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Underneath the present system, an Albertan may work throughout the province as much as age 65, all of the whereas contributing to the CPP. Life may take them to BC, the place they may select to proceed working half time, they usually should still need to make CPP contributions. An APP in Alberta, Muhs notes, may throw a curve ball for individuals in that situation.
“Will that imply this particular person has an APP, and an extra CPP? Or may somebody accumulate a full 40 years of APP, then additionally contribute a bit of cash in CPP?” he says. “I’m positive all this will probably be thought of if the exit occurs, but it surely simply creates additional complexities that we don’t really want.”
Quebec’s pension plan: not an ideal precedent
Proponents of the APP proposal would possibly level to the Quebec Pension Plan (QPP) as proof that it may be performed. However it’s not an apples-to-apples comparability, Muhs argues, given Quebec’s bigger measurement and extra nationalistic construction.
“I’m positive there are lots of people transferring backwards and forwards between Ontario and Quebec, however there’s in all probability typically somewhat bit much less of that motion than what you’d see between Alberta, Saskatchewan and BC,” he says. “The Prairie provinces and BC are all very built-in … It’s only a totally different ball recreation right here than it’s when it comes to how Quebec manages issues.”
Alberta’s proposed exit from the CPP has been a supply of heated debate, with critics elevating considerations concerning the influence it will have on Canadians in different provinces. Primarily based on one much-touted calculation by LifeWorks, the province is entitled to 53% of the CPP’s property – probably a monumental windfall for Albertans that might additionally severely handicap different retirees and pre-retirees throughout Canada, exterior of Quebec.
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