C-26 1 42 64-65 Elizabeth II 2015-2016

An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act 2016 12 15 14 2016 90810

RECOMMENDATION

His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “

An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act ”.

SUMMARY

Part 1 of this enactment amends the Canada Pension Plan to, among other things,

(

a) increase the amount of the retirement pension, as well as the survivor’s and disability pensions and the post-retirement benefit, subject to the amount of additional contributions made and the number of years over which those contributions are made;

(

b) increase the maximum level of pensionable earnings by 14% as of 2025;

(

c) provide for the making of additional contributions, beginning in 2019;

(

d) provide for the creation of the Additional Canada Pension Plan Account and the accounting of funds in relation to it; and

(

e) include the additional contributions and increased benefits in the financial review provisions of the Act and authorize the Governor in Council to make regulations in relation to those provisions.

This Part also amends the Canada Pension Plan Investment Board Act to provide for the transfer of funds between the Investment Board and the Additional Canada Pension Plan Account and to provide for the preparation of financial statements in relation to amounts managed by the Investment Board in relation to the additional contributions and increased benefits.

Part 2 makes related amendments to the Income Tax Act to increase the Working Income Tax Benefit and to provide a deduction for additional employee contributions.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

PART 1

Amendments to the Canada Pension Plan and the Canada Pension Plan Investment Board Act

R.S., c. C-8

Canada Pension Plan

R.S., c. 30 (2nd Supp.), s. 1(3)

(1) The

definitions contribution rate , salary and wages on which a contribution has been made , total pensionable earnings of a contributor attributable to contributions made under this Act and unadjusted pensionable earnings in subsection 2(1) of the Canada Pension Plan are replaced by the following:

contribution rate , in respect of an employee, an employer and a self-employed person for a year, means the contribution rate for that employee, employer and self-employed person for the year determined in accordance with

section 11.1; ( taux de cotisation )

salary and wages on which a base contribution has been made for a year means an amount calculated in accordance with

section 15; ( traitement et salaire sur lesquels a été versée une cotisation de base )

total pensionable earnings of a contributor attributable to base contributions made under this Act means an amount calculated in accordance with

section 78; ( total des gains d’un cotisant ouvrant droit à pension, afférents à des cotisations de base versées selon la présente loi )

unadjusted pensionable earnings means base unadjusted pensionable earnings, first additional unadjusted pensionable earnings and second additional unadjusted pensionable earnings; ( gains non ajustés ouvrant droit à pension )

(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

additional maximum pensionable earnings of a person for a year has the meaning assigned by

section 17.1; ( maximum supplémentaire des gains ouvrant droit à pension )

base contribution means a contribution under subsection 8(1), 9(1) or 10(1); ( cotisation de base )

base unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with

section 53; ( gains non ajustés de base ouvrant droit à pension )

first additional contribution means a contribution under subsection 8(1.1), 9(1.1) or 10(1.1); ( première cotisation supplémentaire )

first additional contribution rate , in respect of an employee, an employer and a self-employed person for a year, means the first additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with

section 11.2; ( premier taux de cotisation supplémentaire )

first additional contributory period of a contributor has the meaning assigned by

section 49.1; ( première période cotisable supplémentaire )

first additional monthly pensionable earnings of a person means an amount calculated in accordance with

section 48.1; ( premiers gains mensuels supplémentaires ouvrant droit à pension )

first additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with

section 53.1; ( premiers gains non ajustés supplémentaires ouvrant droit à pension )

salary and wages on which a first additional contribution has been made for a year means an amount calculated in accordance with

section 15.1; ( traitement et salaire sur lesquels a été versée une première cotisation supplémentaire )

salary and wages on which a second additional contribution has been made for a year means an amount calculated in accordance with

section 15.2; ( traitement et salaire sur lesquels a été versée une deuxième cotisation supplémentaire )

second additional contribution means a contribution under subsection 8(1.2), 9(1.2) or 10(1.2); ( deuxième cotisation supplémentaire )

second additional contribution rate , in respect of an employee, an employer and a self-employed person for a year, means the second additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with

