Madam Speaker, today is the second time the NDP has proposed an opposition day motion on old age security. It did so the first time a few weeks ago because the government raised some suspicions about how it planned to go about reforming the old age security program. The Conservative government refused to answer any questions, which is why the NDP moved an opposition day motion to ask the government not to balance the budget on the backs of seniors.
Unfortunately, we need to have a second opposition day dedicated to old age security today because the government finally announced its plans and confirmed the fears of many Canadians. The government confirmed that it would gradually raise the age of eligibility for old age security from 65 to 67.
I am proud that we, as a party, are opposing this austerity measure proposed in the Conservative budget.
Some time ago, I travelled around the province of Quebec and met with many people from across the province. I would like to share their concerns with the House today.
First of all, they asked me what would happen to their private pension plans. That is one concern that was raised and that is completely understandable. In fact, many doubts remain about what will happen to these pension plans if the government raises the age of eligibility for old age security. Some may ask, what does one have to do with the other? There is definitely a difference between old age security and private pension plans arranged between employees and employers. However, they are related. Indeed, the calculations made by employers for their private pension plans are based on the fact that employees will receive old age security at age 65 and the employers can therefore reduce the amount of the private pension when the old age security is paid out.
People are worried. Small unions have just negotiated their working conditions and pension plans, and they are worried about whether they will be able to renegotiate their pensions or whether there will be a gap between when their private pensions diminish and when they receive old age security. That is one concern for which, unfortunately, we have yet to receive a clear answer.
I was also asked when the Prime Minister intends to retire. Unfortunately, I cannot answer that question, but I would like to.
People are also wondering whether there are other ways to reform old age security, since the proposed reform seems to be a direct attack on the people who are the most vulnerable to poverty. It is true. Why is this government choosing to push back the old age security eligibility age? Unfortunately, we have no information on that either.
The government seems to be making things up as it goes along. It needs to make cuts somewhere so why not here? There are other solutions, but there have been absolutely no discussions on this whatsoever and this is another question we are unable to answer because the Conservative government is not providing us with any information.
In any event, one thing is clear: there is no need to cut old age security. To me, the types of cuts the government wants to make to old age security are not the issue, because the important thing here is that the government does not have to touch old age security.
Someone else asked me the following question. He wanted to work longer, but his employer lets go of employees when they are 50 or 55 because he says they get too old or cost too much. That person wanted to know whether the government had thought about that.
That is a very good question. Just because the government requires people to work two more years, that does not mean that everyone can. When a person does physical labour, at age 55 their body is no longer able to do the work. Even if the government threatens to cut people's pensions or to give them money later, they might not be able to work that long.
Then there are the people who want to work longer and can, but are dismissed when they reach a certain age or are strongly encouraged to leave their job to make way for young people. This brings us to another possible solution. If the government wants people to work longer, then why not give employers incentives to keep their employees longer? That would be a good way to address the problem.
The government could also help people who decide to continue working after the age of 65 or 67. That is already built in to a certain extent because people who decide to continue working for another five years are not penalized and they accumulate the amount of old age security, which they can receive later. This is one example of a very attractive incentive. No one's arm has to be twisted. However, it will not be any more effective, because those who can no longer work at 55, 60 or 65 can no longer work, and that is that. There are other ways to encourage people to stay in the labour market, and there are other ways to encourage employers to keep their employees longer.
Can the hon. member tell me how to better prepare myself? The Conservative government keeps on saying that it will give us time to prepare ourselves for the delay in accessing old age security. What can I do? Hon. colleagues, there are things that can be done to prepare for retirement. Unfortunately, not everyone can do them.
Consider that someone working full-time at minimum wage may be living below the poverty line. Will this person be able to put aside $50 or $75 a month for retirement? Unfortunately, they will not. Even if they were told 20 years in advance, this person would not be able to adequately prepare and would be affected by the increase in the eligibility age for old age security.
There is something else I wanted to talk about. I believe that these concerns and questions that are not being addressed indicate that the increase in the eligibility age will have major consequences. This is a direct attack on the middle class and on the people most vulnerable to poverty.
The government has not convinced us that it was necessary to make cuts to the old age security program. Experts have all stated that the old age security program is sustainable. The member opposite spoke about “pretty simple math”. I am sorry but, in my opinion, a minister's common sense or the “pretty simple math” done by a Conservative member do not hold up against a study conducted by a Government of Canada chief actuary. They do not hold up against the findings of a parliamentary budget officer, a study conducted by the OECD on pensions throughout the world or a study conducted by university X or Y, which all show that the old age security program is sustainable. I am sorry but the “pretty simple math” argument does not fly. I do not believe that it holds up against the opinion of experts who all agree that the program is sustainable.
The number of seniors will in fact increase for 5, 10 or 15 years, but we are able to deal with that increase since it was expected. Actuarial calculations are done over decades, 50 or 60 years even. The actuarial calculations allowed for an increase in life expectancy. Logic and common sense tell us that we cannot disregard the arguments and conclusions of experts. What is more, since the Conservatives did not have specific objectives, we do not know whether the proposed measure to increase the age of eligibility for old age security from 65 to 67 meets the objectives. We do not know if these measures will really have the expected impact on old age security.
First and foremost, the objective was not clear. Second, the government has not provided any figures or studies to show how much money it will save. Will the amount saved be sufficient to make the old age security system sustainable? I get the impression that the Conservatives are just winging it. They are saying that cuts have to be made somewhere, and this is where they are going to be made. Why? We do not really know. It is truly ridiculous that the Conservatives are going to attack a program that places Canada among the countries that are best equipped to combat poverty among seniors. They are going to make cuts to this program without explaining why and without explaining what the impact will be.
In conclusion, the NDP feels that cuts to old age security are clearly not necessary and that a lot more could be done to improve the quality of life of seniors rather than reducing it.