moved for leave to introduce Bill C-270, an act to provide defined contribution pensions for the public service, the Canadian forces and the Royal Canadian Mounted Police, to be managed and invested by a private sector manager, and to amend the Income Tax Act and certain other acts in consequence thereof.
Mr. Speaker, I rise to introduce my private member's bill, the federal public service pension act. This bill will place the superannuation pension plans of the public service, the Canadian forces and the Royal Canadian Mounted Police on sound financial footing by placing employee contributions in private sector pension funds at arm's length from government.
It will be funded by employees' contributions at the same rate as before, with the option of contributing additional money. A pension account will be held for each employee within the fund. The private sector fund manager will be selected by a committee representing the employees.
On retirement a lump sum may be taken with remaining funds placed in an annuity for the employee. Family benefits will be prescribed by regulation. Contributions are to be deducted from taxable income. Existing and accrued superannuation benefits will remain intact and protected. The new pension scheme will come into force on January 1, 1999.
Public servants, members of the Canadian forces and the Royal Canadian Mounted Police new pension fund will be funded with their contributions and real dollars will be invested reaping pension rewards.
Parliament may opt to appropriate funds for the new pension funds but seeks no new spending by Parliament.
(Motions deemed adopted, bill read the first time and printed)