Pension Reform Act (S.C. 2012, c. 22)
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Assented to 2012-11-01
Pension Reform Act
S.C. 2012, c. 22
Assented to 2012-11-01
An Act to amend the Members of Parliament Retiring Allowances Act
SUMMARY
This enactment amends the Members of Parliament Retiring Allowances Act to increase the contribution rates in order to bring the members’ share of the current service cost to 50% and to increase the retirement age from 55 to 65. The amendments also provide for a reduced allowance before members reach the age of 65, and they coordinate allowances with pension benefits paid under the Canada Pension Plan or under a similar provincial pension plan. They also reduce the rate of interest to be credited to the pension accounts established under the Members of Parliament Retiring Allowances Act and change the allowance payable to former Prime Ministers who cease to hold the office of Prime Minister after December 31, 2012.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Pension Reform Act.
R.S., c. M-5MEMBERS OF PARLIAMENT RETIRING ALLOWANCES ACT
Marginal note:1992, c. 46, s. 81
2. (1) The portion of subsection 2(1) of the Members of Parliament Retiring Allowances Act before the first definition is replaced by the following:
Marginal note:Definitions
2. (1) The following definitions apply in this Act.
Marginal note:1992, c. 46, s. 81
(2) The definition “earnings limit” in subsection 2(1) of the Act is replaced by the following:
“earnings limit”
« gains maximums »
“earnings limit”, in relation to a member in respect of one or more sessions in any calendar year, means
(a) for any calendar year before 2016, the amount in respect of which benefits may be accrued during that calendar year for the purposes of a registered pension plan within the meaning of the Income Tax Act, determined by dividing the defined benefit limit in respect of that calendar year by 0.02, and
(b) for 2016 and subsequent calendar years, the amount determined by the following formula, rounded to the next highest multiple of $100:
[(A – (B × C)) / 0.02] + C
where
- A
- is the the amount determined for the calendar year in accordance with the definition “defined benefit limit” in subsection 8500(1) of the Income Tax Regulations,
- B
- is the number fixed by the Chief Actuary under subsection (6), and
- C
- is the amount of the Year’s Maximum Pensionable Earnings, as defined in subsection 2(1) of the Canada Pension Plan, for that calendar year.
(3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
“average annual pensionable earnings”
« moyenne annuelle des gains ouvrant droit à pension »
“average annual pensionable earnings”, with respect to any member, means the average annual pensionable earnings received as a member during any five-year period of pensionable service selected by or on behalf of the member, or during any period so selected consisting of consecutive periods of pensionable service totalling five years.
“average maximum pensionable earnings”
« moyenne des maximums des gains ouvrant droit à pension »
“average maximum pensionable earnings”, with respect to any former member, means the average of the Year’s Maximum Pensionable Earnings, as defined in subsection 2(1) of the Canada Pension Plan, for the earlier of the years referred to in paragraphs (a) and (b), and for each of the four years preceding that earlier year,
(a) the year in which the former member ceased to be a member, and
(b) the year in which the former member becomes entitled to receive a retirement pension under the Canada Pension Plan or under a similar provincial pension plan.
“Chief Actuary”
« actuaire en chef »
“Chief Actuary” means the Chief Actuary of the Office of the Superintendent of Financial Institutions.
“pensionable earnings”
« gains ouvrant droit à pension »
“pensionable earnings”, with respect to any member in respect of any calendar year, means the aggregate of
(a) his or her sessional indemnity for the year,
(b) any annual allowance payable to him or her in respect of the year, and
(c) any salary payable to the member in respect of the year.
“reduction factor”
« facteur de réduction »
“reduction factor”, with respect to any former member, means the number determined by the calculation referred to in the description of D in subsection 37.3(2).
Marginal note:1992, c. 46, s. 81
(4) Subsection 2(2) of the Act is replaced by the following:
Marginal note:Calculation of average annual sessional indemnity
(2) For the purposes of calculating a member’s average annual sessional indemnity, any period during which he or she is, by virtue of paragraph 12(1)(b) or (c) or 34(1)(b), as it read immediately before January 1, 2013, prohibited from contributing in respect of the sessional indemnity payable to him or her is deemed to be a period of pensionable service to the member’s credit.
Marginal note:Calculation of average annual sessional indemnity
(2.1) For the purposes of calculating a member’s average annual sessional indemnity, any period during which he or she is required to make contributions under subsection 12(2) or would be required to contribute under that subsection if he or she were under 71 years of age is deemed to be a period of pensionable service to the member’s credit.
Marginal note:Calculation of average annual pensionable earnings
(2.2) For the purposes of calculating a member’s average annual pensionable earnings, any period during which he or she is required to make contributions under subsection 12(2.1) or would be required to contribute under that subsection if he or she were under 71 years of age is deemed to be a period of pensionable service to the member’s credit.
(5) Section 2 of the Act is amended by adding the following after subsection (5):
Marginal note:Power to fix number
(6) The Chief Actuary may, taking into account the percentage fixed for the purposes of subsection 17.1(2), fix a number for the purpose of the description of B in paragraph (b) of the definition “earnings limit” in subsection (1).
3. The Act is amended by adding the following after section 2.6:
CONTRIBUTION RATES
Marginal note:Obligation to fix rates
2.7 (1) The Chief Actuary shall fix contribution rates for the purpose of the provisions of this Act that require contributions to be made at the applicable contribution rate.
Marginal note:Classes
(2) In fixing contribution rates for the purpose of any provision of this Act, the Chief Actuary may fix a rate for all of the members of the Senate or House of Commons or for any class of members specified by the Chief Actuary.
Marginal note:Applicable contribution rate
(3) For the purposes of any provision of this Act that requires the payment of a contribution, the applicable contribution rate with respect to a member is the contribution rate that is fixed by the Chief Actuary for the purposes of that provision that applies to the member or to the class of members to which the member belongs.
Marginal note:Contribution rate for purpose of paragraph 31.1(1)(a) — 2013 to 2015
(4) Despite subsection (1), but subject to subsection (9), the applicable contribution rate for the purpose of paragraph 31.1(1)(a) for the calendar years 2013 to 2015 is 4%.
