Thank you, Mr. Chair.
Ladies and gentlemen members of Parliament, my name is Gisèle Tassé-Goodman. I am the president of the Réseau FADOQ.
With me is Philippe Poirier-Monette, special advisor on government relations.
I would like to thank the members of the committee for this invitation to comment on Bill C‑319.
The Réseau FADOQ is a group of people aged 50 and over with more than 550,000 members. In each of our interventions at the political level, we want to contribute to improving seniors' quality of life. At the outset, I must emphasize that Bill C-319 deals with a subject that is of great concern to seniors. Not a day goes by that our members do not ask us about the old age security pension or the guaranteed income supplement. So we are bringing their voices here today, in this committee.
In July 2022, old age security was increased by 10% on a permanent basis for those aged 75 and over. Enhancing this benefit was and continues to be necessary. However, people aged 65 to 74 do not understand why they are excluded from this increase. Currently, a person under the age of 75 receiving only the old age security pension and the guaranteed income supplement has an annual income of $21,345. A senior in this situation has an income that puts them below the official poverty line in Canada, which is based on the market basket measure. Let's remember that this index establishes the cost of a bare subsistence basket. It excludes things like dental care, eye care, as well as the purchase of medication, which are vital expenses for seniors.
Bill C-319 proposes to increase the amount of the full pension by 10% for those aged 65 to 74. The Réseau FADOQ supports this proposal, since financial distress has no age. This amendment will enable all persons aged 65 and over to access the same full pension amount, without age-based discrimination.
The other measure proposed by Bill C-319 is an increase in the guaranteed income supplement earnings exemption for recipients. Currently, it is possible for these individuals to earn up to $5,000 in employment income while collecting all of the guaranteed income supplement benefits. For earnings between $5,000 and $15,000, a partial exemption applies. Over the past few years, the Government of Canada has increased the earnings exemption a few times, and every time, the Réseau FADOQ applauded that decision. This is a measure that reduces the effects of a tax trap that discourages guaranteed income supplement recipients from remaining in the labour market. In addition, in the context of a labour shortage, this measure would be well received.
Let's not forget that, during the last election campaign, the Government of Canada promised to introduce a tax credit for experienced workers. Since that tax credit has still not been implemented, increasing the guaranteed income supplement earnings exemption would be a step in the right direction.
In closing, we feel obliged to address two aspects that are not affected by Bill C-319.
During the 2021 election campaign, the federal government made a commitment to increase the guaranteed income supplement. Three years later, seniors are still waiting. The Réseau FADOQ encourages the Government of Canada to keep its commitment.
Finally, we must also address the shortcomings in the way old age security is indexed. This program is indexed based on the consumer price index, while wages change about a percentage point faster. As a result, federal benefits will play an increasingly smaller role in the retirement income replacement rate in the future. Our organization is asking the government to revise the indexing method for the old age security program in order to take wage growth into account.
I would like to thank the members of the committee for listening to us. We look forward to your questions. Mr. Poirier-Monette will answer questions, and I will reserve the privilege of getting involved.
Thank you.