Mr. Speaker, I have a comment and a question for the member. The member mentioned a few items, all of which have to do with the issue of what has been called intergenerational equity.
All members will know that under the current system pensioners today receive approximately $7 for every $1 they put in. This occurs because pensioners presently receiving pensions did not have full working careers. The plan came into effect in 1966. Benefits started to be paid in 1967. In fact full benefits started to be paid by 1970.
The member will also know that if one worked from 1966 to 1996, made the maximum amount and paid the maximum premiums each and every year, the accumulative premiums that any pensioner would have put in would accumulate to about $10,200, even though the annual payout was $8,800.
Clearly this is the reason the chief actuary found that we could no longer continue to pay the low premium rates that we are paying and still have those kinds of benefits.
The member raised an interesting point. Canadians said that they wanted to insulate today's seniors to make sure their benefits were not affected. Under Bill C-2 Canadian seniors, pensioners and those receiving disability benefits should be assured that their benefits will not be impacted by the changes in Bill C-2.
The question I have for the member concerns the aspect of how to make it fairer for those who have already worked some part of their career and perhaps are approaching retirement as opposed to those who are younger. The member knows that currently the rates are planned to go up to 10.1% in the year 2010. Bill C-2 is introducing a higher rate earlier so that we smooth the benefit out.
Does the member disagree with advancing the schedule of rates to begin in 1998, or is he in fact saying that somehow today's seniors should have to pay more for the benefits they currently enjoy?