Bill C-254 (Historical)

An Act to amend the Income Tax Act and the Employment Insurance Act (severance pay)

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

This bill was previously introduced in the 41st Parliament, 1st Session.

Sponsor

Irene Mathyssen  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Outside the Order of Precedence (a private member's bill that hasn't yet won the draw that determines which private member's bills can be debated), as of June 23, 2011
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Income Tax Act to increase the registered retirement savings plan (RRSP) deduction limit to include a taxpayer’s one-time contribution of any severance pay to an RRSP.
It also amends the Employment Insurance Act to require the Canada Employment Insurance Commission to make regulations to exclude severance pay from the determination of earnings when determining deductions from benefits or the commencement date of the payment of benefits.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Income Tax ActRoutine Proceedings

June 23rd, 2011 / 10:05 a.m.


See context

NDP

Irene Mathyssen NDP London—Fanshawe, ON

moved for leave to introduce Bill C-254, An Act to amend the Income Tax Act and the Employment Insurance Act (severance pay).

Mr. Speaker, the purpose of the bill is to assist people who lose their jobs and enable them to better manage their money.

First, to help people save for retirement, the bill would change the Income Tax Act to allow a taxpayer to apply for a one-time contribution of any severance pay to his or her RRSP.

The bill also calls for changes to the Employment Insurance Act to exclude severance pay from the determination of earnings when determining deductions from benefits or the commencement date of the payment of benefits. This would ensure that those who were laid off would receive their benefits sooner. It would enable them to manage to continue with their mortgage payments and to pay for their kids' education instead of waiting and waiting for the employment insurance benefits they deserve. It would also allow older workers to invest their severance in RRSPs without penalty.

(Motions deemed adopted, bill read the first time and printed)