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

Amendments to Act

Marginal note:Definition of included province

• 114 (1) In this section, included province means a province other than Yukon, the Northwest Territories or Nunavut, except a province providing a comprehensive pension plan unless at the time in respect of which the description is relevant there is in force an agreement entered into under subsection 4(3) with the government of that province.

• 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:Notice

  (3) A notice of intention described in subsection (2) shall be in such form as is sufficient to indicate the nature of the provision contained or proposed to be contained in the measure referred to in subsection (2) to the effect described in that subsection, and on any such notice being laid before Parliament the Minister shall forthwith cause a copy thereof to be sent to the lieutenant governor in council of each included province.

• Marginal note:Coming into force of other amendments of substance

  (4) Where 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,

  • (a) the general level of benefits provided by this Act,

  • (b) the classes of benefits provided by this Act,

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

  • (d) the formulae for calculating the contributions and benefits payable under this Act,

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

  • (f) the Canada Pension Plan Investment Board Act,

  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 order may not be made and shall not in any case have any force or effect unless the lieutenant governor in council of each of at least two thirds of the included provinces, having in the aggregate not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the enactment.

• 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:Determination of population

  (5) For the purposes of this section, the population of a province at any time in a year in respect of which the determination thereof is relevant means the population thereof on June 1 of that year, as estimated by the Chief Statistician of Canada.

Report of Chief Actuary

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:Contents of report

  (1.1) The Chief Actuary shall, in the report,

  • (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);

  • (b) state, for each fifth year of a period of not less than 75 years from the date of the examination, an estimate of the percentage of total contributory salaries and wages and contributory self-employed earnings that would be required to provide for all payments under subsection 108(3) in that year if there were no balance in the Canada Pension Plan Account at the commencement of that year and the Investment Board had no investments;

  • (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;

  • (c.1) [Repealed, 2016, c. 14, s. 52]

  • (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:Adjustment factors

  (1.11) In the first report prepared after 2015 and in every third report that follows, the Chief Actuary shall specify, in reference to the adjustment factors fixed under subsection 46(7), the factors as calculated according to a methodology that he or she considers appropriate; the Chief Actuary may also, if he or she considers it necessary, specify the factors in any report prepared under subsection (1) after 2015.

• 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.

• Marginal note:Report when certain Bills introduced

  (2) In addition to any report required under subsection (1) and in accordance with a request of the Minister of Finance, whenever any Bill is introduced in the House of Commons to amend this Act in a manner that would in the opinion of the Chief Actuary materially affect any of the estimates contained in the most recent report made under that subsection, the Chief Actuary shall prepare a report as set out in subsection (3).

• Marginal note:Contents of report

  (3) A report that is prepared under subsection (2) in respect of a Bill shall set out the extent to which the Bill would, if enacted by Parliament, materially affect any of the estimates contained in the most recent report made under subsection (1), using the same actuarial assumptions and basis that were used in that report and using, in addition, other actuarial assumptions and another basis if the Chief Actuary is of the opinion that these other actuarial assumptions and the other basis more accurately reflect a change in demographic or economic circumstances since the most recent report made under subsection (1) was prepared.

• (4) to (7) [Repealed, 1997, c. 40, s. 96]

• Marginal note:Report to be laid before House of Commons

  (8) Forthwith on the completion of any report under this section, the Chief Actuary shall transmit the report to the Minister of Finance, who shall cause the report to be laid before the House of Commons forthwith on its receipt if Parliament is then sitting, or if Parliament is not then sitting, on any of the first five days next thereafter that Parliament is sitting, and if at the time any report under this section is received by the Minister of Finance Parliament is then dissolved, the Minister of Finance shall forthwith cause a copy of the report to be published in the Canada Gazette.

116 [Repealed, 1997, c. 40, s. 97]

Annual Report to Parliament and the Provinces

Marginal note:Annual report to be made by Ministers

• 117 (1) The Minister of Finance and the Minister of Employment and Social Development shall, as soon as possible after the end of each fiscal year, together prepare a report on the administration of this Act during that year, including

  • (a) the annual financial statements for that year prepared under section 112 and the report of the Auditor General of Canada on those statements;

  • (b) the number of contributors during that year and the number of persons to whom benefits were payable during that year; and

  • (c) any other information that the Ministers, and the appropriate provincial Ministers of the participating provinces, as defined in section 2 of the Canada Pension Plan Investment Board Act, consider appropriate.

• Marginal note:Tabling in Parliament

  (2) The Ministers shall cause the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the report is prepared.

• Marginal note:Presentation to provinces

  (3) As soon as possible after the report is prepared, the Ministers shall send the report to the appropriate provincial Minister of every province.

• Marginal note:Definition of appropriate provincial Minister

  (4) In this section, appropriate provincial Minister, in respect of a province, means the province’s minister of the Crown who has primary responsibility for that province’s finances.

Government Employees

Marginal note:Government contributions — Canada Pension Plan Account

• 118 (1) There is to be charged to the Consolidated Revenue Fund and credited to the Canada Pension Plan Account an amount equal to

  • (a) the contributions required to be made by Her Majesty in right of Canada under subsection 9(1) in respect of persons in employment under Her Majesty in right of Canada that is not excepted employment under this Act, and

  • (b) the amount required by subsection 21(2) to be paid by Her Majesty in right of Canada as a result of the failure to deduct and remit, in accordance with this Act, the required amount as or on account of contributions required to be made under subsection 8(1) by persons referred to in paragraph (a).

• Marginal note:Government contributions — Additional Canada Pension Plan Account

  (1.1) There is to be charged to the Consolidated Revenue Fund and credited to the Additional Canada Pension Plan Account an amount equal to

  • (a) the contributions required to be made by Her Majesty in right of Canada under subsections 9(1.1) and (1.2) in respect of persons in employment under Her Majesty in right of Canada that is not excepted employment under this Act, and

  • (b) the amount required by subsection 21(2) to be paid by Her Majesty in right of Canada as a result of the failure to deduct and remit, in accordance with this Act, the required amount as or on account of contributions required to be made under subsections 8(1.1) and (1.2) by persons referred to in paragraph (a).

• Marginal note:Contributions under agreement

  (2) There shall be charged to the Consolidated Revenue Fund and paid to the appropriate authority in a province with which an agreement has been entered into under subsection 4(3) an amount equal to

  • (a) the contributions required to be paid by Her Majesty in right of Canada under that agreement as employer’s contributions, and

  • (b) the amount required to be paid by Her Majesty in right of Canada as a result of the failure to deduct and remit, in accordance with the agreement, the required amount as or on account of the employee’s contributions,

  in respect of persons employed by Her Majesty in right of Canada in employment designated in the agreement.