An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (S.C. 2016, c. 14)

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.