Marginal note:Contribution rates for purpose of paragraph 31.1(1)(b) — 2013 to 2015
(5) Despite subsection (1), the applicable contribution rates for the purpose of paragraph 31.1(1)(b) for the calendar years 2013 to 2015 are
(a) for 2013, 4%;
(b) for 2014, 5%; and
(c) for 2015, 6%.
Marginal note:Contribution rates for purpose of paragraphs 31.1(1)(c) and (2)(a) and (b) — 2013 to 2015
(6) Despite subsection (1), but subject to subsections (7) to (9), the applicable contribution rates for the purpose of paragraphs 31.1(1)(c) and (2)(a) and (b) for the calendar years 2013 to 2015 are
(a) for 2013, 8%;
(b) for 2014, 9%; and
(c) for 2015, 10%.
Marginal note:Contribution rate for certain members — 2013 to 2015
(7) Despite subsection (1), the applicable contribution rate for the purpose of paragraph 31.1(1)(c) for the calendar years 2013 to 2015 for members who are required to contribute under subsection 12(2) is 4% in respect of the portion of salary or annual allowance that is payable to them that exceeds their earnings limit for the calendar year.
Marginal note:Contribution rates for certain members — 2013 to 2015
(8) Despite subsection (1), the applicable contribution rates for the purpose of paragraph 31.1(1)(c) for the calendar years 2013 to 2015, in respect of salary or annual allowance, for members who are required to contribute under subsection 12(2) are
(a) for 2013, 4%;
(b) for 2014, 5%; and
(c) for 2015, 6%.
Marginal note:Contribution rate for certain members — 2013 to 2015
(9) Despite subsection (1), the applicable contribution rate for the purpose of paragraphs 31.1(1)(a) and (2)(a) for the calendar years 2013 to 2015 for members who are required to contribute under subsection 12(2) and members who would be required to contribute under subsection 12(2) if they were under 71 years of age is 1%.
Marginal note:Publication of rates
(10) The Minister shall cause to be published in the Canada Gazette the contribution rates fixed under subsection (1) as soon as feasible after they are fixed.
Marginal note:Objective
2.8 In fixing contribution rates, the Chief Actuary’s objective is to ensure that by not later than January 1, 2017 the total amount of contributions to be paid by members under Parts I and II will meet 50% of the current service cost in respect of the benefits payable under Parts I, II and IV.
Marginal note:2001, c. 20, s. 15
4. Paragraphs 4(1)(a) and (b) of the Act are replaced by the following:
(a) the contributions paid under sections 9, 9.1, 11 and 11.1 on or after January 1, 1992 and contributions made under subsections 21(7) and 22(3) of the former Act that are paid on or after that date;
(b) the interest paid under sections 11 and 11.1; and
Marginal note:1992, c. 46, s. 81
5. (1) Paragraph 5(1)(b) of the Act is replaced by the following:
(b) an amount representing interest on the balance from time to time to the credit of the Retiring Allowances Account, calculated and credited in accordance with subsection (2).
Marginal note:1992, c. 46, s. 81
(2) Subsection 5(2) of the Act is replaced by the following:
Marginal note:Determination of amount
(2) The amount referred to in paragraph (1)(b) is to be credited to the Retiring Allowances Account in respect of each quarter in each fiscal year on the last day of the quarter and is to be determined by multiplying an amount equal to the balance to the credit of the Account on the last day of the preceding quarter by the rate referred to in subsection (3).
Marginal note:Rate
(3) The rate for the purpose of subsection (2) is the effective quarterly rate derived from the valuation interest rate for the fiscal year that is set out in the most recent valuation report for this Act that is laid before the Senate and the House of Commons under section 9 of the Public Pensions Reporting Act.
Marginal note:1992, c. 46, s. 81
6. Section 6 of the Act is repealed.
Marginal note:1992, c. 46, s. 81
7. Section 8 of the Act is replaced by the following:
Marginal note:Amounts to be credited to meet total cost
8. There shall be credited to the Retiring Allowances Account, at the time and in the manner determined by the Minister, an amount that, in the Minister’s opinion, based on actuarial advice, together with the amount estimated by the Minister to be to the credit of that Account at that time, is necessary to meet the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits.
Marginal note:Amounts to be debited
8.1 If the Minister is of the opinion, based on actuarial advice, that the amount estimated by the Minister to be to the credit of the Retiring Allowances Account exceeds the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits, there may be debited from that Account, at the time and in the manner determined by the Minister, an amount specified by the Minister.
Marginal note:2001, c. 20, s. 16(1)
8. (1) Subsection 9(1) of the Act is replaced by the following:
Marginal note:Contributions — January 1, 2001 to December 31, 2015
9. (1) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member shall with respect to each calendar year, by reservation from his or her sessional indemnity, contribute to the Retiring Allowances Account 4% of that portion of that sessional indemnity that does not exceed his or her earnings limit for the calendar year.
Marginal note:Non-application
(1.01) Subsection (1) does not apply to a member who is required to make a contribution under subsection 12(2).
Marginal note:2001, c. 20, s. 16(2); 2003, c. 16, s. 1
(2) Subsection 9(2) of the Act is replaced by the following:
Marginal note:Additional contributions
(2) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member to whom subsection 12(2) applies who is in receipt of a salary or an annual allowance shall with respect to each calendar year, by reservation from that salary or allowance, contribute to the Retiring Allowances Account an amount equal to 4% of that portion of that salary or allowance that does not exceed his or her earnings limit for the calendar year, unless he or she elects in respect of that salary or allowance
(a) not to contribute under this subsection and has also elected before December 31, 2015 not to contribute under subsection 31(4) or (5) or paragraph 31.1(1)(c) or (2)(b); or
(b) to contribute at a lesser rate than that specified in this subsection.
9. The Act is amended by adding the following after section 9:
Marginal note:Contributions — beginning on January 1, 2016
9.1 (1) Beginning on January 1, 2016, a member shall with respect to each calendar year, by reservation from his or her pensionable earnings, contribute to the Retiring Allowances Account at the applicable contribution rate in respect of any part specified by the Chief Actuary of the portion of the member’s pensionable earnings that does not exceed the member’s earnings limit for the calendar year.
