Mr. Speaker, I am pleased to have this opportunity to speak to Bill C-518, an Act to amend the Members of Parliament Retiring Allowances Act.
When I became elected as a member of Parliament, one of the first messages that I heard loud and clear from the citizens in my area was the need to take action on gold plated MP pension plans. One of my first commitments to my constituents was to publicly support changes to the MP pension plan that were more respectful to the taxpayer. I was proud that it was our Conservative government that took historic action to reform the pensions of members of Parliament and senators. I would also like to recognize my colleagues from all sides of the House, who also supported these important changes.
As we know, changes to the MP pension plan and equal cost sharing ultimately mean that the pension contributions of members of the House of Commons will have to be nearly quadrupled from $11,000 to $38,000 and some change a year. I mention this because pension contributions are a key part of what is proposed in Bill C-518.
We know Canadians expect that if parliamentarians are convicted of egregious crimes, they should face consequences. No different from everyday Canadians would expect to face consequences if convicted of an egregious crime, yet we also know that this is currently not the case. I would like to commend the member for New Brunswick Southwest for his work to attempt to remedy this.
Currently, if a senator or member of Parliament retires or resigns prior to being convicted, or otherwise manoeuvres to avoid being expelled or disqualified from Parliament, that individual is still entitled to his or her full pension, including the employer's share, which is funded by taxpayers. In other words, if one retires or resigns before being convicted of a crime, one still benefits from a generous pension plan. This is, in itself, an outrage to many taxpayers. I would submit that this sentiment is shared by members of the House. That is why this is a very important issue for discussion.
Again, I would like to commend the hon. member for New Brunswick Southwest for bringing this issue forward. His work on this file and his commitment to ensuring that taxpayer dollars are always respected is laudable. As it stands, the bill before us would automatically revoke a member's pension where certain criteria, as defined in the bill, are met, regardless of whether the member had already retired or resigned from his or her seat in Parliament.
Specifically, the bill would disentitle the taxpayer funded pension of a member who met the following criteria: a member is convicted of an indictable offence under an act of Parliament that carries a maximum prison sentence of not less than two years, or the offence arose out of conduct that occurred before June 3, 2013, while this person was a member.
I should also point out that the member would still be entitled to a withdrawal allowance, which is a single lump sum refund of the member's personal contributions. However, the employer's pension contributions on behalf of the member, the portion which is publicly funded, would not be refunded. That is an important distinction. Moreover, the member would no longer be eligible for post-retirement health or dental benefits, since entitlement to these benefits is predicated on eligibility for a pension.
We know that Canadians expect all senators and all members of Parliament to be held to the highest standards of accountability. Canadians have told us that they expect their representatives to protect the integrity of public office in our public institutions. As I stated earlier, as members of Parliament we have voted in support of pension changes that are more respectful to taxpayers.
Our government is also taking historic action to reform the pensions of public servants. The contribution rates for the public service pension plan are also moving to a 50-50 cost-sharing model by 2017. We have also increased the age at which members of Parliament can retire with an unreduced pension. It will rise from 55 to 65 as of January 1, 2016. In addition, newly hired public servants will become eligible to collect their pensions at age 65 instead of 60.
Over the next five years, these measures will save taxpayers $2.6 billion. These are substantial savings. They are also savings realized by fairness. Moving MP and public sector pensions to equal employer funding and raising the age of retirement are principles that are respectful and equitable to taxpayers.
Bill C-518 proposes similar respect to taxpayers for those parliamentarians who would retire or resign prior to a conviction and still collect a fully funded pension plan.
While I support the principles in this bill, I do have some concerns. Many others have raised concerns as well, some of which the member has addressed. Specifically, it is imperative that a bill of this nature clearly establish where and how the bar is set that would enact this legislation. As the bill is currently proposed, I believe greater clarification on this question will be beneficial.
I was going to cite an example. However, as the member for New Brunswick Southwest indicated in his comments that he is already contemplating changes in this area, I will simply point out that as parliamentarians, we must be cognizant that what a bill intends to propose may not necessarily be interpreted in the same manner by our successors.
In summary, I believe that Bill C-518 proposes to take action on what I would characterize as a loophole that allows parliamentarians to avoid full accountability and still collect generous taxpayer-provided pension benefits. While this is an important area to examine and consider, and one that I believe Canadians support, it is equally important that as members of Parliament we must ensure that the wording in this bill is clear to the intent of its stated objectives.
To that end, I am hopeful that further revisions at committee stage will enhance the clarity of this bill.