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

Act current to 2022-08-08 and last amended on 2022-07-26. Previous Versions

PART IMembers of Parliament Retiring Allowances (continued)

Survivor Benefits (continued)

Marginal note:Children born, etc., after member ceases to be a member

 Subject to the regulations, a child who is born to or adopted by a member or who becomes the stepchild of a member after that member ceases to be a member is not entitled to an allowance under section 20.

  • R.S., 1985, c. M-5, s. 21
  • 1992, c. 46, s. 81

Marginal note:Saving provision

 Nothing in section 21 shall prejudice any right that a child of an earlier marriage of a member or former member has to an allowance under section 20.

  • R.S., 1985, c. M-5, s. 22
  • 1992, c. 46, s. 81

 [Repealed, 2000, c. 12, s. 177]

Marginal note:Duration of entitlement

 An allowance under section 20

  • (a) shall be paid monthly in arrears in approximately equal instalments;

  • (b) begins to be payable, in respect of the death of a member, on the first day of the month immediately after the month in which the member dies or, in respect of the death of a former member, on the day after the day on which the former member dies; and

  • (c) in the case of an allowance under paragraph 20(1)(a), continues during the lifetime of the recipient.

  • R.S., 1985, c. M-5, s. 24
  • 1992, c. 46, s. 81
  • 1995, c. 30, s. 6
  • 2000, c. 12, s. 177

Marginal note:Election for benefit

  •  (1) If the person to whom a former member is married or with whom he or she is cohabiting in a relationship of a conjugal nature, having so cohabited for a period of at least one year, would not be entitled, in the event of the former member’s death, to receive an allowance under paragraph 20(1)(a) or 40(1)(a), the former member may elect, in accordance with the regulations, in order that the person could become entitled to an allowance under subsection (3), to reduce the amount of

    • (a) the former member’s retirement allowances and any additional retirement allowance, under this Part; and

    • (b) the former member’s compensation allowances, if any, and any additional compensation allowance, under Part II.

  • Marginal note:Election for both Parts

    (2) No election may be made by a former member under subsection (1) unless the former member makes an election under subsection 45(1), if applicable, at the same time.

  • Marginal note:Entitlement to allowance

    (3) A person referred to in subsection (1) is entitled to an allowance in an amount determined in accordance with the election and the regulations if the former member dies and the election is not revoked or deemed to have been revoked, and the person was married to the former member at the time of the former member’s death, or was cohabiting with the former member in a relationship of a conjugal nature for a period of at least one year immediately before the former member’s death.

  • Marginal note:Payment of allowance

    (4) The allowance to the person referred to in subsection (1) shall be paid monthly in arrears in approximately equal instalments, beginning on the day after the day on which the former member dies, and continues during the person’s lifetime.

  • Marginal note:No entitlement

    (5) A person who is entitled to receive an allowance under section 20 or 40 after the former member’s death is not entitled to an allowance under subsection (3) in respect of that former member.

  • R.S., 1985, c. M-5, s. 25
  • 1992, c. 46, s. 81
  • 2000, c. 12, s. 177
  • 2012, c. 22, s. 20

 [Repealed, 2000, c. 12, s. 177]

PART IIMembers of Parliament Retirement Compensation Arrangements

Establishment of Account

Marginal note:Compensation Arrangements Account

  •  (1) There is hereby established in the accounts of Canada an account to be known as the Members of Parliament Retirement Compensation Arrangements Account to which shall be credited

    • (a) the contributions paid pursuant to sections 31, 33 and 47;

    • (b) the interest paid in accordance with section 33;

    • (c) the amounts referred to in section 28; and

    • (d) the amounts credited to that Account pursuant to subsection 3(2).

  • Marginal note:Allowances paid out of C.R.F. and charged to Account

    (2) All allowances and other benefits payable under this Part or Part III and all supplementary benefits payable in respect of those allowances or benefits under Part IV shall be paid out of the Consolidated Revenue Fund and charged to the Compensation Arrangements Account.