Marginal note:Exception
(2) Subsection (1) does not apply to a member who is required to make a contribution under subsection 12(2.1).
Marginal note:2001, c. 20, s. 17(1)
10. The portion of subsection 11(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Contributions in respect of previous sessions — election before January 1, 2016
11. (1) If a member elects before January 1, 2016 to contribute to the Retiring Allowances Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
11. The Act is amended by adding the following after section 11:
Marginal note:Contributions in respect of previous sessions — election made on or after January 1, 2016
11.1 (1) If a member elects on or after January 1, 2016 to contribute to the Retiring Allowances Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
(a) a contribution, calculated at the contribution rates fixed for the purposes of section 9.1 that are in force on the day on which the election is made, in respect of the portion of his or her pensionable earnings during that previous session that does not exceed his or her earnings limit for the year during that previous session; and
(b) interest on that contribution, calculated at a rate and in the manner prescribed, from the day on which the final payment by way of pensionable earnings was made to the member in respect of that session to the day on which the election is made.
Marginal note:Earnings limit for part of year
(2) For the purpose of subsection (1), if the person was not a member during the whole of a calendar year, the earnings limit for that calendar year is determined by multiplying the member’s earnings limit for the calendar year by the ratio that the part of the calendar year during which he or she was a member is to the whole calendar year.
Marginal note:2001, c. 20, s. 18(1); 2003, c. 16, s. 2(1)
12. (1) Subsection 12(1) of the Act is amended by adding “or” at the end of paragraph (a) and by replacing paragraphs (b) and (c) with by the following:
(b) after the member has reached 71 years of age.
Marginal note:2003, c. 16, s. 2(2)
(2) Subsection 12(2) of the Act is replaced by the following:
Marginal note:Contribution of 1%
(2) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from his or her sessional indemnity, after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member’s credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75, contribute under this Part 1% of that portion of the sessional indemnity that does not exceed his or her earnings limit for the calendar year.
Marginal note:Contributions on or after January 1, 2016
(2.1) Beginning on January 1, 2016, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from his or her pensionable earnings, after the aggregate of the products obtained under subsection (2) and the product obtained by multiplying the number of years of pensionable service on or after January 1, 2016 to the member’s credit by 0.02 equals 0.75, contribute under this Part at the applicable contribution rate in respect of the portion of the member’s pensionable earnings that does not exceed the member’s earnings limit for the calendar year.
Marginal note:1992, c. 46, s. 81
13. Paragraph 14(1)(b) of the Act is replaced by the following:
(b) with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (4) and (5), the number of those years and portions of years multiplied by 0.05.
Marginal note:1992, c. 46, s. 81
14. (1) Paragraphs 16(1)(a) and (b) of the Act are replaced by the following:
(a) with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (3), (4) and (6), the number of those years and portions of years multiplied by 0.03, in the case of a member of the Senate, and by 0.05, in the case of a member of the House of Commons; and
(b) subject to subsection (2), with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (5) and (6), the number of those years and portions of years multiplied by 0.02.
Marginal note:1992, c. 46, s. 81
(2) The portion of subsection 16(5) of the Act before paragraph (a) is replaced by the following:
Marginal note:Calculation of years of pensionable service between January 1, 1992 and December 31, 2015
(5) For the purposes of paragraph (1)(b), in respect of time spent as a member during the period that begins on January 1, 1992 and ends on December 31, 2015, or any period of pensionable service in respect of which an election under section 10 has been made during that period, a person is, on ceasing to be a member, deemed to have one year of pensionable service to his or her credit for each amount, equal to 4% of the sessional indemnity payable to a member during any 12-month period beginning
Marginal note:1992, c. 46, s. 81
15. (1) Paragraphs 17(1)(a) and (b) of the Act are replaced by the following:
(a) with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (3) and (5), the number of those years and portions of years multiplied by 0.05; and
(b) subject to subsection (2), with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (4) and (5), the number of those years and portions of years multiplied by 0.02.
Marginal note:2001, c. 20, s. 19
(2) Paragraph 17(4)(b) of the Act is replaced by the following:
(b) during the period that begins on January 1, 2001 and ends on December 31, 2015, or any period of pensionable service in respect of which an election under section 10 has been made during that period, the person is, on ceasing to be a member, deemed to have one year of pensionable service to his or her credit for each amount, equal to 4% of the sessional indemnity payable to the person as a member of the Senate or House of Commons, as the case may be, during any calendar year, that the person has, during that calendar year, contributed under subsection 9(2) or elected to contribute under subparagraph 11(1)(a)(i).
(3) Section 17 of the Act is amended by adding the following after subsection (5):
Marginal note:Limitation — pensionable service before January 1, 2016
(6) The additional retirement allowance payable to a person under subsection (1) is only payable in respect of his or her pensionable service before January 1, 2016.
16. The Act is amended by adding the following after section 17:
Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — 65 years of age or older
17.1 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person has reached 65 years of age when he or she ceases to be a member, there shall be paid to that person during his or her lifetime a retirement allowance in an amount calculated under subsection (2).
Marginal note:Amount
(2) The amount of the retirement allowance is equal to the portion of the person’s average annual pensionable earnings that does not exceed his or her earnings limit for the calendar year in which he or she ceased to be a member multiplied by the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections (3) and (4) multiplied by 0.02, minus an amount equal to the percentage fixed by the Chief Actuary of
(a) the person’s average maximum pensionable earnings,
multiplied by
(b) the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections (3) and (4) multiplied by 0.02.
Marginal note:Pensionable service
(3) Subject to subsection (4), the person’s pensionable service for the purposes of subsection (2) is
(a) the years and portions of years spent as a member after December 31, 2015 during which he or she was required to contribute under this Part, other than any period in respect of which a withdrawal allowance has been paid to the person; and
(b) the years and portions of years in respect of which he or she elected on or after January 1, 2016 to bring to his or her credit as time spent as a member.
Marginal note:Service after contributions under subsection 12(2.1) not to be included
(4) The person’s service as a member during which he or she was required to contribute under subsection 12(2.1), if any, is not to be included in the calculation under subsection (3) of the person’s pensionable service.
