NDP MP says that with flawed bill, ‘we’re going backwards instead of being progressive’
"Was this deliberately done or was it an oversight? I'm still having that debate in my head."
This was NDP MP Scott Duvall’s comment on an expansion of the CPP, which is missing two key provisions that give consideration to women and people with disabilities, according to the Globe and Mail.
Under the current CPP, Canadians who spend years taking care of their children or relying on disability benefits don’t have the value of their pension affected by their low (or non-existent) contributions. That way, the benefit they’re entitled to when they reach retirement age won’t be diminished by time spent on child-rearing or disability.
The proposed expansion of the CPP under Bill C-26 would sit on top of the CPP, acting as a separate additional calculation that would boost retirement benefits over time. However, the calculation proposed by the bill does not have the same exclusionary provisions for child-rearing and disability that the current CPP has.
Duvall proposed amendments to include the so-called “drop-out” provisions, but they were ruled out of order as they could add costs to the federal treasury.
The NDP asserts that the bill penalizes women because they take more time out raising children. They estimate that the missing drop-out provision in the expanded plan would translate into 18% less monthly payments, a decrease due to the time parents spend on child-rearing. It would consequently lead to thousands of dollars lost over their retirement.
"The Liberals talk about gender equity but it's only for show," said Duvall in an interview with CBC News. "With this bill we're going backwards instead of being progressive."
The original drop-out provisions for child-rearing and disability in the CPP were introduced in the 1970s by Prime Minister Pierre Elliott Trudeau. “He saw the importance of that, saw the inequity and made legislation to change it,” said Duvall. “And now his son is taking it away.”
The reasons behind the exclusion of the provisions in the expanded plan, as well as the costs of adding them in terms of employer and employee contributions, were not discussed by the government. Changing the bill at this stage would entail reopening negotiations with provinces.
“I will … be talking with the provinces what we've come to in terms of an agreement and we will always consider ways to improve that. It will have to be done in collaboration with the provinces,” said Finance Minister Bill Morneau, who is set to meet with provincial ministers in late December, probably after the bill has been passed.
"It's … clear that if the Liberals wanted to fix their bill, they would have done it by now," said Duvall.
Related stories:
Ottawa’s policies to blame for pension shortfalls, says tax lawyer
Most small business owners say CPP hike is anything but ‘modest’ – survey
This was NDP MP Scott Duvall’s comment on an expansion of the CPP, which is missing two key provisions that give consideration to women and people with disabilities, according to the Globe and Mail.
Under the current CPP, Canadians who spend years taking care of their children or relying on disability benefits don’t have the value of their pension affected by their low (or non-existent) contributions. That way, the benefit they’re entitled to when they reach retirement age won’t be diminished by time spent on child-rearing or disability.
The proposed expansion of the CPP under Bill C-26 would sit on top of the CPP, acting as a separate additional calculation that would boost retirement benefits over time. However, the calculation proposed by the bill does not have the same exclusionary provisions for child-rearing and disability that the current CPP has.
Duvall proposed amendments to include the so-called “drop-out” provisions, but they were ruled out of order as they could add costs to the federal treasury.
The NDP asserts that the bill penalizes women because they take more time out raising children. They estimate that the missing drop-out provision in the expanded plan would translate into 18% less monthly payments, a decrease due to the time parents spend on child-rearing. It would consequently lead to thousands of dollars lost over their retirement.
"The Liberals talk about gender equity but it's only for show," said Duvall in an interview with CBC News. "With this bill we're going backwards instead of being progressive."
The original drop-out provisions for child-rearing and disability in the CPP were introduced in the 1970s by Prime Minister Pierre Elliott Trudeau. “He saw the importance of that, saw the inequity and made legislation to change it,” said Duvall. “And now his son is taking it away.”
The reasons behind the exclusion of the provisions in the expanded plan, as well as the costs of adding them in terms of employer and employee contributions, were not discussed by the government. Changing the bill at this stage would entail reopening negotiations with provinces.
“I will … be talking with the provinces what we've come to in terms of an agreement and we will always consider ways to improve that. It will have to be done in collaboration with the provinces,” said Finance Minister Bill Morneau, who is set to meet with provincial ministers in late December, probably after the bill has been passed.
"It's … clear that if the Liberals wanted to fix their bill, they would have done it by now," said Duvall.
Related stories:
Ottawa’s policies to blame for pension shortfalls, says tax lawyer
Most small business owners say CPP hike is anything but ‘modest’ – survey
