Mr. Speaker, I stand today in support of the member's motion, Motion No. 300, and I commend the member for bringing this important issue before the House and for the passion that she showed today as she spoke to us.
I will reiterate a bit about the motion, although other speakers have already spoken to it. The motion calls for parliamentary action to ask the government to:
...as soon as possible introduce a bill providing: a $110 a monthly increase in the guaranteed income supplement paid to pensioners; the continuation of the payment, for a period of six months, of the old age security pension and supplement to a person whose spouse or common-law partner has died;
The motion also asks that the government make automatic the registration for people 65 years of age who are entitled to the guaranteed income supplement.
Last, it asks that the government make a fully retroactive payment of guaranteed income supplement for seniors who have been previously shortchanged.
Of course, such requests as those contained in the motion are very much in keeping with the NDP's ongoing work to improve the lives of seniors. For that reason, I am pleased to support such a motion designed to enhance the income security of Canada's poorest seniors. In fact, the motion is more or less in line with the policies the NDP has been arguing for, for years.
The reality facing our country is that our seniors are finding it increasingly difficult, if not impossible, to make ends meet. They do not just worry about their retirement incomes. They are the fastest growing group of Canadians living in poverty. Even though our seniors built this country, people who should be our country's heroes in so many ways, today far too many of these seniors suffer silently, living lives of poverty and neglect, neglected by their own federal government.
In fact, that is how it was put to me recently by a delegation of prominent seniors who visited my office. They said that it was as if seniors were invisible to this country. They have worked hard all of their lives and have played by the rules but now, with every bill they open, they are paying more and getting less.
International Woman's Day was marked just last Sunday. I find it more than ironic that it is older women who are hit the hardest during these uncertain times. Low income rates among senior women remain more than double those of senior men: 3% of men and 7% of women. As women tend to live longer than men, it is unattached senior women who suffer most of all.
I will paint a picture cobbled together by research from Statistics Canada.
First, if we take the maximum amount available to a senior from old age security and combine that with the maximum guaranteed income supplement, we are still well below the after-tax low-income cutoff. These programs provided almost one-third of the income of senior women in 2003. Older women tend to have incomes lower than men because they participated less in the paid labour force and, if they were employed, their wages, on average, were less.
The Conservatives talk about choice for women to stay home and raise their children but then they are penalized when they do so. In 2004, about one in five women had never worked outside the home. Further and again, as women live longer, they are at greater risk of running out of savings in their lifetime.
According to a 2006 study, senior women suffer much more financially from widowhood than senior men. Over a 10 year period, senior widows saw their income decrease in the five years after the death of their husband. Over the same period, widowers' incomes actually increased in the five years after the loss of their wife.
In 2005, it was estimated that the incomes of unattached, low income older women were, on average, about $2,220 below the after-tax low-income cutoff. In 2004, the mean before-tax income of women over 65 was 67% of men.
Women tend to receive lower CPP benefits because of their historically low earnings and because the majority of Canadians do not have a workplace pension plan. The types of jobs women do and the lack of pension coverage make it difficult for women who work throughout their lives to accumulate retirement incomes and to provide a secure financial future for themselves.
The 2001 Seniors in Canada Report Card published by the National Advisory Council on Aging identified the economic status of unattached seniors, particularly women, as the area where priority action was needed. Five years later, despite a minor increase in their incomes, the 2006 report card shows that unattached women are still very much at risk of living in poverty.
Moreover, low income seniors must deal with a convoluted maze of uncoordinated federal, provincial and territorial programs. On top of this, seniors also face the clawbacks associated with GIS. This is something I hear from my constituents in my office in Hamilton East—Stoney Creek. A slight increase in income can affect GIS and other benefits and increase costs and taxes for low income seniors. If a person receiving the GIS cashes a $1,000 RRSP, the individual could see her GIS benefits reduced by up to $500. If the person is among the 50% of GIS recipients who pay income tax, she could pay a further $250 in income tax.
Furthermore, other provincially and territorially administered benefits face the possibility of being reduced and/or being eliminated altogether. In the worst case scenario, small increases in income outside of these programs could very well result in a net loss of income for the senior.
In effect, low income seniors are trapped. Because of this tangled web of disincentives, they are actively discouraged from earning additional income to make their lives more enjoyable. Moreover, and with respect to this motion, I am often asked by seniors why they are not automatically registered for GIS. Qualifying for old age security means people already meet the income requirements for GIS and yet they must apply for the latter to receive it. Every July, people who have not reapplied for their GIS benefit are suspended from receiving those benefits until renewal applications are completed.
In 2005, and I am borrowing data again from the National Advisory Council on Aging, there were approximately 115,000 late applicants for GIS. The council believes that most of this benefit bottleneck can be accounted for because seniors are not renewing the GIS on time. Approximately 138,000 seniors who qualify for GIS do not receive it.
This will simply not do. It makes sense that seniors who are eligible for the benefit should automatically be registered for it. The income security system for seniors is difficult enough to negotiate as it is and seniors do not need yet another form to fill out.
The motion before us today solves this problem by automatically registering seniors for GIS and by providing full retroactivity with respect to the payments they have missed.
In keeping with the spirit of the motion being debated, I would like to conclude with the following message. I and the NDP believe passionately that no senior should live in poverty. Accordingly, we would like to see the combined GIS and OAS benefits increased so that they are equal to or greater than the low income cutoff. We also believe that the clawbacks associated with GIS should be eliminated immediately. In addition, we would like to see better coordination of provincial, federal and territorial programs. To better protect unattached senior women, we also would like to see an automatic and compulsory sharing of pension rights under CPP, employer pension funds and retirement savings plans.
We, in this Parliament, must ensure that all of our seniors have the financial support they need to live dignified, independent lives free from the scourge of poverty. We must take every opportunity to enhance their income security. This motion is a very good step in that direction and I thank the member opposite for tabling the motion here today.