section 11.2; ( deuxième taux de cotisation supplémentaire )

second additional contributory period of a contributor has the meaning assigned by

section 49.2; ( deuxième période cotisable supplémentaire )

second additional monthly pensionable earnings of a person means an amount calculated in accordance with

section 48.2; ( deuxièmes gains mensuels supplémentaires ouvrant droit à pension )

second additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with

section 53.2; ( deuxièmes gains non ajustés supplémentaires ouvrant droit à pension )

total first additional pensionable earnings of a contributor means an amount calculated in accordance with

section 50.1; ( total des premiers gains supplémentaires ouvrant droit à pension )

total second additional pensionable earnings of a contributor means an amount calculated in accordance with

section 50.2; ( total des deuxièmes gains supplémentaires ouvrant droit à pension )

Year’s Additional Maximum Pensionable Earnings has the meaning assigned by

section 18.1; ( maximum supplémentaire des gains annuels ouvrant droit à pension )

2009, c. 31, s. 25

(3) The portion of subsection 2(2) of the Act before paragraph (

a) is replaced by the following:

When specified age deemed to be reached

(2) For the purposes of any provision of this Act in which reference is made to the reaching by a person of a specified age — other than a reference in paragraph 13(1)(

c) or (

e) or (1.2)(c), 17(c), 17.1(c), 19(

c) or (

d) or 44(3)(a),

section 70 or paragraph 72(1)(c) — the person is deemed to have reached the specified age at the beginning of the month following the month in which the person actually reached that age, and in computing

Paragraph 6(2)(

h) of the Act is replaced by the following:

(

h) employment in Canada by an employer who employs persons in Canada but under the terms of a reciprocal agreement between the Government of Canada and the government of another country is exempt from liability to make the contributions imposed on an employer by this Act;

2011, c. 24, s. 173

(1) The portion of subsection 8(1) of the Act before paragraph (

a) is replaced by the following:

Employee’s base contribution

(1) Every employee who is employed by an employer in pensionable employment shall, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s base contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

1997, c. 40, s. 58

(2) Subsections 8(1.1) to (1.3) of the Act are replaced by the following:

Employee’s first additional contribution

(1.1) For 2019 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s first additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employees for the year is multiplied by the lesser of

(

a) the employee’s contributory salary and wages for the year paid by the employer, minus the amount as or on account of the basic exemption for the year that is prescribed, and

(

b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a contribution has been made for the year by the employee under a provincial pension plan.

Employee’s second additional contribution

(1.2) For 2024 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s second additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employees for the year is multiplied by the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year.

2013, c. 33, s. 155

(3) The portion of subsection 8(2) of the Act before paragraph (

a) is replaced by the following:

Excess amount

(2) An excess amount has been paid if the aggregate of all amounts deducted as required from the remuneration of an employee for a year, whether by one or more employers, on account of the employee’s contributions for the year under this Act or under a provincial pension plan exceeds the sum obtained by adding the following amounts:

(4) Subsection 8(2) of the Act is amended by striking out “and” at the end of paragraph (

a) and by adding the following after that paragraph:

(a.1)

for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year is multiplied by the lesser of

(

i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in

section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the employee’s basic exemption for the year, and

(ii)

the employee’s maximum contributory earnings for the year;

(a.2)

for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year is multiplied by the amount by which

(

i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in

section 10 and to whom the provisions of this Act relating to the making of contributions apply — not exceeding the employee’s additional maximum pensionable earnings for the year,

exceeds

(ii)

the employee’s maximum pensionable earnings for the year; and

2011, c. 24, s. 174

(1) The portion of subsection 9(1) of the Act before paragraph (

a) is replaced by the following:

Employer’s base contribution

(1) Every employer shall, in respect of each employee employed by the employer in pensionable employment, make an employer’s base contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the contribution rate for employers for the year is multiplied by the lesser of

2004, c. 22, s. 15

(2) Subsection 9(2) of the Act is replaced by the following:

Employer’s first additional contribution

(1.1) For 2019 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s first additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employers for the year is multiplied by the lesser of

(

a) the employee’s contributory salary and wages for the year paid by the employer, minus the amount as or on account of the employee’s basic exemption for the year that is prescribed, and

(

b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

Employer’s second additional contribution

(1.2) For 2024 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s second additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employers for the year is multiplied by the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year.