  • R.S., 1985, c. M-5, s. 27
  • 1992, c. 46, s. 81
  • 2001, c. 20, s. 20

Marginal note:Amounts credited to Account

  •  (1) The following amounts are required, pursuant to paragraph 27(1)(c), to be credited to the Compensation Arrangements Account in each fiscal year:

    • (a) in respect of every month, an amount equal to the 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 Compensation Arrangements Account; and

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

  • Marginal note:Determination of amount

    (1.1) The amount referred to in paragraph (1)(b) is to be credited to the Compensation Arrangements 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 (1.2).

  • Marginal note:Rate

    (1.2) The rate for the purpose of subsection (1.1) is the effective quarterly rate derived from the valuation interest rate for the calendar 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.

  • Marginal note:Idem

    (2) There shall be credited to the Compensation Arrangements Account in each calendar year an amount equal to the amount, if any, determined at the end of the year to be refundable for the year in respect of that Account under subsection 207.7(2) of the Income Tax Act.

  • R.S., 1985, c. M-5, s. 28
  • 1992, c. 46, s. 81
  • 2012, c. 22, s. 21

Marginal note:Amounts to be credited to meet total cost

 There shall be credited to the Compensation Arrangements 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 Part III and all supplementary benefits payable under Part IV in respect of those allowances or benefits.

  • R.S., 1985, c. M-5, s. 29
  • 1992, c. 46, s. 81
  • 2012, c. 22, s. 22

Marginal note:Amounts to be debited

 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 Compensation Arrangements Account exceeds the total cost of all allowances and other benefits payable under this Part and Part III 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.

  • 2012, c. 22, s. 22

Marginal note:Amounts to be charged to Account

  •  (1) There shall be charged to the Compensation Arrangements Account in each calendar year an amount equal to the amount of tax, if any, determined at the end of the year to be payable for the year in respect of that Account under subsection 207.7(1) of the Income Tax Act.

  • Marginal note:Amounts to be credited to other accounts

    (2) The amounts charged to the Compensation Arrangements Account pursuant to subsection (1) shall be credited to the appropriate account in the accounts of Canada.

  • R.S., 1985, c. M-5, s. 30
  • 1992, c. 46, s. 81

Members’ Contributions

Marginal note:Contributions

  •  (1) Commencing on January 1, 2001, a member shall, by reservation from the sessional indemnity of the member, contribute to the Compensation Arrangements Account

    • (a) if the member has not reached 69 years of age, four per cent of that portion of the sessional indemnity payable to the member that exceeds the member’s earnings limit for the calendar year and 3 per cent of the total sessional indemnity payable to the member; or

    • (b) if the member has reached 69 years of age, seven per cent of the amount of the member’s sessional indemnity.

  • Marginal note:Contributions

    (2) 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 Compensation Arrangements Account five per cent of the amount payable to the member by way of sessional indemnity if the member has not reached 71 years of age or nine per cent of that amount if the member has reached 71 years of age.

  • Marginal note:Additional contribution — members under maximum accrual

    (3) A member to whom paragraph 12(1)(b) does not apply and who is in receipt of a salary or an annual allowance shall, commencing on January 1, 2001, unless the member elects not to contribute under this subsection, by reservation from that salary or annual allowance, contribute to the Compensation Arrangements Account an amount equal to 7 per cent of the amount payable to the member by way of that salary or annual allowance.

  • Marginal note:Additional contribution — members under 69 who reach maximum accrual

    (4) A member to whom paragraph 12(1)(b) applies, who has not reached 69 years of age and who is in receipt of a salary or annual allowance shall, commencing on January 1, 2001 — unless the member elects not to contribute under this subsection and has also elected not to contribute under subsection 9(2) — by reservation from that salary or annual allowance, contribute to the Compensation Arrangements Account an amount equal to

    • (a) 3 per cent of that portion of the amount payable to the member by way of salary or annual allowance that is less than the member’s earnings limit for the calendar year; and

    • (b) 7 per cent of the amount that exceeds the member’s earnings limit for that year.

