Mr. Speaker, I notice that the opposition supply day motion calls for an increase to the pension benefit but makes no mention of the increase in premiums that would be necessary to fund that increase in benefit levels.
It is important for members in the House to realize that when the Canada pension plan was first introduced in 1966, premiums represented 3.6% of annual earnings. By 1997, in the pay-as-you-go system, premiums had risen to 6% of annual income. The pension plan at that point was underfunded, and the projection was that premiums would rise to 10.1% by 2016 and then to 15% or so beyond that. To address the concerns about skyrocketing premiums, the government decided to move away from a pay-as-you-go system toward a system in which we would earn surpluses every year to put away for future use. Today we are at 9.9% of annual income in premiums paid to the fund.
What impact on the economy would an increase have on employers and employees throughout this country?