Marginal note:Retirement pension to be taken into account
(5) In fixing the percentage for the purposes of subsection (2), the Chief Actuary shall take into account the retirement pension payable to a person under the Canada Pension Plan or under a similar provincial pension plan.
Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — under 65 years of age
17.2 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person is under 65 years of age when he or she ceases to be a member, and the person has elected to receive an allowance under section 37.3, there shall be paid to that person, subject to subsection (3), during his or her lifetime, a retirement allowance in an amount calculated under subsection (2).
Marginal note:Amount of retirement allowance
(2) For the purposes of subsection (1), the amount of the retirement allowance is equal to the amount of the retirement allowance determined under section 17.1 as though that section applied to the person, minus the product obtained by multiplying that amount by the reduction factor.
Marginal note:When retirement allowance becomes payable
(3) The retirement allowance payable under subsection (1) becomes payable on the later of
(a) the day the person reaches the age of 60, and
(b) the day the person begins to receive his or her allowance under section 37.3.
Marginal note:1992, c. 46, s. 81
17. Paragraph 18(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under section 11 or 11.1 or under section 23 of the former Act.
Marginal note:1992, c. 46, s. 81
18. Paragraph 19(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under section 11 or 11.1 or under section 23 of the former Act.
19. Section 20 of the Act is amended by adding the following after subsection (2):
Marginal note:Deeming
(3) For the purpose of subsection (2), if any amount was or would have been subtracted in the calculation of the amount of the member or former member’s retirement allowance under section 17.1 or 17.2, the member or former member is deemed to have received or to have been entitled to receive, as the case may be, a retirement allowance under that section calculated without that subtracted amount.
Marginal note:2000, c. 12, s. 177
20. Paragraphs 25(1)(a) and (b) of the Act are replaced by the following:
(a) the former member’s retirement allowances and any additional retirement allowance, under this Part; and
(b) the former member’s compensation allowances, if any, and any additional compensation allowance, under Part II.
Marginal note:1992, c. 46, s. 81
21. (1) Paragraph 28(1)(b) of the Act is replaced by the following:
(b) an amount representing interest on the balance from time to time to the credit of the Compensation Arrangements Account, calculated and credited in accordance with subsection (2).
(2) Section 28 of the Act is amended by adding the following after subsection (1):
Marginal note:Determination of amount
(1.1) The amount referred to in paragraph (1)(b) is to be credited to the Compensation Arrangements Account in respect of each quarter in each fiscal year on the last day of the quarter and is to be determined by multiplying an amount equal to the balance to the credit of the Account on the last day of the preceding quarter by the rate referred to in subsection (1.2).
Marginal note:Rate
(1.2) The rate for the purpose of subsection (1.1) is the effective quarterly rate derived from the valuation interest rate for the calendar year that is set out in the most recent valuation report for this Act that is laid before the Senate and the House of Commons under section 9 of the Public Pensions Reporting Act.
Marginal note:1992, c. 46, s. 81
22. Section 29 of the Act is replaced by the following:
Marginal note:Amounts to be credited to meet total cost
29. There shall be credited to the Compensation Arrangements Account, at the time and in the manner determined by the Minister, an amount that, in the Minister’s opinion, based on actuarial advice, together with the amount estimated by the Minister to be to the credit of that Account at that time, is necessary to meet the total cost of all allowances and other benefits payable under this Part and Part III and all supplementary benefits payable under Part IV in respect of those allowances or benefits.
Marginal note:Amounts to be debited
29.1 If the Minister is of the opinion, based on actuarial advice, that the amount estimated by the Minister to be to the credit of the Compensation Arrangements Account exceeds the total cost of all allowances and other benefits payable under this Part and Part III and all supplementary benefits payable under Part IV in respect of those allowances or benefits, there may be debited from that Account, at the time and in the manner determined by the Minister, an amount specified by the Minister.
23. Section 31 of the Act is amended by adding the following after subsection (5):
Marginal note:Cessation
(6) This section ceases to apply on December 31, 2012.
24. The Act is amended by adding the following after section 31:
Marginal note:Contributions — January 1, 2013 to December 31, 2015 — under 71 years of age
31.1 (1) During the period that begins on January 1, 2013 and ends on December 31, 2015, a member who has not reached 71 years of age shall with respect to each calendar year contribute to the Compensation Arrangements Account,
(a) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the portion of the sessional indemnity payable to him or her that exceeds his or her earnings limit for the calendar year;
(b) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the sessional indemnity payable to him or her; and
(c) by reservation from any salary or annual allowance that he or she receives, at the applicable contribution rates in respect of that salary or annual allowance, unless he or she elects not to contribute under this paragraph.
Marginal note:Contributions — January 1, 2013 to December 31, 2015 — over 71 years of age
(2) During the period that begins on January 1, 2013 and ends on December 31, 2015, a member who has reached 71 years of age shall with respect to each calendar year contribute to the Compensation Arrangements Account,
(a) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the sessional indemnity payable to him or her; and
(b) by reservation from any salary or annual allowance that he or she receives, at the applicable contribution rate in respect of that salary or annual allowance, unless he or she elects not to contribute under this paragraph.
Marginal note:Contributions — from January 1, 2016 — under 71 years of age
31.2 (1) Beginning on January 1, 2016, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from the member’s pensionable earnings, contribute to the Compensation Arrangements Account
(a) at the applicable contribution rate in respect of the portion of his or her pensionable earnings that exceeds his or her earnings limit for the calendar year; and
(b) at the applicable contribution rate in respect of his or her pensionable earnings.
Marginal note:Contributions — from January 1, 2016 — 71 years of age or older
(2) Beginning on January 1, 2016, a member who has reached 71 years of age shall, by reservation from his or her pensionable earnings, contribute to the Compensation Arrangements Account, at the applicable contribution rate in respect of the member’s pensionable earnings.
Marginal note:Different rates
(3) Without restricting the generality of subsection 2.7(3), the Chief Actuary shall fix rates for the purposes of paragraph (1)(a) that are different for members who are required to contribute under subsection 12(2.1) than those for other members, and rates for the purposes of subsection (2) that are different for members who would be required to contribute under subsection 12(2.1) if they were under 71 years of age than those for other members.
