Mr. Speaker, I am pleased to speak this morning in support of Bill C-37, an act to amend the Canadian Forces Superannuation Act.
The Canadian Forces Superannuation Act dates from the 1960s. Although the fundamental principles of the system are still valid, the act has been improved a number of times over the years, and major changes were made in 1999.
Despite these changes, the act has not been substantially amended for some thirty years.
Times have certainly changed since the 1960s and new issues have arisen, issues that oblige us to take a fresh look at military pension legislation and begin working toward its modernization. One significant issue that has come up in recent years is the recruitment and retention challenge facing the Canadian Forces.
When the 1960 pension plan was drafted, the situation was quite different. At that time it was assumed that the Canadian Forces could count on being able to draw from a large pool of labour. The act was therefore designed with a view to supporting the forces profile and human resource realities of that time.
Today, we are facing a radically different job market. The trend toward smaller families, the aging population, and an increased enrollment in post-secondary education have all meant a smaller pool of potential recruits for the Canadian Forces. Competition for skilled workers is fierce and employment options available to people with the right skills are greater than ever.
For this reason, the Canadian Forces have taken, and are continuing to take, action to position itself as an employer of choice. Pension modernization is an essential part of this process.
In order to be competitive in today's labour market, the Canadian Forces must be able to offer a very complete benefits package comparable to those offered by other employers.
At present, the Canadian Forces need a pension plan that strongly favours recruitment and retention. They need a modern system with more flexible retirement programs that offer military personnel more control and choice with regard to their career path and financial planning.
However, modernizing the Canadian Forces pension arrangements is not just about recruitment and retention. It is about the government doing the right thing for the men and women who serve this country in the Canadian armed forces. It is also a quality of life issue.
The government has made impressive strides in improving the quality of life of our military personnel. There is still considerable work to be done. The amendments contained in this bill represent another positive step forward on the quality of life agenda by bringing fairness, flexibility, efficiency and inclusion to the military pension plan.
With these amendments we can ensure that our military personnel and their families are well taken care of and are properly compensated for their dedicated service to Canada. They deserve nothing less.
The bill before the House today would modernize military pensions through a series of major and minor amendments to the Canadian Forces Superannuation Act. For example, some of the changes being proposed in this bill would shorten the period of time required to qualify for a pension benefit from 10 years to 2 years, improve pension portability, provide greater flexibility for members of the forces in building their pension incomes by basing calculations on total pensionable service rather than on completing a precise term of engagement, offer entitlement to an immediate unreduced pension after 25 years of service, and improve pension benefits for survivors. And a final but important point, the new bill would provide pension coverage for reservists.
I think we are all aware of the enormous contributions made by our reservists to the country and to the Canadian Forces. We have a duty to ensure that they are adequately recognized for their service.
In 1997, the Reserve Force Retirement Gratuity was established. This benefit is intended to encourage reservists to stay longer in the Primary Reserve and to reward them if they do.
Nevertheless, the Standing Committee on National Defence and Veterans Affairs, among others, continues to push for a real pension system for reservists. The modernization of the pension plan lays the foundation for implementing just such a system.
The amendments set out in Bill C-37 bring long term, full time reservists under the same pension arrangements as their regular force counterparts. The bill lays the foundation needed to develop a pension plan for reservists who serve on a part time basis.
Pension modernization would not require new funding from the defence services program. Any cost increases are related to the implementation of the initiatives approved under the 1999 pension legislation. The costs for these initiatives have already been earmarked in the fiscal framework.
The chief actuary of the Office of the Superintendent of Financial Institutions estimated that the other changes contained in Bill C-37 would not result in cost increases and might, in fact, result in modest savings.
The benefits associated with this legislation are self-evident. To conclude, let me reiterate the two reasons why this legislation is not just important, but why it is crucial. First, the amendments would provide for a pension plan that better meets the needs of our regular and reserve forces, and their families as well. It is a plan that would ensure they get the benefits they need and deserve. Second, the proposed changes to the Canadian Forces Superannuation Act will support the human resources strategy of the Canadian Forces in the critical areas of recruitment and retention.
For these reasons I hope the House will support the proposed amendments contained in the bill.