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

Marginal note:Additional compensation allowance

• 37 (1) Subject to section 58, where a person ceases to be a member on or after January 1, 1992, having contributed or elected to contribute under this Part or Part I or III of the former Act, as a member for at least six years and has contributed under this Part in respect of any amount paid by way of salary or annual allowance, there shall be paid to the person during the lifetime of that person an additional compensation allowance determined in accordance with this section.

• Marginal note:Amount payable

  (2) The additional compensation allowance payable to a person pursuant to this section is an amount equal to the aggregate of

  • (a) the average annual sessional indemnity of the person multiplied by the same number of years and portions of years of pensionable service to the credit of the person as is calculated for the purposes of paragraph 17(1)(b) in accordance with subsections 17(4) and (5), multiplied by

    • (i) where the person has not reached 60 years of age,

      • (A) 0.05 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before July 13, 1995,

      • (B) 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after July 13, 1995 and before January 1, 2001, otherwise than pursuant to an election referred to in clause (A), and

      • (C) 0.03 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),

    • (ii) subject to subparagraphs (iii) and (iv), where the person has reached 60 years of age,

      • (A) 0.03 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before July 13, 1995,

      • (B) 0.02 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after July 13, 1995 and before January 1, 2001, otherwise than pursuant to an election referred to in clause (A), and

      • (C) 0.01 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),

    • (iii) where the person has reached 71 years of age and contributed after that,

      • (A) 0.05 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, in the period commencing on the later of the 71st birthday and January 1, 1992 and ending on July 12, 1995,

      • (B) 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made, in the period commencing on the later of the 71st birthday and July 13, 1995 and ending on December 31, 2000, or in respect of which an election was made during that period, other than contributions made pursuant to an election referred to in clause (A), and

      • (C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election referred to in clause (A) or (B), and

    • (iv) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election referred to in subparagraph (iii), and

  • (b) the average annual sessional indemnity of the person multiplied by the number of years of pensionable service calculated in accordance with subsections (3) and (4), multiplied by

    • (i) 0.05 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before July 13, 1995,

    • (ii) 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after July 13, 1995 and before January 1, 2001, otherwise than under an election referred to in subparagraph (i), and

    • (iii) 0.03 for the years and portions of years of pensionable service calculated by reference to those contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001, and

    • (iv) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.

• Marginal note:Years of pensionable service

  (3) For the purposes of paragraph (2)(b), a person, on ceasing to be a member, is deemed to have one year of pensionable service to the credit of that person for

  • (a) each amount, equal to eleven per cent of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has, during that calendar year, contributed or elected to contribute before July 13, 1995 pursuant to paragraph 31(2)(b) or subsection 31(3) or 33(2) as those provisions read before the coming into force of this paragraph or, if the person had reached 71 years of age at the time of making the election, pursuant to subparagraph 33(1)(a)(ii) or (b)(ii);

  • (b) each amount, equal to nine per cent of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has, during that calendar year, contributed or elected to contribute on or after July 13, 1995 and before January 1, 2001 pursuant to a provision referred to in paragraph (a); and

  • (c) each amount, equal to 7% of the sessional indemnity payable to the person as a member of the Senate or House of Commons, as the case may be, during a calendar year, that the person — during the period beginning on January 1, 2001 and ending on December 31, 2012 — has contributed or elected to contribute under subsection 31(3), paragraph 31(4)(b) or subsection 31(5) or 33(1), other than amounts paid under subsection 33(1) in respect of sessional indemnity or as interest.

• Marginal note:Years of pensionable service

  (3.1) For the purposes of paragraph (2)(b), for each of the calendar years from 2013 to 2015, a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount equal to the amount determined under subsection (3.2) that, during that calendar year, the person contributed or elected to contribute under paragraph 31.1(1)(c) or (2)(b) or subsection 33.1(1), other than amounts paid under subsection 33.1(1) in respect of sessional indemnity or as interest.

• Marginal note:Amount

  (3.2) The amount for the purposes of subsection (3.1) in respect of a person for a calendar year is the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during the calendar year multiplied by the contribution rate that is fixed for the calendar year for the purpose of paragraph 31.1(2)(a).

• Marginal note:Application of subsection 14(3)

  (4) In the application of subsection (3), the deeming provision of subsection 14(3) in relation to a portion of a year’s pensionable service shall apply, with such modifications as the circumstances require.