Succession of employers

(2) If one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1), (1.1) and (1.2) and 8(1), (1.1) and (1.2) and

section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer’s contributions, the employer shall also take them into account with respect to the employee’s contributions.

2004, c. 22, s. 15

(3) The portion of subsection 9(3) of the Act before paragraph (

a) is replaced by the following:

Self-employment succeeded by employment

(3) For the application of subsections (1), (1.1) and (1.2) and 8(1), (1.1) and (1.2) and

section 21, if a person, in a year, is self-employed, ceases to be self-employed and becomes an employee of a corporation that is controlled by the person, the corporation may

R.S., c. 30 (2nd Supp.), s. 3; 2004, c. 22, s. 16

(1) The portion of subsection 10(1) of the Act before paragraph (

a) is replaced by the following:

Base contribution in respect of self-employed earnings

(1) Every individual who is resident in Canada for the purposes of the Income Tax Act during a year and who has contributory self-employed earnings for the year shall make a base contribution for the year of an amount equal to the product obtained when the contribution rate for self-employed persons for the year is multiplied by the lesser of

R.S., c. 30 (2nd Supp.), s. 3

(2) Paragraph 10(1)(

b) of the Act is replaced by the following:

(

b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a contribution has been made for the year by the individual under a provincial pension plan.

(3) Section 10 of the Act is amended by adding the following after subsection (1):

First additional contribution in respect of self-employed earnings

(1.1) For 2019 and each subsequent year, an individual referred to in subsection (1) shall also make a first additional contribution for the year of an amount equal to the product obtained when the first additional contribution rate for self-employed persons for the year is multiplied by the lesser of

(

a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers under

section 8, and

(

b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a first additional contribution has been made for the year.

Second additional contribution in respect of self-employed earnings

(1.2) For 2024 and each subsequent year, an individual referred to in subsection (1) shall also make a second additional contribution for the year of an amount equal to the product obtained when the second additional contribution rate for self-employed persons for the year is multiplied by

(

a) the amount by which the individual’s contributory self-employed earnings for the year — not exceeding the individual’s additional maximum pensionable earnings for the year — exceeds the individual’s maximum pensionable earnings for the year,

minus

(

b) the individual’s salary and wages, if any, on which a second additional contribution has been made for the year.

2004, c. 22, s. 16

(4) The portion of subsection 10(2) of the Act before paragraph (

a) is replaced by the following:

Employment succeeded by self-employment

(2) For the application of subsections (1), (1.1) and (1.2), if a person, in a year, is an employee of a corporation that is controlled by the person, ceases to be employed by that corporation and becomes self-employed, the person may

1997, c. 40, s. 59

Subsection 11.1(2) of the Act is replaced by the following:

Contribution rates after 1986

(2) The contribution rate for employees, employers and self-employed persons for 1987 and subsequent years is as set out in

Schedule 1, as amended from time to time under

section 113.1.

The Act is amended by adding the following after

section 11.1:

First Additional Contribution Rate and Second Additional Contribution Rate

First and second additional contribution rates

11.2

The first additional contribution rate and the second additional contribution rate for employees, employers and self-employed persons for 2019 and subsequent years is as set out in

Schedule 2, as amended from time to time under

section 113.1.

2009, c. 31, s. 26(2)

Subsection 12(1.2) of the Act is replaced by the following:

Calculation of contributory salary and wages

(1.2) If a person does not revoke — in respect of an employer — an election in the prescribed form and manner, the contributory salary and wages referred to in paragraphs 8(1)(

a) and (1.1)(a), subsection 8(1.2), paragraphs 9(1)(

a) and (1.1)(

a) and subsection 9(1.2) do not, for the purposes of those provisions, include income from that employment. However, the person may — in respect of that income — make an election under subsection 13(3) and pay the contributions required under

section 10 within one year after the person’s balance-due day.