  • Marginal note:Additional contribution — members 69 or over who reach maximum accrual

    (5) A member to whom paragraph 12(1)(b) applies, who has reached 69 years of age and who is in receipt of a salary or annual allowance shall, commencing on January 1, 2001 — unless the member elects not to contribute under this subsection — by reservation from that salary or annual allowance, contribute to the Compensation Arrangements Account an amount equal to 7% of that salary or annual allowance.

  • Marginal note:Cessation

    (6) This section ceases to apply on December 31, 2012.

  • R.S., 1985, c. M-5, s. 31
  • 1989, c. 6, ss. 17, 18
  • 1992, c. 46, s. 81
  • 1995, c. 30, s. 7
  • 2000, c. 27, s. 6
  • 2001, c. 20, s. 21
  • 2003, c. 16, s. 4
  • 2012, c. 22, s. 23

Marginal note:Contributions — January 1, 2013 to December 31, 2015 — under 71 years of age

  •  (1) During the period that begins on January 1, 2013 and ends on December 31, 2015, a member who has not reached 71 years of age shall with respect to each calendar year contribute to the Compensation Arrangements Account,

    • (a) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the portion of the sessional indemnity payable to him or her that exceeds his or her earnings limit for the calendar year;

    • (b) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the sessional indemnity payable to him or her; and

    • (c) by reservation from any salary or annual allowance that he or she receives, at the applicable contribution rates in respect of that salary or annual allowance, unless he or she elects not to contribute under this paragraph.

  • Marginal note:Contributions — January 1, 2013 to December 31, 2015 — over 71 years of age

    (2) During the period that begins on January 1, 2013 and ends on December 31, 2015, a member who has reached 71 years of age shall with respect to each calendar year contribute to the Compensation Arrangements Account,

    • (a) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the sessional indemnity payable to him or her; and

    • (b) by reservation from any salary or annual allowance that he or she receives, at the applicable contribution rate in respect of that salary or annual allowance, unless he or she elects not to contribute under this paragraph.

  • 2012, c. 22, s. 24

Marginal note:Contributions — from January 1, 2016 — under 71 years of age

  •  (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 the member’s pensionable earnings, contribute to the Compensation Arrangements Account

    • (a) at the applicable contribution rate in respect of the portion of his or her pensionable earnings that exceeds his or her earnings limit for the calendar year; and

    • (b) at the applicable contribution rate in respect of his or her pensionable earnings.

  • Marginal note:Contributions — from January 1, 2016 — 71 years of age or older

    (2) Beginning on January 1, 2016, a member who has reached 71 years of age shall, by reservation from his or her pensionable earnings, contribute to the Compensation Arrangements Account, at the applicable contribution rate in respect of the member’s pensionable earnings.

  • Marginal note:Different rates

    (3) The Chief Actuary shall fix rates for the purposes of paragraph (1)(a) that are different for members who are required to contribute under subsection 12(2.1) than those for other members, and rates for the purposes of subsection (2) that are different for members who would be required to contribute under subsection 12(2.1) if they were under 71 years of age than those for other members.

  • 2012, c. 22, s. 24
  • 2015, c. 36, s. 96

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, that 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 Compensation Arrangements Account in respect of any previous session during which that person was a member.

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

    (1.1) A member who is required to make contributions under subsection 31(2) may, within one year after September 21, 2000, elect to contribute under this Part to the Compensation Arrangements 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).

  • Marginal note:Election for both plans

    (2) No election shall be made by a person under subsection (1) in respect of any previous session unless the person makes at the same time an election in respect of that session to contribute under Part I to the Retiring Allowances 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 I to the Retiring Allowances Account.

  • Marginal note:Conditions of election

    Footnote *(3) A person may elect under subsection (1) to contribute under this Part in respect of a previous session only if

    • (a) that 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 38 of this Act, as the case may be;

    • (b) that 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 32(3)(c) in force September 21, 2000, on assent of 2000, c. 27.]

  • R.S., 1985, c. M-5, s. 32
  • 1992, c. 46, s. 81
  • 1998, c. 23, s. 13
  • 2000, c. 27, s. 7
  • 2001, c. 20, s. 22
 
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