25. Section 33 of the Act is amended by adding the following after subsection (4):
Marginal note:Application
(5) This section applies only in respect of elections made before January 1, 2013.
Marginal note:1992, c. 46, s. 81; 2001, c. 20, s. 24(2); 2003, c. 16, s. 6
26. Section 34 of the Act is replaced by the following:
Marginal note:Contributions in respect of previous sessions — election made between January 1, 2013 and December 31, 2015
33.1 (1) If a member elects, during the period that begins on January 1, 2013 and ends on December 31, 2015, to contribute to the Compensation Arrangements Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
(a) if the member has not reached 71 years of age at the time the election is made, a contribution equal to the aggregate of
(i) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(a) that is in force on the day on which the election is made in respect of the portion of the sessional indemnity paid to the member during that previous session that exceeds his or her earnings limit for the year during that previous session,
(ii) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(b) that is in force on the day on which the election is made in respect of the sessional indemnity paid to the member during that previous session, and
(iii) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(c) that is in force on the day on which the election is made in respect of any salary or annual allowance paid to the member during that previous session, if he or she elects to contribute in respect of that salary or annual allowance;
(b) if the member has reached 71 years of age at the time the election is made, a contribution equal to the aggregate of
(i) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(2)(a) that is in force on the day on which the election is made in respect of the sessional indemnity paid to the member during that previous session, and
(ii) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(2)(b) that is in force on the day on which the election is made in respect of any salary or annual allowance paid to the member during that previous session, if he or she elects to contribute in respect of that salary or annual allowance; and
(c) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that previous session to the day on which the election is made.
Marginal note:Earnings limit for part of year
(2) For the purpose of subsection (1), if the person was not a member during the whole of a calendar year, the earnings limit for that calendar year is determined by multiplying the member’s earnings limit for the calendar year by the ratio that the part of the calendar year during which he or she was a member is to the whole calendar year.
Marginal note:Contributions in respect of previous sessions — election made on or after January 1, 2016
33.2 (1) If a member elects on or after January 1, 2016 to contribute to the Compensation Arrangements Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
(a) if the member has not reached 71 years of age at the time the election is made,
(i) a contribution, calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.2(1)(a) that is in force on the day on which the election is made, in respect of the portion of the member’s pensionable earnings during that previous session that exceeds his or her earnings limit for the year during that previous session, and
(ii) a contribution, calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.2(1)(b) that is in force on the day on which the election is made, in respect of the member’s pensionable earnings during that previous session, and
(b) if the member has reached 71 years of age at the time the election is made, a contribution, calculated at his or her applicable contribution rate that is fixed for the purpose of subsection 31.2(2) that is in force on the day on which the election is made, in respect of the member’s pensionable earnings during that previous session; and
(c) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of pensionable earnings was made to the member in respect of that previous session to the day on which the election is made.
Marginal note:Earnings limit for part of year
(2) For the purpose of subsection (1), if the person was not a member during the whole of a calendar year, the earnings limit for that calendar year is determined by multiplying the member’s earnings limit for the calendar year by the ratio that the part of the calendar year during which he or she was a member is to the whole calendar year.
Marginal note:Limits on contributions
34. Despite anything in this Part, no contribution shall be paid by a member under this Part in respect of any session in the course of which the member ceases to be a Senator by reason of disqualification or was expelled from the House of Commons.
Marginal note:Contribution of 1% — January 1, 2001 to December 31, 2012 — 69 years of age or more
34.1 (1) During the period that begins on January 1, 2001 and ends on December 31, 2012, a member who has reached 69 years of age shall with respect to each calendar year, by reservation from the sessional indemnity payable to him or her, contribute under this Part 1% of the amount payable to him or her by way of sessional indemnity after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member’s credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75.
Marginal note:Exception for 1%
(2) During the period that begins on January 1, 2001 and ends on December 31, 2012, a member to whom subsection 12(2) applies shall with respect to each calendar year, by reservation from the sessional indemnity payable to him or her, contribute to the Compensation Arrangements Account 1% of that portion of his or her sessional indemnity for the calendar year that exceeds the his or her earnings limit for that year.
Marginal note:Exclusions from computation of contributions
34.2 In a computation of the total amount that a member has contributed or elected to contribute under this Part, there shall not be included
(a) any contributions in respect of which a withdrawal allowance has been paid under this Part;
(b) any contributions in respect of which the member’s election has been revoked under this Part; or
(c) any amount paid by way of interest.
Marginal note:2003, c. 16, s. 7
27. (1) The portion of subsection 36(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Compensation allowance
36. (1) Subject to sections 58 and 59, a compensation allowance determined in accordance with this section shall be paid to a person during his or her lifetime in respect of contributions made under this Part, other than those made in respect of salary or annual allowance and those made under subsection 34(2) or (2.1), as that subsection read on December 31, 2012 — and those made under paragraph 31.1(1)(a) or (2)(a) if the person was contributing at the contribution rate referred to in subsection 2.7(9) —, if the person
Marginal note:2003, c. 16, s. 7
(2) The portion of paragraph 36(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) the person’s average annual sessional indemnity multiplied by, subject to subsections (3) and (3.1), the number of years and portions of years of pensionable service calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6), multiplied by
Marginal note:2003, c. 16, s. 7
(3) Clause 36(2)(a)(i)(C) of the Act is replaced by the following:
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
Marginal note:2003, c. 16, s. 7
(4) Clause 36(2)(a)(ii)(C) of the Act is replaced by the following:
(C) 0.01 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
(5) Subparagraph 36(2)(a)(iii) of the Act is amended by striking out “and” at the end of clause (A) and by adding the following after clause (B):
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election referred to in clause (A) or (B) or subparagraph (a)(iv), and
Marginal note:2003, c. 16, s. 7
(6) Subparagraph 36(2)(a)(iv) of the Act is replaced by the following:
(iv) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election referred to in clause (iii)(A) or (B),
Marginal note:2003, c. 16, s. 7
(7) Paragraph 36(2)(b) of the Act is replaced by the following:
(b) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001; and
(c) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4.1), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 7
(8) The portion of subsection 36(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Years of service — clauses (2)(a)(iii)(A) and (B)
(3) For the purposes of clauses (2)(a)(iii)(A) and (B), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for
Marginal note:2003, c. 16, s. 7
(9) Subsections 36(4) and (5) of the Act are replaced by the following:
Marginal note:Years of service — clause (2)(a)(iii)(C) and subparagraphs (2)(a)(iv) and (6)(a)(iv)
(3.1) For the purposes of clause (2)(a)(iii)(C) and subparagraphs (2)(a)(iv) and (6)(a)(iv), a person, on ceasing to be a member, is deemed to have the same number of years and portions of years of pensionable service to his or her credit that would be calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6) if the person were a person required to contribute under Part I.
