Karina Gould

[Canada Pension Plan, November 29th, 2016]

Madam Speaker, I appreciate the member's speech and I appreciate that many millennials like to save. They want to, but I wonder what my hon. colleague would say to my peers who are between the ages of 25 and 35 today, who are making between $35,000 and $40,000 a year and just do not have that extra income to put away, and are worried because they do not have stable employment, they do not have a pension, and this is great way for them to make sure that they will have some retirement security moving forward.

[Canada Pension Plan, November 29th, 2016]

Madam Speaker, my mother is a small business owner and she has made it clear to me that she understands this is not a tax but a pension contribution and that it is important for Canadians all across Canada to make sure they have good retirement security. Many small business owners in my community have said the same thing.

[Canada Pension Plan, November 29th, 2016]

Madam Speaker, of course research and analysis have been done.

The member's question gives me a great opportunity to mention that my mother is visiting today and is in the gallery. She is a small business owner—

[Canada Pension Plan, November 29th, 2016]

Madam Speaker, I would like to focus on why I am really excited about the CPP enhancement. It is really important for me, as a young Canadian, that we encourage young Canadians to save. I have spoken to many of my peers across Burlington and across the country who have told me that they are worried about their retirement because they are not likely going to have access to defined contribution pension plans.

It is incredibly important that we make this enhancement for future generations so that they will have the retirement security they need as they age and move into retirement.

[Canada Pension Plan, November 29th, 2016]

Madam Speaker, I thank my hon. colleague for her shared commitment to those people who need greater pension security. It is incredibly important to recognize that with this bill, we would be helping thousands, if not millions, of Canadians achieve greater retirement security.

I have knocked on doors in my riding of Burlington. In fact, this past weekend I knocked on the door of an individual who, although retired, was unable to maintain her quality of life with just CPP and OAS. She talked about how important it was to ensure we made these enhancements.

I want to make it clear that all Canadians who contribute to CPP will receive this enhancement. The base, as the minister mentioned, will maintain that dropout period. It is important that the minister will raise this issue with his provincial counterparts when he meets with them, so we can not only ensure that the enhancement goes through, but that we continue to improve and ensure that Canadians have access to retirement security.

[Canada Pension Plan, November 29th, 2016]

Mr. Speaker, I am particularly pleased to speak to the enhancement of the Canada pension plan because, once again, the government is providing the middle class with a concrete solution to help it get ahead.

It is important to recognize that retirement levels have dropped in Canada in recent decades. In 1977, 43% of Canadians had a defined benefit pension plan. In 2012, only 27% of Canadians, or just over one-quarter, had this same type of pension plan.

If we look only at the private sector, that number drops to 11%, or just over one in 10 people. There is also another reality that we have to face: too few young Canadians are saving for their retirement, for all sorts of reasons. One in four families approaching retirement age, or 1.1 million families, might not be saving enough money to maintain their current lifestyle when they retire.

What is even more worrisome is the number of families without a workplace pension plan. One-third may not save enough for retirement.

The government cannot let Canadians live with such uncertainty. That is why we are taking action in concert with the provinces and territories. We must collectively ensure that all Canadians can retire with dignity.

Therefore, the issue is what the government, the provinces, and the territories have decided to do. We started with the fundamentals. We increased the amount of the pension benefit. When the new CPP goes into effect, the amount at retirement will represent one-third of pensionable earnings. At present, it represents one-quarter.

Take, for example, a mother who earns $50,000 a year. When she retires, she will collect approximately $16,000 every year under the new plan, instead of $12,000. Then, the maximum level of pensionable earnings, that is the earnings used to calculate the final amount of the pension, will go up by 14% by 2025. This means that the maximum annual CPP benefit, which is currently $13,110, would go up to $20,000 in today's dollars. Under the enhanced CPP, the maximum benefit will go up by almost 50%.

Another interesting thing about the Canada pension plan is that it is funded entirely by workers' contributions. For most Canadians, the contribution rate will go up by just 1%. In addition, employee contributions to the enhanced portion of the CPP will be tax deductible, while other CPP contributions will remain eligible for a tax credit.

There is a mechanism to compensate low-income workers for CPP contributions. They may be eligible for an enhanced working income tax benefit. Their retirement income will be higher, but their family's budget will not be affected by higher contributions.

The new plan will be phased in over seven years from 2019 to 2025. The government is giving workers and businesses time to prepare for the changes. Canadian families know that they can count on us to safeguard their quality of life and their future responsibly.

