Hon. Jane Cordy: No, I don’t, thank you Speaker. I think I answered most of the questions that could have possibly been asked on the eight-line bill.

Senator Cordy: Yes.

Senator Cordy: Thank you. The House of Commons is somewhat tied up with establishing the parliamentary oversight committee, so I’m not sure they’re going to drop that to look at this bill. And the House of Commons does not hold votes on Fridays. Looking at the week ahead, this is Wednesday, so there is not much time. I personally would not take the risk that seniors would not receive their money.

Senator Cordy: I can sense the frustration in your voice, and we all feel those same frustrations. This is a technical amendment. This is from the statutes of the budget implementation bill, and the section referred to is section 275.

This had initially been section 276 but, because a section was deleted from the bill in the other place, it became section 275. So then when we referred to section 276 in the budget implementation bill, unfortunately the number was incorrect. But the intent was there.

I understand your frustration, but this is simply a numerical error, and I know it’s an error. But it’s a numerical error and we should not let the benefits to seniors be held up. Thank you.

Hon. Jane Cordy moved third reading of Bill C-12, An Act to amend the Old Age Security Act (Guaranteed Income Supplement).

She said: Honourable senators, it is my pleasure to rise today on the traditional territory of the Algonquin Anishinaabe people and speak to third reading of Bill C-12, An Act to amend the Old Age Security Act as it relates to the Guaranteed Income Supplement.

As I stated in my second reading speech, the aim of Bill C-12 is to exempt pandemic benefits received from the calculation of Guaranteed Income Supplement, or GIS, or allowance benefits beginning in July 2022.

This legislation, once passed, will protect our most vulnerable — and valuable — low-income seniors from seeing reductions in their GIS or allowance benefits as a result of accessing pandemic benefits.

As I outlined in my second reading speech, Bill C-12 may be short, but it is extremely important to seniors in Canada who receive the Guaranteed Income Supplement benefit.

As honourable senators know, the government introduced pandemic benefits in 2020 to help people avoid catastrophic income loss.

It was the right thing to do.

The Canada Emergency Response Benefit, or CERB, and then the Canada Recovery Benefit did just that. These benefits have helped millions of Canadians, young and old, through unprecedented times. These financial supports were set up quickly to respond to the pandemic, and the benefits were made taxable to prevent misuse of the program.

However, because these benefits were made taxable, those seniors who needed to work and rely on Old Age Security and the Guaranteed Income Supplement to survive saw their benefits clawed back as a result of accepting pandemic benefits, which qualified as income. The Guaranteed Income Supplement is an income-tested benefit, payable to low-income seniors who also receive the Old Age Security pension. A reduction of their monthly income is significant as too many of Canada’s seniors have limited monthly income.

Colleagues, to fix this problem for the upcoming Guaranteed Income Supplement reassessment period at the end of June and going forward, the following specific benefits will be exempt from the calculation of income for GIS or allowance purposes: the Canada Emergency Response Benefit, including any amount that was issued under the Employment Insurance Act; the Canada Recovery Sickness Benefit; the Canada Recovery Caregiving Benefit; and the Canada Worker Lockdown Benefit.

Colleagues, it was brought up by some senators during second reading and again during the committee study of the bill that there was a drafting error contained in the 2021 Budget Implementation Act. They believed this error will make a $500 government supplementary support payment that was recently sent to seniors a taxable benefit, which is not the intent.

An amendment was moved at committee by Senator Patterson to address the numbering error in the 2021 Budget Implementation Act by making changes to Bill C-12.

We know that there was a numbering error in the 2021 Budget Implementation Act. The Minister of Seniors’ officials assured committee members that this error would have no material impact on the delivery of services and benefits for seniors. Finance Canada also assured us that it will not have an impact on the delivery of services to those receiving the Guaranteed Income Supplement.

I think we can all agree that the drafting error should be corrected. Government officials agree the drafting error should be corrected. There are several better options open to make this change rather than doing it here and putting seniors’ GIS payments at risk. The government can use the next Miscellaneous Statute Law Amendment Act process, the next Budget Implementation Act or introduce another bill. Honourable senators, the government has expressed an interest in working with senators on resolving this.