• Marginal note:Special case

  (5) For the purposes of calculating the additional compensation allowance payable under subsection (2) to a person who, on or after July 13, 1995 and before January 1, 2001, elected to contribute under this Part in respect of any session or part of a session before January 1, 2001,

  • (a) the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out therein, be

    • (i) where the person has not reached 60 years of age, 0.04,

    • (ii) subject to subparagraph (iii), where the person has reached 60 years of age, 0.02, and

    • (iii) if the person has reached 71 years of age and contributed after reaching that age, 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made on or after the 71st birthday, other than those made under an election made before that birthday; and

  • (b) the multipliers referred to in paragraph (2)(b) shall, in lieu of the numbers set out in that paragraph, be 0.04.

• Marginal note:Special case — January 1, 2001 to December 31, 2015

  (6) For the purposes of calculating the additional compensation allowance payable under subsection (2) to a person who, during the period begining on January 1, 2001 and ending on December 31, 2015, elected to contribute under this Part in respect of any session or part of a session before December 31, 2015, the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out in that paragraph, be

  • (a) if the person has not reached 60 years of age, 0.03;

  • (b) subject to paragraphs (c) and (d), if the person has reached 60 years of age, 0.01;

  • (c) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday; and

  • (d) if the person contributed after he or she reached 71 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday.

• Marginal note:Exception

  (7) Clauses (2)(a)(i)(B), (ii)(B) and (iii)(B), subparagraph (2)(b)(ii), paragraph (3)(b) and subsection (4) shall apply instead of clauses (2)(a)(i)(C) and (ii)(C), subparagraphs (2)(a)(iv) and (b)(iii), paragraph (3)(c) and subsection (5) in respect of a period of pensionable service to a member’s credit pursuant to an election made under subsection 10(1) or 32(1) on or after November 27, 2000 and before November 27, 2001, or under subsection 10(1.1) or 32(1.1).

Marginal note:Beginning of payment of allowances — July 13, 1995 to December 31, 2015

• 37.1 (1) Despite sections 36 and 37, the allowances otherwise payable to a person under those sections in respect of pensionable service calculated by reference to contributions made during the period beginning on July 13, 1995 and ending on December 31, 2015, other than those made under an election made before July 13, 1995, are not payable until the earlier of

  • (a) the day on which the person reaches fifty-five years of age, and

  • (b) the day on which the person, after ceasing to be a member, becomes entitled to receive a disability pension under the Canada Pension Plan or a provincial pension plan similar thereto.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a person who, on ceasing to be a member, is entitled to receive a disability pension under the Canada Pension Plan or a provincial pension plan similar thereto.

Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — 65 years of age or older

• 37.2 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person has reached 65 years of age when he or she ceases to be a member, there shall be paid to that person during his or her lifetime a compensation allowance in an amount calculated under subsection (2).

• Marginal note:Amount

  (2) The amount of the compensation allowance is the amount determined by the formula

  (A × B × 0.03) – (C + D)

  where

  A

  is the person’s average annual pensionable earnings;

  B

  is the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections (3) and (4);

  C

  is an amount equal to the number determined by the calculation referred to in the description of B multiplied by an amount equal to the portion of the person’s average annual pensionable earnings that does not exceed his or her earnings limit for the calendar year in which he or she ceased to be a member multiplied by 0.02;

  D

  is an amount equal to the percentage fixed by the Chief Actuary for the purpose of subsection 17.1(2) of

  • (i) the person’s average maximum pensionable earnings multiplied by B,

  multiplied by

  • (ii) 0.01.

• Marginal note:Pensionable service

  (3) Subject to subsection (4), the person’s pensionable service for the purpose of subsection (2) is

  • (a) the years and portions of years spent as a member after December 31, 2015 during which he or she was required to contribute under this Part, other than any period in respect of which a withdrawal allowance has been paid to the person; and

  • (b) the years and portions of years in respect of which he or she elected on or after January 1, 2016 to bring to his or her credit as time spent as a member.

• Marginal note:Service after contributions under subsection 12(2.1) not to be included

  (4) The person’s service as a member during which he or she was required to contribute under subsection 12(2.1), if any, is not to be included in the calculation under subsection (3) of the person’s pensionable service.