Mr. Speaker, thank you for the opportunity to speak today on on this bill before us and in particular on those elements that affect Canadians with disabilities.
The Canada pension plan is one of the most important elements in the social fabric of this country. Most of us will use it at some point in our lives, when we retire or become disabled by serious illness or accident or if we lose a spouse or parent who was a contributor.
Consequently Canadians have come to rely on the security that the Canada pension plan provides. It has proved worthy of our trust over the years. However, even the best of plans must change with the times. The Canada pension plan is no exception.
In recent years a number of social, economic and demographic trends have developed a threat to the continuity and viability of the plan. To address this challenge we held public consultations on the Canada pension plan to discover what role Canadians wanted the plan to take and what action they felt was needed. The chief actuary also provided input.
We began a series of in depth meetings and negotiations with our provincial and territorial government partners. At the end of this process, we and our partners put together a blueprint for renewal.
The resulting bill before us represents a balanced package of measures aimed at ensuring the sustainability and fairness of the Canada pension plan. It adjusts contribution rates and benefits. It improves the way in which funds are invested. Once implemented, this bill will ensure the future of the plan and keep contribution rate increases as low as possible.
Of course, this cannot be done solely by adjusting contribution rates and investment strategies. We had to address the benefit side of the equation as well, but as we did this, we rejected calls by some for deep cuts in survivor or disability benefits. Instead, we tried to minimize benefit changes and to make them fair across all groups and all generations.
To do this we have tried to spread the responsibility for change across all benefit categories while keeping the fundamental characteristics unchanged. We recognize that today's senior citizens have already made their financial planning decisions for their retirement and could not be expected to respond to changes in the plan.
That is why the new measures will not affect the benefits current seniors are receiving. That same principle applies to the so-called “near seniors”, individuals between the ages of 60 and 64 who have chosen to take early retirement. Their existing pensions will also be protected. If they are receiving benefits now, the amount will be unaffected.
As members will see, some small benefit adjustments have to be made which will affect future pensioners, including some changes to the Canada pension plan disability program. These proposed changes respond in part to concerns raised by the auditor general who said that disability administration costs need to be brought under control. Again, I want to clarify that the new measures will not affect current Canada pension plan disability benefits.
Under this bill, workers will be expected to demonstrate a slightly stronger attachment to the workforce to be eligible for disability benefits. Currently, individuals can work for as little as a few months over the course of two years to receive a Canada pension plan disability benefit. Under the proposed amendments, workers must have made contributions in four of the previous six years. Even so, the new coverage rules are still more generous than the original rules of the plan.
Before 1987 workers had to contribute in five of the previous 10 years and at least one-third of the years from their 18th birthday to be eligible for disability benefits. There are also changes to the requirement benefit formula for disabled beneficiaries.
Pensionable earnings will be updated based on the average wage at the time of disablement rather than adjusted for wage levels when the recipient turns 65. Like retirement and survivor benefits, Canada pension plan disability pensions will be fully price indexed from the time they are put in play.
The Government of Canada is helping Canadians with disabilities to participate more fully in the economic and social life of this country with an investment of some $280 million per year in tax measures, employment and vocational support, as well as support to organizations and for people with disabilities.
Let me also assure the House that we are committed to responding positively to the recommendations of the Scott task force. We have already acted on some of these recommendations and will act on others in the near future. However, I also want to emphasize that the Canada pension plan should not be confused with programs specific to the needs of people with disabilities. The Canada pension plan disability benefit was designed as a wage loss insurance for workers. It was never intended to provide benefits to all persons with disabilities.
The changes contained in this bill will ensure that benefits go to those for whom the program was originally intended. They will enable us to continue to provide disability benefits in a fair, consistent and responsible manner. They reaffirm the Government of Canada's concern for people with disabilities, while maintaining benefits at sustainable levels.
Canadians from all regions and walks of life have told us they expect us to act decisively to preserve the Canada pension plan. They have told us that they want us to make it sustainable, but they want to do so in a fair and consistent manner.
Significant elements of the CPP remain unchanged. First, benefits have not been changed in the case of all those currently receiving CPP pensions, disability benefits, survivor benefits or combined benefits.
Second, all CPP benefits, with the exception of the death benefit, which is paid only once, remain fully indexed to inflation.
Third, the age of early, normal or late retirement remains unchanged.
This bill responds to this call for action from Canadians. Once implemented, it will ensure that the Canada pension plan will be able to serve Canadians as well in the future as it does today. It will do so in a way that is fair to all.
For these reasons, I intend to vote for this bill and urge other members to do likewise.