Members of Parliament Retiring Allowances Act (R.S.C., 1985, c. M-5)

Marginal note:Amounts credited to Account

• 5 (1) The following amounts are required, pursuant to paragraph 4(1)(c), to be credited to the Retiring Allowances Account in each fiscal year:

  • (a) in respect of every month, an amount equal to the total amount estimated by the Minister to be required to provide for the costs of all allowances, supplementary benefits and other benefits that have accrued in respect of that month and that will become chargeable against the Retiring Allowances Account; and

  • (b) an amount representing interest on the balance from time to time to the credit of the Retiring Allowances Account, calculated and credited in accordance with subsection (2).

• Marginal note:Determination of amount

  (2) The amount referred to in paragraph (1)(b) is to be credited to the Retiring Allowances Account in respect of each quarter in each fiscal year on the last day of the quarter and is to be determined by multiplying an amount equal to the balance to the credit of the Account on the last day of the preceding quarter by the rate referred to in subsection (3).

• Marginal note:Rate

  (3) The rate for the purpose of subsection (2) is the effective quarterly rate derived from the valuation interest rate for the fiscal year that is set out in the most recent valuation report for this Act that is laid before the Senate and the House of Commons under section 9 of the Public Pensions Reporting Act.

6 [Repealed, 2012, c. 22, s. 6]

Marginal note:Deficits for service before January 1, 1992 to be estimated

• 7 (1) The Minister shall estimate the total cost of all allowances and other benefits payable under this Part as of January 1, 1992.

• Marginal note:Deficits for pensionable service before January 1, 1992 to be amortized

  (2) There shall be credited to the Retiring Allowances Account, at the time and in the manner determined by the Minister, such amounts as in the opinion of the Minister will, at the end of the prescribed period, together with the amount estimated by the Minister to be to the credit of that Account at that time, meet the total cost estimated pursuant to subsection (1).

Marginal note:Amounts to be credited to meet total cost

8 There shall be credited to the Retiring Allowances Account, at the time and in the manner determined by the Minister, an amount that, in the Minister’s opinion, based on actuarial advice, together with the amount estimated by the Minister to be to the credit of that Account at that time, is necessary to meet the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits.

Marginal note:Amounts to be debited

8.1 If the Minister is of the opinion, based on actuarial advice, that the amount estimated by the Minister to be to the credit of the Retiring Allowances Account exceeds the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits, there may be debited from that Account, at the time and in the manner determined by the Minister, an amount specified by the Minister.

Contributions

Marginal note:Contributions — January 1, 2001 to December 31, 2015

• 9 (1) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member shall with respect to each calendar year, by reservation from his or her sessional indemnity, contribute to the Retiring Allowances Account 4% of that portion of that sessional indemnity that does not exceed his or her earnings limit for the calendar year.

• Marginal note:Non-application

  (1.01) Subsection (1) does not apply to a member who is required to make a contribution under subsection 12(2).

• Marginal note:Contributions

  (1.1) Despite subsection 2.3(1), beginning on September 21, 2000 and ending on December 31, 2000, a member who was entitled to elect under sections 2.1 and 2.6 and who did not make an election shall, by reservation from the sessional indemnity of the member, contribute to the Retiring Allowances Account four per cent of the amount payable to the member by way of that sessional indemnity.

• Marginal note:Application of Act deemed to be continuous

  (1.2) This Act recommences to apply to a member referred to in subsection (1.1) as of the day on which this subsection comes into force and is deemed to apply to the member as if it had always applied to the member.

• Marginal note:Additional contributions

  (2) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member to whom subsection 12(2) applies who is in receipt of a salary or an annual allowance shall with respect to each calendar year, by reservation from that salary or allowance, contribute to the Retiring Allowances Account an amount equal to 4% of that portion of that salary or allowance that does not exceed his or her earnings limit for the calendar year, unless he or she elects in respect of that salary or allowance

  • (a) not to contribute under this subsection and has also elected before December 31, 2015 not to contribute under subsection 31(4) or (5) or paragraph 31.1(1)(c) or (2)(b); or

  • (b) to contribute at a lesser rate than that specified in this subsection.

• (3) and (4) [Repealed, 2001, c. 20, s. 16]

Marginal note:Contributions — beginning on January 1, 2016

• 9.1 (1) Beginning on January 1, 2016, a member shall with respect to each calendar year, by reservation from his or her pensionable earnings, contribute to the Retiring Allowances Account at the applicable contribution rate in respect of any part specified by the Chief Actuary of the portion of the member’s pensionable earnings that does not exceed the member’s earnings limit for the calendar year.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a member who is required to make a contribution under subsection 12(2.1).

Marginal note:Election to contribute in respect of previous sessions

• 10 (1) Subject to this section, where a person ceases to be a member and subsequently becomes a member, the person may, within one year after the first day on which Parliament is in session after that person subsequently becomes a member, elect in accordance with subsection 56(2) to contribute under this Part to the Retiring Allowances Account in respect of any previous session during which that person was a member.

• Marginal note:Election to contribute in respect of previous period

  Footnote ^*(1.1) A member who is required to make contributions under subsection 9(1.1) may, within one year after the day on which this subsection comes into force, elect in accordance with subsection 56(2) to contribute under this Part to the Retiring Allowances Account in respect of the period that consists of the period during which that member was a member but was not required to make contributions and the period in respect of which that member was paid a withdrawal allowance under subsection 2.3(2).

  • Return to footnote ^*[Note: Subsection 10(1.1) in force September 21, 2000, on assent of 2000, c. 27.]

