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Additional Canada Pension Plan Sustainability Regulations (SOR/2021-6)

Regulations are current to 2023-01-11

Changes to Contribution Rates and Benefits (continued)

Actions When Rates in Deficit Position (continued)

Marginal note:Determination of new benefits

  •  (1) Benefits that become payable in a year are to be determined by multiplying the corresponding legislated benefits by the benefit multiplier for that year.

  • Marginal note:Benefit multiplier — no interim adjustment

    (2) If the interim and final target benefit multipliers are equal, the benefit multiplier is equal to

    • (a) the value determined by the following formula, for each year for which that value is greater than the interim and final target benefit multipliers:

      BMt–1 × [(1 + S3 + S4) – (S3 + S4) × (PIt–1 / PIt)]

      where

      BMt–1
      is the value of the benefit multiplier for the year before that year,
      S3
      is the value for S3, if any, determined under subsection 12(1),
      S4
      is the value for S4, if any, determined under subsection 11(1) or 12(2),
      PIt–1
      is the Pension Index for the year before that year, and
      PIt
      is the Pension Index for that year; or
    • (b) for each subsequent year, the interim and final target benefit multipliers.

  • Marginal note:Benefit multiplier — interim adjustment

    (3) If the interim target benefit multiplier is greater than the final target benefit multiplier, the benefit multiplier is equal to

    • (a) the value determined by the following formula, for each year for which that value is greater than or equal to the interim target benefit multiplier:

      BMt–1 × [(1 + S3 + S4) – (S3 + S4) × (PIt–1 / PIt)]

      where

      BMt–1
      is the value of the benefit multiplier for the year before that year,
      S3
      is the value for S3 determined under subsection 12(1),
      S4
      is the value for S4 determined under subsection 12(2),
      PIt–1
      is the Pension Index for the year before that year, and
      PIt
      is the Pension Index for that year;
    • (b) the value determined by the following formula, for each year to which paragraph (a) does not apply and for which that value is greater than the final target benefit multiplier:

      BMt–1 × [(1 + S3) – S3 × (PIt–1 / PIt)]

      where

      BMt–1
      is the value of the benefit multiplier for the year before that year,
      S3
      is the value for S3 determined under subsection 12(1),
      PIt–1
      is the Pension Index for the year before that year, and
      PIt
      is the Pension Index for that year; or
    • (c) for each subsequent year, the final target benefit multiplier.

Marginal note:Determination of other benefits

 Benefits, other than those that become payable in a year, are to be determined, for each year to which paragraph 14(2)(a) or (3)(a) or (b) applies and for the first year to which paragraph 14(2)(b) or (3)(c) applies, by multiplying the previous year’s benefits not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the following formula, as the case may be:

  • (a) for each year to which paragraph 14(2)(a) or (3)(a) applies,

    (1 + S3 + S4) × (PIt / PIt–1) – (S3+ S4)

    where

    S3, S4, PIt and PIt–1
    have the same values as in the applicable paragraph;
  • (b) for each year to which paragraph 14(3)(b) applies,

    (1 + S3) × (PIt / PIt–1) – S3

    where

    S3, PIt and PIt–1
    have the same values as in that paragraph; or
  • (c) for the first year to which paragraph 14(2)(b) or (3)(c) applies,

    (FTBM / BMt–1) × (PIt / PIt–1)

    where

    FTBM
    is the final target benefit multiplier,
    BMt–1
    is the benefit multiplier for the year before that year,
    PIt
    is the Pension Index for that year, and
    PIt–1
    is the Pension Index for the year before that year.

Coming into Force

Marginal note:Registration

 These Regulations come into force on the day on which they are registered.

 
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