Raj Grewal

[Canada Pension Plan, November 28th, 2016]

Madam Speaker, first and foremost, the fact of the matter is this. If people retire in Canada after 2019 and they have contributed to CPP, they will have more money when they retire. That is something that all Canadians from coast to coast to coast can celebrate. It is an important development.

More importantly, on the point that the member raised, just last week, our government made a commitment that the finance minister would be talking about that very point, the dropout provisions, with his provincial and territorial partners at the triennial review of CPP. The government understands and recognizes that that is a concern, and is moving forward with the minister bringing it up and reviewing those provisions.

The fact is that people are working in Canada who need a safe and secure retirement. It is to their benefit to support CPP enhancement. I encourage the party opposite to support this bill. Members opposite know that at the end of the day we are all here to fight for Canadians, and the CPP enhancement is fighting for Canadians and helping to strengthen the middle class.

[Canada Pension Plan, November 28th, 2016]

Madam Speaker, I formally welcome the hon. member to the finance committee. He just joined the committee and brings a wealth of knowledge.

Although we disagree on almost everything that comes up at committee, from time to time, we find an area of agreement. The CPP enhancement is not one of those areas. He mentioned the same thing that the Conservative Party mentioned in its campaign, namely, that we should increase the TFSA. The fact of the matter is that a lot of Canadians cannot afford to meet the current threshold of the TFSA.

The number one reason the CPP enhancement is needed is that 48% of Canadians in 1971 had defined benefit contribution plans provided by their employers, but only 25% by 2011, and that number is declining further. The CPP enhancement is critical to ensure that Canadians have a safe and secure retirement. I encourage the member opposite not just to delete every clause in this bill but to bring forward ideas that would help Canadians have a safe and secure retirement. I encourage his party to support this bill.

[Canada Pension Plan, November 28th, 2016]

Madam Speaker, as you know, a stronger Canada pension plan was a key part of the promise Liberals made to Canadians when we pledged to help the middle class and those working hard to join it. Then, in June, the Minister of Finance reached a historic agreement in principle with the provinces to enhance the Canada pension plan. It is an example of the results that can be achieved when the federal government has provincial partners. The legislation before the House is the next step toward implementing the commitment to enhance the CPP.

Why should we enhance the CPP? It is because achieving a safe, secure, and dignified retirement is, without a doubt, among the most significant goals for hard-working Canadians. We know that middle-class Canadians are working harder than ever and that many are worried they will not have enough to set aside for retirement. That feeling is palpable. When we knock on doors and hold town halls to talk to people and discuss the work of government, we find their concerns to be very well founded. Extensive analysis conducted by the finance department and provincial governments has found that around one-quarter of families nearing retirement, some 1.1 million families, face a drop in their standard of living when they retire. The middle class deserves better.

This conclusion led us to work toward our agreed enhancement to the CPP with the provinces. What are the benefits? First, there will be more money in the CPP waiting for Canadians when they retire. Once fully in place, the CPP enhancement would increase the maximum CPP retirement benefit by about 50%. The current maximum benefit is $13,110. In today's dollar terms, the enhanced CPP would represent an increase of nearly $7,000, to a maximum benefit of nearly $20,000. The Department of Finance has estimated that by strengthening the CPP, we would reduce by about a quarter the share of families at risk of not having adequate retirement savings.

We on this side of the House are proud to be able to take this bold action to support middle-class Canadians by strengthening their retirement incomes. Without a doubt, a stronger CPP would be good for the middle class and those working hard to join it, and good for the Canadian economy overall. For most Canadians, these increased benefits would come from just a 1% increase in their contribution rates. We are also making sure to give individuals and their employers plenty of time to adjust to the modest increases, making sure these are small and gradual, starting in 2019.

Today's legislation, as agreed with the provinces, would ensure that low-income Canadians would not be financially burdened as a result of their extra contributions. It would do this by enhancing the working income tax benefit to roughly offset the incremental CPP contributions, leaving eligible low-income Canadians with little to no change in disposable income while still securing them with a higher retirement income.

The enhanced CPP would simply build on the core existing CPP benefits and do so in a smart, carefully targeted, and effective way that reflects the extensive research that governments brought to the table in crafting this enhancement for the benefit of all working Canadians. Taken together, it is a comprehensive package that would increase CPP benefits while striking an appropriate balance between short-term economic considerations and long-term gains.

It is for these reasons that I call on all members of the House to support this legislation, support Canadians, and ensure that all Canadians have a safe, secure retirement.

[Canada Pension Plan, November 17th, 2016]

Mr. Speaker, my hon. colleague has recently been substituting on the finance committee and I welcome him to the committee. He does really good work on the committee.

