This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.
Bill Morneau Liberal
This bill has received Royal Assent and is now law.
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.
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.
The House resumed consideration of the motion that Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, be read the second time and referred to a committee, and of the amendment.
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Speaker, when I was the mayor of Thetford Mines, there was a tactic I often used at board meetings. A little “shh” is very effective, particularly when it comes from a member and not the Speaker. People seem to pay more attention.
I am pleased to have my colleague's attention as I speak to Bill C-26. I planned to speak about it, but this morning the government moved a time allocation motion regarding this bill. This means that many of my colleagues will not have the opportunity to speak to this bill, which, as the Minister of Finance said himself, is very important for Canadians.
At the beginning of question period, I was surprised to hear the Minister of Finance answer a question from my colleague from Louis-Saint-Laurent and say the following about the official opposition:
We were “the party that is playing games with the Canada pension plan”.
I think the government is the one playing games with Bill C-26 right now. The government is the one playing games with Canadians with Bill C-26.
During the election campaign, I remember a number of Liberal candidates who were running and knocking on doors, telling people in their riding that they wanted constituents to know that their party was going to improve the Canada pension plan. When seniors are told that the Canada pension plan is going to be improved, they do not expect that it will take 40 years for that to happen. However, that is precisely what is going to happen with Bill C-26.
I think Bill C-26 misleads Canadians. Again, this government's strategy is to keep making commitments and then expecting others to be forced to follow through on them later. The CPP commitments will not be met for 40 years, and investments in infrastructure will be made in 10 years. There is nothing on the books for the next three years.
Passing a bill that will not kick in for another 40 years is so pressing that a time allocation motion was moved today. My question is about an issue that I have raised over and over again: time allocation. This practice illustrates the government's contempt for the democratic process.
The words I am about to say are not my own. They were spoken by the member for Winnipeg North on April 30, 2015, when he was talking about time allocation motions:
Why does the government House leader feel that the only way [to] get legislation through the House of Commons is through time allocation? By doing that, they are really saying that they do not have the ability to negotiate in good faith with opposition parties, which is not healthy for democracy inside the House.
The government claims to be open and transparent and got itself elected on a promise to do things differently. However, with bills like Bill C-26 for seniors, we find ourselves in the eighth time allocation scenario in less than a year. We have been here for less than a year, and there have already been eight time allocation motions.
An hon. member
Eight motions.
Luc Berthold Conservative Mégantic—L'Érable, QC
Eight motions, Mr. Speaker.
I have begun to speak in English. Soon everyone will hear me more and more in English, but not now. I will continue in French, because my speech is in French.
On October 27, 2011, the member for Winnipeg North said:
In recognition of the importance and respect of the chamber, in which we all want to represent our constituents, by not allowing ample opportunity for members of the opposition, even government backbenchers, to provide comment on bills is not a healthy environment. The government House leader has the responsibility to work with and negotiate with House leaders. Time allocation should only be brought in when the government has failed to negotiate with opposition House leaders.
Has the government House leader given up negotiating in good faith with House leaders to the degree to which the government now feels obligated to bring in time allocation as a standard procedure nowadays in the House?
Is this what it means to do things differently? The members opposite were the ones tearing their hair out to oppose time allocation motions. They kept telling Canadians that they were going to do things differently.
By moving yet another time allocation motion to pass its legislative agenda, this government is showing its incompetence. It is also showing a genuine lack of respect for parliamentary procedure and, ultimately, a lack of respect for Canadians.
The government is still trying to prevent members from participating in the proceedings of the House of Commons and representing their constituents. Once again, I refer to the comments made by the member for Winnipeg North on June 3, 2015. I have the right to do so because the government was elected under false pretenses. It claimed to want to do things differently.
However, at the rate the government is going, Canadians will soon realize that it will have moved more time allocation motions than the previous government. The Liberal Party has been in power for less than a year, the session is not yet over, and it has already used time allocation eight times, even though only about fifteen bills have been passed. About half the bills introduced have been subject to time allocation. That is unbelievable.
Let us return to the Canada pension plan. The first time I spoke about it, I said that the government had misled Canadians during the last election campaign. After Bill C-26 was introduced, I had the chance to speak to people in my riding. I asked them what they thought it meant when a campaign platform stated that the Canada pension plan would be enhanced and they would have more money in their pockets. They told me that they expected to have more money soon, in six months, a year or two years. They understand that things do not happen as quickly as we would like in Parliament. However, it is going to take 40 years.
People over 75 will reap the benefit of these measures in 40 years. Let us do some simple math: 75 + 40. Forty equals 4 x 10. Thus, 75 + 10 = 85; 85 + 10 = 95; 95 + 10 = 105; 105 + 10 = 115. People in my riding who are 75 years old today will be 115 years old when the plan enhancements take effect. However, SMEs will have to start paying higher contributions soon as a result of the Canada pension plan enhancement. That will hurt businesses.
