RECOMMENDATION

His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act”.

PART 1Amendments to the Canada Pension Plan and the Canada Pension Plan Investment Board Act

R.S., c. C-8Canada Pension Plan

Marginal note:R.S., c. 30 (2nd Supp.), s. 1(3)

• 1 (1) The definitions contribution rate, salary and wages on which a contribution has been made, total pensionable earnings of a contributor attributable to contributions made under this Act and unadjusted pensionable earnings in subsection 2(1) of the Canada Pension Plan are replaced by the following:

  contribution rate

  contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.1; (taux de cotisation)

  salary and wages on which a base contribution has been made

  salary and wages on which a base contribution has been made for a year means an amount calculated in accordance with section 15; (traitement et salaire sur lesquels a été versée une cotisation de base)

  total pensionable earnings of a contributor attributable to base contributions made under this Act

  total pensionable earnings of a contributor attributable to base contributions made under this Act means an amount calculated in accordance with section 78; (total des gains d’un cotisant ouvrant droit à pension, afférents à des cotisations de base versées selon la présente loi)

  unadjusted pensionable earnings

  unadjusted pensionable earnings means base unadjusted pensionable earnings, first additional unadjusted pensionable earnings and second additional unadjusted pensionable earnings; (gains non ajustés ouvrant droit à pension)

• (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  additional maximum pensionable earnings

  additional maximum pensionable earnings of a person for a year has the meaning assigned by section 17.1; (maximum supplémentaire des gains ouvrant droit à pension)

  base contribution

  base contribution means a contribution under subsection 8(1), 9(1) or 10(1); (cotisation de base)

  base unadjusted pensionable earnings

  base unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53; (gains non ajustés de base ouvrant droit à pension)

  first additional contribution

  first additional contribution means a contribution under subsection 8(1.1), 9(1.1) or 10(1.1); (première cotisation supplémentaire)

  first additional contribution rate

  first additional contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the first additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.2; (premier taux de cotisation supplémentaire)

  first additional contributory period

  first additional contributory period of a contributor has the meaning assigned by section 49.1; (première période cotisable supplémentaire)

  first additional monthly pensionable earnings

  first additional monthly pensionable earnings of a person means an amount calculated in accordance with section 48.1; (premiers gains mensuels supplémentaires ouvrant droit à pension)

  first additional unadjusted pensionable earnings

  first additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53.1; (premiers gains non ajustés supplémentaires ouvrant droit à pension)

  salary and wages on which a first additional contribution has been made

  salary and wages on which a first additional contribution has been made for a year means an amount calculated in accordance with section 15.1; (traitement et salaire sur lesquels a été versée une première cotisation supplémentaire)

  salary and wages on which a second additional contribution has been made

  salary and wages on which a second additional contribution has been made for a year means an amount calculated in accordance with section 15.2; (traitement et salaire sur lesquels a été versée une deuxième cotisation supplémentaire)

  second additional contribution

  second additional contribution means a contribution under subsection 8(1.2), 9(1.2) or 10(1.2); (deuxième cotisation supplémentaire)

  second additional contribution rate

  second additional contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the second additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.2; (deuxième taux de cotisation supplémentaire)

  second additional contributory period

  second additional contributory period of a contributor has the meaning assigned by section 49.2; (deuxième période cotisable supplémentaire)

  second additional monthly pensionable earnings

  second additional monthly pensionable earnings of a person means an amount calculated in accordance with section 48.2; (deuxièmes gains mensuels supplémentaires ouvrant droit à pension)

  second additional unadjusted pensionable earnings

  second additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53.2; (deuxièmes gains non ajustés supplémentaires ouvrant droit à pension)

  total first additional pensionable earnings

  total first additional pensionable earnings of a contributor means an amount calculated in accordance with section 50.1; (total des premiers gains supplémentaires ouvrant droit à pension)

  total second additional pensionable earnings

  total second additional pensionable earnings of a contributor means an amount calculated in accordance with section 50.2; (total des deuxièmes gains supplémentaires ouvrant droit à pension)

  Year’s Additional Maximum Pensionable Earnings

  Year’s Additional Maximum Pensionable Earnings has the meaning assigned by section 18.1; (maximum supplémentaire des gains annuels ouvrant droit à pension)

• Marginal note:2009, c. 31, s. 25

  (3) The portion of subsection 2(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:When specified age deemed to be reached

    (2) For the purposes of any provision of this Act in which reference is made to the reaching by a person of a specified age — other than a reference in paragraph 13(1)(c) or (e) or (1.2)(c), 17(c), 17.1(c), 19(c) or (d) or 44(3)(a), section 70 or paragraph 72(1)(c) — the person is deemed to have reached the specified age at the beginning of the month following the month in which the person actually reached that age, and in computing

2 Paragraph 6(2)(h) of the Act is replaced by the following:

Marginal note:2011, c. 24, s. 173

• 3 (1) The portion of subsection 8(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Employee’s base contribution

  • 8 (1) Every employee who is employed by an employer in pensionable employment shall, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s base contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

• Marginal note:1997, c. 40, s. 58

  (2) Subsections 8(1.1) to (1.3) of the Act are replaced by the following:

  • Marginal note:Employee’s first additional contribution

    (1.1) For 2019 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s first additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employees for the year is multiplied by the lesser of

    • (a) the employee’s contributory salary and wages for the year paid by the employer, minus the amount as or on account of the basic exemption for the year that is prescribed, and

    • (b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a contribution has been made for the year by the employee under a provincial pension plan.

  • Marginal note:Employee’s second additional contribution

    (1.2) For 2024 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s second additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employees for the year is multiplied by the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year.

• Marginal note:2013, c. 33, s. 155

  (3) The portion of subsection 8(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Excess amount

    (2) An excess amount has been paid if the aggregate of all amounts deducted as required from the remuneration of an employee for a year, whether by one or more employers, on account of the employee’s contributions for the year under this Act or under a provincial pension plan exceeds the sum obtained by adding the following amounts:

• (4) Subsection 8(2) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph:

  • (a.1) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year is multiplied by the lesser of

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the employee’s basic exemption for the year, and

    • (ii) the employee’s maximum contributory earnings for the year;

  • (a.2) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year is multiplied by the amount by which

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply — not exceeding the employee’s additional maximum pensionable earnings for the year,

    exceeds

    • (ii) the employee’s maximum pensionable earnings for the year; and

Marginal note:2011, c. 24, s. 174

• 4 (1) The portion of subsection 9(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Employer’s base contribution

  • 9 (1) Every employer shall, in respect of each employee employed by the employer in pensionable employment, make an employer’s base contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the contribution rate for employers for the year is multiplied by the lesser of

• Marginal note:2004, c. 22, s. 15

  (2) Subsection 9(2) of the Act is replaced by the following:

  • Marginal note:Employer’s first additional contribution

    (1.1) For 2019 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s first additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employers for the year is multiplied by the lesser of

    • (a) the employee’s contributory salary and wages for the year paid by the employer, minus the amount as or on account of the employee’s basic exemption for the year that is prescribed, and

    • (b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

  • Marginal note:Employer’s second additional contribution

    (1.2) For 2024 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s second additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employers for the year is multiplied by the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year.

  • Marginal note:Succession of employers

    (2) If one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition —  with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1), (1.1) and (1.2) and 8(1), (1.1) and (1.2) and section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer’s contributions, the employer shall also take them into account with respect to the employee’s contributions.

• Marginal note:2004, c. 22, s. 15

  (3) The portion of subsection 9(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Self-employment succeeded by employment

    (3) For the application of subsections (1), (1.1) and (1.2) and 8(1), (1.1) and (1.2) and section 21, if a person, in a year, is self-employed, ceases to be self-employed and becomes an employee of a corporation that is controlled by the person, the corporation may

Marginal note:R.S., c. 30 (2nd Supp.), s. 3; 2004, c. 22, s. 16

• 5 (1) The portion of subsection 10(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Base contribution in respect of self-employed earnings

  • 10 (1) Every individual who is resident in Canada for the purposes of the Income Tax Act during a year and who has contributory self-employed earnings for the year shall make a base contribution for the year of an amount equal to the product obtained when the contribution rate for self-employed persons for the year is multiplied by the lesser of

• Marginal note:R.S., c. 30 (2nd Supp.), s. 3

  (2) Paragraph 10(1)(b) of the Act is replaced by the following:

  • (b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a contribution has been made for the year by the individual under a provincial pension plan.

