Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)
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Assented to 2018-06-21
PART 6Various Measures (continued)
DIVISION 19R.S., c. C-8Canada Pension Plan (continued)
Amendments to the Act (continued)
373 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, except in the case where the contributor is considered to be disabled for the purposes of this Act or a provincial pension plan during the particular month, for the calculation of a pension or benefit other than a disability pension, the greatest of the following amounts:
(i) the value determined in accordance with section 51.1 multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12,
(ii) the highest of any value determined in accordance with section 51.1 for any of the 72 months before the month in which the contributor was deemed to have become disabled, multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12, and
(iii) the 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 except in the case where the contributor is considered to be disabled for the purposes of this Act or a provincial pension plan during the particular month, for the calculation of a pension or benefit other than a disability pension, the greatest of the following amounts:
(i) the value determined in accordance with section 51.2 multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12,
(ii) the highest of any value determined in accordance with section 51.2 for any of the 72 months before the month in which the contributor was deemed to have become disabled, multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12, and
(iii) the earnings for which the contributor is deemed by section 52.2 to have made a second additional contribution for the particular month; and
374 The Act is amended by adding the following after section 51:
Marginal note:Value determined — disabled contributor’s first additional contributory period
51.1 For each month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, a value shall be determined by the formula
[[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F) + (M7 × G)]/R] × 0.7
where
- A
- is, in respect of the sixth year before the year in which they were deemed to have become disabled, the greater of
- B
- is, in respect of the fifth year before the year in which they were deemed to have become disabled, the greater of
- C
- is, in respect of the fourth year before the year in which they were deemed to have become disabled, the greater of
- D
- is, in respect of the third year before the year in which they were deemed to have become disabled, the greater of
- E
- is, in respect of the second year before the year in which they were deemed to have become disabled, the greater of
- F
- is, in respect of the year before the year in which they were deemed to have become disabled, the greater of
- G
- is, in respect of the year in which they were deemed to have become disabled, the greater of
(a) the following number:
(i) in the case where the contributor was deemed to have become disabled in January, zero, or
(ii) in any other case, the lesser of 1 and the number determined by the formula
H/[I × (M7/12)]
where
- H
- is the first additional unadjusted pensionable earnings for that year, and
- I
- is the Year’s Maximum Pensionable Earnings for that year, and
(b) any value that was determined in accordance with this section for a month in that year;
- M1
- is the lesser of
- M2
- is the number of months in the contributor’s first additional contributory period in the fifth year before the year in which they were deemed to have become disabled;
- M3
- is the number of months in the contributor’s first additional contributory period in the fourth year before the year in which they were deemed to have become disabled;
- M4
- is the number of months in the contributor’s first additional contributory period in the third year before the year in which they were deemed to have become disabled;
- M5
- is the number of months in the contributor’s first additional contributory period in the second year before the year in which they were deemed to have become disabled;
- M6
- is the number of months in the contributor’s first additional contributory period in the year before the year in which they were deemed to have become disabled;
- M7
- is the number of months in the contributor’s first additional contributory period in the year in which they were deemed to have become disabled that are before the month in which they were deemed to have become disabled; and
- R
- is the greater of 1 and the number of months determined by the formula
M1 + M2 + M3 + M4 + M5 + M6 + M7
Marginal note:Value determined — disabled contributor’s second additional contributory period
51.2 For each month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, a value shall be determined by the formula
[[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F) + (M7 × G)]/R] × 0.7
where
- A
- is, in respect of the sixth year before the year in which they were deemed to have become disabled, the greater of
- B
- is, in respect of the fifth year before the year in which they were deemed to have become disabled, the greater of
- C
- is, in respect of the fourth year before the year in which they were deemed to have become disabled, the greater of
- D
- is, in respect of the third year before the year in which they were deemed to have become disabled, the greater of
- E
- is, in respect of the second year before the year in which they were deemed to have become disabled, the greater of
- F
- is, in respect of the year before the year in which they were deemed to have become disabled, the greater of
- G
- is, in respect of the year in which they were deemed to have become disabled, the greater of
(a) the following number:
(i) in the case where the contributor was deemed to have become disabled in January, zero, or
(ii) in any other case, the lesser of 1 and the number determined by the formula
H/[I × (M7/12)]
where
- H
- is the second additional unadjusted pensionable earnings for that year, and
- I
- is the Year’s Maximum Pensionable Earnings for that year, and
(b) any value that was determined in accordance with this section for a month in that year;
- M1
- is the lesser of
- M2
- is the number of months in the contributor’s second additional contributory period in the fifth year before the year in which they were deemed to have become disabled;
- M3
- is the number of months in the contributor’s second additional contributory period in the fourth year before the year in which they were deemed to have become disabled;
- M4
- is the number of months in the contributor’s second additional contributory period in the third year before the year in which they were deemed to have become disabled;
- M5
- is the number of months in the contributor’s second additional contributory period in the second year before the year in which they were deemed to have become disabled;
- M6
- is the number of months in the contributor’s second additional contributory period in the year before the year in which they were deemed to have become disabled;
- M7
- is the number of months in the contributor’s second additional contributory period in the year in which they were deemed to have become disabled that are before the month in which they were deemed to have become disabled; and
- R
- is the greater of 1 and the number of months determined by the formula
M1 + M2 + M3 + M4 + M5 + M6 + M7
Marginal note:Time when contributor deemed disabled
51.3 For the purposes of sections 51.1 and 51.2 and despite paragraph 42(2)(b), a contributor is deemed to have become disabled at the time that is determined in the prescribed manner to be the time when the contributor became disabled, without regard to the time when their application was made.
- Date modified: