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FINA Committee Meeting

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Minutes of Proceedings

42nd Parliament, 1st Session
Meeting No. 60
Wednesday, November 23, 2016, 3:33 p.m. to 3:55 p.m.
Presiding
Hon. Wayne Easter, Chair (Liberal)

House of Commons
• Justin Vaive, Legislative Clerk
• Jean-Denis Kusion, Procedural Clerk
 
Library of Parliament
• Dylan Gowans, Analyst
The Committee proceeded to the consideration of matters related to Committee business.

Steven MacKinnon gave notice of the following motion:

That, with respect to Bill S-4 An Act to implement a Convention and an Arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and to amend an Act in respect of a similar Agreement:

a) The Committee begin a subject matter study of the Bill on Monday, December 5, 2016, if the Bill itself has not yet been referred to the Committee;

b) The Committee invite departmental officials to appear for one hour on Monday, December 5, 2016, from 3:30 p.m. to 4:30 p.m., and invite witnesses to appear on Monday, December 5, 2016, from 4:30 p.m. to 6:30 p.m.; and on Tuesday, December 6, 2016, from 3:30pm to 5:30 pm, if needed;

c) Members of the Committee submit their prioritized witness lists to the Clerk of the Committee no later than noon on Tuesday, November 29, 2016;

d) If Bill S-4 is referred to the Committee by the House during the subject matter study, all evidence and documentation received in public in relation to its subject matter study of Bill S-4 be deemed received by the Committee in the context of its legislative study of Bill S-4;

e) Members of the Committee as well as Members who are not a member of a caucus represented on the Committee and independent members should submit their proposed amendments to the Clerk of the Committee no later than Thursday, December 8, 2016 at 5:00 p.m;

f) The Committee proceed with the clause-by-clause consideration of Bill S-4 no later than Monday, December 12, 2016 (subject to the Bill being referred to the Committee);

g) The Chair may limit debate on each clause to a maximum of five minutes per party, per clause;

h) If the Committee has not completed clause-by-clause consideration of Bill S-4 by 9:00 p.m. on Monday, December 12, 2016, all remaining amendments submitted to the Committee shall be deemed moved, the Chair shall put every question, forthwith and successively, without further debate or amendment on all remaining clauses and proposed amendments, as well as each and every question necessary to dispose of clause-by-clause consideration of the Bill, as well as all questions necessary to report the Bill to the House and to order the Chair to report the Bill to the House no later than Tuesday, December 13, 2016;

i) the Clerk of the Committee write immediately to each Member who is not a member of a caucus represented on the Committee and any independent members to inform them that the Committee will begin the subject matter study of the Bill and to invite them to prepare and submit any proposed amendments, which they would suggest that the Committee consider during the clause by clause study of the Bill. The Clerk should also outline all of the parameters and deadlines mentioned in paragraphs a) to i) of this motion.

Department of Finance
• Glenn Purves, General Director, Federal-Provincial and Social Policy Branch
Pursuant to the Order of Reference of Thursday, November 17, 2016, the Committee commenced consideration of Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act.

The Committee commenced its clause-by-clause study of the Bill.

The witness answered questions.

The Chair called Clause 1.

By unanimous consent, Clauses 1 to 21 inclusive carried severally.

On Clause 22,

Scott Duvall moved, — That Bill C-26, in Clause 22, be amended

(a) by adding after line 6 on page 29 the following:

“(2) In calculating the first additional monthly pensionable earnings of a contributor in accordance with subsection (1), there may be deducted

(a) from the total number of months in a contributor’s contributory period, those months during which the contributor was a family allowance recipient or was eligible for a deemed overpayment under Subdivision A.1 of Division E of Part I of the Income Tax Act and during which the contributor's pensionable earnings were less than his or her average monthly pensionable earnings calculated without regard to subsection (3), but no such deduction shall reduce the number of months in the contributor's contributory period to less than the basic number of contributory months, except

(i) for the purpose of calculating a disability benefit in respect of a contributor who is deemed to have become disabled for the purposes of this Act, in which case the words “the basic number of contributory months” shall be read as “48 months”, and

(ii) for the purpose of calculating a death benefit and a survivor’s pension, in which case the words “the basic number of contributory months” shall be read as “36 months”; and

(b) from the contributor's total pensionable earnings, the aggregate of his or her pensionable earnings attributable to the months deducted under paragraph (a).

(3) If the number of months remaining after making any deduction under subsection (2) from the total number of months in the contributory period of a contributor exceeds one hundred and twenty, in calculating the contributor's first additional monthly pensionable earnings in accordance with subsection (1) there shall be deducted

(a) from the number of months remaining, a number of months equal to the lesser of

(i) subject to subsection (4), seventeen per cent of the number remaining and, if that per cent includes a fraction of a month, the fraction shall be taken to be a complete month, and

(ii) the number of months by which the number remaining exceeds one hundred and twenty; and

(b) from the contributor’s total pensionable earnings remaining after making any deduction under subsection (2), the aggregate of the contributor’s pensionable earnings for a number of months equal to the number of months deducted under paragraph (a), for which months that aggregate is less than — or, if not less than, then equal to — the contributor’s aggregate pensionable earnings for any like number of months in the contributor’s contributory period other than for months for which a deduction has already been made under subsection (2).

