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Canada Pension Plan (R.S.C., 1985, c. C-8)

Full Document:  

Act current to 2022-07-13 and last amended on 2020-03-01. Previous Versions

PART IIPensions and Supplementary Benefits (continued)

DIVISION BCalculation of Benefits (continued)

Disabled Contributor’s Child’s Benefit and Orphan’s Benefit

Marginal note:Amount of benefit

 A disabled contributor’s child’s benefit payable to the child of a disabled contributor and an orphan’s benefit payable to the orphan of a contributor is a basic monthly amount consisting of

  • (a) in the year 1991, one hundred and thirteen dollars and fourteen cents;

  • (b) in the year 1992, the aggregate of

    • (i) one hundred and thirteen dollars and fourteen cents, multiplied by the ratio referred to in subparagraph (c)(ii), and

    • (ii) thirty-five dollars; or

  • (c) in the year 1993 or any subsequent year, an amount calculated by multiplying

    • (i) the amount of the benefit that would have been payable for a month in the year preceding that year

    by

    • (ii) the ratio that the Pension Index for the year in which the benefit commences to be payable bears to the Pension Index for the year preceding that year.

  • R.S., 1985, c. C-8, s. 59
  • R.S., 1985, c. 30 (2nd Supp.), s. 27
  • 1991, c. 44, s. 13

Post-retirement Benefit

Marginal note:Amount of post-retirement benefit

  •  (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: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

    • (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).

  • 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 × F/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;
    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; 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(1)(b)(i), and
    H
    is the aggregate of the earnings referred to in subparagraph 53.1(1)(b)(i) and those referred to in subparagraph 53.1(1)(b)(ii).
  • 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 × F/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;
    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; and
    F
    is the amount determined by the formula

    G/H

    where

    G
    is the amount of the earnings referred to in subparagraph 53.2(1)(b)(i), and
    H
    is the aggregate of the earnings referred to in subparagraph 53.2(1)(b)(i) and those referred to in subparagraph 53.2(1)(b)(ii).
  • 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.

  • 2009, c. 31, s. 36
  • 2016, c. 14, s. 33
  • 2018, c. 12, s. 384

Post-retirement Disability Benefit

Marginal note:Amount of benefit

 A post-retirement disability benefit payable to a contributor is a basic monthly amount that is

  • (a) in the case of a benefit payable for a month in the year 2019, an amount calculated by multiplying

    • (i) $485.20

    by

    • (ii) the ratio that the Pension Index for 2019 bears to the Pension Index for 2018; and

  • (b) in the case of a benefit payable for a month in the year 2020 or any subsequent year, an amount calculated by multiplying

    • (i) the amount of the benefit that would have been payable for a month in the year preceding that year

    by

    • (ii) the ratio that the Pension Index for the year in which the benefit is payable bears to the Pension Index for the year preceding that year.

  • 2018, c. 12, s. 385

DIVISION CPayment of Benefits: General Provisions

Marginal note:Application for benefit

  •  (1) No benefit is payable to any person under this Act unless an application therefor has been made by him or on his behalf and payment of the benefit has been approved under this Act.

  • Marginal note:Application for post-retirement benefit deemed to be made

    (1.1) An application for a post-retirement benefit under subsection (1) is deemed to be made on January 1 of the year following the year of the unadjusted pensionable earnings referred to in section 76.1 if

    • (a) the person is a beneficiary of a retirement pension on that day; and

    • (b) the Minister has the information necessary to determine whether a post-retirement benefit is payable to them.

  • Marginal note:Application for retirement pension waived

    (1.2) The Minister may waive the requirement under subsection (1) for an application for a retirement pension to be made by a person or on their behalf if the Minister is satisfied that

    • (a) the person is a contributor;

    • (b) the person is 70 years old or more; and

    • (c) at least one of the following applies in respect of the person:

      • (i) the person is in receipt of a benefit under this Act, the Old Age Security Act or a provincial pension plan, and

      • (ii) a return of income was filed by the person or on their behalf under the Income Tax Act in respect of the year before the year in which the Minister considers waiving the requirement.

  • Marginal note:Effect of waiver

    (1.3) If the requirement for an application for a retirement pension is waived, the application is deemed to have been made and received on the day on which the requirement is waived.

  • Marginal note:Application for benefit by estate, etc.