Colleagues, the question we have to ask ourselves is this: Do we risk not passing Bill C-12 on time? Do we risk missing this deadline, which could affect 80,000 low-income seniors relying on their benefits arriving on time? Every witness who appeared before the committee urged us to pass this legislation immediately.

Thank you to the Social Affairs Committee who allowed me to ask questions during the debates.

Witnesses all shared their concerns that after passing this bill we continue to bring forward policies to help seniors deal with the challenges they face on a daily basis. We know that the seniors who will be most helped with this legislation will be mainly women, minorities and people facing disabilities. We also know that far too many of our seniors live in precarious financial situations where every dollar is necessary.

We heard excellent and impassioned testimony at committee from witnesses who are dedicated to helping ensure seniors are supported to live with dignity. But we know that by passing this bill, it is not the end; there is still much left to do.

Honourable senators, this legislation is important. It might be short, but its importance to seniors cannot be overstated.

As I said earlier, every witness — four panels — who appeared before the committee supported Bill C-12, and every witness said this bill should pass immediately with no amendments.

I hope that you will support this legislation as well, and that we will pass Bill C-12.

Thank you.

Hon. Jane Cordy: Honourable senators, I listened to the comments by Senator Patterson, and I want to thank him and Senator Griffin for their contribution to the study of Bill C-12 at committee. It is important for us to have these types of discussions.

Senators Patterson, Griffin and Quinn have clearly and concisely expressed their concerns regarding the numbering error contained in the 2021 Budget Implementation Act.

We saw this same amendment proposed at committee where it was defeated by committee members.

Honourable senators, during testimony the minister and departmental officials acknowledged the numbering error. In fact, all honourable senators now know there was a drafting error in the 2021 Budget Implementation Act as a result of an amendment in the other place, as explained in Senator Griffin’s second reading speech. A section incorrectly references section 276 rather than section 275.

The Minister of Seniors gave assurances to committee members that she will work to ensure this numbering error is corrected, while stressing the importance of meeting the March 4 deadline for passing Bill C-12.

Colleagues, I know that if we miss the March 4 deadline there are risks to the timely processing of benefits for tens of thousands of our most vulnerable citizens.

Seniors who receive GIS benefits and work part-time, minimum-wage jobs are some of our most vulnerable citizens. We all agree the drafting error should be corrected, but the committee also heard from Finance officials and department of seniors officials that this numbering error will not have an impact on the delivery of benefits for seniors.

Honourable senators, the real risk for vulnerable seniors is great if we don’t pass this bill on time.

When asked at committee by Senator Kutcher:

What do you think would be the response of Canadian seniors if this didn’t go through in a timely way on the basis of what they may perceive as an arcane technicality? What would be the response and what would happen to people?

Devorah Kobluk, Senior Policy Analyst of the Income Security Advocacy Centre, had this to say:

I think the real question is, do we want more seniors in this predicament? The answer I would hope is no.

Leila Sarangi, National Director, Campaign 2000, said:

. . . I think the kind of harm on top of what they’ve already experienced would be very devastating for the seniors who we’re talking about.

Honourable senators, I appreciate the senator’s attention to detail, but let’s not put seniors’ benefits at risk. As I said at committee, let us not allow perfection to get in the way of making things better. This numbering error will not affect the delivery of benefits to seniors. We do know, however, that there is a real risk that an amendment could delay GIS payments.

Low income, vulnerable seniors who are still working deserve to not have to worry about receiving their Guaranteed Income Supplement in July.

I will repeat what I said in committee when I called on committee members to not take out our frustrations on the government or government officials, because the real negative impact of an amendment would be to our most vulnerable seniors — those who are collecting the Guaranteed Income Supplement.

As I did at committee, I will tell you that I will not be supporting this amendment.

Thank you.

Hon. Jane Cordy moved second reading of Bill C-12, An Act to amend the Old Age Security Act (Guaranteed Income Supplement).

She said: Honourable senators, it is my pleasure to rise in the Senate today on the traditional territory of the Algonquin Anishinaabe people to discuss Bill C-12, An Act to amend the Old Age Security Act (Guaranteed Income Supplement).

The aim of this bill is to exempt pandemic benefits from the calculation of guaranteed income supplement, or GIS, or allowance benefits beginning in July 2022. In other words, vulnerable, low-income seniors will not see reductions in their guaranteed income supplement or allowance benefits as a result of accessing pandemic benefits. Honourable senators, I will explain the bill a little more and expand on why this change is needed.

The bill is very short, but as you would know, it is extremely important to many seniors in Canada who receive the GIS or allowance benefit. As honourable senators know, the government introduced pandemic benefits, such as the Canada Emergency Response Benefit, better known as CERB, and the Canada Recovery Benefit, or CRB, to support Canadians who lost jobs during the pandemic.

Parliament approved the Canada Emergency Response Benefit quickly in 2020 to help people avoid catastrophic income loss.

Honourable senators, it had to be passed quickly as many Canadians were hurting financially due to the pandemic. I believe that we all understood, when we were evaluating the CERB benefit, how important it was to Canadians.

The CERB and then the Canada Recovery Benefit did help Canadians. The legislation indeed helped millions of Canadians, young and old, through unprecedented times.

These financial supports were set up quickly to respond to the pandemic, and the benefits were made taxable to prevent misuse of the program.

Honourable senators, the following are the specific benefits that will be exempt from the calculation of income for GIS or allowance purposes in future years: The Canada Emergency Response Benefit, or CERB, including any amount that was issued under the Employment Insurance Act; the Canada Recovery Sickness Benefit; the Canada Recovery Caregiving Benefit and the Canada Worker Lockdown Benefit.

Unfortunately, because these benefits were made taxable, some of our most vulnerable seniors have been negatively impacted financially as a result of accessing these support programs. A reduction of their monthly income is significant as too many of Canada’s seniors have limited monthly income. That is because the Guaranteed Income Supplement is an income-tested benefit payable to low-income seniors who also receive the Old Age Security pension.

The allowances are income-tested benefits paid to 60 to 64‑year-olds who are spouses or common-law partners of GIS recipients, or who are widows or widowers.

Every July, an individual’s entitlement for these income-tested benefits is reassessed based on their individual income or combined income from the previous year. The design of these benefits means that they can increase, decrease or even cease according to changes in a person’s annual net income. This ensures that benefits are provided to those most in need — lowest-income seniors.

Here is the inequity that Bill C-12 would address. The Income Tax Act defines pandemic relief benefits as taxable income. Unfortunately, that meant that some GIS and allowance recipients are facing lower monthly benefit payments because of the income they received from these pandemic benefits.

It was recognized that some seniors were hurt financially because of this and it is essential, I believe, to rectify the situation before the next reassessment in July of 2022. This would mean that the financial loss seniors were faced with last year would not be repeated.

The government addressed this financial loss to low-income seniors in the previous year. In their Economic and Fiscal Update 2021, the government allotted funds to those seniors who were negatively impacted by giving a non-taxable, one-time lump payment to compensate for the full amount of the loss.

These seniors will receive their lump sum payment in May of 2022. Officials are working hard to issue some payments earlier than that to seniors who are in dire financial need.

The one-time payment will help alleviate the financial hardship of GIS and allowance recipients who receive pandemic relief benefits in 2020 and who faced a reduction or loss of the GIS or allowance benefits as of July 2021.

The amount of each payment will vary and will be equal to the annualized amount of the reduction in their GIS or allowance benefits. Clearly, this approach is not an efficient way to move forward for future reassessments. So the legislation before us today is necessary to make automatic payments to those most vulnerable seniors, and the funds will be paid in a timely manner.

Honourable senators, the process should be as simple as possible. This legislation will make the process automatic and those seniors who are entitled to the one-time payment will get it automatically, in the same way they received their GIS or allowance benefits, which is monthly.

Honourable senators, Bill C-12 corrects an unforeseen inequity within the pandemic financial support programs. It will ensure that seniors will not see a reduction in their Guaranteed Income Supplement or allowance benefits again if they received or are receiving pandemic benefits.

Honourable senators, that is the purpose of this bill. If Bill C-12 passes, federal pandemic benefits would be exempt from the calculation of GIS and allowance benefits beginning in July of this year. Bill C-12 will give seniors peace of mind and certainty knowing that their Guaranteed Income Supplement will be protected and that pandemic benefits won’t negatively impact their GIS in the future.

As I mentioned earlier, honourable senators, Bill C-12 may be a short bill, but it is extremely important to many seniors in Canada and I hope that you will support this bill. Thank you.