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

Marginal note:Amount of salary and wages on which second additional contribution made

• 15.2 (1) The amount of a person’s salary and wages on which a second additional contribution has been made for a year is an amount equal to the product obtained when the ratio referred to in subsection 8(8) is multiplied by the following amount, divided by the second additional contribution rate for employees for the year:

  • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year under this Act or under a provincial pension plan and the amounts determined under clauses 15(1)(b)(ii)(B) and 15.1(1)(b)(ii)(B),

  minus

  • (b) the amount determined under subsection 8(2).

• Marginal note:Employer’s failure to deduct amount

  (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s second additional contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year.

• Marginal note:Effect of payment by employer of amount not deducted as required

  (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s second additional contribution for a year is paid by the employer on account of the employee’s second additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Marginal note:Special rule applicable in prescribed circumstances

15.3 If an employer has filed a return in accordance with this Part showing an amount as the salary and wages on which contributions have been made by an employee for a year under this Act, the amount so shown, multiplied by the contribution rate, the first additional contribution rate or the second additional contribution rate, as the case may be, for employees for the year, may, in prescribed circumstances, be substituted for the amount shown in the return as the aggregate of the amounts deducted by that employer on account of the employee’s contributions for the year under this Act, in calculating the amount to be determined under subsection 15(1), 15.1(1) or 15.2(1).

Maximum Contributory Earnings

Marginal note:Amount of maximum contributory earnings for a year

16 The amount of the maximum contributory earnings of a person for a year is the amount of his maximum pensionable earnings for the year, minus the amount of his basic exemption for the year.

Maximum Pensionable Earnings

Marginal note:Amount of maximum pensionable earnings

17 The amount of the maximum pensionable earnings of a person for a year is the amount of the Year’s Maximum Pensionable Earnings except that,

• (a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year

  • (i) after

    • (A) they reach eighteen years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach seventy years of age,

    • (B) they die, or

    • (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

  including, if they die, the month in which they die, is of 12;

• (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

• (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12.

Additional Maximum Pensionable Earnings

Marginal note:Amount of additional maximum pensionable earnings

17.1 The amount of the additional maximum pensionable earnings of a person for a year is the amount of the Year’s Additional Maximum Pensionable Earnings except that,

• (a) for a year in which the person reaches 18 or 70 years of age or dies, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year

  • (i) after

    • (A) they reach 18 years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach 70 years of age,

    • (B) they die, or

    • (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

  including, if they die, the month in which they die, is of 12;

• (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

• (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach 70 years of age or die, whichever is earlier — is of 12.

Year’s Maximum Pensionable Earnings

Marginal note:Amount of Year’s Maximum Pensionable Earnings

• 18 (1) The amount of a Year’s Maximum Pensionable Earnings is

  • (a) for 1987, $25,900;

  • (b) subject to subsection (2), for 1988, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1987 by the ratio that

    • (i) the average for the twelve month period ending on June 30, 1987 of the Wage Measure for each month in that period

    bears to

    • (ii) the average for the twelve month period ending on June 30, 1986 of the Wage Measure for each month in that period; and

  • (c) subject to subsection (2), for 1989 and each subsequent year, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for the preceding year, calculated without reference to subsections (2) and (3), by the ratio that

    • (i) the average for the twelve month period ending on June 30 of the preceding year of the Wage Measure for each month in that period

    bears to

    • (ii) the average for the twelve month period ending on June 30 of the year immediately preceding the preceding year of the Wage Measure for each month in that period.

• Marginal note:Rounding off

  (2) Where the amount calculated in accordance with paragraph (1)(b) or (c) for any year is not a multiple of one hundred dollars, the Year’s Maximum Pensionable Earnings for that year is the amount that is the next multiple of one hundred dollars below that amount.

• Marginal note:Minimum amount of Year’s Maximum Pensionable Earnings

  (3) Where the amount calculated in accordance with paragraph (1)(b) or (c) in respect of any year is less than the Year’s Maximum Pensionable Earnings for the preceding year, it shall be increased to the amount of the Year’s Maximum Pensionable Earnings for the preceding year.

• (4) [Repealed, 1991, c. 44, s. 2]

• Marginal note:Wage Measure

  (5) The Wage Measure for a month is the average weekly wages and salaries of

  • (a) the Industrial Aggregate in Canada for the month as published by Statistics Canada under the authority of the Statistics Act; or

  • (b) in the event that the Industrial Aggregate ceases to be published, such other measure as is prescribed by regulation for the month as published by Statistics Canada under the authority of the Statistics Act.

• Marginal note:Idem

  (6) For the purpose of calculating the amount of a Year’s Maximum Pensionable Earnings, where Statistics Canada has published any revisions of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for any month, the revision of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) that has been published most recently prior to the calculation in respect of that month shall be used in calculating the amount of the Year’s Maximum Pensionable Earnings.

• Marginal note:Adjustment of Industrial Aggregate

  (7) Where, at any time after the coming into force of this section, a new time or content basis is adopted by Statistics Canada in determining the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month and the adoption of that new basis would cause a difference between

  • (a) the average for the twelve month period ending on June 30 of any year of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, as the case may be, and

  • (b) the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the new time or content basis, as the case may be,

  of more than one per cent of the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, the average for that twelve month period calculated on the new time or content basis shall be adjusted by the Minister, on the advice of the Chief Statistician of Canada, to reflect the former time or content basis, and any other averages that are calculated in determining the Year’s Maximum Pensionable Earnings for the year following that twelve month period shall be adjusted accordingly.

• Marginal note:Limitation on adjustment

  (8) Subsection (7) shall cease to apply when the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month has been calculated on the new time or content basis referred to in that subsection for a period of twenty-four consecutive months ending on June 30 of a year.

Year’s Additional Maximum Pensionable Earnings

Marginal note:Amount of Year’s Additional Maximum Pensionable Earnings

• 18.1 (1) The amount of a Year’s Additional Maximum Pensionable Earnings is

  • (a) for 2024, 1.07 multiplied by the Year’s Maximum Pensionable Earnings for that year; and

  • (b) for 2025 and each subsequent year, 1.14 multiplied by the Year’s Maximum Pensionable Earnings for that year.

• Marginal note:Rounding

  (2) If the amount calculated in accordance with subsection (1) for any year is not a multiple of $100, the Year’s Additional Maximum Pensionable Earnings for that year is the amount that is the next multiple of $100 below that amount.

Basic Exemption

Marginal note:Amount of basic exemption

19 The amount of the basic exemption of a person for a year is the amount of the Year’s Basic Exemption except that,

• (a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year

  • (i) after

    • (A) they reach eighteen years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach seventy years of age,

    • (B) they die, or

    • (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

  including, if they die, the month in which they die, is of 12;

• (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12;

• (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12;

• (d) despite paragraphs (a) to (c), for a year in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the retirement pension becomes payable — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12 unless the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the amount, adjusted by that proportion, of the Year’s Maximum Pensionable Earnings, in which case, the amount of the basic exemption is increased by the lesser of

  • (i) the product obtained by multiplying

    • (A) the Year’s Basic Exemption

    by

    • (B) one-twelfth of the amount by which the number of months in the year for which a retirement pension is payable exceeds the greater of

      • (I) the number of months for which an election referred to in subparagraph 12(1)(c)(ii) or paragraph 13(1)(b) has effect, and

      • (II) the number of months after they reach seventy years of age or die, whichever is earlier, and

  • (ii) the amount by which the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the product obtained by multiplying

    • (A) the Year’s Maximum Pensionable Earnings

    by

    • (B) one-twelfth of the amount by which the number of months in the year before the retirement pension becomes payable exceeds the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability.