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

Act current to 2022-11-16 and last amended on 2022-07-26. Previous Versions

PART IMembers of Parliament Retiring Allowances (continued)

Contributions (continued)

Marginal note:Contributions — beginning on January 1, 2016

  •  (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).

  • 2012, c. 22, s. 9

Marginal note:Election to contribute in respect of previous sessions

  •  (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.]

  • R.S., 1985, c. M-5, s. 10
  • 1992, c. 46, s. 81
  • 1998, c. 23, s. 11
  • 2000, c. 27, s. 4

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

  •  (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.

  • R.S., 1985, c. M-5, s. 11
  • 1992, c. 46, s. 81
  • 2000, c. 27, s. 5
  • 2001, c. 20, s. 17
  • 2012, c. 22, s. 10

Marginal note:Contributions in respect of previous sessions — election made on or after January 1, 2016

  •  (1) If a member elects on or after 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) a contribution, calculated at the contribution rates fixed for the purposes of section 9.1 that are in force on the day on which the election is made, in respect of the portion of his or her pensionable earnings during that previous session that does not exceed his or her earnings limit for the year during that previous session; and

    • (b) interest on that contribution, calculated at a rate and in the manner prescribed, from the day on which the final payment by way of pensionable earnings was made to the member in respect of that session to the day on which the election is made.

  • Marginal note:Earnings limit for part of year

    (2) For the purpose of subsection (1), if the person was not a member during the whole of a calendar year, the earnings limit for that calendar year is determined by multiplying the member’s earnings limit for the calendar year by the ratio that the part of the calendar year during which he or she was a member is to the whole calendar year.

  • 2012, c. 22, s. 11

Marginal note:Limits on contributions

  •  (1) Notwithstanding anything in this Part, no contribution shall be paid by a member under this Part

    • (a) in respect of any session in the course of which the member ceases to be a Senator by reason of disqualification or was expelled from the House of Commons; or

    • (b) after the member has reached 71 years of age.

    • (c) [Repealed, 2012, c. 22, s. 12]

  • Marginal note:Contribution of 1%

    (2) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from his or her sessional indemnity, after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member’s credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75, contribute under this Part 1% of that portion of the sessional indemnity that does not exceed his or her earnings limit for the calendar year.

  • Marginal note:Contributions on or after January 1, 2016

    (2.1) Beginning on January 1, 2016, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from his or her pensionable earnings, after the aggregate of the products obtained under subsection (2) and the product obtained by multiplying the number of years of pensionable service on or after January 1, 2016 to the member’s credit by 0.02 equals 0.75, contribute under this Part at the applicable contribution rate in respect of the portion of the member’s pensionable earnings that does not exceed the member’s earnings limit for the calendar year.

  • Marginal note:Exclusions from computation of contributions

    (3) In a computation of the total amount that a member has contributed or elected to contribute under this Part and, where applicable, Parts I to V of the former Act, there shall not be included

    • (a) any contributions in respect of which a withdrawal allowance has been paid;

    • (b) any contributions in respect of which the election of the member has been revoked; or

    • (c) any amount paid by way of interest.

  • R.S., 1985, c. M-5, s. 12
  • 1992, c. 46, s. 81
  • 2001, c. 20, s. 18
  • 2003, c. 16, s. 2
  • 2012, c. 22, s. 12

Allowances

Marginal note:Payment of allowances

 An allowance or other benefit shall be paid in accordance with this Part to or in respect of a person who, being a member, ceases to be a member or, being a member or former member, dies.

