Calculation of Default Contribution Rates Regulations
SOR/98-593
Registration 1998-12-10
Calculation of Default Contribution Rates Regulations
P.C. 1998-2181 1998-12-10
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraphs 101(1)(d.1)Footnote a and 115(1.1)(c)Footnote b of the Canada Pension Plan, hereby makes the annexed Calculation of Default Contribution Rates Regulations.
Return to footnote aR.S., c. 30 (2nd Supp.), s. 52
Return to footnote bS.C. 1997, c. 40, s. 96(1)
Interpretation
1 The definitions in this section apply in these Regulations.
- Act
Act means the Canada Pension Plan. (Loi)
- assets of the Canada Pension Plan
assets of the Canada Pension Plan means the sum of the balance in the Canada Pension Plan Account and the investments of the Canada Pension Plan Investment Board. (actif du régime de pensions du Canada)
- default contribution rate
default contribution rate means the contribution rate determined for a review period in accordance with sections 2 and 3 that is to be specified in the report referred to in paragraph 115(1.1)(c) of the Act. (taux de cotisation implicite)
- ratio of assets to expenditures
ratio of assets to expenditures for a year means the assets of the Canada Pension Plan at the end of the year divided by the payments charged to the Canada Pension Plan Account under subsection 110(3) of the Act with respect to the following year. (ratio actif/dépenses)
- review period
review period means a three year period beginning with 1998 and with every third year thereafter. (période d’examen)
Calculation of Default Contribution Rate
2 (1) The default contribution rate for a review period is the smallest multiple of 0.01 percentage point that, when multiplied by projected total contributory salaries and wages and contributory self-employed earnings, as set out in sections 8, 9, and 10 of the Act, for each year after that review period yields projected contributions for the year that, when added to projected revenues of the Canada Pension Plan Account and projected investment income of the Canada Pension Plan Investment Board, less projected payments under subsection 108(3) of the Act for the year, produces a projected ratio of assets to expenditures in the 60th year after the third year of the review period that is not less than the projected ratio of assets to expenditures in the 10th year after the third year of the review period.
(2) For the review period 1998 to 2000
(a) contributions for the years up to and including 2002 shall be projected by multiplying projected total contributory salaries and wages and contributory self-employed earnings by the contribution rate for self-employed persons set out in the schedule to the Act for those years, and
(b) the calculation of the default contribution rate shall begin in 2003.
(3) For the review period 2001 to 2003 and for subsequent review periods, contributions for the years up to and including the third year of the review period shall be projected by multiplying projected total contributory salaries and wages and contributory self-employed earnings by the contribution rate for self-employed persons set out in the schedule to the Act for the years up to and including the third year of the review period.
Rounding of Amounts
3 Where a contribution rate determined under section 2 is not a multiple of 0.1%, it shall be rounded to the nearest multiple of 0.1% or, if equidistant from two consecutive multiples of 0.1%, to the higher of those multiples.
Coming into Force
4.* In accordance with subsections 114(4) and 115(1.3) of the Act, these Regulations come into force on a day to be fixed by order of the Governor in Council.
*[Note: Regulations in force May 21, 2001, see SI/2001-65.]
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