I should point out that the enhancement complements other vehicles already available to Canadians that enable them to pay less tax: registered pension plans or RPPs; registered retirement savings plans or RRSPs; pooled registered pension plans; and tax-free savings accounts.

I want to emphasize that the changes we are proposing today are not about ensuring the long-term survival of the Canada pension plan. According to the Chief Actuary of Canada, the plan is already safe for the next 75 years. The purpose of these changes is to encourage Canadians, especially young people and future generations of Canadians, to save more for retirement.

In closing, I want to summarize the main advantages of the enhanced CPP.

Once the enhanced CPP is fully implemented, the maximum benefit will have increased by nearly 50%.

The CPP provides secure and predictable benefits, which means that Canadians can worry less about exhausting their savings or having their savings affected by the vagaries of the market.

CPP benefits are fully indexed to the cost of living, which reduces the risk of inflation gradually eroding the purchasing power of retirement savings.

The enhanced CPP is adapted to the job market, because it helps close the gap resulting from the lower coverage offered by employer pension plans. In addition, it is portable, so to speak, and follows workers from one province to another, which promotes labour force mobility.

The CPP has millions of contributors, which is a crucial factor, because it makes it possible for the Canada Pension Plan Investment Board to take advantage of economies of scale in order to generate healthy returns.

Future generations of Canadians can rest assured. They can be assured that, when they retire, the Canada pension plan will still have enough money to pay benefits. This means that they can focus on what matters to them, such as spending time with their families or enjoying their pastimes. Above all else, there is one thing that illustrates the enhancements of the CPP: Canada is at its best when all the governments work together. Today, members have a historic opportunity to raise the bar for future generations of Canadians when they retire. That is why we must support this bill.

[Petitions, November 24th, 2016]

Mr. Speaker, I am honoured to rise in the House today to present a petition requesting the government to consider palliative care.

Residents in my community have asked that the government consider putting palliative care as a defined medical service under the Canada Health Act. They request the House of Commons and Parliament to specifically identify hospice palliative care as a defined medical service covered under the Canada Health Act, so that provincial and territorial governments will be entitled to funds under the Canada health transfer system to provide accessible and available hospice palliative care, for all residents of Canada, in their respective provinces and territories.

[Burlington Veterans Commemorations, November 18th, 2016]

Mr. Speaker, last week I had the opportunity to participate in Burlington's commemorations to honour our veterans.

Today, I would like to thank the members in my community who made this week special for those who have served. I want to thank the Burlington legion, the Burl/Oak Naval Veterans, and some of the amazing individuals who give generously to honour our veterans: Kristin Courtney, who organizes a veterans luncheon every year in Halton; Bill Reid the “Singing Veteran”, who shares his songs of war with the commuters at Burlington GO stations, and who for almost three decades has provided services at retirement homes for the veterans who are not able to attend the official events; and the Grade 12 drama students at M.M. Robinson High School, who each year write and direct a play on Remembrance Day, and who deserved a standing ovation as their story was heart-wrenching, honest, and passionate, and truly honoured the veterans who were present.

We must take a moment every day to think of our Canadian men and women who have served and who are currently serving. Our veterans serve our country with bravery, honour, and dignity. I want to thank them for protecting the values we cherish and making our world a safer place.

[International Development, November 17th, 2016]

Mr. Speaker, Palestinian refugees, especially women and children, are amongst the poorest and the most vulnerable.

After extensive study and consideration, the Minister of International Development and La Francophonie announced $25 million in funding for UNRWA, putting Canada in line with all of our G7 partners. We have put in place strong oversight provisions and robust mechanisms for this funding. This will not only support the 5.5 million Palestinian refugees to access basic services, but is crucial for the peace and security of the region.

[Lakeshore Public School Baseball Diamond, October 28th, 2016]

Madam Speaker, on October 15, I had the opportunity to celebrate one young boy's determination in revitalizing an important space in his community.

Eleven-year-old Griffin Gervais was disappointed that his baseball diamond at Lakeshore Public School was in rough shape and not scheduled for an update. Rather than just accept the fact, Griffin decided he would lead the effort to repair the diamond.

Starting last January, Griffin with the help of his family, classmates, his community, and the city of Burlington's neighbourhood community matching fund, raised a total of $12,000. Today, with two updated benches, new chain-link fencing, and a freshly mowed field, the Lakeshore Public School baseball diamond now looks better than ever.

Griffin's story is one that is truly inspiring and shows that individuals can make an impact on their community if they set their mind to it. I thank Griffin for all of his hard work. I was proud to attend the grand opening and to see him throw the first pitch on the field.