Alberta says Quebec pension model back on table in Canada Pension Plan exit debate

The Alberta government is again considering using the Quebec investment model for a possible provincial pension plan, less than a week after Finance Minister Nate Horner announced the Quebec option had been scrapped.

The Quebec model has been a point of contention amid concerns that Alberta's pension reserves could be at risk through politically driven investment in dicey pet projects and sweetheart deals.

The Opposition NDP said Tuesday the policy confusion shows Premier Danielle Smith's United Conservative Party government would be challenged to "organize a two-car parade."

Savannah Johannsen, Horner's spokesperson, confirmed in a statement the Quebec model is back on the table.

"Albertans have the final say on the mandate of the investment manager," Johannsen said Monday in a statement.

"The engagement panel [currently gathering public feedback on the pension proposal] will hear whether Albertans want that mandate to be solely focused on maximizing returns or whether it should have a dual mandate that also focuses on economic development in Alberta, similar to Quebec's pension manager."

Johannsen said regardless of the investment mandate, politicians will not be calling the shots.

"We want to make it clear that (Alberta pension plan) investment decisions will not be made by the government," said Johannsen.

"That's why new legislation this fall, if passed, will guarantee all assets transferred from the CPP will only be used to set up and operate an Alberta pension plan. This will prohibit the government from using pension money for other priorities."

The structure and investment priorities of an Alberta plan were one of the many options Smith asked Albertans to consider when she released a third-party report Sept. 21 to launch consultations on whether the province should create a stand-alone pension plan.

The report, by pension analyst LifeWorks, calculates an Alberta plan could deliver lower contribution rates and higher returns. It also estimates the province is entitled to 53 per cent of the $575-billion CPP fund.

Quebec has not joined the CPP since the fund was created in the 1960s and runs its own pension fund.

The Quebec fund has a dual mandate to not only maximize investment returns but also to invest in the provincial economy.

That has led to concerns that if Alberta follows suit, its fund could make questionable investment deals, including doubling down on oil and gas in the age of ascendant renewables and put the viability of the fund at risk.