May 12, 2010
MP Mark Warawa responds to letter to the editor: “Pension Bill would boost Government Deficits.”
I am writing in response to Mr. Rudy Langmann’s article published on May 4, 2010: “Pension bill would boost government deficits.” In his article, Mr. Langmann outlines why he opposes Bill C-428, an Act to Amend the Old Age Security Act, introduced by Ruby Dhalla, the Liberal Member of Parliament for Brampton-Springdale, seconded by Bob Rae, Liberal MP for Toronto Centre, and supported by the NDP as well. I agree with Mr. Langmann and many of my constituents who have called, emailed and written me expressing their opposition and frustration over this bill.
The Old Age Security program is one of the cornerstones of Canada's retirement income system, which includes benefits such as the Old Age Security (OAS) pension, the Guaranteed Income Supplement and the Allowance. In order to qualify for OAS, one must have been a resident of Canada for a minimum of 10 years, after reaching the age of 18. This allows individuals to contribute to the Canadian economy like millions of hard-working Canadians; including millions of hard working immigrants who call Canada home.
Bill C-428, on the other hand, seeks to reduce the residency requirement for eligibility to receive OAS, from ten years to three years. In my opinion, three years is not adequate for a person to contribute to the OAS plan before receiving benefits.
The Old Age Security program is financed from Government of Canada general tax revenues. To implement Bill C-428, it would cost an additional $700 million annually, a cost to the Canadian economy that is exorbitant. The current 10-year residency requirement period strikes an appropriate balance between an individual’s contribution to Canadian society and the economy, and his or her access to a lifelong, publicly-funded benefit.
Bill C-428 may not be up for debate until 2011/2012. If the Bill comes up sometime in the future, I will be voting against Bill C-428.
Sincerely,
Mark Warawa, M.P.
Langley
Parliamentary Secretary to the Minister of Environment