Marginal note:Years of service — paragraphs (2)(b) and 2(6)(b)
(4) For the purposes of paragraphs (2)(b) and (6)(b), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount — equal to 7% of the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during a calendar year — that, during the period beginning on January 1, 2001 and ending on December 31, 2012, he or she contributed or elected to contribute under subsection 31(1) or 33(1) in respect of that portion of the sessional indemnity that exceeded his or her earnings limit for the calendar year.
Marginal note:Years of service — paragraphs (2)(c) and (6)(c)
(4.1) For the purposes of paragraphs (2)(c) and (6)(c), for each of the calendar years from 2013 to 2015, a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount equal to the amount determined under subsection (4.2) that, during that calendar year, the person contributed or elected to contribute under section 31.1 or subsection 33.1(1) in respect of that portion of the sessional indemnity that exceeded his or her earnings limit for the calendar year.
Marginal note:Amount
(4.2) The amount for the purposes of subsection (4.1) in respect of a person for a calendar year is the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during the calendar year multiplied by the contribution rate that is fixed for the calendar year for the purpose of paragraph 31.1(2)(a).
Marginal note:Application of subsections (3), (4), (4.1) and (7)
(5) In the application of subsections (3), (4), (4.1) and (7), the deeming provision of subsection 16(6) in relation to a portion of a year’s pensionable service shall apply, with any modifications that the circumstances require.
Marginal note:2003, c. 16, s. 7
(10) Subparagraphs 36(6)(a)(ii) and (iii) of the Act are replaced by the following:
(ii) subject to subparagraphs (iii) and (iv), if the person has reached 60 years of age, 0.01,
(iii) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday, and
(iv) if the person contributed after he or she reached 71 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday,
Marginal note:2003, c. 16, s. 7
(11) Paragraph 36(6)(b) of the Act is replaced by the following:
(b) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001; and
(c) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4.1), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 7
(12) Paragraph 36(8)(c) of the Act is replaced by the following:
(c) if the person contributed after he or she reached 71 years of age, 0.04 for the years and portions of years of pensionable service calculated by reference to contributions made on or after the 71st birthday, other than those made under an election made before that birthday.
Marginal note:2003, c. 16, s. 7
(13) Subsection 36(9) of the Act is replaced by the following:
Marginal note:Special case — January 1, 2001 to December 31, 2015
(9) For the purposes of calculating the compensation allowance payable under subsection (1) to a person who, during the period that begins on January 1, 2001 and ends on December 31, 2015, elected to contribute under this Part in respect of any session or part of a session before December 31, 2015, the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out in that paragraph, be
(a) if the person has not reached 60 years of age, 0.03;
(b) subject to paragraphs (c) and (d), if the person has reached 60 years of age, 0.01;
(c) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday; and
(d) if the person contributed after he or she reached 71 years of age, 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday.
Marginal note:2001, c. 20, s. 26(1)
28. (1) Clause 37(2)(a)(i)(C) of the Act is replaced by the following:
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
Marginal note:2001, c. 20, s. 26(1)
(2) Clause 37(2)(a)(ii)(C) of the Act is replaced by the following:
(C) 0.01 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
(3) Subparagraph 37(2)(a)(iii) of the Act is amended by striking out “and” at the end of clause (A) and by adding the following after clause (B):
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election referred to in clause (A) or (B), and
Marginal note:2001, c. 20, s. 26(1)
(4) Subparagraph 37(2)(a)(iv) of the Act is replaced by the following:
(iv) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election referred to in subparagraph (iii), and
Marginal note:2001, c. 20, s. 26(1)
(5) Subparagraphs 37(2)(b)(i) to (iii) of the Act are replaced by the following:
(i) 0.05 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before July 13, 1995,
(ii) 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after July 13, 1995 and before January 1, 2001, otherwise than under an election referred to in subparagraph (i), and
(iii) 0.03 for the years and portions of years of pensionable service calculated by reference to those contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001, and
(iv) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 8
(6) Paragraph 37(3)(c) of the Act is replaced by the following:
(c) each amount, equal to 7% of the sessional indemnity payable to the person as a member of the Senate or House of Commons, as the case may be, during a calendar year, that the person — during the period beginning on January 1, 2001 and ending on December 31, 2012 — has contributed or elected to contribute under subsection 31(3), paragraph 31(4)(b) or subsection 31(5) or 33(1), other than amounts paid under subsection 33(1) in respect of sessional indemnity or as interest.
(7) Section 37 of the Act is amended by adding the following after subsection (3):
Marginal note:Years of pensionable service
(3.1) For the purposes of paragraph (2)(b), for each of the calendar years from 2013 to 2015, a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount equal to the amount determined under subsection (3.2) that, during that calendar year, the person contributed or elected to contribute under paragraph 31.1(1)(c) or (2)(b) or subsection 33.1(1), other than amounts paid under subsection 33.1(1) in respect of sessional indemnity or as interest.
Marginal note:Amount
(3.2) The amount for the purposes of subsection (3.1) in respect of a person for a calendar year is the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during the calendar year multiplied by the contribution rate that is fixed for the calendar year for the purpose of paragraph 31.1(2)(a).
