Thank you, Mr. Chair.
Honourable parliamentarians, my name is Gisèle Tassé‑Goodman, and I'm the president of Réseau FADOQ. With me today is Philippe Poirier‑Monette, who is responsible for government relations within our organization.
To begin, I would like to thank the members of the committee for this invitation to present our main budget recommendations.
Réseau FADOQ is a group of people aged 50 and older, with more than 550,000 members. In each of the issues we defend before political bodies, we aim to contribute to improving the quality of life of seniors.
As of today, individuals under 75 years of age receiving only the old age security pension and the guaranteed income supplement will have an annual income of $20,904. A senior in this situation earns an income that does not meet Canada's official poverty line, which is based on the market basket measure.
This index establishes the cost of a market basket measure. It excludes dental care, vision care and prescription drugs, which are major expenses for seniors.
Réseau FADOQ therefore recommends that the government increase the GIS by at least $50 per month for all seniors.
During the 2021 election campaign, the federal government promised to increase this benefit by $500 per year for people aged 65 and over who live alone, and by $750 for people who live with a partner. Two years later, seniors are still waiting.
Réseau FADOQ would also like to point out that the 10% increase in old age security for people aged 75 and over is controversial. People aged 65 to 74 feel left out. Given that financial distress knows no age limit, our organization recommends extending this enhancement to everyone aged 65 and over.
We must also address the shortcomings in the method of indexing old age security. This program is indexed on the basis of the consumer price index, while wages are moving at a faster rate of about one percentage point. As a result, federal benefits will play a gradually diminishing role in the retirement income replacement rate in the future. Our organization is calling on the government to review the method of indexing old age security to account for wage growth.
The labour shortage is a worrying issue. To alleviate this reality, Réseau FADOQ suggests that the federal government encourage experienced workers to extend their careers by introducing a targeted tax credit. This was another promise made during the last election campaign, and it has yet to be put in place.
Another unfulfilled promise concerns caregivers. The government committed to expanding the Canada caregiver credit into a refundable, tax-free benefit. We encourage the government to move forward on this measure. In Canada, 20% of caregivers experience financial insecurity.
Lastly, Réseau FADOQ would like to address the issue of dental care. About one in five Canadians said they do not seek dental care because of the cost. In the last federal budget, our organization welcomed the extension of the dental insurance program to seniors in 2023. Unfortunately, nothing has been announced yet. It is important that the government implement this program quickly and provide details on insured services.
I would like to thank the members of the committee for listening.
Mr. Poirier‑Monette will answer any questions. I reserve the right to contribute.