I am now prepared to rule on the point of order raised on March 25, 2009, by the hon. Parliamentary Secretary to the Leader of the Government in the House of Commons concerning the requirement for a royal recommendation for Bill C-201, An Act to amend the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act (deletion of deduction from annuity), standing in the name of the hon. member for Sackville-Eastern Shore.
I would like to thank the parliamentary secretary to the government House leader for having raised this important matter, as well as the member for Sackville—Eastern Shore for his comments.
In drawing the attention of the House to this matter, the parliamentary secretary pointed out that existing provisions of the Canadian Forces Superannuation Act and the RCMP Superannuation Act provide retiring members of the armed forces and the RCMP with bridge benefits between the time of their retirement and the time at which they reach age 65. The bridge benefits provide these retirees with an amount which is equivalent to the amount which they receive under the Canada pension plan when they become eligible for CPP benefits at age 65.
The current provisions of the two pension plans eliminate the bridge benefits at age 65, when CPP benefits begin. The effect of C-201 would be to continue those bridge benefits after age 65 in addition to the benefits for which they are eligible under CPP.
As members will know, a proposed new and distinct government expenditure must be accompanied by a royal recommendation. Additionally, a royal recommendation is also required when an expenditure obligation not covered by existing authorities, is proposed.
In the present case, it is quite clear that the continuation of these benefits would result in the creation of a new government expenditure obligation with respect to the two pension funds.
The parliamentary secretary estimated that the adoption of Bill C-201 would increase the pension liability of the Canadian Forces by $5.5 billion and of the RCMP by $1.7 billion. He noted further that while payments are currently made from the existing pension funds, the government is responsible for the payment of any shortfall out of the consolidated revenue fund.
In his intervention, the member for Sackville—Eastern Shore acknowledged the need for a royal recommendation and he recommended that the matter be given close attention by the government.
After reviewing the issue, the Chair can only subscribe to the arguments made by the two interveners. Simply put, the expenditure obligation which the government would assume if Bill C-201 were adopted is not currently authorized.
I am, therefore, obliged to rule that due to the proposed creation of a new government expenditure obligation, Bill C-201 does require a royal recommendation. Consequently, I will decline to put the question on third reading of this bill in its present form unless a royal recommendation is received.
Today, however, the debate is on the motion for second reading and this motion shall be put to a vote at the close of the second reading debate.