• (3) Section 10 of the Act is amended by adding the following after subsection (1):

  • Marginal note:First additional contribution in respect of self-employed earnings

    (1.1) For 2019 and each subsequent year, an individual referred to in subsection (1) shall also make a first additional contribution for the year of an amount equal to the product obtained when the first additional contribution rate for self-employed persons for the year is multiplied by the lesser of

    • (a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers under section 8, and

    • (b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a first additional contribution has been made for the year.

  • Marginal note:Second additional contribution in respect of self-employed earnings

    (1.2) For 2024 and each subsequent year, an individual referred to in subsection (1) shall also make a second additional contribution for the year of an amount equal to the product obtained when the second additional contribution rate for self-employed persons for the year is multiplied by

    • (a) the amount by which the individual’s contributory self-employed earnings for the year — not exceeding the individual’s additional maximum pensionable earnings for the year — exceeds the individual’s maximum pensionable earnings for the year,

    minus

    • (b) the individual’s salary and wages, if any, on which a second additional contribution has been made for the year.

• Marginal note:2004, c. 22, s. 16

  (4) The portion of subsection 10(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Employment succeeded by self-employment

    (2) For the application of subsections (1), (1.1) and (1.2), if a person, in a year, is an employee of a corporation that is controlled by the person, ceases to be employed by that corporation and becomes self-employed, the person may

Marginal note:1997, c. 40, s. 59

6 Subsection 11.1(2) of the Act is replaced by the following:

7 The Act is amended by adding the following after section 11.1:

Marginal note:2009, c. 31, s. 26(2)

8 Subsection 12(1.2) of the Act is replaced by the following:

Marginal note:2009, c. 31, s. 27(2)

• 9 (1) The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Election to include certain earnings — base contribution

    (3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of subsection 10(1) shall, if the person or their representative makes an election in the prescribed form and manner within one year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under section 38, from the day on which the Minister refunds the amount — include any amount by which

• (2) Subparagraph 13(3)(b)(i) of the Act is replaced by the following:

  • (i) the person’s salary and wages on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a contribution has been made for the year by the person under a provincial pension plan, and

• (3) Section 13 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Earnings — first additional contribution

    (3.1) For 2019 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.1) shall include any amount by which

    • (a) the lesser of

      • (i) the person’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, and

      • (ii) the person’s maximum pensionable earnings for the year,

    exceeds

    • (b) the aggregate of

      • (i) the person’s salary and wages on which a first additional contribution has been made for the year, and

      • (ii) the lesser of

        • (A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8, and

        • (B) the person’s basic exemption for the year.

  • Marginal note:Earnings — second additional contribution

    (3.2) For 2024 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.2) shall include any amount by which

    • (a) the lesser of

      • (i) the person’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, and

      • (ii) the person’s additional maximum pensionable earnings for the year,

    exceeds

    • (b) the aggregate of

      • (i) the person’s salary and wages on which a first additional contribution has been made for the year and the person’s salary and wages on which a second additional contribution has been made for the year,

      • (ii) the lesser of

        • (A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8, and

        • (B) the person’s basic exemption for the year, and

      • (iii) the amount calculated under subsection (3) or (3.1), if any.

Marginal note:R.S., c. 30 (2nd Supp.), s. 8

10 Section 15 of the Act is replaced by the following:

11 The Act is amended by adding the following after section 17:

12 The Act is amended by adding the following after section 18:

Marginal note:2011, c. 24, s. 175

• 13 (1) Subsection 21(1) of the Act is replaced by the following:

  Marginal note:Amount to be deducted and remitted by employer

  • 21 (1) Every employer paying remuneration to an employee employed by the employer at any time in pensionable employment shall deduct from that remuneration as or on account of the employee’s contributions for the year in which the remuneration in respect of the pensionable employment is paid to the employee any amount that is determined in accordance with prescribed rules and shall remit that amount, together with any amount that is prescribed with respect to the contributions required to be made by the employer under this Act, to the Receiver General at any time that is prescribed and, if at that prescribed time the employer is a prescribed person, the remittance shall be made to the account of the Receiver General at a financial institution (within the meaning that would be assigned by the definition financial institution in subsection 190(1) of the Income Tax Act if that definition were read without reference to its paragraphs (d) and (e)).

• Marginal note:1997, c. 40, s. 62

  (2) Subsection 21(3.1) of the Act is replaced by the following:

  • Marginal note:Payment and deemed notification

    (3.1) Once the decision under subsection 27.2(3) or section 28 is communicated to the employer, the employer is liable without interest or penalties under this Act to pay any contribution required to be paid by the employer with respect to the employee. On payment by the employer of any amount as or on account of that contribution, the employee is deemed to have notified the Minister as required by paragraph 15(1)(b), 15.1(1)(b) or 15.2(1)(b) of the employer’s failure to deduct the amount of that contribution from the remuneration of the employee.

Marginal note:1998, c. 19, s. 252(1)

14 Subsection 23(3) of the French version of the Act is replaced by the following:

Marginal note:1991, c. 49, ss. 210(1) and 211(1); 1993, c. 24, ss. 145(1) and 146(1); 1994, c. 21, s. 124(1)

15 Sections 31 to 34 of the Act are replaced by the following:

Marginal note:1991, c. 49, s. 212(1)

16 Subsection 35(1) of the Act is replaced by the following:

Marginal note:1991, c. 49, s. 213

17 Sections 36 and 37 of the Act are replaced by the following:

Marginal note:1997, c. 40, s. 67(1); 2004, c. 22, s. 18(1); 2012, c. 19, s. 227(1) and (2); 2013, c. 40, subpar. 236(1)(b)(i)

• 18 (1) Subsections 38(1) to (3.1) of the Act are replaced by the following:

  Marginal note:Refund of overpayment

  • 38 (1) If an overpayment has been made by an employee on account of the employee’s contributions under this Act for a year, the Minister must, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year, refund to the employee the amount of the overpayment.

  • Marginal note:Refund after decision on appeal

    (2) If an amount on account of contributions is deducted from the remuneration of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under section 27, 27.1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.

  • Marginal note:Refund of excess — employee

    (3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contributions for the year required of the employee under section 8, the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year.

  • Marginal note:Refund of amount remitted in excess — employer

    (3.1) Subject to subsection (3.2) but despite any other provision of this Part, if an employer applies to the Minister and satisfies the Minister that, for any year, the amount remitted by the employer as the employer’s contributions with respect to an employee exceeds the contributions for the year required of the employer under section 9 with respect to the employee, the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.

• Marginal note:2010, c. 25, s. 70

  (2) The portion of subsection 38(4) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Refund of excess — self-employed person

    (4) If a person has paid, on account of the contributions required to be made by the person for a year in respect of the person’s self-employed earnings, an amount in excess of the contributions, the Minister

    • (a) may refund that part of the amount so paid in excess of the contributions on sending the notice of assessment of the contributions, without any application having been made for the refund; and

• Marginal note:1991, c. 49, s. 214

  (3) Subsection 38(5) of the Act is replaced by the following:

  • Marginal note:Recovery of amount refunded or credited on liability

    (5) If an application under this section has been made to the Minister for a refund of any amount deducted on account of an employee’s contributions for a year and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has refunded an amount to the employee, or applied an amount to a liability of the employee to Her Majesty in right of Canada, in excess of the amount that should have been refunded or applied, the amount of the excess may be recovered at any time from the employee as a debt due to Her Majesty.