Marginal note:2001, c. 20, s. 26(3)
(8) Subparagraph 37(5)(a)(iii) of the Act is replaced by the following:
(iii) if the person has reached 71 years of age and contributed after reaching that age, 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made on or after the 71st birthday, other than those made under an election made before that birthday; and
Marginal note:2001, c. 20, s. 26(3)
(9) Subsection 37(6) of the Act is replaced by the following:
Marginal note:Special case — January 1, 2001 to December 31, 2015
(6) For the purposes of calculating the additional compensation allowance payable under subsection (2) to a person who, during the period begining on January 1, 2001 and ending on December 31, 2015, elected to contribute under this Part in respect of any session or part of a session before December 31, 2015, the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out in that paragraph, be
(a) if the person has not reached 60 years of age, 0.03;
(b) subject to paragraphs (c) and (d), if the person has reached 60 years of age, 0.01;
(c) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday; and
(d) if the person contributed after he or she reached 71 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday.
Marginal note:1995, c. 30, s. 11
29. The portion of subsection 37.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Beginning of payment of allowances — July 13, 1995 to December 31, 2015
37.1 (1) Despite sections 36 and 37, the allowances otherwise payable to a person under those sections in respect of pensionable service calculated by reference to contributions made during the period beginning on July 13, 1995 and ending on December 31, 2015, other than those made under an election made before July 13, 1995, are not payable until the earlier of
30. The Act is amended by adding the following after section 37.1:
Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — 65 years of age or older
37.2 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person has reached 65 years of age when he or she ceases to be a member, there shall be paid to that person during his or her lifetime a compensation allowance in an amount calculated under subsection (2).
Marginal note:Amount
(2) The amount of the compensation allowance is the amount determined by the formula
(A × B × 0.03) – (C + D)
where
- A
- is the person’s average annual pensionable earnings;
- B
- is the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections (3) and (4);
- C
- is an amount equal to the number determined by the calculation referred to in the description of B multiplied by an amount equal to the portion of the person’s average annual pensionable earnings that does not exceed his or her earnings limit for the calendar year in which he or she ceased to be a member multiplied by 0.02;
- D
- is an amount equal to the percentage fixed by the Chief Actuary for the purpose of subsection 17.1(2) of
(i) the person’s average maximum pensionable earnings multiplied by B,
multiplied by
(ii) 0.01.
Marginal note:Pensionable service
(3) Subject to subsection (4), the person’s pensionable service for the purpose of subsection (2) is
(a) the years and portions of years spent as a member after December 31, 2015 during which he or she was required to contribute under this Part, other than any period in respect of which a withdrawal allowance has been paid to the person; and
(b) the years and portions of years in respect of which he or she elected on or after January 1, 2016 to bring to his or her credit as time spent as a member.
Marginal note:Service after contributions under subsection 12(2.1) not to be included
(4) The person’s service as a member during which he or she was required to contribute under subsection 12(2.1), if any, is not to be included in the calculation under subsection (3) of the person’s pensionable service.
Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — under 65 years of age
37.3 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person is under 65 years of age when he or she ceases to be a member, and the person elects to receive a compensation allowance under this section, there shall be paid to that person, beginning on the date specified by him or her,
(a) if the specified date is before the person reaches 60 years of age,
(i) until the person reaches the age of 60, a compensation allowance in an amount calculated under subsection (2), and
(ii) after the person reaches the age of 60, during his or her lifetime, a compensation allowance in an amount calculated under subsection (3); and
(b) if the specified date is the day of the person’s 60th birthday or any day after that day, during his or her lifetime, a compensation allowance in an amount calculated under subsection (3).
Marginal note:Amount of compensation allowance
(2) For the purposes of subparagraph (1)(a)(i), the amount of the compensation allowance is the amount determined by the formula
(A × B × 0.03) – (C × D)
where
- A
- is the person’s average annual pensionable earnings;
- B
- is the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections 37.2(3) and (4);
- C
- is an amount equal to A x B x 0.03; and
- D
- is the product obtained by multiplying 0.01 by the number of years by which the person’s age in years, to the nearest 1/10 of a year, at the time the allowance is payable, is less than 65 years of age.
Marginal note:Amount of compensation allowance
(3) For the purposes of subparagraph (1)(a)(ii) and paragraph (1)(b), the amount of the compensation allowance is the amount determined by the formula
A – (A × B)
where
- A
- is the allowance that would be payable to the person under subsection 37.2(2) if the person had reached 65 years of age; and
- B
- is the reduction factor.
Marginal note:Limitation regarding specified date
(4) The date specified by the person shall not be earlier than the person’s 55th birthday.
Marginal note:1992, c. 46, s. 81
31. Paragraph 38(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d), 33.1(1) (c) or 33.2(1)(c).
Marginal note:1992, c. 46, s. 81
32. Paragraph 39(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d), 33.1(1)(c) or 33.2(1)(c).
33. Section 40 of the Act is amended by adding the following after subsection (2):
Marginal note:Deeming
(3) For the purposes of subsection (2), if the member or former member has pensionable service that came to his or her credit on or after January 1, 2016, the member or former member is deemed to have received or to have been entitled to receive, as the case may be, a compensation allowance in an amount determined under subsection 37.2(2) without taking into account the calculation referred to in the description of D in that subsection.
Marginal note:2000, c. 12, s. 178
34. Paragraphs 45(1)(a) and (b) of the Act are replaced by the following:
(a) the former member’s retirement allowances and any additional retirement allowance, under Part I; and
(b) the former member’s compensation allowances, if any, and any additional compensation allowance, under this Part.
Marginal note:1992, c. 46, s. 81
35. Sections 47 and 48 of the Act are replaced by the following:
Marginal note:Contributions by Prime Minister — January 1, 2013 to December 31, 2015
47. (1) Beginning on January 1, 2013 and ending on December 31, 2015, the member who holds the office of Prime Minister shall with respect to each calendar year, by reservation from the annual salary payable to the member as Prime Minister under the Salaries Act, contribute to the Compensation Arrangements Account, in respect of that salary, at the applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(c).
Marginal note:Contributions by Prime Minister — beginning January 1, 2016
(2) Beginning on January 1, 2016, the member who holds the office of Prime Minister shall with respect to each calendar year, by reservation from the annual salary payable to the member as Prime Minister under the Salaries Act, contribute to the Compensation Arrangements Account, in respect of that salary, at the contribution rate that is fixed for the purpose of subsection 31.2(2).
Marginal note:Allowance to former Prime Ministers
48. (1) There shall be paid to every person who has held the office of Prime Minister for four years before February 6, 2006 an allowance beginning on the day on which that person ceases to be a member or reaches 65 years of age, whichever is the later, equal to 2/3 of the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on that day.
