Evidence of meeting #41 for Status of Women in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was retirement.
A recording is available from Parliament.
4:45 p.m.
Actuary, Confédération des syndicats nationaux (CSN)
First of all, there has to be a much more structured process of reflection: a pension summit or something similar. We think that is a necessary first step.
There are some models out there, particularly industry models. We are prepared to discuss them, but a wide variety of stakeholders have to be at the table, because substantive reforms are needed.
4:45 p.m.
Liberal
Lise Zarac Liberal LaSalle—Émard, QC
I understand. I would like to throw this question out to all of you. I heard a number of you use the term “public consultations”. The Minister of Finance announced that he had held consultations during the year. Were some of you consulted?
4:45 p.m.
Union Advisor, Education Department, Fédération des travailleurs et travailleuses du Québec
Are you asking whether we were consulted with respect to CPP reforms?
4:45 p.m.
Liberal
Lise Zarac Liberal LaSalle—Émard, QC
I am not referring to Bill C-51, because you already said that you had not been consulted.
4:45 p.m.
Union Advisor, Education Department, Fédération des travailleurs et travailleuses du Québec
No, we were not, but the Minister of Finance announced that a study on pension reform had been carried out during the year.
4:45 p.m.
Union Advisor, Education Department, Fédération des travailleurs et travailleuses du Québec
To my knowledge, we were not. I am with the Education Department--
4:45 p.m.
President, Confédération des syndicats nationaux (CSN)
Yes, we were, but it was nothing like the type of forum that is advisable. These things always happen at the last minute, which means that there is practically no time to prepare anything. As for the idea of a major summit on pensions, this was certainly nothing like that type of consultation process.
4:45 p.m.
Liberal
Lise Zarac Liberal LaSalle—Émard, QC
Can you tell me quickly how the consultation went? I understand that you had to answer specific questions. Was that what the consultation was all about?
4:45 p.m.
Actuary, Confédération des syndicats nationaux (CSN)
Yes, a document was sent out with questions relating to the possibility of… obstacles to industry-wide plans; so, there were several consultations. I believe this was done in all the provinces. The consultations were held in several places. We had an opportunity to express our views, but the questions we were asked to answer were quite narrow.
4:45 p.m.
Conservative
The Acting Chair Conservative Dave Van Kesteren
Maybe we can come back to that point next time around.
Let's be really quick, Ms. Townson.
4:45 p.m.
Consultant and Research Associate, Canadian Centre for Policy Alternatives
I just want to respond to that.
What the federal Minister of Finance was referring to was consultations he had on the proposed changes to federally regulated plans, which make up only 7% of workplace pension plans in Canada. He proposed changes to those plans and then he went and consulted people about them.
Federal and provincial finance ministers called for a working group, which is the study I think you're referring to. It has been studying retirement income needs out of the University of Calgary. The federal finance minister is meeting with the provincial finance ministers in Whitehorse in mid-December to receive that report. People are eagerly awaiting it because they're not sure what it's going to say.
The provincial finance ministers have also called for a summit, but the federal finance minister has not responded.
4:45 p.m.
Conservative
4:45 p.m.
Conservative
Alice Wong Conservative Richmond, BC
Thank you very much, all of you, for coming to our committee meeting.
I have a couple of questions.
First of all, to the CSN, you probably heard that the Canadian Labour Congress has proposed a phased-in doubling of the proportion of average earnings replaced by CPP from 25% to 50% over seven to ten years. In fact, one of the presenters mentioned that number as well. This is to be financed by a modest increase in worker and employer premiums.
Do you know what the evaluated cost of this proposal would be to employers and employees? Does anyone have any idea? The Canadian Labour Congress has proposed that we should actually double the CPP from 25% to 50%. That means there will be an increase in the workers' as well as the employers' premiums. I want to know if anybody has any idea of the cost of this proposal.
4:50 p.m.
Consultant and Research Associate, Canadian Centre for Policy Alternatives
Currently the employers pay--
4:50 p.m.
President, Confédération des syndicats nationaux (CSN)
Perhaps Ms. Joncas can answer that question.
4:50 p.m.
Conservative
The Acting Chair Conservative Dave Van Kesteren
I'm sorry, but Madam Townson was just answering. We'll have her answer and then we'll get yours.
Thank you.
4:50 p.m.
Consultant and Research Associate, Canadian Centre for Policy Alternatives
The current contribution rate is 9.9% of earnings, half of which is paid by the employer and half by the employee. That rate would increase; half of it would be paid by the employer and half by the employee. It comes out of earnings. Certainly it's taken into account when the employer fixes earnings. The cost to the employer is not necessarily going to be onerous, because it means the employee's wages would be adjusted accordingly.
4:50 p.m.
Conservative
Alice Wong Conservative Richmond, BC
That leads me to the question about the younger generation. In other words, the people who are presently paying premiums are probably now paying into.... It is the retirees now who will be enjoying those benefits. At the same time, there might be people who are pretty wealthy already, and we are now giving them more because we are doubling their pension income. I want to ask the witnesses if they can shed some light on that.
4:50 p.m.
Conservative
4:50 p.m.
Union Advisor, Education Department, Fédération des travailleurs et travailleuses du Québec
Well, the CLC's position--
4:50 p.m.
President, Confédération des syndicats nationaux (CSN)
Our position on this, as we have said a number of times, is that we are in favour of exploring other avenues first. However, as far as we are concerned, one thing is clear: enhancements must be made to pension benefits for all Canadians. Of course, there is a cost attached to that, whether we are talking about private or public plans. We firmly believe that improvements are needed and that it is well worth investing additional monies in this in order to provide greater pension security. For me, that is quite clear.