On Friday, Second Reading debate began on Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act, new legislation to implement the Canada Pension Plan (CPP) enhancement agreed to in June by Federal and Provincial Finance Ministers.
If passed, Bill C-26 would, among other things, amend the CPP to:
- increase the maximum level of pensionable earnings by 14% as of 2025 with the replacement rate increasing from 25% of pensionable earnings to 33%.
- phase in a 1% increase in contributions over 5 years from 2019 to 2024.
- Increase the upper limit on maximum pensionable earnings from $72,500 to $82,700 between 2024-2025 and phase in a 4% contribution rate on earnings in this range over those 2 years.
Additional related amendments to the Income Tax Act outlined in Bill C-26 would:
- increase the Working Income Tax Benefit to compensate low income pensioners for the automatic clawback of the GIS due to the increase in CPP benefits.
- provide a deduction (as opposed to tax credits) for additional employee contributions related to the increase in the maximum limit on pensionable earnings.
True to form, the Conservatives criticized the modest CPP enhancement as a tax increase on hard working Canadians and seemed likely to vote against the measure.
The NDP was largely supportive of the enhancement but was critical of the modest scale of the increase and the drawn out phase-in schedule.
The full text of Friday’s House debate on Bill C-26 can be found here.
Projected House Business for Monday, Oct. 24 (subject to change):
Main Chamber Business
The House is meeting between 10:00p.m. – 7:00 p.m. today.
- 10:00 a.m. – Government Business: Bill C-26: An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act may continue to be debated at Second Reading. Watch Here!
- 2:15 – Question Period. Watch Here!
- 3:30 – Government Business: Bill C-26: An Act to amend the Canada Pension Plan may continue debate at Second Reading. Watch Here!
Projected Committee Business for Thursday, Oct. 20
- 3:30 – 5:00 p.m. – The Standing Committee on Justice and Human Rights is meeting on Parliament Hill to examine a new process for the nomination of Supreme Court Justices. The Hon. Jody Wilson-Raybould, Minister of Justice will appear as will the Rt. Hon. Kim Campbell, Chairperson, Independent Advisory Board for Supreme Court of Canada Judicial Appointments. Watch here!
- 3:30 – 5:00 p.m. – The Standing Committee on Finance will meet on Parliament Hill to examine the Report of the Bank of Canada on Monetary Policy. Stephen S. Poloz, Governor of the Bank of Canada will testify. Watch here!
- 5:00 – 6:30 p.m. Jean-Denis Fréchette, Parliamentary Budget Officer will present and updated fiscal and economic outlook to the Finance Committee. Watch here!
- Get a full list of House committee meetings scheduled for October 24 on the House committee page.
Search up-to-date Canada Fact Check databases for the full text, approval status, committee hearings and other details of all Federal bills and regulations from the current session here!