(4) The percentage used in a calculation of the amount of first additional monthly pensionable earnings under subsection (3) is to be used in the calculation of other benefits based on that amount.”

(b) by adding after line 16 on page 29 the following:

“(2) In calculating the second additional monthly pensionable earnings of a contributor in accordance with subsection (1), there may be deducted

(a) from the total number of months in a contributor’s contributory period, those months during which the contributor was a family allowance recipient or was eligible for a deemed overpayment under Subdivision A.1 of Division E of Part I of the Income Tax Act and during which the contributor's pensionable earnings were less than his or her average monthly pensionable earnings calculated without regard to subsection (3), but no such deduction shall reduce the number of months in the contributor's contributory period to less than the basic number of contributory months, except

(i) for the purpose of calculating a disability benefit in respect of a contributor who is deemed to have become disabled for the purposes of this Act, in which case the words “the basic number of contributory months” shall be read as “48 months”, and

(ii) for the purpose of calculating a death benefit and a survivor’s pension, in which case the words “the basic number of contributory months” shall be read as “36 months”; and

(b) from the contributor's total pensionable earnings, the aggregate of his or her pensionable earnings attributable to the months deducted under paragraph (a).

(3) If the number of months remaining after making any deduction under subsection (2) from the total number of months in the contributory period of a contributor exceeds one hundred and twenty, in calculating the contributor's second additional monthly pensionable earnings in accordance with subsection (1) there shall be deducted

(a) from the number of months remaining, a number of months equal to the lesser of

(i) subject to subsection (4), seventeen per cent of the number remaining and, if that per cent includes a fraction of a month, the fraction shall be taken to be a complete month, and

(ii) the number of months by which the number remaining exceeds one hundred and twenty; and

(b) from the contributor’s total pensionable earnings remaining after making any deduction under subsection (2), the aggregate of the contributor’s pensionable earnings for a number of months equal to the number of months deducted under paragraph (a), for which months that aggregate is less than — or, if not less than, then equal to — the contributor’s aggregate pensionable earnings for any like number of months in the contributor’s contributory period other than for months for which a deduction has already been made under subsection (2).

(4) The percentage used in a calculation of the amount of second additional monthly pensionable earnings under subsection (3) is to be used in the calculation of other benefits based on that amount.”

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on pages 767-768 of House of Commons Procedure and Practice, Second Edition.

Clause 22 carried on division.

Clause 23 carried on division.

On Clause 24,

Scott Duvall moved, — That Bill C-26, in Clause 24, be amended

(a) by adding after line 3 on page 30 the following:

“(2) The first additional contributory period of a contributor established under subsection (1) does not include

(a) any month that was excluded from that contributory period under this Act or under a provincial pension plan by reason of disability; and

(b) any months during which the contributor was a family allowance recipient or was eligible for a deemed overpayment under Subdivision A.1 of Division E of Part I of the Income Tax Act and during which the contributor's unadjusted pensionable earnings were equal to or less than his or her basic exemption for the year.”

(b) by adding after line 12 on page 30 the following:

“(2) The second additional contributory period of a contributor established under subsection (1) does not include

(a) any month that was excluded from that contributory period under this Act or under a provincial pension plan by reason of disability; and

(b) any months during which the contributor was a family allowance recipient or was eligible for a deemed overpayment under Subdivision A.1 of Division E of Part I of the Income Tax Act and during which the contributor's unadjusted pensionable earnings were equal to or less than his or her basic exemption for the year.”

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on pages 767-768 of House of Commons Procedure and Practice, Second Edition.

Clause 24 carried on division.

By unanimous consent, Clauses 25 to 69 inclusive carried severally.

The Schedule carried on division.

The Title carried on division.

The Bill carried on division.

ORDERED, — That the Chair report the Bill to the House.

Motion

Scott Duvall moved, — That the Finance Committee make a report to the House recommending that the government amend Bill C-26, An Act to amend the Canada Pension Plan Investment Board Act and the Income Tax Act at report stage in order to include child rearing and disability drop out provisions like those present in the existing Canada Pension Plan.

Motion

Jennifer O'Connell moved, — That the debate be now adjourned.

The question was put on the motion and it was agreed to on the following recorded division:

YEAS: Raj Grewal, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Gérard Deltell, Scott Duvall, Ron Liepert — 4.

At 3:55 p.m., the Committee adjourned to the call of the Chair.



Suzie Cadieux
Clerk of the Committee