With provincial finance ministers collaborating, a national supplemental pension plan could be a reality in the next two to three years, Alberta Finance Minister Iris Evans said on Wednesday.

The Alberta government has joined forces with British Columbia on the issue, calling for creation of a new pension plan for residents in the two provinces who currently have no pension coverage.

Speaking in Toronto, Evans said it would be ideal to establish such a system at a national level as opposed to provincially. With more provincial finance ministers on board with the idea, she is “reasonably confident” that a national plan could soon become a reality.

“When all the finance ministers are sitting there nodding and no one’s speaking against it,” she said, “I think the real question will come down to: How much money would have to be spent?”

By attaching a supplemental pension plan to the existing Canada Pension Plan, Evans said the costs would be minimized, which would be especially beneficial for smaller provinces.

“The economies of scale are better when we do it all together.”

The Alberta/British Columbia Joint Expert Panel on Pension Standards released a report in November calling for the creation of a supplemental pension plan for residents without pension coverage.

Consultations with the public have drawn plenty of comments on the proposal. Many employers — and particularly smaller firms — strongly support the idea of a supplemental plan, according to Evans. But she added that the idea faces resistance from the insurance industry.

She is encouraged by the fact that three other provinces — Ontario, Nova Scotia, and Quebec — have also been exploring ways of amending the pension system to enhance coverage across the country. Other provinces have also expressed interest in getting involved, Evans said.

The finance ministers are set to meet in July to present a framework to Ted Menzies, Parliamentary Secretary to the Minister of Finance, who recently led national consultations on federal pension plan legislation.

The plan is critical to address the important issue of insufficient savings among Canadians preparing for retirement, according to Evans. She said too few Canadians recognize the importance of a long-term savings strategy.

“The key objective is to make sure that people are saving,” said Evans. “Our savings by individuals are far too low.”

Added Evans: “This recent downturn in the economy has made that self-evident.”

With the economic turmoil having brought the issue to the forefront in recent months, Evans said Alberta would pursue the plan “aggressively,” aiming for implementation of a supplemental plan in the next two to three years.

Alberta seeks new markets

Speaking on the state of Alberta’s economy on Wednesday, Evans said that while challenges continue to face the province’s critical oilsands industry, she is encouraged by recent activity. She pointed to news in late May that Imperial Oil Ltd. would move forward with its major Kearl project.

“There is light at the end of this tunnel,” she said.

Alberta is working raise its profile nationally and internationally as a key global supplier of oil, and as a destination for investment as the economy emerges from recession.

After the oilsands industry gained international attention earlier this year for its harmful environmental impacts, the province is placing a particular focus on reducing its carbon footprint.

“We want that oil from the oilsands to be at least as green as the production from conventional oil and gas,” said Evans. Improving the industry’s environmental standards is critical to the sector’s markets in the U.S. and in emerging markets around the world, she added.

IE