  • R.S., 1985, c. M-5, s. 13
  • 1992, c. 46, s. 81

Marginal note:Allowance on ceasing to be a member before January 1, 1992

  •  (1) Subject to section 58, where a person ceased to be a member before January 1, 1992, having contributed or elected to contribute under Part I or III of the former Act as a member for at least six years, there shall be paid to that person during the lifetime of that person in respect of all those contributions, other than those made under subsection 21(5) or (7) of that Act, a retirement allowance equal to the average annual sessional indemnity of that person as a member, multiplied by

    • (a) with respect to each year or portion of a year of pensionable service calculated in accordance with subsections (2) and (3), the aggregate of

      • (i) the number of years of pensionable service to the credit of that person as a result of contributions made under subsection 21(4) or subparagraph 23(a)(iii) of that Act multiplied by 0.02,

      • (ii) the number of years of pensionable service to the credit of that person as a result of contributions made as a member of the House of Commons under Parts I and III of that Act, other than subsection 21(4) or subparagraph 23(a)(iii), multiplied by

        • (A) 0.035, in the case of each of the first ten years,

        • (B) 0.03, in the case of each of the next ten years, and

        • (C) 0.02, in the case of each year thereafter, and

      • (iii) the number of years of pensionable service to the credit of that person as a result of contributions made as a Senator under Parts I and III of that Act, other than subsection 21(4) or subparagraph 23(a)(iii), multiplied by 0.03; and

    • (b) with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (4) and (5), the number of those years and portions of years multiplied by 0.05.

  • Marginal note:Calculation of years of pensionable service

    (2) For the purposes of subsection (1), in respect of time spent as a Senator or time spent as a member of the House of Commons before August 1, 1981, and in respect of which no election under subsection 22(2) of the former Act was made, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person

    • (a) for each $240 contributed or elected to be contributed on the amount received as a member by way of sessional indemnity in respect of sessions of Parliament held before November 12, 1953;

    • (b) for each $480 contributed or elected to be contributed on the amount received as a member by way of sessional indemnity in respect of sessions of Parliament held after November 11, 1953 and before April 8, 1963;

    • (c) for each amount, equal to seven and one-half per cent of the sessional indemnity payable to a member of the House of Commons during any period of twelve months beginning on April 8, 1963, or on April 8 of any subsequent year, that the person has contributed or elected to contribute on the amount received as a member of the House of Commons by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months;

    • (d) for each amount, equal to six per cent of the sessional indemnity payable to a member of the Senate during any period of twelve months beginning on April 4, 1965, or on April 4 of any subsequent year, that the person has contributed or elected to contribute on the amount received as a member of the Senate by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months; and

    • (e) for each amount, equal to the greater of $1,350 and seven and one-half per cent of the sessional indemnity payable to a member of the House of Commons, during any calendar year, that the person has contributed or elected to contribute in respect of any amount paid by way of salary or annual allowance during that calendar year.

  • Marginal note:Idem

    (3) Where any amount that a person referred to in subsection (2) has contributed or elected to contribute under Parts I and III of the former Act, in respect of any sessions referred to in paragraph (2)(a), (b), (c) or (d) or in respect of any salary or annual allowance described in paragraph (2)(e), is less than the amount set out in that paragraph, the person is deemed to have to the credit of that person such portion of a year’s pensionable service as that lesser amount bears to the amount set out in that paragraph.

  • Marginal note:Idem

    (4) For the purposes of subsection (1), in respect of time spent as a member of the House of Commons after July 31, 1981 and before 1992, or any period in respect of which an election under subsection 22(2) of the former Act was made, a person is, on ceasing to be a member, deemed to have one year of pensionable service to the credit of that person for each amount, equal to ten per cent of the sessional indemnity payable to a member of the House of Commons during any period of twelve months beginning on April 8 of any year, that the person has contributed or elected to contribute on the amount received as a member of the House of Commons by way of sessional indemnity in respect of sessions held in whole or in part during that period of twelve months.

  • Marginal note:Application of subsection (3)

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

  • Marginal note:Limitation

    (6) Notwithstanding anything in this section, the retirement allowance payable to a person under this section shall not exceed the average annual sessional indemnity of the person multiplied by 0.75.

  • R.S., 1985, c. M-5, s. 14
  • 1989, c. 6, s. 15
  • 1992, c. 46, s. 81
  • 2012, c. 22, s. 13
 
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