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)
Full Document:
Assented to 2016-12-15
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
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:First additional monthly pensionable earnings
48.1 The first additional monthly pensionable earnings of a contributor 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
48.2 The second additional monthly pensionable earnings of a contributor 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. 17
23 Paragraph 49(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.
24 The Act is amended by adding the following after section 49:
Marginal note:First additional contributory period
49.1 The first additional contributory period of a contributor is the period commencing January 1, 2019 or when they reach 18 years of age, whichever is the later, and ending with the earliest of
(a) the month preceding the month in which they reach 70 years of age,
(b) the month in which they die, and
(c) the month preceding the month in which the retirement pension commences.
Marginal note:Second additional contributory period
49.2 The second additional contributory period of a contributor is the period commencing January 1, 2024 or when they reach 18 years of age, whichever is the later, and ending with the earliest of
25 The Act is amended by adding the following after section 50:
Marginal note:Total first additional pensionable earnings
50.1 The total first additional pensionable earnings of a contributor are the total for all months in their first additional contributory period of their first additional pensionable earnings for each month calculated as provided in section 51.
Marginal note:Total second additional pensionable earnings
50.2 The total second additional pensionable earnings of a contributor are the total for all months in their second additional contributory period of their second additional pensionable earnings for each month calculated as provided in section 51.
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
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”.
- Date modified: