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

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

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.

Votes

Nov. 30, 2016 Passed That the Bill be now read a third time and do pass.
Nov. 29, 2016 Passed That Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
Nov. 29, 2016 Passed That, in relation to Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Nov. 17, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Nov. 17, 2016 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, because it: ( a) will take more money from hardworking Canadians; ( b) will put thousands of jobs at risk; and ( c) will do nothing to help seniors in need.”.
Nov. 17, 2016 Passed That, in relation to Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, not more than one further sitting day shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
Nov. 15, 2016 Failed That the amendment be amended by adding after the words “seniors in need” the following: “; and ( d) will impede Canadians’ ability to save for the future.”.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5 p.m.


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NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Madam Chair, I just want to give the hon. member a chance to assure Canadians that he is using certain language and words to make a point about the opposition to the CPP enhancements. In fact, does the member understand taxation law and the regulatory regime and that this is not actually a tax? A pension serves a different purpose and has a different regulatory environment. I would like the member to assure people that they do understand. Hearing it called a tax does a disservice to all Canadians, and especially to the precarious work activists right now, who are part of a generation that will depend on this.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5 p.m.


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Conservative

Larry Maguire Conservative Brandon—Souris, MB

Madam Speaker, of course the member misses the point as well. It is a tax. It is a tax upon the employer. It is a tax upon the individuals. I will reiterate that individuals might not have the $1,000 the member is talking about to put into this investment fund. Even if people are forced to do so, how can they put in money they do not have? Therefore, we have tax-free savings accounts and some of the other mechanisms that are used.

I challenge the member to go back and restudy the tax laws to make sure she gets the facts. As I sat in the legislature in Manitoba for some 14 years, it does not surprise me that this is her attitude, coming from the NDP, because the New Democrats never recognized a tax that they did not want to put on businesses either.

This is certainly a situation where individuals may not even have the capabilities of doing what the government is trying to force them to do. They can only do it by doing two things. Besides going to their employer and asking for a raise, they may have to deprive their families of some things they were previously able to offer them.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5 p.m.


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NDP

Scott Duvall NDP Hamilton Mountain, ON

Madam Speaker, I seek unanimous consent to split my time.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5 p.m.


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The Assistant Deputy Speaker Carol Hughes

Does the hon. member have unanimous consent?

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5 p.m.


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Some hon. members

Agreed.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5 p.m.


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NDP

Scott Duvall NDP Hamilton Mountain, ON

Madam Speaker, I will be splitting my time with the member for Windsor—Tecumseh, and I thank my colleagues for allowing this.

I rise in the House today to speak at third reading of Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act.

In my remarks on Monday, I focused on how we in the NDP have found a mistake in the bill and our attempts to fix it. I described how the government had failed to include important provisions that would protect workers whose incomes are reduced because they take time to raise their kids and those whose incomes are reduced because of a disability.

The government either forgot to include those provisions or excluded them on purpose. We are not sure which it is. There are differing opinions on this matter. I must say that the government has been completely unwilling to shed any light on this matter. Government members have intentionally spoken around the issue, using the lines that have been written for them. I think many of them really do not know the answer. Only the minister knows the answer, and he has been the most unclear in his comments of any member on the other side of the House.

I then went on to describe the attempts by the NDP to get the government to fix the bill. Members on both sides of the House know the bill is flawed and needs to be fixed. We were encouraged by members on the other side of the House to go to committee to fix the bill. We worked hard with the legislative counsel, and we developed the clauses and the language needed to put the necessary dropout provision in the bill to fix the problem.

It is an easy fix: two amendments, less than two pages of language that would protect those who take time off for child-rearing, mostly women, and those living with disabilities. What happened at committee was a real eye-opener for me. The Liberal members of the committee were whipped hard to shut down any attempts to amend and fix the legislation.

Even though we know that some of them understand that the bill is flawed and needs to be fixed, they all lined up and supported the use of procedural tricks to shut down debate, not once, but twice. They should be ashamed, and I truly think some of them are. The Liberals then had a chance to fix the flaw themselves when the bill came back to the House at report stage. However, the government made it very clear it had no intent or interest in doing that.

Here we now are at third reading of a bill that is still flawed, with the rights of women and those living with disabilities still in question. This leads me to talk about where we go from here. Once we pass this legislation into law, will the problems we have identified ever get fixed? Will provisions that protect women and the disabled ever get included in the legislation? That is unclear, and it is making our continued support of this bill very difficult.

We will vote for it at third reading because the CPP needs to be changed, as we have fought for a long time, alongside our friends in the labour movement, to have the government increase benefits for retirees. However, we are very concerned about the government's supposed commitment to fix the legislation after the fact. We have heard in the House that the government needs to get the agreement of the provinces.

Last week we heard the following from the President of the Treasury Board:

We are aware that more could be done in respect of the dropout provisions for disability and child rearing and, in fact, the Minister of Finance will raise these provisions at the next meeting of the provincial and territorial finance ministers in December in the context of a triennial review of the CPP.

Then the next day we heard this from the Parliamentary Secretary to the Minister of Finance:

Our intent is to pass the bill, as is; however, the Minister of Finance will then raise the dropout provisions at the next provincial and territorial finance ministers' meeting in December, in the context of the triennial review of the Canada pension plan.

