Mr. Speaker, I am pleased to support the motion put today, which would allow the government to keep the promises it made with respect to pensions for members of Parliament. These promises were published in the document entitled Creating Opportunity , otherwise known as The Liberal Plan for Canada , the famous red book.
As the members know, this document contains two specific commitments regarding the Members of Parliament Retiring Allowances Act.
Not only did the government undertake to end double dipping, but also to review the question of the minimum age at which members may begin to draw their pension.
As the member for Peterborough has just spoken about double dipping, I would like to look at the second issue, the one concerning age.
The Members of Parliament Retiring Allowances Act currently does not require a member to have reached a specific age before becoming eligible to receive a pension. Once a member has six years pensionable service to his or her credit he or she can draw the benefit immediately upon leaving office regardless of their age at that time.
The philosophy behind this feature was that an MP's pension should provide some immediate income which will assist the member in making the transition from public life to private life. As all members of Parliament know, our tenure in this House is by no means guaranteed. Job security is not just a feature of public life. Our careers as parliamentarians are frequently up for renewal and can be abruptly brought to an end. As well it is not always certain that on leaving office we will quickly or easily find alternative employment.
The availability of immediate income on leaving office can be a particularly important factor for members who have young families who must consider the need for another source of income when no longer receiving a seasonal indemnity but have not yet found new employment.
This does not mean that I think that the existing provisions should remain as they are. I do, however, think that in the absence of appropriate transitional measures to help members of Parliament who leave office meet their financial needs, some members may suffer a loss, especially those who leave office when they are still relatively young.
Under the existing plan, a member who is defeated after six years of service does not receive a lump sum separation allowance. Such an allowance is paid only if the member is not entitled to a pension on leaving office.
Many private companies offer employees whose career is unexpectedly interrupted an amount of money to compensate for their involuntary departure, even though the employee may also be entitled to a pension. This provides the laid-off employee with some income while he is looking for a new job and starting over in a new career.
If the payment of pensions under the Members of Parliament Retiring Allowances Act is deferred so that pensions do not become payable until a certain age is reached it may well be necessary to introduce improved separation benefits to ensure that MPs' immediate financial needs are properly met much like the severance pay offered in the private sector.
The question is what would be an appropriate minimum pensionable age for members of Parliament. Some would argue that age 65 should be the pensionable age because this is the most usual age for Canadians to begin drawing a pension. Then again others might feel 60 is appropriate as this is also a common retirement age, especially in the public sector.
I feel that age 55 is justifiable since finding alternative employment at or after this age is not an easy matter.
We should also ask ourselves whether there should be a minimum age for eligibility for a reduced pension, say 50 years, and whether members should be allowed to draw a pension before this minimum age in cases of disability.
Should we base our approach on the pension plans offered by other Canadian employers in order to settle on an appropriate pensionable age for members of Parliament, or should we be looking at what is done in other Canadian legislative assemblies?
There are marked differences between the pension plan provisions of the various provincial legislative assemblies. New Brunswick has no minimum pensionable age. MLAs in Saskatchewan, the Yukon and the Northwest Territories cannot draw their pensions until age 55; in Nova Scotia, the minimum age is 50.
A number of provinces use a formula to establish pensionable age. In Newfoundland, the age and the number of years of service must add up to 60. In Ontario, a member may begin to draw a pension when his age and years of service add up to 55.
The province of Quebec provides for a pension to begin when a member of the National Assembly reaches the service and age of 65. The member must be at least 50 years old before receiving a pension.
I am confident that I speak for the vast majority of my fellow colleagues in the House when I state that none of us were motivated to run for public office by mere financial rewards. I am sure that I can confidently say that we all knew what we were getting into despite the many hardships our families must undergo, despite the extra expenses such as clothing, lodging, transportation and others.
We are debating today pension reform. Those who feel underpaid as an MP and those who feel they should be paid what the private sector pays are correct, but that makes for an entirely separate debate. My concern is that if we undervalue the work, dedication and sacrifices made by an MP and their families, we stand to discourage Canadians from wanting to offer their services for public office.
Two questions come to mind immediately. Will people in their forties and late thirties be motivated knowing that they may face the prospects of re-employment near the end of their career? Will we not instead be encouraging only older individuals or rather wealthy individuals to run for public office? Canada would best be served in my opinion by having young and old, small and large business people, young and older lawyers, accountants and professionals. The successful as well as the less successful must all be motivated to seek public office, not just the wealthy.
As the hon. members can see, the government should consider the various choices it has and take into account a number of factors in reviewing the Members of Parliament Retirement Allowance Act. The government knows full well that the Canadian taxpayers are against former members of the House of Commons being allowed to receive generous unreduced pensions years before normal retirement age.
We also know that this matter of public concern can be dealt with in a number of different ways. This government remains committed to winning back public confidence and keeping its promise with respect to the reform of MPs pension.
In closing, I fully support the reform of MPs pensions. As well I support the removal of double dipping and I fully support increasing the minimum age to 55 at which an MP may obtain their pension.