Alberta opposes bigger CPP

[daleo]

Alberta's finance minister says he will not co-operate with moves to build a bigger Canada Pension Plan.

In a blunt warning that signals a major shift in federal-provincial negotiations on how to reform the country's pension system, Ted Morton said Alberta would rather see an "incremental" approach.

Rather than bulk up the CPP in a way that might not even help those with precarious finances, Morton said he'd rather see governments make a few regulatory changes to give financial institutions more leeway to encourage people to save.

Read more: http://www.cbc.ca/canada/calgary/story/2010/04/13/calgary-alberta-morton-pension-reform-cpp.html#ixzz0l0ve6Aw8

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The average individual investor simply can't earn the same return as well as a well managed pension plan, due to the high level of management fees that he or she will be charged. Typical MERs for individual investors are 1 to 2%, while a pension plan is about 0.25.

In the long run, that difference destroys value. But there is a lot of money at stake, and powerful interests are involved. As usual, the Alberta government sides with the big corporate interests.