44th Parl. 1st Sess.
April 1, 2022 10:00AM
Madam Speaker, I want to start by acknowledging the incredible work the member for Sarnia—Lambton has done. I applaud her approach in working with all parties and members of the House who are concerned with this important issue to put something forward that is a hybrid and includes the best of all possible solutions. I really applaud that approach. I think it is very constructive, and I appreciate her efforts.
I wondered if the member for Sarnia—Lambton could go a little further into contrasting her approach with the option that was previously proposed in the 43rd Parliament, which was the “super priority” status. Could she speak to that a little further?
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Madam Speaker, it gives me great pleasure to rise in the House virtually today to take part in this important debate. Pension protection is an important topic. It is one that my constituents have charged me with advocating for on their behalf. I want to thank the member for Sarnia—Lambton for her work on this important issue.
There is no doubt that we need to strengthen pension protection for defined benefit plans to prevent against the loss of retirement income that seniors face when their employers go through insolvency. It is a shame that this problem persists today after the stories we have heard about Sears, Nortel, Eaton's and many others that some Canadians are still suffering losses to their retirement income based on their defined benefit pensions being underfunded when the company files for bankruptcy. We must ensure that the pensions Canadians pay into, and that their employers commit to, remain available to them in full throughout the course of their retirement. Anything less, in my view, is unacceptable.
It is important for me to point out how the income security and the overall well-being of our seniors has been a top priority for our government since day one. Even before the challenges brought on by the global pandemic, our government took significant steps to support Canadian seniors. We focused on improving the quality of life for our seniors by helping support active and healthy lifestyles; improving access to home and community care; reducing loneliness and isolation; increasing access to health care; committing to the redevelopment of the national standards for long-term care with substantial investments to improve the quality of care for our seniors; and, importantly, and the topic I will be focusing on, ensuring the financial security of our seniors. These are all priorities for our government and we have made important strides in all of these areas.
In terms of our agenda, seniors' financial security is something our government has remained steadfast in our commitment to since day one. We permanently increased old age security by 10%, and we restored the age of eligibility to 65 from 67, reversing the Conservative policy of delaying OAS payments for seniors. We increased the guaranteed income supplement by 10%, improving the financial security of more than 900,000 seniors in Canada. In April 2020, more than four million low and middle-income seniors received a GST credit top-up. This was worth, on average, about $375 for individual seniors and $510 for senior couples.
In July 2020, we provided a one-time tax-free payment of $300 to 6.7 million OAS pensioners and a further $200 to 2.2 million seniors eligible for the guaranteed income supplement. To assist with the cost of the pandemic, we provided a one-time payment of $500 in August 2021 to OAS pensioners. I have heard from many of the seniors on fixed incomes in Whitby that this one-time payment made a big difference for them. Why is this relevant? It shows our commitment, but it also highlights the importance of income security for our seniors.
If MPs in this chamber can understand the importance of these one-time payments, imagine then pensioners having lost 20% of their pensions due to their employers going through bankruptcy, leaving their pensions underfunded, and all other creditors being paid out before the pensioners. That could easily amount to $500 per month of pension income loss that seniors would face for the rest of their lives.
I would say that would be life-altering. Can members imagine people counting on that pension income for their pension retirement, making contributions for many years and then getting to the point in their lives where they need to rely on that income to survive, only to find out that they will only be getting a portion of it?
It is important to remember that these are deferred wages and that employers have an obligation to their pensioners. I can only imagine how seniors put in this situation would feel, but after hearing from individuals who have gone through this, I can say that it is devastating for them. Let us not forget that individuals left in a state of income insecurity would be more vulnerable and more likely to access publicly funded social support programs. This could and should be avoided, and we cannot let this persist any longer.
This is an issue I have been engaged in since being elected in 2019, and I have had conversations with my constituents, my caucus colleagues, members of other parties, ministers and stakeholder groups on this important issue.
Most recently I sponsored e-petition 3893, as was mentioned in the House, which calls on parliamentarians to work together with the Minister of Innovation, Science and Industry to establish stronger protections for the members of defined benefit pension plans. I am happy to say that petition already has over 8,000 signatures, so clearly this is an issue many Canadians care about.
With over 1.3 million private defined benefit pension beneficiaries in Canada, I believe all members of the House have likely heard from constituents or someone they know who have been negatively affected by this issue or who are concerned they may get shortchanged if there is no remedy found. I think it is very important that we take the time to consider just how much impact this will have on Canada's seniors. I have heard many stories and I think we need to heed the calls for a solution on this matter.
I believe it is more important than ever that we find ways to work together and address this issue. With the cost of living on the rise and significant repeated shocks to our global economy from the global pandemic, extreme weather due to climate change and now Putin's war on Ukraine, some companies will undoubtedly face financial challenges, and we will need to make sure our seniors and their retirement incomes are protected. Seniors should live their final years in comfort and with the dignity they deserve, especially after a lifetime of hard work.
Given the nature of what we do in the House, there are often disagreements around policies and the direction we take as a country on certain files, but when it comes to protecting pensioners and the pension plans that individuals have paid into and rely on, I do not see how we can let this important issue get caught up in the atrophy of partisanship. In the last session of Parliament I voted in favour of the Bloc Québécois private member's bill, Bill C-253, to provide further protection to defined benefit pension plans here in Canada. I did that in the hope we would find a way to work to resolve this issue for the benefit of our seniors.
I was happy to see that our government also took important steps in the 43rd Parliament to make insolvency proceedings fairer and more transparent, and made changes to federal corporate law to ensure better oversight of corporate behaviour, including making company directors liable for excessive and unreasonable payments made to executives in the lead-up to insolvency.
I am aware that the NDP member for Elmwood—Transcona introduced legislation in February of this year that seeks to protect the pension benefits of workers caught in corporate bankruptcy proceedings, so effectively we have support for pension protection in all four corners of the House. I believe that provides us with the opportunity to come together across party lines and deliver for Canadian pensioners and their families.
I believe there are multiple ways we could approach a solution to this issue. We have seen various proposals and potential solutions, and I think we should try to find a way forward. Personally, I am open-minded and even would describe myself as solution-agnostic as long as pensioners receive 100% of the pension to which their employer committed. Without employees, we should all acknowledge, there are no businesses. Employees are just as important as shareholders and the many other creditors, and they do not deserve to be the last consideration when their company goes through insolvency. Whichever approach the House decides to take, we must know what is at stake. A solution now can help 4.3 million Canadians who will depend on a defined benefit pension for their financial security in retirement.
I am generally supportive of the bill, as members can tell, and I think the proposed changes to the insolvency legislation are a positive advancement by providing near superpriority status. I am supportive of any solution that places pensioners much closer to the front of the line in the long list of creditors that need to get paid during insolvency.
With that said, I firmly believe there are always ways to strengthen and improve a piece of legislation, and I have specific suggestions on that. I think we heard a comment recently about getting informed consent from pensioners when there is a transfer made. I think that is a good suggestion.
Let me just end here. Seniors cannot afford to get less than they deserve and we cannot afford to let them down.
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