[Muta]

Danielle Smith’s plan to withdraw from CPP would leave all Canadians – including Albertans – poorer

https://www.theglobeandmail.com/busi...-withdraw-cpp/

Scale allows a larger fund to lower costs, which translates into better results. Over the past decade, the Canada Pension Plan Investment Board (CPPIB) averaged 10-per-cent annual returns, well above the 7.2-per-cent yearly gains posted by the Alberta Investment Management Corp. (AIMCo), which oversees public-sector pensions and other funds in the province. With $575-billion in assets, CPPIB is roughly four times the size of AIMCo.

Gutting the CPP to start another, smaller fund would hurt performance at both asset managers, and result in higher contributions and lower benefits not only for Albertans, but also for residents of eight other provinces.

Even if Ms. Smith is successful in creating a provincial pension plan – and federal regulations do allow Alberta to exit the CPP – the resulting fund would be far smaller than what the Premier is promising.