moved:
Motion No. 2
That Bill C-54, in Clause 3, be amended by striking out line 21, on page 2, and substituting the following:
"on the first day of the fourth month after the month in which this Act is assented to."
Madam Speaker, I move this motion for reasons of fairness and efficiency, which is the proper combination we have attempted to apply throughout Bill C-54.
When the bill was first introduced in the fall of 1994 it contained provisions that made reference to April 1, 1995 as the date that notification for the application would be made for those to have the retroactivity provision reduced from five years to one year.
April 1 has come and gone. Therefore in the cause of fairness, the amendment that we moved which I will read for the enlightenment of members is that we would replace April 1, 1995 with the comment or the phrase "on the first day of the fourth month after the month in which this act is assented to". It
is a somewhat complicated legal way of saying that people will have three months beyond the passage of this bill in which they would be informed of the new provisions so that they would be able to make their plans and their applications.
The old age security system has had a somewhat unusual or eccentric provision which gave people five years in which to make application for their OAS. It meant that those who were able to receive advice from various experts could delay making application for tax purposes for an extended period of time. This provision brings the bill into line with other provisions of the Canada pension plan and other acts. There would be the standard one-year provision in which people could make application for their OAS. We would give them three months to make that application through the proper information circles.
We are attempting to ensure that the five-year retroactivity period is reduced to one year so there is no loophole that allows people to get a tax advantage. At the same time it ensures a proper period of information for those who want to have at least one year beyond 65 years to make application for their benefits. Therefore I recommend this motion to the House.