He was a failure for a premier, and Danielle Smith admires him. The damage he did to Alberta is very severe.
I for one have never recovered from Klein’s cuts to post secondary education. As far as my LAPP pension , I am truly terrified that it will be somehow taken from us and if that is the case I know there are many of us who will become destitute. I am retired now and disabled from a back that just gave out on me after many years of working in Klein’s Alberta. We need help, like a good lawyer to stop Smith snd Harper from destroying years and years of hard work. Same applies to the CCP. Who does she think she is that older people think any of her pie in the sky pension ideas are acceptable.
You are correct in one point which is that the duty of a pension administrator is to make money for and protect the assets of the pension plan.
Now if you have been following along you would know that the Premier wants to convert AIMCO into an investment firm that invests in Oil and Gas projects that are having difficulty getting investors. How does the Premier’s mandate square with your statement that “The function of a pension board is to make money for its contributors. Period. Full stop. Not to fulfill a social justice agenda”. I guess that you are OK with social justice agendas that steal from pensions in order to promote oilogarchs (spelling intended).
More grift from the UCP. Marlaina’s government likes nothing better than showering has-beens like Harper and Manning with millions of taxpayer dollars. We’re going to give Harper millions so that our pension money can be given to fossil fuel companies? By the time the next election comes, this corrupt government will destroy what’s left of democracy in this province.
PS: Presumably they’ll have to if heir plan is to remain in power. DJC
Has Poilievre taken a position on Alberta pulling out of the CPP?
Robert: He said he hoped Albertans would remain in the CPP (which we will do if we are given the chance) and blamed Justin Trudeau for the campaign to create an APP (which in my opinion is nonsense). DJC
I agree that Pierre Poilievre’s suggestion is nonsense. When Stephen Harper suggested an Alberta Pension Plan in 2001, Justin Trudeau was a secondary school teacher in Vancouver.
“…any Conservative politician who went along with this…” The House of Commons has 343 members with 122 representing Ontario including Mr. Peepers. To win a majority he needs a load of Ontario MPs. Unless Alberta settles for a paltry CPP divorce payout, his Ontario colleagues would be racing down the halls with a barrel of hot tar and a sackful of chicken feathers. Members from other provinces, maybe even Alberta, might be delighted to join the fun.
Danielle Smith keep your hands off the CPP next you will want Alberta to separate from Canada
Speaking of fever dreams, I have a particularly feverish dream that I was love to see carried if Alberta continues to get out of line.
The province province to be carpet-bombed into the Stone Age and it’s population sent into immediate exile for all eternity. The First Nations rightful claim to the whole of the lands restored and honoured.
That’s right. Queen Danielle may desire for Alberta Uber Alles, but I long for its complete destruction.
Now, now, Just. Settle down. Chill out. Watch a video, maybe. DJC
Yes, settle down. I have friends whose children and their families live there and I love those kids, adults now. Yikes, couldn’t they just go to the polls and vote them out of office.
You could move to B.C. or Manitobia. Its still affordable in some spots on Vancouver Island and it doesn’t snow much.
It is possible Harper is not as stategically smart as he is often given credit for. After all he made the same mistake our current PM is making, in that he stuck around too long and underestimated his younger opponent. A problem is if the CPC wins in Ottawa Harper could end up in the middle of a pension battle between Ottawa and Alberta. Not only could that be uncomfortable for him, but also politically damaging for conservatives. And don’t expect that Smith will give up her firewall or empire building dreams just because the bad man in Ottawa is gone.
But maybe Harper is bored, or he wants a bit more money to supplement his Federal pension. However, Alberta is where Federal Conservatives go for their political dreams to die. Just ask Kenney or Manning. No good will come of this for Harper, even if he is being heavily pressured now to do this to save Smith from the big mess she just created here for herself.
“Not qualified”, was an ad campaign by Stephen Harper’s conservatives against his political rival. Since when did that stop Harper?
He has allies in autocrats and dictators. One example here:
https://rabble.ca/politics/canadian-politics/stephen-harper-gets-friendly-with-neofascist-viktor-orban/
Stealing the pensions of ordinary Albertans might not be the last stop on his Grinchy Claws journey. Harper ruled Canada for 9+ long years. He tasted power. Now he’s greedy for more. He was described as “abrasive”, “thuggish” and “sheer nastiness”:
https://www.cbc.ca/news/politics/canada-election-2015-harper-political-obit-1.3273677
Even Preston Manning found him too controlling.
https://thenarwhal.ca/harper-s-dictatorship-democracy-coming-end/
Nothing good will come from Stephen Harper’s insatiable quest for power and control. Albertans can kiss their Canada Pension Plan savings adieu.
Can a person really escape the potential take over of Albertans CPP by moving to another province? I’ve been reading here and there that that’s not the case. A person would be affected no matter where they live for CPP contributions made when living and working in Alberta.
JS: The answer to this is simply not known. It would depend on the separation agreement worked out between Alberta and the CPP, a negotiation that, as you can imagine, would be complex, have a lot of moving parts, and take a long time – a decade at least, I would bet. I do not believe it is possible that the CPP or Canada would agree to keep the liabilities (pensioners who worked all or part of their careers in Alberta) on the books without also keeping the investment cash required to fund their pensions. So either Alberta would have to pay that part of their pensions whether they were Newfoundlanders or British Columbians, or agree to take less money if they were to remain in the CPP. If Alberta were to try to shortchange Canadian pensioners, the federal government would have to intervene. This is, in fact, the sort of thing that can start wars. DJC
As someone who lived, was educated, and worked in Alberta for over 40 years and then retired out of province the question is who will continue paying my CPP? Knowing that many Albertans have done similarly this has to be a major point of contention. The frightening part is that I appear to have no say in this matter.
Once again I refer to CBC Calgary’s “West of Centre” podcast from this past Friday. The panel – U of C poli-sci prof Lisa Young, CBC journo Jason Markusoff, & Conservative strategist Michael Solberg – speculated on the suggestion that has been floated by the UCP government of spinning off the Heritage Fund from AIMCo’s portfolio into a separate “sovereign wealth fund” that could be invested in higher-risk ventures – like Daniellezebub’s using about “de risking” fossil fuel projects – leaving pension funds in AIMCo’s hands. They further speculated that Harper would be more interested in leading that new fund than in the boring business of pension fund management.
Maybe they’re right, maybe they’re wrong, but it’s at least a conceivable prospect.