ESG isn’t going to save the planet even if one takes the view of Bjorn Lomborg that CO2 is a problem. He advocates solutions without wrecking the economy …EG, small reactors. Besides how can you quantify ESG? I understand FTX had a higher rating than Exxon. That’s nuts. ESG is a marketing bafflegab tool that’s become dangerous to pensioners’ returns .
If Alberta ever takes over the my CPP, I will flee Alberta tomorrow (or, at least, asap). You'd have a hard time convincing me that Alberta, and AIMCo or its like, would manage my money better (long term returns, but also security wise) than the CPPIB does.
Your post mentioned actuarial reports prepared for the Frasier Institute. There were none at the link you gave. Just a reference to the Chief Actuary's report anyone can access. Also, the two main individuals quoted in that Frasier Institute article are not actuaries (though they may still be smart people in their own right, in other areas of expertise).
When Alberta last discussed withdrawing from the CPP, back in the 1990s, a former President and various other members of both the Society of Actuaries and the Canadian Institute of Actuaries actually expressed their opinions on the idea. Not one thought it was a good idea.
Any actuary I've ever spoken to (dozens, at least) also say it would be a mistake to withdraw. There are many reasons why this is so, but this sort of comment section isn't a place I want to spend my time debating the topic. The article at this link (by two Albertan pension expert managers) does list many of the main points, though:
Thanks for the thoughtful comment. I appreciate you taking time to reply after giving it some thought.
CPP is by design a Ponzi scheme that depends on new members to fund pension to existing pensioners. It is not funded despite its intended goal to have pensions tied to contributions like most defined contribution plans, but governments made it defined benefit and intervene regularly to change pension policies.
"Pension expert managers" are like CPPIB - a parasite on returns unless they can produce returns comparable to major markets or large scale index funds. CPP falls a short by a wide margin but pays its CEO millons to do little more than delegate management to third parties and give "woke" speeches about ESG and climate change neither of which will enhance returns or improve pensions.
It is interesting to meet someone who would change Provinces depending on who manages CPP. I paid into CPP for my 50 year working life and now get $960 a month pension (my only pension income). I wouldn't walk across the street for $960 let alone move home. I built my own pension income by making investments that on average produced returns far higher than market averages and became wealthy without government assistance.
It is "Fraser Institute", no relation to Joe Frasier who (like me) was a champion boxer.
I hope Alberta gets out of CPP and that you find a suitable home outside of Alberta.
ESG isn’t going to save the planet even if one takes the view of Bjorn Lomborg that CO2 is a problem. He advocates solutions without wrecking the economy …EG, small reactors. Besides how can you quantify ESG? I understand FTX had a higher rating than Exxon. That’s nuts. ESG is a marketing bafflegab tool that’s become dangerous to pensioners’ returns .
If Alberta ever takes over the my CPP, I will flee Alberta tomorrow (or, at least, asap). You'd have a hard time convincing me that Alberta, and AIMCo or its like, would manage my money better (long term returns, but also security wise) than the CPPIB does.
Your post mentioned actuarial reports prepared for the Frasier Institute. There were none at the link you gave. Just a reference to the Chief Actuary's report anyone can access. Also, the two main individuals quoted in that Frasier Institute article are not actuaries (though they may still be smart people in their own right, in other areas of expertise).
When Alberta last discussed withdrawing from the CPP, back in the 1990s, a former President and various other members of both the Society of Actuaries and the Canadian Institute of Actuaries actually expressed their opinions on the idea. Not one thought it was a good idea.
Any actuary I've ever spoken to (dozens, at least) also say it would be a mistake to withdraw. There are many reasons why this is so, but this sort of comment section isn't a place I want to spend my time debating the topic. The article at this link (by two Albertan pension expert managers) does list many of the main points, though:
https://abpolecon.ca/2021/09/29/what-would-withdrawing-from-the-canada-pension-plan-mean-to-albertans/
I'll conclude by reiterating that the Frasier Institute paints a rosy picture by glossing over all of the downside.
Thanks for the thoughtful comment. I appreciate you taking time to reply after giving it some thought.
CPP is by design a Ponzi scheme that depends on new members to fund pension to existing pensioners. It is not funded despite its intended goal to have pensions tied to contributions like most defined contribution plans, but governments made it defined benefit and intervene regularly to change pension policies.
"Pension expert managers" are like CPPIB - a parasite on returns unless they can produce returns comparable to major markets or large scale index funds. CPP falls a short by a wide margin but pays its CEO millons to do little more than delegate management to third parties and give "woke" speeches about ESG and climate change neither of which will enhance returns or improve pensions.
It is interesting to meet someone who would change Provinces depending on who manages CPP. I paid into CPP for my 50 year working life and now get $960 a month pension (my only pension income). I wouldn't walk across the street for $960 let alone move home. I built my own pension income by making investments that on average produced returns far higher than market averages and became wealthy without government assistance.
It is "Fraser Institute", no relation to Joe Frasier who (like me) was a champion boxer.
I hope Alberta gets out of CPP and that you find a suitable home outside of Alberta.
Nice summary Michael. Are you aware of a like summary on CAF pensions?