Alberta's staggering $53.6 billion net contribution to the Canada Pension Plan (CPP) has dominated headlines and ignited passionate discussions throughout the province. This dramatic figure is not merely a statistic; it encapsulates a significant financial reality: Alberta has been paying substantially more into the CPP than it receives in benefits. With this growing imbalance, the question of whether Alberta should remain part of the CPP or establish its own provincial pension alternative is gaining traction.

Unpacking the $53.6 Billion Contribution

From 1981 to 2022, Alberta contributed $53.6 billion more to the CPP than it got back in benefits—making its net contribution the highest of any province. This disparity raises fundamental questions about fairness and the future direction of public retirement programs in Canada.

So, why does Alberta find itself in this position? Three primary factors contribute to this situation:

1. **Higher Incomes**: Alberta boasts some of the highest average wages in Canada, leading to larger contributions per worker to the CPP.

2. **Younger Population**: With a younger demographic profile, Alberta has fewer retirees drawing benefits compared to other provinces.

3. **Strong Employment Rates**: High employment levels equate to increased CPP contributions.

Due to these dynamics, Alberta pays about 14.4% of all CPP premiums while only collecting around 10% of the benefits distributed.

The Case for an Alberta Pension Plan (APP)