19 Section 39 of the Act is replaced by the following:

Marginal note:R.S., c. 30 (2nd Supp.), s. 13(1)

• 20 (1) Subparagraph 44(1)(b)(i) of the Act is replaced by the following:

  • (i) has made base contributions for not less than the minimum qualifying period,

• (2) Paragraph 44(1)(c) of the Act is replaced by the following:

  • (c) a death benefit shall be paid to the estate or succession of a deceased contributor who has made base contributions for not less than the minimum qualifying period;

• Marginal note:2000, c. 12, s. 45(1)

  (3) The portion of paragraph 44(1)(d) of the Act before subparagraph (i) is replaced by the following:

  • (d) subject to subsection (1.1), a survivor’s pension shall be paid to the survivor of a deceased contributor who has made base contributions for not less than the minimum qualifying period, if the survivor

• Marginal note:R.S., c. 30 (2nd Supp.), s. 13(3)

  (4) Subparagraph 44(1)(e)(i) of the Act is replaced by the following:

  • (i) has made base contributions for not less than the minimum qualifying period,

• (5) Paragraph 44(1)(f) of the Act is replaced by the following:

  • (f) an orphan’s benefit shall be paid to each orphan of a deceased contributor who has made base contributions for not less than the minimum qualifying period; and

• Marginal note:2012, c. 31, s. 195(1)

  (6) The portion of paragraph 44(2)(a) of the Act before subparagraph (i) is replaced by the following:

  • (a) a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during the contributor’s contributory period on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),

• Marginal note:1997, c. 40, s. 69(4)

  (7) Subparagraph 44(2)(b)(iv) of the Act is replaced by the following:

  • (iv) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings are less than the basic exemption of the contributor for the year, calculated without regard to subsection 20(2).

• Marginal note:2009, c. 31, s. 32(2)

  (8) Subsection 44(2.1) of the Act is replaced by the following:

  • Marginal note:Proration — late applications for disability pensions

    (2.1) For the purpose of determining the minimum qualifying period of a contributor referred to in subparagraph (1)(b)(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the base unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12.

• Marginal note:2012, c. 31, s. 195(2)

  (9) The portion of subsection 44(2.2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Family allowance — late applications for disability pensions

    (2.2) A contributor referred to in subparagraph (1)(b)(ii) is deemed to have made base contributions for not less than the minimum qualifying period for the purpose of subparagraph (1)(b)(i) if

• Marginal note:2012, c. 31, s. 195(2)

  (10) Subparagraph 44(2.2)(b)(ii) of the Act is replaced by the following:

  • (ii) their base unadjusted pensionable earnings were less than their basic exemption, calculated without regard to subsection 20(2); and

• Marginal note:1991, c. 44, s. 4; 2012, c. 31, s. 195(3)

  (11) The portion of subsection 44(3) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Calculation for other supplementary benefits

    (3) For the purposes of paragraphs (1)(c), (d) and (f), a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during their contributory period

    • (a) for at least one third of the total number of years included either wholly or partly within their contributory period, excluding from the calculation of that contributory period any month in a year after the year in which the contributor reaches 65 years of age and for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for that year, but in no case for less than three years; or

Marginal note:R.S., c. 30 (2nd Supp.), s. 15

• 21 (1) Subsection 46(1) of the Act is replaced by the following:

  Marginal note:Amount of retirement pension

  • 46 (1) Subject to this section, a retirement pension payable to a contributor is a basic monthly amount equal to the aggregate of

    • (a) 25% of their average monthly pensionable earnings,

    • (b) 8.33% of their first additional monthly pensionable earnings, and

    • (c) 33.33% of their second additional monthly pensionable earnings.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 15

  (2) The portion of subsection 46(2) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Special case

    (2) Subject to this section, the portion referred to in paragraph (1)(a) of the basic monthly amount of a retirement pension payable to a former disability pension recipient in respect of whom a division under section 55 or 55.1 is approved either before or after the commencement of the retirement pension, if the division reduces the retirement pension otherwise payable, is calculated by dividing

    • (a) the aggregate of

      • (i) the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(a) that would be payable to the contributor had their base unadjusted pensionable earnings not been subject to the division, multiplied by the number of months that have been excluded from the contributor’s contributory period by reason of disability, and

      • (ii) the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(a) that would be payable following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with section 49

    by

22 The Act is amended by adding the following after section 48:

Marginal note:R.S., c. 30 (2nd Supp.), s. 17

23 Paragraph 49(d) of the Act is replaced by the following:

24 The Act is amended by adding the following after section 49:

25 The Act is amended by adding the following after section 50:

Marginal note:1997, c. 40, s. 71

• 26 (1) The portion of subsection 51(1) of the Act before the formula is replaced by the following:

  Marginal note:Pensionable earnings, or first or second additional pensionable earnings, for month

  • 51 (1) The pensionable earnings, first additional pensionable earnings or second additional pensionable earnings, as the case may be, of a contributor for a month (in this subsection referred to as the “particular month”) are an amount determined by the formula

• Marginal note:1997, c. 40, s. 71

  (2) The description of A in subsection 51(1) of the Act is replaced by the following:

  A

  is

  • (a) in the case of pensionable earnings, earnings for which the contributor is deemed by section 52 to have made a base contribution for the particular month;

  • (b) in the case of first additional pensionable earnings, earnings for which the contributor is deemed by section 52.1 to have made a first additional contribution for the particular month; or

  • (c) in the case of second additional pensionable earnings, earnings for which the contributor is deemed by section 52.2 to have made a second additional contribution for the particular month; and

• (3) Section 51 of the Act is amended by adding the following after subsection (1):

  • Marginal note:First additional pensionable earnings — 2019 to 2022

    (1.1) Despite subsection (1), the first additional pensionable earnings of a contributor for a month are an amount calculated as provided in subsection (1) multiplied

    • (a) for 2019, by 0.15;

    • (b) for 2020, by 0.3;

    • (c) for 2021, by 0.5; and

    • (d) for 2022, by 0.75.

• Marginal note:1997, c. 40, s. 71

  (4) The portion of subsection 51(2) of the Act before the formula is replaced by the following:

  • Marginal note:Exception

    (2) For the purposes of subsection (1), in the case of pensionable earnings, if the year referred to in the description of C is 1987 or earlier, the Maximum Pensionable Earnings Average for the year is calculated as if the Year’s Maximum Pensionable Earnings for a particular year before 1986 were calculated as the greatest multiple of $100 that is equal to or less than an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1986, which are $25,800, by the ratio

• Marginal note:1997, c. 40, s. 71

  (5) Subsection 51(3) of the Act is replaced by the following:

  • Marginal note:Pension Index before 1974

    (3) For the purposes of subsection (1), in the case of pensionable earnings, if the beginning of a period that is excluded from the contributor’s contributory period by reason of disability is in a year before 1974, in calculating the Pension Index for the year in which that period begins, paragraph 43.1(2)(a) of the Canada Pension Plan, R.S.C. 1970, c. C-5, as amended by section 24 of chapter 4 of the Statutes of Canada, 1974-75-76, is to be read without reference to the words “or 1.02 times the Pension Index for the preceding year, whichever is the lesser”.

Marginal note:R.S., c. 30 (2nd Supp.), s. 19

27 Section 52 of the Act is replaced by the following:

Marginal note:2009, c. 31, s. 35

• 28 (1) The portion of subsection 53(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Base unadjusted pensionable earnings for a year

  • 53 (1) Subject to section 54, the base unadjusted pensionable earnings of a contributor for a year are an amount equal to

• Marginal note:R.S., c. 30 (2nd Supp.), s. 20(1)

  (2) Subparagraph 53(1)(b)(i) of the Act is replaced by the following:

  • (i) the contributor’s earnings on which a base contribution has been made for the year under this Act, calculated as the aggregate of

    • (A) the contributor’s salary and wages on which a base contribution has been made for the year, and

    • (B) the amount of any base contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year,

• (3) The portion of subsection 53(1) of the Act after paragraph (c) is replaced by the following:

  whichever is the least, except that if the amount calculated as provided in paragraph (a) is equal to or less than the amount of the contributor’s basic exemption for the year, the contributor’s base unadjusted pensionable earnings for that year are deemed to be zero.