The fact of the matter is this. If people retire in Canada after 2019, they are going to have more money and all Canadians should be proud of that. We said at the beginning that the single reason that an enhancement of the CPP was needed is that in 1971, 48% of Canadians had a defined pension benefit plan provided by their employers, but that by 2011, it was 25%, and still declining. Employers are not providing employees and Canadians with defined benefit plans anymore. Canadians are struggling to save for retirement and enhancement of the CPP is critical.

The most telling part of this is that all the provinces agree with this, whether NDP, Conservative, or Liberal. This is something that all members in the House should agree with because Canadians deserve safe and secure retirement. I encourage the member and his party to support the bill.

[Canada Pension Plan, November 17th, 2016]

Mr. Speaker, my hon. colleague across the aisle is a great guy, even though I mostly disagree with him completely on almost every issue. However, he is a personal friend and that is what makes democracy so great.

The single biggest reason why enhancement of the CPP is needed is the dire state of the private pension system. Anyone can look to statistics. The member opposite mentioned a study done by the Canadian Federation of Independent Business, which has a 109,000 members. It testified at the finance committee.

The devil is in the details of their research. It was relying on responses from 651 members. A survey was sent to 10,000 of their members. It said members were against our proposal, when among its 109,000 members, only 651 members said that the enhancement of the CPP was a bad idea.

I urge the member opposite to talk to small businesses in his riding, because small businesses all across this country know that if their employees are taken care of, if their employees can look forward to a safe and secure retirement, that will benefit their bottom line in the short and long terms.

I encourage my hon. colleague across the way, who is a great guy, a smart guy, to support the CPP enhancement

[Canada Pension Plan, November 17th, 2016]

Mr. Speaker, first and foremost, I want to thank the Government of Canada for taking on this initiative of expanding the CPP. It is no small task to get the provinces, which represent two-thirds of the Canadian population, to sign on to CPP enhancements. These provincial governments represent all parties, the Liberal Party, the NDP, and the Conservative Party, so the expansion of the Canada pension plan is very much a Canadian solution that is not only important but very much needed.

We know that, today, one in four families, or 1.1 million people, nearing retirement risk not saving enough for retirement. In particular, middle-class families without workplace pension plans are at a greater risk of under-saving for retirement, and a third of those families are at risk.

To address this, this historic agreement was reached with the provinces in June to make meaningful changes to the CPP. These enhancements would be phased in over a seven-year-period, starting in 2019. Once fully in place, the CPP enhancement would increase the maximum retirement benefit by about 50%. Enhanced benefits would accumulate gradually as individuals pay into the enhanced CPP, and to fund these enhanced benefits, annual CPP contributions would increase modestly over seven years, starting in 2019.

I would like to remind the House that our contribution rates in Canada are much lower than those in other countries with public pension plans. In fact, the CPP contribution rate is about half the average rate among the 25 countries in the OECD that have such public pension plans. This remains true even with our CPP enhancement.

What would this mean to Canadians, at the end of the day?

Young workers in their twenties or workers nearing retirement would all benefit from the enhanced CPP. For the young workers in their early twenties just starting out in their career, this would be a great benefit when they retire. By paying their portion of the CPP contributions, which are then matched by their employers, they would be building toward a safe, secure retirement for their own future.

The modest increases in contributions would be phased in over seven years. Someone working with constant earnings of $50,000 would contribute an additional $70 per year, or $6 a month, in 2019. By the end of the phase-in period, that same person would be contributing $475 per year, or $40 per month. By strengthening the Canada pension plan, workers would receive more money from their pension, an increase from one-quarter of the eligible earnings to one-third. For example, people who make $50,000 a year for their working life would receive about $16,000 each year in retirement instead of today's $12,000. That is $4,000 more a year in their pockets.

In addition, the enhancement would increase the point at which a person stops making contributions by about 14% in 2025.

I know that some people are concerned about the increased contributions and what they would mean to their bottom line: their paycheque. We thought about this and designed a gradual phase-in, so that contributions would increase modestly over the seven-year implementation period. We also thought about employers, in designing this enhanced CPP. We specifically designed a slow phase-in process with the express purpose of minimizing the impact and giving employees and employers time to adjust to these changes.

The great news is that our young workers would receive the largest increase in their retirement benefits. In fact, we know that young people, in general, find it difficult to save. Many are working in jobs that do not have company pension plans, which makes them have to save for their retirement on their own.

The other fact is that a tax deduction, instead of a tax credit, would be provided to the employee contribution portion of the enhanced CPP. This would avoid the new CPP contributions increasing the cost of saving.

