Madam Speaker, the bill before the House today touches upon an issue that is very important to our government: supporting our men and women in the Canadian Forces and the RCMP.
My remarks today will focus on the Canadian Forces. Our military serves our country proudly and with honour. Many risk their lives daily, whether it is on a search and rescue operation, such as we saw off the coast of Newfoundland, or in the theatre of war in Afghanistan or in the skies above Canada. They are called upon to face situations and make sacrifices that most of us can only imagine. They do what the government asks of them, carrying out their duties with the utmost professionalism and skill.
Our government supports them. In return, we have a responsibility to take care of those who risk so much for us, a responsibility to support members of the Canadian Forces and their families at all stages of their careers. We have recognized the unique stress on military families and have pledged to do more.
The Canadian Forces family covenant unveiled last fall makes good use of this promise to enhance family services. We recently announced the establishment of joint personnel support units across the country. These units will give current and former Canadian Forces members a one-stop shop when accessing National Defence and Veterans Affairs programs and services, including pensions.
Our government has also rectified long-standing issues, including agent orange compensation and atomic veterans recognition. Our support is also reflected in the provisions of a generous pension plan offered to retirees, the Canadian Forces pension plan.
I will take a minute to look at that pension plan. This pension plan is tailored to the needs of the military forces and the military members it serves. For instance, the plan features low contribution rates for Canadian Forces members. Canadian Forces members contribute about one-quarter of the cost of the pension plan while the government covers the remaining 75%. The plan is available to reserve members, as well as regular forces members.
It also ensures a predictable and stable pension for the entire duration of retirement. It is a plan that accommodates the career patterns of our sailors, soldiers, airmen and airwomen. Members who often suffer long separations from their families, who are uprooted from their home towns and communities and whose jobs are demanding, both physically and emotionally, not surprisingly then, these military members often retire earlier than we on civilian street.
The Canadian Forces pension plan has features that recognize and facilitate early retirement. It is important to note that pensions are also indexed to the cost of living, maintaining their worth over the decades our veterans may rely on them. Provisions have been made that is a bridge benefit to cover the period from the time of retirement until the age of 65 when members normally begin to draw on their benefits from the Canadian pension plan.
Let us look at those bridge benefits. The bridge effect acts as a link to ensure our veterans receive a relatively stable income prior to the income of their CPP payments. It is not, however, intended to continue after the age of 65 when CPP generally begins. In effect, the CPP takes over from the bridge benefit. There is a transition from source of income, the Canadian Forces pension plan to the CPP and Canadian Forces pension plan.
In many cases, a veteran's pension income will remain essentially the same prior to and after the transition. However, there are two primary reasons why the pension amount could change when the retiree reaches 65.
First, the individual may have chosen to continue working after retiring from the Canadian Forces. This would actually result in higher pension benefits starting at age 65 because of the additional CPP contributions that had been made.
Second, the CPP allowance paid would be less if the retiree chose to draw on it at age 60 rather than at age 65. When the bridge benefit ends at age 65, the veteran who was already receiving a CPP allowance would notice a drop in income.
It is important to note that the decision to start drawing CPP early is a voluntary one on the part of the individual. Either way, Canadian Forces members can rest assured that they are receiving the full benefits that they are entitled to and that they have paid for. There is no deduction.
Veterans receive the generous pensions they deserve. The cessation of the bridge benefit is not unfair or unjust. Rather, it marks a change in the source of pension benefits from CP pension to CPP.
Let us turn for a minute to the government-assisted clarification pension issues. The government realizes that the provision laid out in the pension plan and its interaction with CPP are complex. That is why the government is being proactive in explaining pension provisions. Information about the pension plan and, in particular, the bridge benefit, is available to all members of the Canadian Forces.
For example, second career assisted network seminars are held on bases across the country. These seminars include information about pensions and are offered to the men and women of the Canadian Forces throughout their careers.