Marginal note:R.S., c. 30 (2nd Supp.), s. 21

29 Section 54 of the Act is replaced by the following:

Marginal note:R.S., c. 30 (2nd Supp.), s. 23; 2000, c. 12, ss. 48(2) and (3)

• 30 (1) Subsections 55.2(5) to (7) of the Act are replaced by the following:

  • Marginal note:Division of base unadjusted pensionable earnings

    (5) If there is a division under section 55.1, the base unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to base contributions made under this Act, determined in the same manner as the total pensionable earnings of a contributor attributable to base contributions made under this Act are determined in section 78, are to be added and then divided equally, and the base unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Division of first additional unadjusted pensionable earnings

    (5.1) If there is a division of first additional unadjusted pensionable earnings under section 55.1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the first additional unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Division of second additional unadjusted pensionable earnings

    (5.2) If there is a division of second additional unadjusted pensionable earnings under section 55.1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the second additional unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Effect of division of base unadjusted pensionable earnings

    (6) If there is a division of base unadjusted pensionable earnings under section 55.1 and under a provincial pension plan, for the purposes of benefit calculation and payment under this Act, the total unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their base unadjusted pensionable earnings attributed under subsection (5) and their unadjusted pensionable earnings attributed under a provincial pension plan.

  • Marginal note:Provincial pension plans

    (7) No division of base unadjusted pensionable earnings under section 55.1 is to be made for any month during which the persons subject to the division cohabited and for which either of them contributed to a provincial pension plan (and, for the purposes of this subsection, months during which the persons cohabited are to be determined in the prescribed manner), unless the unadjusted pensionable earnings attributed to the persons under the provincial pension plan are divided for that month in a manner substantially similar to that described in this section and section 55.1.

• Marginal note:2000, c. 12, s. 48(3)

  (2) The portion of subsection 55.2(8) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:No division

    (8) No division of base unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for a year in which the total base unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

• (3) Section 55.2 of the Act is amended by adding the following after subsection (8):

  • Marginal note:No division of first additional unadjusted pensionable earnings

    (8.1) No division of first additional unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for a year in which the total first additional unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

    • (b) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

    • (c) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

  • Marginal note:No division of second additional unadjusted pensionable earnings

    (8.2) No division of second additional unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

    • (b) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

• 31 (1) Paragraph 56(1)(b) of the Act is replaced by the following:

  • (b) 75% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

    • (i) the amount calculated as provided in subsection (3),

    • (ii) the amount calculated as provided in subsection (3.1), and

    • (iii) the amount calculated as provided in subsection (3.2).

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (2) Subsection 56(3) of the Act is replaced by the following:

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(i)

    (3) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(i) is equal to 25% of their average monthly pensionable earnings calculated as provided in subsections (4) and (5).

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(ii)

    (3.1) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(ii) is equal to 8.33% of their first additional monthly pensionable earnings calculated as provided in subsection (4.01).

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(iii)

    (3.2) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(iii) is equal to 33.33% of the contributor’s second additional monthly pensionable earnings calculated as provided in subsection (4.02).

• (3) Section 56 of the Act is amended by adding the following after subsection (4):

  • Marginal note:First additional monthly pensionable earnings

    (4.01) For the purpose of subsection (3.1), a contributor’s first additional monthly pensionable earnings are an amount calculated by

    • (a) in the case where their first additional contributory period is less than or equal to 480 months, dividing their total first additional pensionable earnings by 480; or

    • (b) in the case where their first additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest first additional pensionable earnings for a month by 480.

  • Marginal note:Second additional monthly pensionable earnings

    (4.02) For the purpose of subsection (3.2), a contributor’s second additional monthly pensionable earnings are an amount calculated by

    • (a) in the case where their second additional contributory period is less than or equal to 480 months, dividing their total second additional pensionable earnings by 480; or

    • (b) in the case where their second additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest second additional pensionable earnings for a month by 480.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (4) Paragraph 56(5)(d) of the Act is replaced by the following:

  • (d) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for the year.

• Marginal note:1991, c. 44, s. 10

  (5) The portion of subsection 56(6) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:If division of unadjusted pensionable earnings occurs

    (6) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(i), in the case of a contributor in respect of whom a division of unadjusted pensionable earnings takes place either before or after the commencement of the disability pension, if the division reduces the disability pension otherwise payable, is to be calculated by dividing

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (6) The portion of subparagraph 56(6)(a)(i) of the Act before clause (A) is replaced by the following:

  • (i) the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) before the division, multiplied by the aggregate of

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (7) Subparagraph 56(6)(a)(ii) of the Act is replaced by the following:

  • (ii) the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with subsection (5)

• 32 (1) Subparagraph 58(1)(a)(ii) of the Act is replaced by the following:

  • (ii) 37.5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

    • (A) the amount calculated as provided in subsection (3),

    • (B) the amount calculated as provided in subsection (3.1), and

    • (C) the amount calculated as provided in subsection (3.4),

• Marginal note:R.S., c. 30 (2nd Supp.), s. 26(2); 2000, c. 12, par. 64(b)

  (2) Paragraph 58(1)(b) of the Act is replaced by the following:

  • (b) in the case of a survivor who has reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, a basic monthly amount equal to 60% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

    • (i) the amount calculated as provided in subsection (3),

    • (ii) the amount calculated as provided in subsection (3.1), and

    • (iii) the amount calculated as provided in subsection (3.4).

• Marginal note:1997, c. 40, s. 76(1); 2000, c. 12, par. 64(c)

  (3) Subparagraphs 58(2)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) the aggregate of

    • (A) a flat rate benefit, calculated as provided in subsection (1.1), and

    • (B) the lesser of

      • (I) the amount determined by the formula

        C – D

        where

        C

        is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and

        D

        is the lesser of

        • (1) 40% of C, and

        • (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), and

      • (II) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

  • (ii) the amount determined by the formula

    C – D

    where

    C

    is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and

    D

    is the lesser of

    • (1) 40% of C, and

    • (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(b), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2), and

  • (iii) the amount determined by the formula

    C – D

    where

    C

    is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4), and

    D

    is the lesser of

    • (1) 40% of C, and

    • (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(c), without regard to subsections 46(3.1) to (6) and adjusted in accordance with subsection 45(2);

• Marginal note:1997, c. 40, s. 76(1); 2000, c. 12, par. 64(c)

  (4) Paragraphs 58(2)(c) and (d) of the Act are replaced by the following:

  • (c) in the case of a survivor who has reached 65 years of age and who was born after December 31, 1932 and whose retirement pension commences to be payable after December 31, 1997, the aggregate of

    • (i) the lesser of

      • (A) the amount determined by the formula

        A – B

        where

        A

        is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and

        B

        is the lesser of

        • (I) 40% of A, and

        • (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), and

      • (B) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

    • (ii) the amount determined by the formula

      A – B

      where

      A

      is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and

      B

      is the lesser of

      • (I) 40% of A, and

      • (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(b), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2), and

    • (iii) the amount determined by the formula

      A – B

      where

      A

      is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4), and

      B

      is the lesser of

      • (I) 40% of A, and

      • (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(c), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2);

    or

  • (d) in any other case, the aggregate of

    • (i) the lesser of

      • (A) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and

      • (B) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the average of the Year’s Maximum Pensionable Earnings for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, and for each of the two preceding years, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

    • (ii) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and

    • (iii) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4).

• Marginal note:1991, c. 44, s. 12(3)

  (5) The portion of subsection 58(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Calculation of portion of contributor’s retirement pension

    (3) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in paragraph 57(2)(a), (b) or (c), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which

• (6) Section 58 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Calculation of portion of contributor’s retirement pension

    (3.1) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.2), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(a) to (e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.