Also last week we heard from the finance minister 's director of communications that:

We’re aware that more could be done with respect to drop-out provisions for disability and child rearing to make sure that this expansion is as inclusive as possible.... However, in order to make any changes to the plan we need agreement from the provinces.

He continued that the finance minister would bring up the omission when he meets with his provincial counterparts in December to review CPP, a routine process that occurs every three years.

Canadians need to note the lack of a clear commitment shown in these quotes. Saying the minister will raise or bring up the omissions is certainly no commitment. How hard would the minister push the provinces to fix the bill and include the missing provisions? We do not know the answer to that. I was hoping to hear a more clear-cut commitment from the minister this week. However, that commitment does not seem to be forthcoming. If anything, the most recent spin makes me think the government is spinning away from any commitment at all.

When the minister was asked yesterday by one of my colleagues if he would fix the bill, he would not even address the question. Instead, we got the shallowest spin possible. This is all the finance minister would say on the matter:

What we also recognize is that there will always be opportunities for continued improvement. Our job, in working together with the provinces, is to move forward on this agreement and then to consider other ways we can improve the Canada pension plan in the future to ensure that the retirement health of Canadians is always provisioned for.

Those are very inspiring words, but hardly a commitment to fixing the problem caused by the omission of the dropout provision in this bill.

What concerned me even more were the comments made by the member for Saanich—Gulf Islands yesterday during debate, when she said:

On the evidence we have before us, it appears that the bill will disadvantage women for no apparent reason other than an oversight. I did have a brief moment to discuss this with the Minister of Finance earlier this morning, and his position is that to do what the NDP asks now would result in a transfer of wealth from poorer women to wealthier women because of the way the calculation works. Unfortunately, I do not have the full facts on this.

We do not have the full facts on this, either. I told the minister that, when he tried to spin me with the same argument in the hallway after question period yesterday. I also told him that the argument makes no sense at all. In fact, I think the inverse is probably true, given that the elimination of the childbearing dropout for the additional benefit would presumably penalize lower and modest-income mothers, since women in higher-income households are better able to adjust.

Besides, the argument fails to take into consideration that the CPP is basically an insurance plan into which people pay benefits. Raising benefits at one level does not mean having to reduce benefits at another level. Surely, someone qualified to be the finance minister of Canada should know this.

I also have to wonder where the minister came up with the calculations he says his argument is based on. We have been told all along that no costing of the dropout provisions has ever been done. Where did the numbers come from? If the minister has numbers, will he share them with us? Will he share them with Canadians?

I fear that the finance minister's proactive spin in this argument may be our best indication yet of the government's spinning away from any commitment to fixing the dropout provision mistake.

What Canadians need is a clear-cut commitment from the finance minister. We need to know that he intends to come away from the December meeting with his provincial counterparts with an agreement in hand. The agreement must fix the problem with the legislation and include a dropout provision that would protect women and those living with disabilities.

Will the finance minister stand in the House and make that commitment?

The NDP will remain vigilant and be persistent in our demands that the government fix its mistake. The government and the minister should be aware that the NDP will not let up its pressure until they follow through on their commitment.

Canadians deserve no less.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:10 p.m.


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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, at the beginning of the debate, I was quite encouraged by the NDP's indication that it would support Bill C-26. I understand today that it will continue to vote in favour of Bill C-26.

However, I would express some disappointment, in the sense that New Democrats do not seem to realize that if we were to follow their advice on this, first, it would put into jeopardy the pension proposal, the legislation itself, for the simple reason that the Conservatives have made a commitment to kill the bill. In other words, they would indefinitely talk it out, which would in essence deny what we believe Canadians want to see.

Then with respect to my other point, maybe I would put it in the form of a question. Would the member not acknowledge that in coming up with enhancements to the CPP, we have to get the support of the provinces and territories to make the changes that we all want to see made. We have achieved that support.

In order to change the law, we have to get the provinces onside. That is the reason the Minister of Finance is going back to the table at a future meeting.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:10 p.m.


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NDP

Scott Duvall NDP Hamilton Mountain, ON

Madam Speaker, why was this omitted to begin with, and why was there a deal with the provinces excluding it?

There is another dropout provision under the act called the general dropout provision. That was included in the enhancement. Why were the other two omitted? Was it a mistake, or was it on purpose? That is what New Democrats are trying to find out. We could not get any clear answer from the Liberals. They did every little dirty trick they could to avoid it.

We want the bill to be fixed, and they are refusing to do it, saying that they have to go to the provinces because they had a deal. The deal must have been that they excluded them on purpose.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:15 p.m.


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The Assistant Deputy Speaker Carol Hughes

It being 5:15 p.m., pursuant to order made on Tuesday, November 29, 2016, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the third reading stage of the bill now before the House.

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:15 p.m.


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Some hon. members

Agreed.

No.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:15 p.m.


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The Assistant Deputy Speaker Carol Hughes

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

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:15 p.m.


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Some hon. members

Yea.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:15 p.m.


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The Assistant Deputy Speaker Carol Hughes

All those opposed will please say nay.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:15 p.m.


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Some hon. members

Nay.

Canada Pension PlanGovernment Orders

November 30th, 2016 / 5:15 p.m.


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The Assistant Deputy Speaker Carol Hughes

In my opinion the nays have it.

And five or more members having risen:

Call in the members.