Last week, something happened in North America, with our American neighbours, that many of us were not expecting. Something happened—
An hon. member
Something huge.
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Speaker, something huge happened, as my colleague said. I love it when my colleagues help me speak English. By the end of the session, I should be perfectly bilingual thanks to my excellent colleagues. I will try to help them when they speak French.
Today, the government should use this opportunity to take a step back and reflect on what just happened in North America and the adverse effects these new taxes will have on our small businesses and on jobs here at home. This government has not had much success creating jobs in the past year, but it is never too late to start.
I am sure that the government did not want to hear members from my party saying the same thing over and over again, but allow me to reiterate that the government has to take its time and pay attention. It cannot impose new taxes on our businesses because the businesses do not have the means.
David Graham Liberal Laurentides—Labelle, QC
Mr. Speaker, I can tell my colleague from Mégantic—L'Érable that for 10 years, the middle class felt forgotten by the Government of Canada, and that this change will ensure that people will no longer be forgotten, that the government will help them and it will plan for the future.
I have a question specifically for the hon. member for Mégantic—L'Érable. If he is so concerned that his colleagues will not have the chance to speak to Bill C-26, then why is he speaking to it for the second time? He already spoke to it on October 21. Why is he speaking for the second time if he is concerned that the others will not have the opportunity to speak?
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Speaker, I am shocked that my colleagues are questioning why I am rising to speak. I thought I was elected by the people of Mégantic—L'Érable to speak as often as necessary to defend them. That is what I am doing, and that is what I will continue to do whenever necessary.
Robert Aubin NDP Trois-Rivières, QC
Mr. Speaker, I might think about moving to my colleague's riding if people there really live to 115. All that to say that we agree on one thing: waiting for 40 years for the system to improve is ridiculous to say the least, and this measure does not respond to immediate needs.
However, in the previous Parliament, the Conservatives were proposing pooled registered pension plans, which also favour people with high or even extremely high incomes.
What solution does my colleague propose for people with low incomes who need to improve their retirement income in the very short term?
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Speaker, I thank my colleague for his excellent question.
I come from a region where, for years, we lived off the asbestos industry. I like to say that I am living proof that asbestos kills. In my riding, people live to a ripe old age because we have learned to use asbestos safely, and I think that my NDP colleagues should understand and defend that approach, while working to protect the health and safety of Canadians working in the asbestos industry.
To conclude, I also understand that my esteemed colleague misses the days when the Conservative government was in power and was making good decisions for Canadians.
Anthony Housefather Liberal Mount Royal, QC
Mr. Speaker, I congratulate my colleague on his English, which has improved considerably since he was elected. Congratulations.
My question is about the example he gave of a 75-year-old retired man who will see no increase to his Canada pension plan benefits. To me, that says we should do something about the Canada pension plan faster. However, that will cost money.
If he does not like the idea of increasing benefits gradually, how does he think we will find the money to help that 75-year-old right away?
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Speaker, if it is not possible to pay for something, do not promise it.
The government should not give false hope to the people it is making promises to. That is my answer to my colleague's question. It is the right answer. If the government cannot pay for it, it should not give people false hope.
Brigitte Sansoucy NDP Saint-Hyacinthe—Bagot, QC
Mr. Speaker, at the end of his speech, my colleague praised what the Conservatives did. However, the creation of pooled registered pension plans did not lead to the expected outcome of Canadians saving more for retirement.
I am very concerned. When the member is in his riding, I am sure that, like me, he meets with seniors living in poverty. The latest numbers show that 30% of single senior women live below the poverty line, and that number has tripled in the last 20 years.
What are the member's thoughts on that? What does he think we can do to lift those women out of poverty?
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Speaker, I always appreciate my colleague's commitment when it comes to talking about poverty. She was personally involved in community organizations for a very long time. She has seen poverty first-hand. She has had the opportunity to help women living in poverty.
I think this matter deserves a lot more attention than just a simple CPP enhancement. Honestly, all Canadians should be concerned about the level of poverty that some women and Canadians in general are facing.
One of the solutions proposed by the Conservatives would be to ensure that everyone has access to employment, first and foremost, whether it be young people, seniors, women, or poor people. The first step is to ensure that everyone can earn a living. There are some situations where this is impossible, and if the member would like to work with me to come up with solutions, I am always available.
Kyle Peterson Liberal Newmarket—Aurora, ON
Mr. Speaker, I am pleased to rise today to talk to Bill C-26. However, I want to take a few moments to talk procedurally about what is going on today.
My friend opposite had some concerns, but let us ensure we look at the facts. Today would have been the sixth day of debate on Bill C-26, a bill that would help Canadians achieve a secure, safe and dignified retirement.
The Conservative Party had requested more time for debate on the bill. Its members could have debated the bill today as scheduled, but instead resorted to procedural tactics to obstruct debate and attempt to shut down the House of Commons and go home.