Workers in the middle of their career or nearing retirement would still benefit from an enhanced CPP as the increased contributions that are made in 2019 and later would go toward an enhanced retirement pension.

What about the low-income worker worried about the effect of increased CPP contributions on his paycheque? How will the enhanced CPP help him or her? I want to assure my colleagues and low-income workers all across this country that an enhanced CPP will benefit all workers, including those with low incomes.

To make sure that eligible low-income workers are not financially burdened as a result of the extra contributions, the government will also enhance the working income tax benefit. The proposed enhancement to the working income tax benefit is designed to provide additional benefits to roughly offset the incremental CPP contributions for eligible low-income workers.

With this enhancement, there will be no impact on disposable income. When he or she retires, they will also get a larger retirement benefit payment. The bottom line is that people who are working in Canada, paying into the CPP, and planning to retire after 2019 will have more money in their pocket from their CPP retirement pension benefit.

In my riding of Brampton East, day in and day out, I speak to constituents who call me personally about the issues they or their families are facing. I often hear that young Canadians have a hard time finding permanent, stable employment with reliable pension plan. That is often way out of reach. I hear from young families and established families alike who are thinking of retirement and realizing they do not have adequate savings. This concerns me, and it should concern every member of the House.

The Canadian Association of Retired Persons estimates there are roughly 600,000 seniors living in poverty in Canada. That is more than the population of Brampton. Frankly, that is unacceptable.

Our government is doing its part to ensure that in the future no seniors live in poverty. We started by reducing the age of eligibility for old age security back to 65, and boosting the GIS by 10% to provide almost $1,000 per year per GIS recipient, aimed especially at helping low-income seniors who live alone.

However, that is not enough. Associations like CARP have been calling for an expansion of the CPP for years, and it is about time we delivered. We feel this is a win-win. I urge my hon. colleagues to support an enhanced CPP that will further help Canadians contribute to a safe and secure retirement.

[Immigration, Refugees and Citizenship, November 15th, 2016]

Mr. Speaker, Canadians are rightly proud of the thousands of new Canadians we welcome each year into our communities, many of whom come to Canada to attend our well-respected post-secondary institutions, including my alma mater, Wilfrid Laurier University.

Could the Minister of Immigration, Refugees and Citizenship please update the House on how the government is attracting some of the best and brightest international students to come to Canada?

[Sikh Community, November 15th, 2016]

Mr. Speaker, yesterday, thousands of Sikhs in Canada and all across this world celebrated the birth of Guru Nanak Dev Ji. He was a man of towering intellect with a fierce passion for community service and he spent his entire life helping others and fighting for equality.

Guru Nanak stressed the importance of meditation, Naam Japna, selfless service, Seva, sharing, Vand Ke Chakna, and hard work, Kirt Karni. These laid the principles of the Sikh way of life.

Canada is proud to be the home of one of the largest Sikh communities outside of India, and these values of love, compassion, and serving humanity and the community are evident every day.

For example, yesterday, Seva Food Bank, in coordination with CJMR Radio 1320, raised over $115,000 for their food bank, which will help alleviate food insecurity for the region of Peel.

Happy Gurpurab and congratulations to—

[India, November 3rd, 2016]

Mr. Speaker, today I stand to mark the 32nd anniversary of the tragic events of November 1984 in New Delhi. These orchestrated and targeted massacres against the Sikh community were an atrocity that resulted in the loss of thousands of innocent lives, and for which justice has not been served.

All these years and numerous inquiries later, those responsible for these brutal massacres have still not been brought to justice. The burning questions surrounding 1984 need to be answered. It is vital that we continue to call on the Indian government to pursue the truth, to pursue justice for those who carry the scars of 1984 and, most importantly, to pursue accountability for the people of India.

Truth and reconciliation have strengthened Canada, and they can be of great benefit to India too. We must remain steadfast in our commitment to openness, justice, human rights, and fairness both at home and abroad—

[Budget Implementation Act, 2016, No. 2, November 1st, 2016]

Madam Speaker, I want to thank my hon. colleague from Eglinton—Lawrence for the question. This young man is doing a great job in his riding. He is being a very accessible member of Parliament. We could all learn a thing or two from him.

His question is a very important one, especially on the tax cut. Nine million Canadians have more money in their pockets today because of our government. The Canada child benefit is helping nine out of 10 families. When I went door-knocking in August in my riding of Brampton East, the first thing people did was thank me very much for the extra help. They said they were very happy about the Canada child benefit because it really made a difference with back-to-school shopping and buying the necessary supplies for their children—new clothes, new backpacks—and putting an extra apple in their lunches.

This is about helping families become better, join the middle class, and stay in the middle class and investing in Canada across the board.