Oddbean new post about login | logout @d2d6c993 CPP states Alberta only contributes 16% of all funds to the Canadian plan. no matter how young your workforce is, that doesn't add up to a sensational 53%. Alberta also seems to conveniently forget its success is not a made in Alberta success alone but a Made in Canada success, since a lot of the workers it needed came from elsewhere and returned. CPP doesn't state you have to live in the province you contributed to collect. Generosity and gratitude flows both ways.
@6bb26364 Use the formula/method the CPP legislation specifies. Talk to an actuary about how the math works out. Read the multiple reports from actual actuarial firms on how they come to the totals they do - they're making conservative assumptions. This is just facts; it's math. It's provably correct. I do not believe the feds would actually allow Alberta to get the full amount, but the numbers are correct. You can say it's not right, but it isn't incorrect.
@d2d6c993 what’s relevant here is that the political “correctness” of this formula of math is highly improbable of standing well against the test of time and reality.
@6bb26364 Actually, it represents a pretty normal approach to #valuation of #annuities and #pensions. The method is: if the #province had not joined #CPP, but instead maintained its own plan (like Quebec), had exactly the same #contributions as it did with CPP, got the same rate of return on #investment as CPP, minus everything paid out of CPP? The reports actually went further and discounted the value of those payouts to get the lower number, even though it's not in the formula.
@d2d6c993 a different interpretation suggests 16% is more realistic, including the potential risks involved. https://abpolecon.ca/2021/09/29/what-would-withdrawing-from-the-canada-pension-plan-mean-to-albertans/ #valuation #Province #Annuities #Pensions #CPP #Contributions #Investment