  • Marginal note:Calculation for purpose of subsection (3.1)

    (3.2) The amount to be calculated for the purpose of subsection (3.1) is equal to

    • (a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 8.33% of their first additional monthly pensionable earnings, or

    • (b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying

      • (i) an amount equal to 8.33% of their first additional monthly pensionable earnings,

      by

      • (ii) the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.

  • Marginal note:Calculation of first additional monthly pensionable earnings

    (3.3) For the purpose of subsection (3.2), the first additional monthly pensionable earnings of a contributor are an amount calculated as provided in section 48.1, and

    • (a) in the case of a contributor to whom a retirement pension was payable for the month in which they died, section 51 applies; or

    • (b) in the case of a contributor to whom no retirement pension was payable for the month in which they died, section 51 applies but the reference in that section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.

  • Marginal note:Calculation of portion of contributor’s retirement pension

    (3.4) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.5), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(a) to (e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.

  • Marginal note:Calculation for purpose of subsection (3.4)

    (3.5) The amount that is to be calculated for the purpose of subsection (3.4) is equal to

    • (a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 33.33% of their second additional monthly pensionable earnings, or

    • (b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying

      • (i) an amount equal to 33.33% of their second additional monthly pensionable earnings,

      by

      • (ii) the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.

  • Marginal note:Calculation of second additional monthly pensionable earnings

    (3.6) For the purpose of subsection (3.5), the second additional monthly pensionable earnings of a contributor are an amount calculated as provided in section 48.2, and

    • (a) in the case of a contributor to whom a retirement pension was payable for the month in which they died, section 51 applies; or

    • (b) in the case of a contributor to whom no retirement pension was payable for the month in which they died, section 51 applies but the reference in that section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.

• Marginal note:1997, c. 40, s. 76(2); 2000, c. 12, par. 64(d)

  (7) Paragraphs 58(6)(a) and (b) of the Act are replaced by the following:

  • (a) the aggregate of

    • (i) the greater of

      • (A) the flat rate benefit payable under subparagraph (1)(a)(i), and

      • (B) the flat rate benefit payable under paragraph 56(1)(a), and

    • (ii) the lesser of

      • (A) the aggregate of

        • (I) the greater of

          1 the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(B) and (C) had not been included in the calculation made under that subparagraph, and

          2 the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(ii) and (iii) had not been included in the calculation made under that paragraph, and

        • (II) 60% of the lesser of the amount described in sub-subclause (I)(1) and the amount described in sub-subclause (I)(2), and

      • (B) 75% of the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable,

  • (b) the aggregate of

    • (i) the greater of

      • (A) the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (C) had not been included in the calculation made under that subparagraph, and

      • (B) the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(i) and (iii) had not been included in the calculation made under that paragraph, and

    • (ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B), and

  • (c) the aggregate of

    • (i) the greater of

      • (A) the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (B) had not been included in the calculation made under that subparagraph, and

      • (B) the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(i) and (ii) had not been included in the calculation made under that paragraph, and

    • (ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B).

• (8) Subsection 58(8) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) 37.5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

    • (i) the amount calculated as provided in subsection (3.1), and

    • (ii) the amount calculated as provided in subsection (3.4).

Marginal note:2009, c. 31, s. 36

• 33 (1) Subsection 59.1(1) of the Act is replaced by the following:

  Marginal note:Amount of post-retirement benefit

  • 59.1 (1) A post-retirement benefit payable to a contributor is a basic monthly amount that is equal to the aggregate of the amounts calculated as provided in subsections (1.1), (3) and (5).

  • Marginal note:Calculation of portion of post-retirement benefit

    (1.1) Subject to subsections (2) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

    [(A × F/B) × C × D × E]/12

    where

    A

    is the amount determined under subsection 53(1) for the year before the year in which the post-retirement benefit commences to be payable;

    B

    is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

    C

    is 0.00625;

    D

    is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;

    E

    is the adjustment factor referred to in subsection 46(3) or (3.1), as the case may be, based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and

    F

    is the amount determined by the formula

    G/H

    where

    G

    is the amount of the earnings referred to in subparagraph 53(1)(b)(i), and

    H

    is the aggregate of the earnings referred to in subparagraph 53(1)(b)(i) and those referred to in subparagraph 53(1)(b)(ii).

• Marginal note:2009, c. 31, c. 36

  (2) The portion of subsection 59.1(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Base unadjusted pensionable earnings for year retirement pension becomes payable

    (2) For the purpose of the calculation under subsection (1.1), if the contributor’s base unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)(iii), the amount determined for A in that subsection is the greater of

• Marginal note:2009, c. 31, s. 36

  (3) Subsection 59.1(3) of the Act is replaced by the following:

  • Marginal note:Calculation of portion of post-retirement benefit

    (3) Subject to subsections (4) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

    [(A/B) × C × D × E]/12

    where

    A

    is the amount determined under subsection 53.1(1) for the year before the year in which the post-retirement benefit commences to be payable, except that

    • (a) if the post-retirement benefit commences in 2020, A is the amount for 2019, multiplied by 0.15,

    • (b) if the post-retirement benefit commences in 2021, A is the amount for 2020, multiplied by 0.3,

    • (c) if the post-retirement benefit commences in 2022, A is the amount for 2021, multiplied by 0.5, and

    • (d) if the post-retirement benefit commences in 2023, A is the amount for 2022, multiplied by 0.75;

    B

    is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

    C

    is 0.00208;

    D

    is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable; and

    E

    is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable.

  • Marginal note:First additional unadjusted pensionable earnings for year retirement pension becomes payable

    (4) For the purpose of the calculation under subsection (3), if the contributor’s first additional unadjusted pensionable earnings are earned in the year in which the first additional contributory period ends under paragraph 49.1(c), the amount determined for A in that subsection is the greater of

    • (a) zero, and

    • (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53.1(1).

  • Marginal note:Calculation of portion of post-retirement benefit

    (5) Subject to subsections (6) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

    [(A/B) × C × D × E]/12

    where

    A

    is the amount determined under section 53.2 for the year before the year in which the post-retirement benefit commences to be payable;

    B

    is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

    C

    is 0.00833;

    D

    is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable; and

    E

    is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable.

  • Marginal note:Second additional unadjusted pensionable earnings for year retirement pension becomes payable

    (6) For the purpose of the calculation under subsection (5), if the contributor’s second additional unadjusted pensionable earnings are earned in the year in which the second additional contributory period ends under paragraph 49.2(c), the amount determined for A in that subsection is the greater of

    • (a) zero, and

    • (b) the amount that is calculated by subtracting the Year’s Additional Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under section 53.2.

  • Marginal note:Adjustment factor for contributors — 70 years of age or older

    (7) For the purposes of the calculations under subsections (1.1), (3) and (5), if the contributor is 70 years of age or older, the adjustment factor referred to in E in each of those subsections is that of a contributor who is 70 years of age.

• 34 (1) Subsection 65.1(8) of the Act is amended by adding the following in alphabetical order:

  first additional joint contributory period

  first additional joint contributory period means the period commencing on January 1, 2019 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

  • (a) if both spouses or common-law partners are contributors, with the month in which the later of their respective first additional contributory periods ends; or

  • (b) if only one spouse or common-law partner is a contributor, with the later of

    • (i) the month in which the contributor’s first additional contributory period ends, and

    • (ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved; (première période cotisable conjointe supplémentaire)

  second additional joint contributory period

  second additional joint contributory period means the period commencing on January 1, 2024 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

  • (a) if both spouses or common-law partners are contributors, with the month in which the later of their respective second additional contributory periods ends; or

  • (b) if only one spouse or common-law partner is a contributor, with the later of

    • (i) the month in which the contributor’s second additional contributory period ends, and

    • (ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved. (deuxième période cotisable conjointe supplémentaire)

• Marginal note:2000, c. 12, s. 52(2)

  (2) Subsection 65.1(9) of the Act is replaced by the following:

  • Marginal note:Portion of pension assignable

    (9) The portion of a contributor’s retirement pension to be assigned to the contributor’s spouse or common-law partner under this section is an amount equal to the aggregate of

    • (a) an amount calculated by multiplying

      • (i) the amount of the portion of the contributor’s retirement pension calculated as provided in paragraph 46(1)(a) and adjusted in accordance with section 45, by

      • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the joint contributory period,

    • (b) an amount calculated by multiplying

      • (i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(b) and adjusted in accordance with section 45, by

      • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the first additional joint contributory period, and

    • (c) an amount calculated by multiplying

      • (i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(c) and adjusted in accordance with section 45, by

      • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the second additional joint contributory period.

