moved that the bill be read the third time and passed.
Mr. Speaker, I am very pleased to speak today in support of Bill C-37, an act to amend the Canadian Forces Superannuation Act.
The Canadian Forces Superannuation Act was introduced in 1960. Although improvements have been made over the years, there have been no major reviews or amendments for over 30 years, with the exception of those made in 1999 in conjunction with federal public service superannuation reform.
While the fundamental principles of the act remain valid, Canadian society and Canadian Forces services have changed considerably over the last three decades. These changes must be reflected in the human resources policies and practices of our military.
For example, the Canadian Forces, like most other militaries in the western world, have been confronting a recruitment and retention challenge in recent years. Competition for skilled workers is intense and the employment options available to Canadians with the right qualifications are greater than ever.
In order to be competitive in today's labour market, the Canadian Forces has adopted a number of measures to position itself as an employer of choice. A modern, flexible and effective pension plan that provides our military members with more control and choice regarding their career and financial planning would go a long way in helping the Canadian Forces achieve this goal and help it overcome the recruitment and retention challenges it is now facing.
However, modernizing the pension legislation for the Canadian military is not just about helping the Canadian Forces attract the best and the brightest candidates. It is also about ensuring that our men and women in uniform are taken care of, have confidence in their futures, and are appropriately compensated for their service. In short, this is an important quality of life issue.
The Government of Canada has made great strides in recent years in improving the quality of life of Canadian military personnel and their families. Pay and benefits for Armed Forces members have been improved, the military health system has been enhanced, and there is greater support for family members.
The Government of Canada cannot rest on its laurels, however. It will continue to ensure the well-being of Canadian men and women in uniform.
The amendments contained in the bill represent another significant step forward in the quality of life file by bringing fairness, flexibility, and inclusion to the military pension plan.
The bill before the House today would modernize military pensions through a series of both major and minor amendments to the Canadian Forces Superannuation Act.
For example, some of the changes being proposed in Bill C-37 would shorten the period of time required to qualify for a pension benefit from 10 years to 2 years, improve pension portability, provide entitlement to an immediate unreduced pension after 25 years of service in the Canadian Forces, improve pension benefits for survivors, and provide pension coverage for our reservists. This last amendment regarding reservists is particularly important.
Before continuing, I wish to point out that the shift from 20 years to 25 years of service for an immediate unreduced pension will not disadvantage any member of the Canadian Forces because each member is entitled to make the choice between the new system and the old system, whichever of these two systems is better for the member in question.
Turning now to reservists, whether it is assisting Canadians during forest fires, hurricanes or other times of crisis, or contributing to Canada's international commitments, our reservists provide dedicated, professional, and essential service to the Canadian Forces, to the country, and to all Canadians.
We have a duty therefore to ensure that they are appropriately recognized and compensated for this service. The amendments set out in the bill bring long term, full time reservists under the same pension arrangements as their regular force counterparts. The bill also lays the foundation needed to develop a pension plan for reservists who serve on a part time basis.
The implementation of a pension plan for Canada's reservists is an issue the Standing Committee on National Defence and Veterans Affairs, among others, has worked hard for in recent years. I am proud to say that today we are one step closer to achieving this goal.
A concerted effort was made to ensure the views and concerns of key stakeholders were considered in the development of these proposed amendments. The Canadian Forces Pension Advisory Committee, the formal body responsible for advising me on pension matters, was consulted regularly and has endorsed the reform proposals.
Extensive briefings, focus groups, and other communications opportunities were used to inform and solicit feedback from regular and reserve force members. Members from both the regular and reserve forces support the proposed amendments.
I would like to emphasize the government's continuing commitment to consulting and communicating with pension plan members throughout the whole modernization process, including the development of regulations and implementation arrangements.
With this modernization of the Canadian Forces Superannuation Act, Parliament will not be required to pass supplementary estimates. Nor will it be necessary to draw additional funds from the Defence Services Program.
The increases arising out of this modernization exercise will be part of the existing financial framework. The chief actuary of the Office of the Superintendent of Financial Institutions feels that the other changes proposed in Bill C-37 would not lead to any cost increases. Instead, there might even be some slight savings.
The benefits associated with this legislation are self-evident. However, in conclusion, I would like to reiterate two key reasons why this legislation is critical for the Canadian Forces and by extension, all Canadians.
First, the amendments would provide for a pension plan that better meets the needs of our regular and reserve force members, and their families. It would ensure that they get the benefits they need and deserve.
Second, the proposed changes to the Canadian Forces Superannuation Act will assist the Canadian Forces in the critical areas of recruitment and retention by positioning the military as an employer of choice.
For these reasons, I hope the House will support the bill.