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 twenty-five per cent of his average monthly pensionable earnings.
Marginal note:Special case
(2) Subject to this section, the basic monthly amount of a retirement pension payable to a former disability pension recipient in respect of whom a division of unadjusted pensionable earnings is approved either before or after the commencement of the retirement pension, where the division reduces the retirement pension otherwise payable, shall be calculated by dividing
(a) the aggregate of
(i) the basic monthly amount of the retirement pension calculated in subsection (1) that would be payable to the contributor had his 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 basic monthly amount of the retirement pension calculated in subsection (1) 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
(b) the aggregate of
(i) the number of months that have been excluded from the contributor’s contributory period by reason of disability, and
(ii) the number of months in the contributor’s contributory period calculated in accordance with section 49.
Marginal note:Upward or downward adjustment factor
(3) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 1986 commencing with a month other than the month in which the contributor reaches sixty-five years of age is a basic monthly amount equal to the basic monthly amount calculated in subsection (1) or (2), as the case may be, adjusted by a factor fixed by the Minister, on the advice of the Chief Actuary of the Office of the Superintendent of Financial Institutions, to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, sixty-five years of age, but such time interval shall be deemed never to exceed five years.
Marginal note:Exception where division of unadjusted pensionable earnings increases retirement pension
(4) Subject to subsection (5), where, as a result of a division of unadjusted pensionable earnings pursuant to section 55 or 55.1, a retirement pension that was payable increases, the adjustment factor applicable thereafter to the basic monthly amount of the retirement pension calculated in subsection (1) or (2), as the case may be, in lieu of the adjustment factor under subsection (3), shall be determined by the formula
[(F1 × P1) + (F2 × E)]/P2
where
a) “F1” is an amount equal to the adjustment factor under subsection (3) at the time the retirement pension first became payable;
(b) “P1” is the basic monthly amount of the retirement pension calculated in subsection (1) or (2), as the case may be, before the division;
(c) “F2 ”is the lesser of
(i) an amount equal to what the adjustment factor under subsection (3) would have been if the retirement pension had commenced in the month in which the increase commences to be payable, and
(ii) 1;
(d) “E” is equal to the excess of P2 over P1; and
(e) “P2” is the basic monthly amount of the retirement pension immediately following the division.
Marginal note:Exception where survivor’s pension reduced
(5) Except where otherwise provided by an agreement under section 80, where a person is in receipt of a retirement pension under this Act and a survivor’s pension under this Act and the survivor’s pension is at any time reduced from its full amount pursuant to subsection 58(2), any downward adjustment factor resulting from the application of subsection (3) or (4) at that time shall not be applied to the whole of the basic monthly amount of the retirement pension calculated in subsection (1) or (2), as the case may be, but only to the amount remaining when that basic monthly amount is reduced by the product obtained by multiplying
(a) the amount by which the survivor’s pension has been reduced
by
(b) the ratio that the Pension Index for the year in which the retirement pension first commenced to be payable bears to the Pension Index for the year in which the survivor’s pension is reduced.
Marginal note:Exception where division after age 65 precedes commencement of retirement pension
(6) Where, after a person has reached sixty-five years of age but before the person commences to receive a retirement pension, a division of unadjusted pensionable earnings takes place under section 55 or 55.1 in respect of that person, the upward adjustment factor under subsection (3) to be applied to any increase in the retirement pension that is attributable to the division shall be based on the time interval between the taking place of the division and the commencement of the retirement pension, and shall not take into account the time interval between the month in which the person reaches sixty-five years of age and the month in which the division takes place.
- R.S., 1985, c. C-8, s. 46
- R.S., 1985, c. 30 (2nd Supp.), s. 15, c. 18 (3rd Supp.), s. 29
- 1991, c. 44, s. 5
- Date modified: