Finance committee  It was the decision of the government to de-index the tax-free savings account.

Finance committee  Yes.

Finance committee  When we develop new proposals, part of our briefing for the minister is always to examine the impact on the provinces. So the simple answer is that we did examine the impact on the provinces.

Finance committee  The increase in the TFSA was part of the Conservatives' 2011 platform. The provinces were already aware. During our ongoing discussions with the provinces, we often exchange ideas on the potential impact of the measure. As for the extent to which we deal with the provinces when a budget initiative is being developed, that is another question.

Finance committee  There were no specific consultations as this measure was being developed.

Finance committee  As I said earlier, we maintain a constant dialogue with the provinces.

Finance committee  The annual contribution limit of the TFSA has been increased to $10,000 annually. It has been de-indexed.

Finance committee  Well, if you assume a 2% indexation, for instance, by 2046, the TFSA at $5,500 would have reached $10,000.

Finance committee  I think that if you do the calculation at 2%, again it's an assumption—

Finance committee  —because we don't know what the inflation will be. If I remember well, I think it's 2046.

Finance committee  Yes.

Finance committee  I don't have this figure.

Finance committee  Yes, the costs would have been higher.

Finance committee  We are basing it on a more recent analysis on the historic rates of return in the medium and long term.

Finance committee  It is simply a calculation of the actuarial values, but it is slightly less complicated than that. It is based on the person's age. Suppose that you are 75 years old and that you are counting on using all your funds by the time you turn 100. If, every year, you expect to have a 5% rate of return on your investment and you want to escalate your pension by 2% a year, you will therefore need to withdraw an amount this year with the age of 75 in mind.