35 Paragraph 77(a) of the Act is replaced by the following:

Marginal note:2012, c. 31, s. 201(1)

36 The portion of section 78 of the Act before paragraph (b) is replaced by the following:

Marginal note:R.S., c. 30 (2nd Supp.), s. 43

37 Section 79 of the Act is replaced by the following:

38 Subsection 80(3) of the Act is replaced by the following:

• 39 (1) Paragraph 89(1)(e) of the Act is replaced by the following:

  • (e) respecting the determination of disability subject to this Part and the conditions on which any amount as or on account of a benefit in respect of the disability of a person shall be paid or shall continue to be paid, including the initial and subsequent periodic or other assessments of that disability and the reasonable rehabilitation measures to be undergone by that person, and providing for the payment out of the Consolidated Revenue Fund of the cost of any such assessments of disability and rehabilitation measures and for the charging of the amount of the payment to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be, as a cost of administration of this Act;

• Marginal note:1991, c. 44, s. 23

  (2) Paragraph 89(1)(j) of the Act is replaced by the following:

  • (j) providing, in any case or class of cases not covered by the provisions of an agreement under subsection 80(1), for the issue of cheques by the Government of Canada in the amount of any benefit payable under this Act to or in respect of a contributor and in the amount of any like benefit payable under a provincial pension plan to or in respect of the same contributor, or for the payment by other means by the Government of Canada of such an amount, if arrangements satisfactory to the Governor in Council have been made with the government of that province for the issue of cheques, or for the payment by other means, by that government on a reciprocal basis and for the making of any financial adjustments by that government required to be made by reason of those arrangements, and providing for the making of any financial adjustments by the Government of Canada required to be made by reason of those arrangements and for the crediting or charging of the amount of the adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be;

40 Section 91 of the Act is amended by adding the following in alphabetical order:

41 Subsection 98(3) of the Act is replaced by the following:

Marginal note:2012, c. 19, s. 306

42 Paragraph 99(2)(b) of the Act is replaced by the following:

43 Subsection 107(3) of the Act is replaced by the following:

• 44 (1) Paragraph 108(2)(a) of the Act is replaced by the following:

  • (a) all amounts received under this Act as or on account of contributions under subsections 8(1), 9(1) and 10(1) or otherwise on account of the base Canada Pension Plan;

• Marginal note:1995, c. 33, s. 46(1); 1997, c. 40, s. 89(1)

  (2) Paragraphs 108(2)(c) to (g) of the Act are replaced by the following:

  • (d) any amount of money received under section 107.1 on account of the base Canada Pension Plan and any proceeds from the disposition of any securities or other property received under that section on account of the base Canada Pension Plan;

  • (e) all amounts charged for the use of resources that are associated with the administration of this Act in relation to the base Canada Pension Plan;

  • (f) any interest or administrative charge collected in relation to money payable under this Act in relation to the base Canada Pension Plan; and

  • (g) all amounts received under subsection 56(1) of the Canada Pension Plan Investment Board Act.

• (3) Paragraph 108(3)(a) of the Act is replaced by the following:

  • (a) all amounts payable under this Act in relation to the base Canada Pension Plan as or on account of benefits or otherwise;

• (4) Paragraph 108(3)(c) of the Act is replaced by the following:

  • (c) the costs of administration of this Act in relation to the base Canada Pension Plan, under the authority of Parliament;

• Marginal note:2012, c. 19, s. 234(2); 2013, c. 40, subpar. 236(1)(b)(iv)

  (5) Paragraph 108(3)(e) of the Act is replaced by the following:

  • (e) the costs, in relation to the base Canada Pension Plan, of administering Part 5 of the Department of Employment and Social Development Act in respect of appeals respecting this Act.

• Marginal note:2003, c. 5, s. 2

  (6) Paragraph 108(4)(b) of the Act is replaced by the following:

  • (b) the fair market value of the assets of the Investment Board less its liabilities, in relation to the base Canada Pension Plan.

Marginal note:2003, c. 5, s. 3

45 Subsection 108.1(2) of the Act is replaced by the following:

46 The Act is amended by adding the following after section 108.1:

Marginal note:2003, c. 5, s. 5

47 Section 110 of the Act is replaced by the following:

Marginal note:1997, c. 40, s. 91; 2003, c. 5, s. 8

48 Subsection 112(1) of the Act is replaced by the following:

Marginal note:1997, c. 40, s. 92

• 49 (1) Paragraphs 113(2)(a) and (b) of the Act are replaced by the following:

  • (a) the total amount of all contributions credited to the Canada Pension Plan Account and the Additional Canada Pension Plan Account, to the day on which the regulation referred to in subsection (1) became effective, in respect of employment in that province or in respect of self-employed earnings of persons resident in that province, and

  • (b) the part of the net investment return of the Investment Board and all interest credited to or accrued to the credit of the Canada Pension Plan Account and the Additional Canada Pension Plan Account, to the day on which the regulation referred to in subsection (1) became effective, that is derived from the contributions referred to in paragraph (a),

• (2) Paragraph 113(2)(d) of the Act is replaced by the following:

  • (d) the part of the costs of administration of this Act, to the day on which the regulation referred to in subsection (1) became effective, that is equal to the proportion of those costs that the total amount of the contributions referred to in paragraph (a) is of the total amount of all contributions credited to the Canada Pension Plan Account and the Additional Canada Pension Plan Account to that day.

Marginal note:1997, c. 40, s. 94(1)

• 50 (1) Subsection 113.1(1) of the Act is replaced by the following:

  Marginal note:Review every three years

  • 113.1 (1) Once every three years after 1997, the Minister of Finance and ministers of the Crown from the included provinces shall review the financial state of the Canada Pension Plan and may make recommendations as to whether benefits, contribution rates, first additional contribution rates or second additional contribution rates should be changed.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 56; 1997, c. 40, s. 94(4)

  (2) Subparagraphs 113.1(4)(b)(i) to (iv) of the Act are replaced by the following:

  • (i) the outstanding balance of the Canada Pension Plan Account and the Additional Canada Pension Plan Account,

  • (ii) the projected revenues into and payments out of the Canada Pension Plan Account and the Additional Canada Pension Plan Account,

  • (iii) the ratio of the projected assets over the projected expenditures of the base Canada Pension Plan and the additional Canada Pension Plan, and

  • (iv) the changes, if any, to the amounts and ratios projected at the previous review under this section attributable to changing demographic and economic circumstances or to changes to the base Canada Pension Plan or the additional Canada Pension Plan affecting payments or contributions under the Canada Pension Plan;

• Marginal note:1997, c. 40, s. 94(5); 2007, c. 11, s. 12(1)

  (3) Paragraphs 113.1(4)(c) and (d) of the Act are replaced by the following:

  • (c) the financing objective, for the base Canada Pension Plan, of having a contribution rate, without taking into account the changes, if any, referred to in paragraph (e) for which the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) exceeds zero, that is no lower than the rate

    • (i) that, beginning with the year 2003, is the lowest constant rate that can be maintained over the foreseeable future, and

    • (ii) that results in the ratio of the projected assets of the base Canada Pension Plan at the end of any given year over the projected expenditures of the base Canada Pension Plan in the following year being generally constant;

  • (d) the financing objective, for the additional Canada Pension Plan, of having additional contribution rates, without taking into account the changes, if any, referred to in paragraph (e) for which the additional contribution rates most recently calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) exceed zero, that are no lower than the rates

    • (i) that, beginning with the year 2024, are the lowest constant rates that can be maintained over the foreseeable future, and

    • (ii) that result in projected contributions and investment income that are sufficient to fully pay the projected expenditures of the additional Canada Pension Plan over the foreseeable future; and

  • (e) that changes to the Act that increase benefits or add new benefits must be accompanied by a permanent increase in the contribution rates under this Act to cover the extra costs of the increased or new benefits and by a temporary increase in the contribution rates under this Act for a number of years that is consistent with common actuarial practice to fully pay any unfunded liability resulting from the increased or new benefits.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 56; 1997, c. 40, s. 94(6)

  (4) Subsections 113.1(5) to (7) of the Act are replaced by the following:

  • Marginal note:Recommendations made on completion of review

    (5) On the completion of a review required by subsection (1), the Minister of Finance may recommend to the Governor in Council that the Governor in Council make regulations under subsection (6) to amend Schedule 1 or 2 to give effect to any recommendations made under subsection (1). If the recommendations made under subsection (1) are that no changes be made to benefits, contribution rates, first additional contributions rates or second additional contribution rates, the Minister of Finance shall cause those recommendations to be published in the Canada Gazette.