2009, c. 31, s. 27(2)

(1) The portion of subsection 13(3) of the Act before paragraph (

a) is replaced by the following:

Election to include certain earnings — base contribution

(3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of subsection 10(1) shall, if the person or their representative makes an election in the prescribed form and manner within one year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under

section 38, from the day on which the Minister refunds the amount — include any amount by which

(2) Subparagraph 13(3)(b)(

i) of the Act is replaced by the following:

(

i) the person’s salary and wages on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a contribution has been made for the year by the person under a provincial pension plan, and

(3) Section 13 of the Act is amended by adding the following after subsection (3):

Earnings — first additional contribution

(3.1) For 2019 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.1) shall include any amount by which

(

a) the lesser of

(

i) the person’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, and

(ii)

the person’s maximum pensionable earnings for the year,

exceeds

(

b) the aggregate of

(

i) the person’s salary and wages on which a first additional contribution has been made for the year, and

(ii)

the lesser of

(

A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under

section 8, and

(

B) the person’s basic exemption for the year.

Earnings — second additional contribution

(3.2) For 2024 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.2) shall include any amount by which

(

a) the lesser of

(

i) the person’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, and

(ii)

the person’s additional maximum pensionable earnings for the year,

exceeds

(

b) the aggregate of

(

i) the person’s salary and wages on which a first additional contribution has been made for the year and the person’s salary and wages on which a second additional contribution has been made for the year,

(ii)

the lesser of

(

A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under

section 8, and

(

B) the person’s basic exemption for the year, and

(iii)

the amount calculated under subsection (3) or (3.1), if any.

R.S., c. 30 (2nd Supp.), s. 8

Section 15 of the Act is replaced by the following:

Amount of salary and wages on which base contribution made

(1) The amount of the salary and wages of a person on which a base contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the contribution rate for employees for the year:

(

a) an amount equal to

(

i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year,

minus

(ii)

the product obtained when the ratio referred to in subsection 8(3) is multiplied by an amount equal to

(

A) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year and on account of the employee’s contribution for the year under a provincial pension plan,

minus

(

B) the sum of the amounts determined under paragraphs 8(2)(

a) and (b), and

(

b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s base contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

Effect of payment by employer of amount not deducted as required

(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s base contribution for a year is paid by the employer on account of the employee’s base contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Amount of salary and wages on which first additional contribution made

15.1

(1) The amount of the salary and wages of a person on which a first additional contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the first additional contribution rate for employees for the year:

(

a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a.1), and

(

b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s first additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

Effect of payment by employer of amount not deducted as required

(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s first additional contribution for a year is paid by the employer on account of the employee’s first additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Amount of salary and wages on which second additional contribution made

15.2

(1) The amount of the salary and wages of a person on which a second additional contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the second additional contribution rate for employees for the year:

(

a) an amount equal to

(

i) the sum of the following amounts:

(

A) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year,

(

B) the amount calculated under subparagraph 15(1)(a)(ii),

(

C) the portion of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year that exceeds the amount determined under paragraph 8(2)(a.1),

minus

(ii)

the amount of any refund made to that person under

section 38 in respect of any amounts deducted on account of the employee’s contributions, or the part of the amount of any refund in respect of those contributions made to the person as described in

section 39 that might have been made to the person under subsection 38(1) if no agreement had been entered into under subsection 39(1), and

(

b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s second additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

Effect of payment by employer of amount not deducted as required

(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s second additional contribution for a year is paid by the employer on account of the employee’s second additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Special rule applicable in prescribed circumstances

15.3

If an employer has filed a return in accordance with this Part showing an amount as the salary and wages on which contributions have been made by an employee for a year under this Act, the amount so shown, multiplied by the contribution rate, the first additional contribution rate or the second additional contribution rate, as the case may be, for employees for the year, may, in prescribed circumstances, be substituted for the amount shown in the return as the aggregate of the amounts deducted by that employer on account of the employee’s contributions for the year under this Act, in calculating the amount to be determined under subsection 15(1), 15.1(1) or 15.2(1).

