June 16, 1998
ALBERTA READY TO QUIT CPP
OTTAWA --Alberta is prepared to opt out of the Canada Pension Plan as a last resort if significant improvements aren't made, says provincial Treasurer Stockwell Day. Day made the statement before heading into a federal-provincial finance ministers meeting to push his ideas for streamlining the plan and making it fairer to young Canadians. Day told The Sun it is "technically possible" for Alberta to opt out and run its own plan, and the province could manage to pick up its estimated $45 billion share of the plan's unfunded liability for future payouts. "Alberta could do it with its financial situation right now - we could preserve the present pensioners, assume our share of the liability and develop our own plan," Day said. But such a move would be an absolute last resort if Ottawa and the other provinces refused to make improvements, and would only be done with Albertans' approval, Day said. "I think it is best if we can do improvements to the plan overall without having to opt out," Day said. "It is an option, and it is possible, but it would be the last one we would take." As reported in The Sun in December, Klein appointed a team - headed by former Workers' Compensation Board boss John Cowell - to look into the feasibility of opting out of the CPP. Two weeks ago, Day circulated a discussion paper to all his counterparts outlining suggestions, and pressed the issue last night, although the meeting was preoccupied with provincial demands for the restoration of full federal funding for health care and other social programs. Day's suggestions include shifting the plan's disability provisions to provincial workers' compensation boards and separating or eliminating some other benefits to make the program strictly pension-oriented. Day also suggests providing tax breaks to allow employers to top up CPP accounts for younger Canadians so that they receive a better pension return on their premiums, which are being hiked by 70% over the next few years. Next Story: COMMITTEE REJECTS TERM LIMITS FOR JUDGES Previous Story: NO SUDS FOR THIRSTY FANS
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