Quebec has amassed over $102 billion in its Pension Fund, while Alberta’s share of the CPP is around $13.5 billion.
Quebec’s Fund is run by Quebecors, ours is run by Ottawa.
Quebec choose to opt out of the CPP right from the start. Alberta, consisting of good little Canadians, choose to go along for the rip-off ride as we always do.
For instance, it's estimated that Albertans contribute over $4 billion per year into the CPP and get little more than $2 billion back to service our needs. Hence, it is fairly safe to say that an Alberta Pension Fund would grow at a minimum of approximately $2 billion per year.
It is highly unusual that Alberta, Canada’s most prosperous province and the economic engineer of our country, has no significant local source of investment capital. An Alberta Pension Fund would remedy this major shortcoming, and would enable Alberta to realize its full potential.
Note that none of the above includes the potential benefits of reducing other massive federal cash transfers (Federal Equalization Program) from Alberta to the rest of Canada. Dr. Robert Mansell at U of C has recently updated his landmark study (Mansell and Schlenker), and estimates that these transfers in extra taxation total $244 billion (1961 to 2002 inclusive). While at the same time Quebec received over $202 billion up to 1998 and possibly up to over $250 billion by 2002.
When are Albertans going to wake up to the fact that we are giving our children and grand-children’s heritage away to other provinces? Latest figures show Quebec continues to receive up to 42% of the equalization program. Last year Alberta contributed around $12 billion and Ontario about $24 billion equaling a total of $36 billion with Quebec receiving over $15 billion - unconditionally. And they want to separate!
We think it's time to create an Alberta Pension Fund. Some place where we could put our provincial budget surpluses and even our Heritage Savings Trust Fund. It must be run by an independent management Baord and be made as secure from political interference as possible. It will force provincial politicians to save our surpluses, and it will protect the surpluses from looting by Ottawa – because it would be an attack, not on our provincial government but on ourselves. It is our money.
This Fund could grow rapidly - amassing over $50 billion within 3 to 5 years.