Marginal note:Allowance to former Prime Ministers
(2) There shall be paid to every person who has held the office of Prime Minister for four years on or after February 6, 2006 an allowance beginning on the day on which that person ceases to be a member or reaches 67 years of age, whichever is the later, in an amount determined in accordance with subsections (3) and (4).
Marginal note:Amount
(3) The amount of the allowance is the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on the later of the days referred to in subsection (2) multiplied by the number of years and portions of years that the member held the office of Prime Minister multiplied by 0.03.
Marginal note:Maximum
(4) The maximum allowance payable to a person under subsection (2) is 2/3 of the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on the later of the days referred to in that subsection.
Marginal note:Duration of entitlement
(5) An allowance payable to a person under subsection (1) or (2) continues during the lifetime of that person, but is suspended in respect of any period during which the person is a Senator or a member of the House of Commons.
Marginal note:2000, c. 12, s. 179(1)
36. Subsection 49(1) of the Act is replaced by the following:
Marginal note:Allowance to former Prime Minister’s survivor
49. (1) The survivor of a person described in subsection 48(1) or (2) shall be paid an allowance equal to 1/2 of the allowance that the person was receiving under that subsection at the time of death or would have been eligible to receive if, immediately before the time of death, the person described in that subsection had ceased to hold the office of Prime Minister and had, in the case of a person described in subsection 48(1) reached 65 years of age or, in the case of a person described in subsection 48(2), 67 years of age.
Marginal note:1992, c. 46, s. 81
37. The portion of subsection 57(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Manner of payment
57. (1) Every amount required to be paid by a member under section 11, 11.1, 33, 33.1 or 33.2 shall be paid at his or her option
38. The Act is amended by adding the following after section 58:
Marginal note:Beginning of payment of allowances and amount
58.1 (1) Despite sections 17.1, 17.2, 37.2 and 37.3, if a former member who has not reached 65 years of age and who is entitled to be paid, but is not yet being paid, a retirement allowance and a compensation allowance under any of those sections becomes entitled to receive a disability pension under the Canada Pension Plan or under a similar provincial pension plan, the retirement allowance and the compensation allowance under those sections are payable to him or her on the day he or she becomes entitled to receive the disability pension and the amount of the retirement allowance and the compensation allowance payable is
(a) the amount of the retirement allowance that would have been payable to the person under section 17.1 if he or she had reached 65 years of age; and
(b) the amount of the compensation allowance that would have been payable to the person under section 37.2 if he or she had reached 65 years of age.
Marginal note:Amount
(2) Despite sections 17.2 and 37.3, if a former member who has not reached 65 years of age and who is being paid a compensation allowance under section 37.3 becomes entitled to receive a disability pension under the Canada Pension Plan or under a similar provincial pension plan, the amount of the retirement allowance and the compensation allowance payable to the person under sections 17.2 and 37.3 on the day he or she becomes entitled to receive the disability pension is
(a) the amount of the retirement allowance that would have been payable to the person under section 17.1 if he or she had reached 65 years of age; and
(b) the amount of the compensation allowance that would have been payable to the person under section 37.2 if he or she had reached 65 years of age.
Marginal note:1992, c. 46, s. 81
39. Section 59 of the Act is replaced by the following:
Marginal note:Limitation respecting allowances
59. (1) Despite anything in this Act, but subject to subsection (2), the aggregate of the retirement allowance payable to a person under section 16 and the compensation allowance payable to him or her under section 36 with respect to service as a member that comes to his or her credit before January 1, 2016 shall not exceed the his or her average annual sessional indemnity multiplied by 0.75.
Marginal note:Withdrawal allowance
(2) For the purposes of subsection (1), a period in respect of which a withdrawal allowance has been paid to the person and in respect of which he or she has not elected to bring to his or her credit before January 1, 2016 is not to be included in the person’s service as a member that has come to his or her credit before January 1, 2016.
Marginal note:Limitation respecting allowances
(3) Despite anything in this Act, the aggregate of the retirement allowance payable to a person under section 17.1 or 17.2 and the compensation allowance payable to the person under section 37.2 or 37.3 with respect to service as a member that comes to his or her credit on or after January 1, 2016 shall not exceed his or her average annual pensionable earnings multiplied by 0.75.
Marginal note:Limitation respecting allowances
(4) Despite anything in this Act, if a person has service as a member that has come to his or her credit before January 1, 2016 and service as a member that has come to his or her credit on or after that date, any time spent by him or her as a member after he or she is required to contribute under subsection 12(2.1) or would be required to contribute under that subsection if he or she were under 71 years of age is not to be included in the calculation of the retirement allowance payable to him or her under section 17.1 or 17.2 or the compensation allowance payable to him or her under section 37.2 or 37.3.
Marginal note:1992, c. 46, s. 81
40. (1) Paragraphs 64(1)(a) and (b) of the Act are replaced by the following:
(b) prescribing, for the purposes of any of sections 11, 11.1, 33, 33.1 and 33.2 and subsection 63(2), the rate of interest and the manner of calculating interest;
Marginal note:2001, c. 20, s. 28
(2) Paragraph 64(1)(l) of the Act is replaced by the following:
(l) prescribing, for the purposes of this Act, the manner of determining a portion of the member’s earnings limit for a year;
Marginal note:Terminology
41. The Act is amended by replacing “or portions of years” by “and portions of years” in the following provisions:
(a) clauses 36(2)(a)(i)(A) and (B);
(b) clauses 36(2)(a)(ii)(A) and (B);
(c) clauses 36(2)(a)(iii)(A) and (B);
(d) the portion of paragraph 36(6)(a) before subparagraph (i);
(e) the portion of paragraph 37(2)(a) before subparagraph (i);
(f) clauses 37(2)(a)(i)(A) and (B);
(g) clauses 37(2)(a)(ii)(A) and (B); and
(h) clauses 37(2)(a)(iii)(A) and (B).
COMING INTO FORCE
Marginal note:January 1, 2013
42. This Act comes into force or is deemed to have come into force on January 1, 2013.
- Date modified: