Alberta is a province of Canada but the state government here provides different benefits to its citizens from other provinces of Canada. Today in this article we will know what Alberta Pension Plan (APP) is, and how is Alberta Pension Plan different from Canada Pension Plan (CPP), what are its eligibility criteria, which pension plan is better between AAP and CPP.
What is Alberta Pension Plan (APP)
On September 21, 2023, the Alberta Government unveiled a potential Alberta Pension Plan. The Government of Alberta did this so that they can provide better pension plan benefits to the citizens of Alberta with less contribution because they had to pay more amount to avail the benefits of Canada Pension Plan. With the help of the APP, senior citizens of Alberta will be able to get many benefits. This will also bring down the costing of Alberta’s businesses as well.
For example, approximately $5 billion is being saved by moving from CPP to APP, which is then used to cut worker contributions or increase benefits for senior citizens. Its use depends on different factors as to which APP will benefit the citizens of Alberta.
Reason Behind Alberta Pension Plan
Many people have this question in their mind as to why the Alberta Government decided to launch a separate pension plan for its province. According to the sources, the government of Alberta decided to launch the Alberta Pension Plan because the citizens of Alberta were required to pay more amount to avail the benefits of Canada Pension Plan.
So, the government of Alberta did a lot of work on this or came to the conclusion that if a person moves from the Canada Pension Plan to the Alberta Pension Plan, a lot of money can be saved or that money can be used to increase the pension amount of the citizens of Alberta. It can be taken so that he or she can get more pension benefits.
Overview on APP Vs CPP
|Alberta Pension Plan Vs Canada Pension Plan
|21 September 2023
|On Proposal Phase
|Official Website of APP
Alberta Pension Plan Vs Canada Pension Plan
The Alberta Pension Plan is currently in the proposal phase. The government of Alberta has introduced it to the public on September 21, 2023. Whereas Canada Pension Plan has been providing pension benefits to eligible senior citizens of Canada for many years. So far, it has been revealed what benefits the people of Alberta will get from the APP, but the Alberta government is yet to confirm what contribution will be made to the pension plan, when will the payment be received, etc. But it is also worth noting that with the Alberta Pension Plan, CPP-related benefits will neither be reduced nor eliminated.
The Alberta Pension Plan is not fully implemented yet, but Alberta citizens will be able to decide soon whether they want to leave the Canada Pension Plan and go with the Alberta Pension Plan. Just as the Quebec pension plan works in Canada, that’s how the Alberta Pension Plan work. Through the Alberta Pension Plan, the Alberta government will try to reach an agreement between the CPP or QPP so that there is no impact on the pension benefits of Albertans and whether they are approved to relocate to Canada’s 10 provinces or 3 regions.
What difference will the APP have on the CPP
If Alberta removes the Canada Pension Plan from their province, then in result the rest of the Canadian population will have to pay more amount in the form of contribution for the pension plan to avail the pension plan benefits. The new APP scheme has created a stir in the country. According to sources, Alberta will be able to transfer approximately $334 billion of wealth from the Canada Pension Plan by 2027. With the introduction of the APP, there is expectation that the individual contributions of Canada Pension Plan beneficiaries will increase.
How much is the Alberta Pension Amount
Till now, the Government of Alberta has not given any complete confirmation as to how much monthly pension amount a person will receive in the Alberta Pension Plan. However, according to the figures of 2023, if someone’s pension has started from the age of 65, $1306.57 will be paid as Alberta Pension Amount under the APP. This amount will be paid monthly to the citizens of Alberta. However, how much pension amount you will get as per the APP also depends on your financial situation and several factors.
Benefits of Alberta Pension Plan (APP)
The Alberta Pension Plan has brought many benefits to the citizens of Alberta. Read the benefits in the below mentioned points.
Senior Pension Amount Increment: Alberta Pension Plan is offering larger pension benefits for senior citizens of Alberta. The billions of dollars being saved through the Alberta Pension Plan will help the government boost the pensions of Alberta’s senior citizens. Due to which senior citizens can get increment in monthly pension amount or can get $5000 to $10000 bonus payment on their retirement after the age of 65.
$1425 per year Bigger Paycheques: Workers or employees will save around $1425 approximately by switching from the Canada Pension Plan to the Alberta Pension Plan. If Albertans move from CPP to APP, they will get all the pension benefits in lower contributions.
$1425 per year Business Saving: Through Alberta Pension Plan, small, medium, and large business owners can save $1425 per employee annually. From this business owners are expected to get a lot of benefits. Business owners can use these savings to buy more equipment and increase men power in their businesses, which can increase production.
Which Pension Plan Is Better for Canadian Citizens
As of now there is limited news and updates are available for the Alberta Pension Plan. It cannot be said much now which pension plan is more beneficial but as the Government of Alberta has proposed a new pension plan according to the Alberta Pension Plan is more stable than the Canada Pension Plan for citizens of Alberta and it provides more benefits or savings at lower contributions to the people of Alberta. The APP Canada pension plan provides more security to Alberta citizens.