Thank you, Mr. Chair.
Ladies and gentlemen of Parliament, thank you for inviting me to appear before your committee.
My name is Gisèle Tassé-Goodman. I am the President of the Réseau FADOQ. With me, is Philippe Poirier-Monette, FADOQ's Collective Rights Advisor.
The Réseau FADOQ is a network of people aged 50 and over, with more than 550,000 members. In each of our political activities, we strive to improve the quality of life of seniors. In recent years, the federal government has taken some positive steps on behalf of seniors.
It was essential to keep the age of eligibility for the old age security pension and the guaranteed income supplement at 65. Automatic enrolment for the guaranteed income supplement for those eligible for the program was needed. The increase in the guaranteed income supplement was also well received, and the increase in the earnings exemption for the guaranteed income supplement is appreciated by the many experienced workers with low incomes.
Those were steps that our organization appropriately applauded. However, our concern today is about the federal government's choice to increase old age security pensions by 10% only for those aged 75 and older.
Although the Prime Minister was consistent with his 2019 commitment, thousands of seniors from 65 to 74 were hit hard by the measures announced in the recent federal budget. Our organization recommends that the 10% increase in old age security go to all those eligible for the benefit, so as not to create two categories of seniors.
For the Réseau FADOQ, a precarious financial situation is clearly not a matter of age. At 65, many have as much difficulty making ends meet as those aged 75. Today, a person receiving only the old age security pension and the maximum amount under the guaranteed income supplement would have an annual income of $18,505, which is below Canada's official poverty line.
In the Poverty Reduction Act, passed in 2019, the Government of Canada chose to retain the market basket measure as the metric for the official poverty line in Canada. For 2021, that market basket measure varied between $19,564 and $21,132 for a single person, depending on where they live.
It is unacceptable that a person receiving only the old age security pension and the guaranteed income supplement does not reach those thresholds. We must remember that the market basket measure is intended to reflect the cost of a modest basket of goods and services representing a basic standard of living.
Those with incomes at that level are not living, they are surviving. Furthermore, some items essential for household well-being are not included in the market basket measure. This is the case for some non-reimbursable healthcare, such as dental care, vision care and the cost of medications.
Let us not forget that, as they age, people have regular expenditures that can be greater than those in other age groups. These include the cost of medications and support items.
For the Réseau FADOQ, it is clear that amounts provided for the old age security pension and the guaranteed income supplement must, at a minimum, cover the basic needs in the market basket measure. As a starting point, the federal government must commit to increasing old age security benefits by 10% for all seniors eligible for the program, starting at age 65.
The proposed increase should be in effect for everyone, with no discrimination based on age. The Réseau FADOQ estimates that the federal government must also increase the amount under the guaranteed income supplement by $50 per month. By combining those two increases, a senior receiving only the old age security pension and the guaranteed income supplement would have an annual income slightly above the lower level of the thresholds set by the market basket measure.
This is the very least that seniors in Quebec and Canada must be able to expect from their government.
I would like to thank the committee members for welcoming us. We are ready to answer your questions.