    (2) Notwithstanding anything in this Act, but subject to subsections (2.1) and (2.2), an application for a benefit, other than a death benefit, that would have been payable in respect of a month to a deceased person who, prior to the person’s death, would have been entitled on approval of an application to payment of that benefit under this Act may be approved in respect of that month only if it is made within 12 months after the death of that person by the estate, the representative or heir of that person or by any person that may be prescribed by regulation.

  • Marginal note:Certain applications may not be approved

    (2.1) An application referred to in subsection (2) is not to be approved if it is made in respect of a post-retirement disability benefit or, if the application is received after December 31, 1997, a disability pension.

  • Marginal note:Restriction — retirement pension

    (2.2) An application referred to in subsection (2) in respect of a retirement pension may only be approved in respect of a month after the deceased contributor had reached age 70.

  • Marginal note:Exception

    (3) Where a disabled contributor’s child’s benefit would, if the application had been approved, have been payable to a child of a disabled contributor on application made prior to the death of the child or an orphan’s benefit would, if the application had been approved, have been payable to an orphan of a contributor on application made prior to the death of the orphan and the child or orphan dies after December 31, 1977, not having reached eighteen years of age, and no application has been made at the time of the death of the child or orphan, an application may be made within one year after the death by the person or agency having custody and control of the child or orphan at the time of the death or, where there is at that time no person or agency having custody and control, by such person or agency as the Minister may direct.

  • Marginal note:Benefits payable to estate or other persons

    (4) Where an application is made pursuant to subsection (2) or (3), a benefit that would have been payable to a deceased person referred to in subsection (2) or a deceased child or orphan referred to in subsection (3) shall be paid to the estate or such person as may be prescribed by regulation.

  • Marginal note:Application deemed to have been received on date of death

    (5) Any application made pursuant to subsection (2) or (3) is deemed to have been received

    • (a) on the date of the death of a person who, prior to his death, would have been entitled, on approval of an application, to payment of a benefit under this Act; or

    • (b) on the date of the death of a child or an orphan referred to in subsection (3) where the person having custody and control of the child or orphan did not make an application prior to the death of the child or orphan.

  • Marginal note:How application to be made

    (6) An application for a benefit shall be made to the Minister in prescribed manner and at the prescribed location.

  • Marginal note:Consideration of application and approval by Minister

    (7) The Minister shall forthwith on receiving an application for a benefit consider it and may approve payment of the benefit and determine the amount thereof payable under this Act or may determine that no benefit is payable, and he shall thereupon in writing notify the applicant of his decision.

  • Marginal note:Incapacity

    (8) Where an application for a benefit is made on behalf of a person and the Minister is satisfied, on the basis of evidence provided by or on behalf of that person, that the person had been incapable of forming or expressing an intention to make an application on the person’s own behalf on the day on which the application was actually made, the Minister may deem the application to have been made in the month preceding the first month in which the relevant benefit could have commenced to be paid or in the month that the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

  • Marginal note:Idem

    (9) Where an application for a benefit is made by or on behalf of a person and the Minister is satisfied, on the basis of evidence provided by or on behalf of that person, that

    • (a) the person had been incapable of forming or expressing an intention to make an application before the day on which the application was actually made,

    • (b) the person had ceased to be so incapable before that day, and

    • (c) the application was made

      • (i) within the period that begins on the day on which that person had ceased to be so incapable and that comprises the same number of days, not exceeding twelve months, as in the period of incapacity, or

      • (ii) where the period referred to in subparagraph (i) comprises fewer than thirty days, not more than one month after the month in which that person had ceased to be so incapable,

    the Minister may deem the application to have been made in the month preceding the first month in which the relevant benefit could have commenced to be paid or in the month that the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

  • Marginal note:Period of incapacity

    (10) For the purposes of subsections (8) and (9), a period of incapacity must be a continuous period except as otherwise prescribed.

  • Marginal note:Application

    (11) Subsections (8) to (10) apply only to individuals who were incapacitated on or after January 1, 1991.

  • Marginal note:Making claim or providing information in person

    (12) The Minister may require an applicant or other person or a group or class of persons to be at a suitable place at a suitable time in order to make an application for benefits in person or to provide additional information about an application.

  • R.S., 1985, c. C-8, s. 60
  • R.S., 1985, c. 30 (2nd Supp.), s. 28, c. 1 (4th Supp.), s. 44(E)
  • 1991, c. 44, s. 14
  • 1997, c. 40, s. 77
  • 2009, c. 31, s. 37
  • 2018, c. 12, s. 386
  • 2019, c. 29, s. 153
 
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