Bill C-26 (Historical)

An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

Part 1 of this enactment amends the Canada Pension Plan to, among other things,
(a) increase the amount of the retirement pension, as well as the survivor’s and disability pensions and the post-retirement benefit, subject to the amount of additional contributions made and the number of years over which those contributions are made;
(b) increase the maximum level of pensionable earnings by 14% as of 2025;
(c) provide for the making of additional contributions, beginning in 2019;
(d) provide for the creation of the Additional Canada Pension Plan Account and the accounting of funds in relation to it; and
(e) include the additional contributions and increased benefits in the financial review provisions of the Act and authorize the Governor in Council to make regulations in relation to those provisions.
This Part also amends the Canada Pension Plan Investment Board Act to provide for the transfer of funds between the Investment Board and the Additional Canada Pension Plan Account and to provide for the preparation of financial statements in relation to amounts managed by the Investment Board in relation to the additional contributions and increased benefits.
Part 2 makes related amendments to the Income Tax Act to increase the Working Income Tax Benefit and to provide a deduction for additional employee contributions.

Canada Pension Plan

[Julie Dzerowicz, Liberal, Davenport, ON]

Madam Speaker, while seniors may not immediately benefit from this enhanced CPP, I will say that when I talk to seniors, they care about their grandkids, their children, and the future of their families. They love to hear about the Canada child benefit and that we are enhancing the Canada pension plan for their kids. They want their kids to be secure in their future retirements. It gives them great comfort to know that. Therefore, I know they see this as very positive.

[Randall Garrison, NDP, Esquimalt—Saanich—Sooke, BC]

Madam Speaker, I listened very carefully to the member for Davenport, whom I think made very persuasive arguments for this bill. She also said something very important in her response to the member for Richmond Centre, which I think is true, that seniors do care very much about the future of their families and that this is about guaranteeing security for everyone going forward.

That said, why have the Liberals been so tone deaf to the mistake in this bill to penalize women who drop out of the workforce to provide child care, or people with disabilities? How can we move forward with this without making sure that those provisions, which were in the original CPP, are maintained in this expansion?

[Julie Dzerowicz, Liberal, Davenport, ON]

Madam Speaker, in general, the changes to the CPP would be beneficial to all Canadians, women and men.

If there are additional enhancements that need to be made, I know there are ongoing discussions between the Minister of Finance and his provincial counterparts. I do not think this is going to be the last of any supports or changes that might be made to our pension system. I am sure we will continue to fill in any perceived gaps and make enhancements as we move forward.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, I have asked this question of other Liberal members before and I do not know if I have had an answer to it, so I will ask the member as well.

She spoke specifically about youth. One of the advantages of private savings over public savings is that it allows people to invest, spend that money on interim projects, and then leverage those investments for the future. For example, I could put money aside now, then use it for post-secondary education, and realize the value of that for a home or small business. The disadvantage of government-controlled savings is that people cannot invest in interim projects. Their money is taken away from them and held by the government until they retire.

Is that not one of the many obvious disadvantages, especially for youth who are trying to save for more than just their retirements but also many other, different things along the way? Is that not a disadvantage of the government's approach? Would we not be better off creating private savings vehicles that Conservatives have advocated as an alternative to this expansion?

[Julie Dzerowicz, Liberal, Davenport, ON]

Madam Speaker, it is important to have a balance of different approaches that would help youth save for their future. It is good for them to have private vehicles to invest in for their retirement, but it is also extraordinarily beneficial and absolutely necessary for government to help youth, middle-aged Canadians, and older Canadians to save for their retirements.

[The Assistant Deputy Speaker, Carol Hughes]

It being 5:45 p.m., pursuant to order made earlier today, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the report stage of the bill now before the House.

Is the House ready for the question?

[Some hon. members]

Question.

[The Assistant Deputy Speaker, Carol Hughes]

The question is on Motion No. 1. A vote on this motion also applies to Motions Nos. 2 to 69. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Assistant Deputy Speaker, Carol Hughes]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Assistant Deputy Speaker, Carol Hughes]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Assistant Deputy Speaker, Carol Hughes]

In my opinion the nays have it.

And five or more members having risen:

Call in the members.

(The House divided on the motion, which was negatived on the following division:)

Vote #157