Madam Speaker, I wish to say a few words on Bill C-428.
I commend the member for bringing forth the bill. As he mentioned a few moments ago, Canada is a greying nation. It is about time that people in positions of public responsibility took note of that very salient fact. We are living longer. Many people have the capacity to work beyond age 65.
To some extent, of course, we in the chamber are guilty of turning a blind eye toward a double standard. While 65 is the normal retirement age, in both the public and private sector, it does not apply here. People here can work beyond 65 and certainly, in the Senate people can work beyond 65.
As Canadians, we value freedom. Many would ask, should people not be free to work beyond the age of 65 if they choose to do so? If they so choose, why can they not also avail of the benefits of an adjusted Canada pension plan?
Some would ask, is it not better for the economy to have these people still productive past the age of 65? The people we are talking about here are people who choose to work, not people who are being forced to work or people who are required to work. If working makes them happy or for some reason is an economic necessity, then I would ask, why can they not carry on with a reduced Canada pension of course?
At the same time, these senior workers would reduce the financial pressure on the Canada pension plan. One of the aims and objectives of the bill is to reduce the pressure on the Canada pension plan by taking a reduced payout while these senior people continue to work. That makes perfectly good sense to me.
Bill C-428 would provide for a sliding scale of adjusted pensions over ages ranging from 60 to 69 years of age. For example, a working person taking Canada pension plan benefits between the ages of 60 and 65 would receive 40% of the CPP benefits. A 66 year old worker would receive 50% of CPP benefits and a 69 year old would receive 80% and so on.
I think this is a very good bill. The bill would also apply where the senior worker's taxable income exceeded the second tax bracket in our income tax system. Simply put, the system would apply to the majority of senior Canadians. It would afford them with a choice to continue working with a reduced Canada pension benefit as an incentive for remaining in the workforce.
Those who choose to retire at 65, of course, would receive 100% of their CPP entitlement. That makes sense to me.
I said earlier that we are a greying nation. This fact was brought home to me quite forcefully during the recent provincial election in Newfoundland and Labrador because of the last decade of out migration by young families. The greying of our province was probably more noticeable than in any other Canadian jurisdiction.
During the Newfoundland and Labrador election, I can tell members that seniors' issues played a prominent role. All the political parties had policy positions on issues that affected seniors and well they should. Today, seniors are more educated, more informed and they have a tendency to speak out on matters that affect them, and well they should. Indeed, they have no hesitation in making their views known at election time. They have become an increasingly important sector of the electorate and we in this Chamber would do well to pay them the respect that they deserve.
In this regard, there are a number of other matters that the House would do well to consider. We should eliminate, for instance, income tax altogether for low income seniors. Many would say that they have paid their dues. It was their blood, sweat and tears that got us where we are today. It would be a good idea to eliminate income taxes altogether for low income seniors.
Our nation's health care system needs to be adjusted as well, with added emphasis on home care for seniors so that they will be able to live longer in their own homes. We should assist seniors by giving them more flexibility with regard to their RRSPs. To help save for retirement, we should increase the RRSP contribution limit to 20% of income, for instance. If an individual were to cash in an RRSP tomorrow, the value of the amount cashed in would be added to the taxable income and would be taxable at the regular rate. Because they are registered retirement savings plans, why not give retired people a break? Why not let retired people cash in their RRSPs tax free up to a stipulated yearly limit?
I wish to commend the member for bringing Bill C-428 to the floor of the House, not only for its content, but because it deals realistically with the fact that we have an aging population. People are getting older. Whether or not we want to face up to it, a growing number of Canadians are facing up to it every day. Their needs, concerns and aspirations must become our common cause here in the House of Commons.
Much has been said in the House about the importance of renewed federal financial support for our health and education systems and properly so. The modern nation we call Canada is composed of people who are healthier, wealthier and more educated than their forebears, mainly because their forebears had the insight to put such publicly funded systems in place. However, because we are better informed and healthier, we are living longer. The success of the health and education system has created a new problem that our grandparents did not even know about.
Bill C-428 deserves serious consideration by the House. It treats our seniors with the respect that they deserve. The bill would apply where the senior worker's taxable income would exceed the second tax bracket in our income tax system. Simply put, it would apply to the majority of senior Canadians. It would afford them with a choice to continue working with a reduced Canada pension benefit as an incentive for remaining in the workforce, and to those who choose to retire at age 65 would of course receive 100% of their CPP entitlements.
We support the bill because it would provide more flexibility to seniors who want to work. It would help combat certain growing skill shortages in the economy. It would lessen the financial pressure on the Canada pension plan system and dare I say it? It would make some people happy.