moved for leave to introduce Bill C-400, 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, 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. I thank the hon. member for Elk Island for seconding the motion.
The bill will provide a new scheme to commence on January 1, 2001. It will be funded by the employees' contributions at the same rate as before and the employee may elect to contribute more. To this, may be added any amount appropriated by parliament. The funds will be held in a pension account for each employee. The account will be managed by an approved private sector fund manager selected by a committee representing the employees.
On retirement, the employee may take a prescribed part of the account as a lump sum and the balance generates an annuity for the employee. This will place these pension funds on sound financial footings.
I present the bill for the consideration of the House.
(Motions deemed adopted, bill read the first time and printed)