  • Marginal note:Regulation to change rates

    (6) Subject to subsections (7) and (8), the Governor in Council may, on the recommendation of the Minister of Finance made under subsection (5), by regulation amend Schedule 1 or 2 to change the contribution rates, first additional contribution rates or second additional contribution rates for any or all of the years following the review.

  • Marginal note:Limitation on changes

    (7) The following shall apply with respect to any changes to and setting of the rates under subsection (6):

    • (a) the rates for employees and employers for a year must be identical;

    • (b) the rates for self-employed persons for a year must be equal to the sum of the rates for employees and employers for that year;

    • (c) no rate for employees and employers for a year may be increased by more than one-tenth of a percentage point above the rate for the previous year; and

    • (d) no rate for self-employed persons for a year may be increased by more than two-tenths of a percentage point above the rate for the previous year.

• Marginal note:1997, c. 40, s. 94(8)

  (5) Paragraph 113.1(11.05)(a) of the Act is replaced by the following:

  • (a) the amount of the benefits payable in respect of the base Canada Pension Plan in the three-year period shall be determined as if the ratios referred to in paragraphs 45(2)(b) and 56(2)(c), subsection 58(1.1) and subparagraph 59(c)(ii) were each 1; and

• Marginal note:1997, c. 40, s. 94(8)

  (6) The portion of paragraph 113.1(11.05)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) Schedule 1 is deemed to have been amended as of the next day after that October 1

• Marginal note:1997, c. 40, s. 94(8); 2007, c. 11, s. 12(6)

  (7) Subsections 113.1(11.15) and (12) of the Act are replaced by the following:

  • Marginal note:Deemed changes to rates — additional Canada Pension Plan

    (11.141) Subject to subsection (11.143), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), either of the following conditions is met, Schedule 2 is deemed to have been amended as of the next day after that October 1 to change the first additional contribution rates or second additional contribution rates, if required, in accordance with the calculations set out in the regulations:

    • (a) the difference between the first additional contribution rate most recently calculated under paragraph 115(1.1)(d) and the first additional contribution rate for self-employed persons set out in Schedule 2 for a prescribed year is not within the range set out in the regulations; and

    • (b) the difference between the second additional contribution rate most recently calculated under paragraph 115(1.1)(e) and the second additional contribution rate for self-employed persons set out in Schedule 2 for a prescribed year is not within the range set out in the regulations.

  • Marginal note:Determination of benefits — additional Canada Pension Plan

    (11.142) Subject to subsection (11.143), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), either of the conditions set out in paragraphs (11.141)(a) and (b) is met, the portions of benefits under this Act in respect of the additional Canada Pension Plan for the three-year period shall be determined in accordance with the regulations.

  • Marginal note:Non-application of subsections (11.141) and (11.142)

    (11.143) Subsections (11.141) and (11.142) do not apply if

    • (a) a recommendation was made under subsection (1) in the three years before the three-year period referred to in subsection (11.141) that the first additional contribution rates or second additional contribution rates for one or more of the years in that three-year period be changed and the rates were changed before October 1 of the year before that three-year period, by an Act of Parliament or by a regulation made under subsection (6), to give effect to that recommendation; or

    • (b) a recommendation was made under subsection (1) in the three years before the three-year period referred to in subsection (11.141) that the first additional contribution rates or second additional contribution rates for the years in that three-year period not be changed and the Minister of Finance before October 1 of the year before that three-year period has caused that recommendation to be published in the Canada Gazette.

  • Marginal note:Regulations

    (11.144) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations respecting

    • (a) the calculation of deemed changes to rates for the purposes of subsection (11.141);

    • (b) the determination of the ranges referred to in paragraphs (11.141)(a) and (b); and

    • (c) the determination of portions of benefits for the purposes of subsection (11.142).

  • Marginal note:Provincial consent

    (11.145) Regulations under subsection (11.144) may only be made if the lieutenant governor in council of each of at least two thirds of the included provinces, having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province.

  • Marginal note:Rates to be published

    (11.15) The Minister of Finance shall publish in the Canada Gazette any amendment to Schedule 1 or 2 deemed to have been made under this section.

  • Marginal note:Non-application of subsection 114(2)

    (12) For greater certainty, subsection 114(2) does not apply to any amendment to Schedule 1 or 2 made under subsection (6), (11.05) to (11.11) or (11.141).

Marginal note:1997, c. 40, s. 95(1)

• 51 (1) Subsection 114(2) of the Act is replaced by the following:

  • Marginal note:Effective date of major amendments

    (2) If any enactment of Parliament contains any provision that alters, or the effect of which is to alter, either directly or indirectly and either immediately or in the future, the general level of benefits provided by this Act or the contribution rate, first additional contribution rate or second additional contribution rate for employees, employers or self-employed persons for any year, it shall be deemed to be a term of that enactment, whether or not it is expressly stated in the enactment, that the provision shall come into force only on a day to be fixed by order of the Governor in Council, which day shall not in any case be earlier than the first day of the third year following the year in which any notice of intention to introduce a measure containing a provision to that effect was laid before Parliament.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 57(2)

  (2) Paragraph 114(4)(c) of the Act is replaced by the following:

  • (c) the contribution rate, first additional contribution rate or second additional contribution rate for employees, employers or self-employed persons for any year,

• Marginal note:2003, c. 5, s. 10

  (3) Paragraph 114(4)(e) of the Act is replaced by the following:

  • (e) the management or operation of the Canada Pension Plan Account or the Additional Canada Pension Plan Account, or

• Marginal note:2007, c. 11, s. 13

  (4) Subsection 114(4.1) of the Act is replaced by the following:

  • Marginal note:Exception

    (4.1) Subsections (2) and (4) do not apply in respect of changes under any of subsections 113.1(11.05) to (11.11), (11.141) or (11.142) to benefits, contribution rates, first additional contribution rates or second additional contribution rates.

Marginal note:1997, c. 40, s. 96(1)

• 52 (1) Subsection 115(1) of the Act is replaced by the following:

  Marginal note:Report of Chief Actuary

  • 115 (1) The Chief Actuary of the Office of the Superintendent of Financial Institutions shall, during the first year of each three-year period for which a review is required by subsection 113.1(1), prepare a report setting out, as at a date not earlier than December 31 of the year before the three-year period, the results of an actuarial examination of the operation of this Act based on the state of the Canada Pension Plan Account, the Additional Canada Pension Plan Account and the investments of the Investment Board.

