Quote:
Originally Posted by #-3
A pretty simple google search showed a report from the Fraser Institute (complaining about health care burden on BC), that showed in 2020 Alberta had a positive net inter-provincial migration of people 65+ but BC had ~4x the volume of net migration and Ontario also had higher net migration, basically everywhere else was equal or negative. Because Quebec has their own pension scheme and far and away had the highest net negative inter-provincial 65+ migration, it makes the report a little hard to shake out. But fair to assume a fair amount of pension contributions from Alberta a being paid out in BC because of migration.
Point being the benefit of this program is individualized, so looking at the net benefit for a province when all individuals regardless of province are being treated equally is a bit of a misnomer at best.
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Totally agree, it is an individual program, not a provincial one. What happens when an Albertan, who has paid (less) into the APP and is promised higher returns, moves to BC? Who pays their pension and how much do they get? CPP shouldn’t pay since it never collected, so APP should pay even though this is no longer an Albertan. Now APP liabilities are higher.
What about someone who works all their life in Nova Scotia but retires to Alberta? Should they tap into this sweet APP? No, they didn’t contribute to it.
Clearly the contributions and benefits need to move with the individual, which puts a lie to the notion of provincial contributions. Now theoretically if APP has significantly different terms there could be an arrangement to shift pension funds between APP and CPP every time a person moves between Alberta and Canada, but that would be a logistics nightmare. I don’t know how Quebec handles it, but I do they are largely tied to CPP because of portability and provide the exact same benefits although with different (currently higher) contribution rates.
A different way to handle this would be to leave CPP alone and start APP fresh. People collect from one or both plans depending where their contributions went, regardless of residency. Without the initial nest egg of CPP transfers this is, of course, a non-starter.
This whole thing is a terrible idea.