• Marginal note:Election for both plans

  (2) No election shall be made by a person under subsection (1) on or after January 1, 1992 in respect of any previous session unless the person makes an election in respect of that session at the same time to contribute under Part II to the Compensation Arrangements Account.

• Marginal note:Election for both plans

  (2.1) No election shall be made by a member under subsection (1.1) unless the member makes an election at the same time to contribute in respect of the same period under Part II to the Compensation Arrangements Account.

• Marginal note:Conditions of election

  Footnote ^*(3) Where a person ceases to be a member and subsequently becomes a member, the person may elect under subsection (1) to contribute under this Part in respect of a previous session only if

  • (a) the person previously contributed or elected to contribute in respect of that session under Part I or III of the former Act or under this Part and a withdrawal allowance in respect of that session became payable to that person under section 15 or 32 of the former Act or under section 18 of this Act, as the case may be;

  • (b) the person was, immediately before ceasing to be a member, eligible to make an election to contribute in respect of that session but did not do so;

  • (c) the person was not a member on the day on which this paragraph came into force and was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under section 2.6 to have the Act recommence to apply to the person; or

  • (d) the person was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under subsection (1.1).

    • Return to footnote ^*[Note: Paragraph 10(3)(c) in force September 21, 2000, on assent of 2000, c. 27.]

Marginal note:Contributions in respect of previous sessions — election before January 1, 2016

• 11 (1) If a member elects before January 1, 2016 to contribute to the Retiring Allowances Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund

  • (a) if the election is made on or after January 1, 2001 and the member’s sessional indemnity in respect of that previous session exceeds the member’s earnings limit for the calendar year

    • (i) a contribution equal to four per cent of that portion of the sessional indemnity paid to the member in respect of that previous session that does not exceed the member’s earnings limit, and

    • (ii) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity was made to the member in respect of that session to the day on which the election is made;

  • (a.1) if the election is made on or after January 1, 1992 and before January 1, 2001, or if the member’s sessional indemnity in respect of that previous session does not exceed the member’s earnings limit for the calendar year and the election is made on or after January 1, 2001,

    • (i) a contribution equal to four per cent of the aggregate of the amounts paid to the member in respect of that previous session

      • (A) by way of sessional indemnity, and

      • (B) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance, and

    • (ii) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that session to the day on which the election is made; and

  • (b) in the case of an election made before January 1, 1992,

    • (i) where a member of the House of Commons made an election under subsection 22(1) of the former Act before August 1, 1981, or a member of the Senate made an election under that subsection, a contribution equal to

      • (A) six per cent of the amount of the sessional allowance paid to the member under section 55 of the Parliament of Canada Act in respect of that session if it was held before the commencement of the 26th Parliament,

      • (B) seven and one-half per cent of the amount paid to the member as a member of the House of Commons, or six per cent of the amount paid to the member as a Senator, as the case may be, by way of sessional indemnity, in respect of that session if it was held after the 25th Parliament, and

      • (C) seven and one-half per cent of the amount paid to the member by way of salary or annual allowance in respect of that session if the member, by the election, elected to contribute thereon,

      minus the total amount of any contributions that the member paid or elected to pay under Parts I to V of the former Act in respect of those amounts and that were not repaid as a withdrawal allowance,

    • (ii) where a member of the House of Commons made an election under subsection 22(1) of the former Act after August 1, 1981 and before January 1, 1992, or a member made an election under subsection 22(2) of that Act, a contribution equal to ten per cent of the amount paid to the member as a member of the House of Commons by way of sessional indemnity in respect of that session, minus the total amount of any contributions that the member paid or elected to pay under Parts I to V of the former Act in respect of those amounts and that were not repaid as a withdrawal allowance,

    • (iii) where a member made an election under subsection 21(7) of the former Act in respect of a salary or an annual allowance, a contribution equal to two and one-half per cent of the amount paid to the member by way of that salary or allowance in respect of that session,

    • (iv) where a member made an election under subsection 22(3) of the former Act in respect of a salary or an annual allowance, a contribution not exceeding ten per cent of the amount paid to the member by way of that salary or allowance in respect of that session,

    • (v) except in respect of the portion of that contribution specified in subparagraph (vi), interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that session to the day on which the election is made, and

    • (vi) in respect of the portion of that contribution included in a withdrawal allowance paid under Parts I to V of the former Act, the interest on the aggregate of

      • (A) that portion of the contribution, and

      • (B) the interest on that portion of the contribution that was included in the withdrawal allowance,

      calculated at a rate and in the manner prescribed from the day on which the payment of the withdrawal allowance was made to the day on which the election is made.

• Marginal note:Contributions in respect of previous period

  (1.1) If a member elects under subsection 10(1.1) to contribute to the Retiring Allowances Account in respect of the period referred to in that subsection, the member shall pay into the Consolidated Revenue Fund

  • (a) a contribution equal to four per cent of the aggregate of the amounts paid to the member in respect of that period

    • (i) by way of sessional indemnity, and

    • (ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance; and

  • (b) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that period to the day on which the election is made.

• Marginal note:Maximum contribution

  (2) Notwithstanding clause (1)(a.1)(i)(B) or subparagraph (1.1)(a)(ii), where the aggregate of amounts paid to a person as a member in respect of one or more previous sessions, or in respect of a particular period, in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

  • (a) the earnings limit of the member for that calendar year, or

  • (b) where the person was not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

  the member shall not, in respect of that previous session or particular period, contribute under that clause or subparagraph on the excess amount.