Disappointingly, it has become abundantly clear that the Conservatives would rather focus on these types of tactics than substantive debate on this important issue. This kind of behaviour is exactly what Canadians rejected when they voted for real change a year ago. As a result, the Conservatives have left us with few options on how to proceed with this bill. We have an obligation to ensure the legislation is sent to committee for further study, and we will do what it takes to ensure that occurs.
Therefore, it is a pleasure to speak to the enhancements to the CPP found in Bill C-26. Today, middle-class Canadians are working harder than ever, but many are worried they will not have enough money for their retirement.
Each year fewer and fewer Canadians have private pension plans to fall back on.
To address this, we made a commitment to Canadians to strengthen the Canada pension plan in order to help them achieve their goal of a strong, secure, and stable retirement. Earlier this year, Canada's finance ministers reached a historic agreement to make meaningful changes to the CPP, an example of federalism at its best. The more than one-quarter of Canadian families nearing retirement, 1.1 million families, who are facing a drop in their standard of living would be able to retire in dignity as a result of this enhancement. The deal would boost how much Canadians would get from their pension, from one-quarter of their earnings now, to fully one-third. To make sure these changes are affordable, we would phase them in slowly over seven years, from 2019 to 2025, so the impact would be small and gradual.
Every Canadian deserves a secure and dignified retirement after a lifetime of hard work. Through these enhancements, we have taken a powerful step to help make that happen.
It is worthwhile to look back at the CPP and its history. The CPP was first established by the Liberal government of Lester B. Pearson in 1965. It was a minority government. At its creation, there were six and a half workers for every retiree. By the 1990s, projections indicated that there would only be two workers per retiree very soon. By 1996, for these demographic reasons, the CPP payouts were higher than the contributions coming in. Obviously, this was not a sustainable model, and change was required. In 1997, the Canadian government acted to address these demographic changes and created the CPP investment board, the CPPIB.
Responsible governments react to the realities and challenges of the day. Earlier this year, agreement was reached between eight provincial governments and the federal government to enhance the Canada pension plan. The result of that agreement is what is before us in Bill C-26.
Changing demographics is not the only factor that necessitated these enhancements, however. The greatest factor is the effective disappearance of company pension plans. There was a time when nearly half of Canadians could look forward to a regular monthly pension for a defined amount fully supported by their employer.
Unfortunately, these defined benefit pension plans are rapidly becoming a thing of the past. According to Statistics Canada, back in 1971 around 48% of people were covered by a defined benefits plan. By 2011, that number had fallen to nearly half that rate.
These enhancements are designed to address the disappearance of corporate pensions. An aging population, coupled with the evaporation of company pensions, makes enhancements vitally important at this time. Quite frankly, Canada and Canada's economy cannot afford to not make these changes. Importantly, these changes would proceed at a gradual, reasonable pace beginning in 2019 and taking seven years to complete. Additionally, tax breaks would help employees absorb these adjusted pension contribution rates.
All Canadians deserve a strong, secure, and stable retirement. I think all members can agree on this. The new measures, importantly, would help young Canadians. Young Canadians today, like all Canadians, hope to retire with dignity, hope to retire with money to live on, and hope to retire in a stable economic environment. It is these young Canadians whom we must not lose sight of when we consider and debate this bill.
This bill would have long-reaching effects into the mid term and long term. It is important, not just from a social perspective—which it certainly is—to make sure Canadians have a dignified, secure, and stable retirement, but it is equally important from an economic standpoint. Canadians are living longer. There is no doubt about this. Canadians are going to live longer in their retirement years. This trend will continue.
To keep Canada's economy sound, viable, and strong, we need people who have money to afford retirement. People with money, of course, buy things. This consumption is what drives economic growth. As our population ages, if there were a corresponding decrease in the amount of income that they had, thereby resulting in a corresponding decrease in the amount of disposable income, our economy would screech to a halt.
We cannot let this happen. Responsible governments ought not to let this happen. We need to ensure that our economy remains viable well into the future. Of course the CPP has a well-managed, professionally run investment board. Any payouts have to be met with contributions. This is a reasonable amount of contribution that will result in payouts to Canadians.
The CPP will be around for generations to come. If we do not act now, that reality will deteriorate. People will be living on less and less money as they retire. We need to increase the retirement income of Canadians to make sure they have a secure retirement, to make sure they can pay their bills, but also to make sure they can enjoy the retirement they have earned after a lifetime of hard work, after a lifetime of contributing to the great Canadian economy, after a lifetime of raising children, working hard, perhaps putting their kids through school or paying for trade skills training, and after a lifetime of growing our great country.
We look at the CPP and we think of retired people, of course, but I want us to take a step back and also think of the young people this would definitely help well into their future, maybe some of us in this very chamber, maybe our children. We need to make sure Canada and Canadians will be able to retire in dignity, not only today, not only tomorrow, but well into the future.
I can think of no better way to make sure that happens than through these enhancements found in Bill C-26. I urge all my colleagues, for those social reasons and for the economic reasons, to support these changes to the CPP.