• Marginal note:1997, c. 40, s. 96(1)

  (2) Paragraph 115(1.1)(a) of the Act is replaced by the following:

  • (a) state, for each of the 30 years immediately following the date of the examination,

    • (i) the estimated revenues of the Canada Pension Plan Account and the estimated investment income of the Investment Board in respect of the base Canada Pension Plan, and the estimated amount of all payments under subsection 108(3), and

    • (ii) the estimated revenues of the Additional Canada Pension Plan Account and the estimated investment income of the Investment Board in respect of the additional Canada Pension Plan, and the estimated amount of all payments under subsection 108.2(3);

• Marginal note:1997, c. 40, s. 96(1); 2007, c. 11, s. 14

  (3) Paragraphs 115(1.1)(c) to (d) of the Act are replaced by the following:

  • (c) in respect of the base Canada Pension Plan, specify a contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

    • (i) a contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

    • (ii) a contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) in respect of the base Canada Pension Plan;

  • (d) in respect of the additional Canada Pension Plan, specify a first additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

    • (i) a first additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the first additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

    • (ii) a first additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) that affect the first additional contribution rate;

  • (e) in respect of the additional Canada Pension Plan, specify a second additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

    • (i) a second additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the second additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

    • (ii) a second additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) that affect the second additional contribution rate;

  • (f) specify the rates referred to in subparagraphs (c)(i) and (ii), (d)(i) and (ii) and (e)(i) and (ii) and set out the manner in which those rates were calculated.

• Marginal note:1997, c. 40, s. 96(1)

  (4) Subsections 115(1.2) and (1.3) of the Act are replaced by the following:

  • Marginal note:Relationship between rates

    (1.2) For the purposes of the calculations referred to in paragraphs (1.1)(c) to (e),

    • (a) the rates for employees and employers for a year must be identical; and

    • (b) the rates for self-employed persons for a year must be equal to the sum of the rates for employees and employers for that year.

  • Marginal note:Application of subsection 114(4)

    (1.3) Subsection 114(4) applies, with any modifications that the circumstances require, to the making of the regulations prescribing the manner of the calculation referred to in paragraphs (1.1)(c) to (e) and to the making of any regulation changing that manner of calculation.

53 Subsection 118(1) of the Act is replaced by the following:

Marginal note:1997, c. 40, s. 98

54 The schedule to the Act is renumbered as Schedule 1.

55 Schedule 1 to the Act is amended by replacing the references after the heading “SCHEDULE 1” with the following:

56 The Act is amended by adding, after Schedule 1, the Schedule 2 that is set out in the schedule to this Act.

1997, c. 40Canada Pension Plan Investment Board Act

Marginal note:2003, c. 5, s. 13

57 Paragraph 5(b) of the Canada Pension Plan Investment Board Act is replaced by the following:

58 Section 39 of the Act is amended by adding the following after subsection (7):

59 The heading before section 56 of the Act is replaced by the following:

Marginal note:2003, c. 5, s. 18

60 Subsection 56(1) of the Act is replaced by the following:

61 Section 57 of the Act is replaced by the following:

Transitional Provisions

Marginal note:Definitions

62 The following definitions apply in sections 63 and 64.

additional Canada Pension Plan

additional Canada Pension Plan has the same meaning as in section 91 of the Canada Pension Plan. (régime de pensions supplémentaire du Canada)

Additional Canada Pension Plan Account

Additional Canada Pension Plan Account means the account established under subsection 108.2(1) of the Canada Pension Plan. (compte supplémentaire du régime de pensions du Canada)

Canada Pension Plan Account

Canada Pension Plan Account means the account established under subsection 108(1) of the Canada Pension Plan. (compte du régime de pensions du Canada)

Minister

Minister means the Minister of Employment and Social Development. (ministre)

Marginal note:Initial costs of administration

• 63 (1) Despite paragraphs 108.2(3)(c), (d) and (f) of the Canada Pension Plan, until a date determined by the Minister, the costs of administration in relation to the additional Canada Pension Plan must be paid out of the Consolidated Revenue Fund and charged to the Canada Pension Plan Account. The date determined by the Minister must not be later than December 31, 2020.

• Marginal note:Interest

  (2) The Minister of Finance must calculate interest, at rates determined by that Minister, on any amount paid out of the Consolidated Revenue Fund under subsection (1). Interest must be calculated for the period beginning on the day on which the amount is paid out of the Consolidated Revenue Fund under subsection (1) and ending on the day on which the amount is credited to the Canada Pension Plan Account under subsection (3).

• Marginal note:Amounts credited to Canada Pension Plan Account

  (3) After the date determined by the Minister under subsection (1) but before March 31, 2021, all amounts charged to the Canada Pension Plan Account under subsection (1) and all interest calculated under subsection (2) must be credited to the Canada Pension Plan Account and charged to the Additional Canada Pension Plan Account.

Marginal note:Initial administration costs — Investment Board

• 64 (1) Despite section 57.1 of the Canada Pension Plan Investment Board Act, until the date determined under subsection 63(1), the administration costs referred to in that section 57.1 must be paid out of the Consolidated Revenue Fund and charged to the Canada Pension Plan Account.

• Marginal note:Interest

  (2) The Minister of Finance must calculate interest, at rates determined by that Minister, on any amount paid out of the Consolidated Revenue Fund under subsection (1). Interest must be calculated for the period beginning on the day on which the amount is paid out of the Consolidated Revenue Fund under subsection (1) and ending on the day on which the amount is credited to the Canada Pension Plan Account under subsection (3).

• Marginal note:Amounts credited to Canada Pension Plan Account

  (3) After the date referred to in subsection (1) but before March 31, 2021, all amounts charged to the Canada Pension Plan Account under subsection (1) and all interest calculated under subsection (2) must be credited to the Canada Pension Plan Account and charged to the Additional Canada Pension Plan Account.

Coming into Force

Marginal note:Subsection 114(2) of Canada Pension Plan does not apply

• 65 (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in this Part.

• Marginal note:Order in council

  (2) This Part comes into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.

PART 2R.S., c. 1 (5th Supp.)Related Amendments to the Income Tax Act

• 66 (1) Paragraph 60(e) of the Income Tax Act is replaced by the following:

  • Marginal note:CPP/QPP contributions on self-employed earnings

    (e) the total of

    • (i) 1/2 of the lesser of

      • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

      • (B) the maximum amount of such contributions payable by the taxpayer for the year under the plan, and

    • (ii) the lesser of

      • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.1) or (1.2) of the Canada Pension Plan, and

      • (B) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

  • Marginal note:Enhanced CPP contributions

    (e.1) the lesser of

    • (i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.1) or (1.2) of the Canada Pension Plan, and

    • (ii) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

• (2) Subsection (1) comes into force on January 1, 2019.

• 67 (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Annual adjustment

  • 117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1) and subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a), the amounts of $1,192 and $2,165 referred to in the description of A, and the amounts of $10,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $462.50 referred to in the description of C, and the amounts of $20,844 and $32,491 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

  • (2) Subsection (1) applies to the 2019 and subsequent taxation years, except that the adjustment provided for in subsection 117.1(1) of the Act, as amended by subsection (1), does not apply for the 2019 taxation year in respect of the amounts of $1,192, $2,165, $20,844 and $32,491.

• 68 (1) Paragraph (b) of the description of B in section 118.7 of the Act is replaced by the following:

  • (b) the total of all amounts each of which is an amount payable by the individual for the year as an employee’s contribution under subsection 8(1) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the individual for the year under the plan, and

• (2) Subsection (1) comes into force on January 1, 2019.

• 69 (1) The descriptions of A and B in subsection 122.7(2) of the Act are replaced by the following:

  A

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $1,192 and 26% of the amount, if any, by which the individual’s working income for the taxation year exceeds $3,000, or

  • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $2,165 and 26% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $3,000; and

  B

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 14% of the amount, if any, by which the adjusted net income of the individual for the taxation year exceeds $10,500, or

  • (b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 14% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $14,500.

• (2) The descriptions of C and D in subsection 122.7(3) of the Act are replaced by the following:

  C

  is the lesser of $462.50 and 26% of the amount, if any, by which the individual’s working income for the taxation year exceeds $1,150; and

  D

  is

  • (a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 14% of the amount, if any, by which the individual’s adjusted net income for the taxation year exceeds $20,844,

  • (b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 14% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $32,491, or

  • (c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 7% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $32,491.

• (3) Subsections (1) and (2) come into force on January 1, 2019.