The Act is amended by adding the following after

section 17:

Additional Maximum Pensionable Earnings

Amount of additional maximum pensionable earnings

17.1

The amount of the additional maximum pensionable earnings of a person for a year is the amount of the Year’s Additional Maximum Pensionable Earnings except that,

(

a) for a year in which the person reaches 18 or 70 years of age or dies, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year

(

i) after

(

A) they reach 18 years of age, or

(

B) the disability pension ceases to be payable, or

(ii)

before

(

A) they reach 70 years of age,

(

B) they die, or

(

C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

including, if they die, the month in which they die, is of 12;

(

b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(

b) is deemed to be made, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

(

c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(

c) is deemed to be revoked, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach 70 years of age or die, whichever is earlier — is of 12.

The Act is amended by adding the following after

section 18:

Year’s Additional Maximum Pensionable Earnings

Amount of Year’s Additional Maximum Pensionable Earnings

18.1

(1) The amount of a Year’s Additional Maximum Pensionable Earnings is

(

a) for 2024, 1.07 multiplied by the Year’s Maximum Pensionable Earnings for that year; and

(

b) for 2025 and each subsequent year, 1.14 multiplied by the Year’s Maximum Pensionable Earnings for that year.

Rounding

(2) If the amount calculated in accordance with subsection (1) for any year is not a multiple of $100, the Year’s Additional Maximum Pensionable Earnings for that year is the amount that is the next multiple of $100 below that amount.

2011, c. 24, s. 175

(1) Subsection 21(1) of the Act is replaced by the following:

Amount to be deducted and remitted by employer

(1) Every employer paying remuneration to an employee employed by the employer at any time in pensionable employment shall deduct from that remuneration as or on account of the employee’s contributions for the year in which the remuneration in respect of the pensionable employment is paid to the employee any amount that is determined in accordance with prescribed rules and shall remit that amount, together with any amount that is prescribed with respect to the contributions required to be made by the employer under this Act, to the Receiver General at any time that is prescribed and, if at that prescribed time the employer is a prescribed person, the remittance shall be made to the account of the Receiver General at a financial institution (within the meaning that would be assigned by the definition financial institution in subsection 190(1) of the Income Tax Act if that definition were read without reference to its paragraphs (

d) and (e)).

1997, c. 40, s. 62

(2) Subsection 21(3.1) of the Act is replaced by the following:

Payment and deemed notification

(3.1) Once the decision under subsection 27.2(3) or

section 28 is communicated to the employer, the employer is liable without interest or penalties under this Act to pay any contribution required to be paid by the employer with respect to the employee. On payment by the employer of any amount as or on account of that contribution, the employee is deemed to have notified the Minister as required by paragraph 15(1)(b), 15.1(1)(

b) or 15.2(1)(

b) of the employer’s failure to deduct the amount of that contribution from the remuneration of the employee.

1998, c. 19, s. 252(1)

Subsection 23(3) of the French version of the Act is replaced by the following:

Montant déduit non remis

(3) L’employeur qui a déduit de la rémunération d’un employé un montant au

titre des cotisations que ce dernier est tenu de verser, ou à valoir sur celles-ci, mais ne l’a pas remis au receveur général est réputé, malgré toute autre garantie au sens du paragraphe 224(1.3) de la Loi de l’impôt sur le revenu concernant le montant, le détenir en fiducie pour Sa Majesté, séparé de ses propres biens et des biens détenus par son créancier garanti , au sens de ce paragraphe qui, en l’absence de la garantie, seraient ceux de l’employeur, et en vue de le verser à Sa Majesté selon les modalités et dans le délai prévus par la présente loi.

1991, c. 49, ss. 210(1) and 211(1); 1993, c. 24, ss. 145(1) and 146(1); 1994, c. 21, s. 124(1)

Sections 31 to 34 of the Act are replaced by the following:

Estimate to be made

Every person who is required by

section 30 to file a return of the person’s self-employed earnings shall in the return estimate the amount of the contributions to be made by the person in respect of those earnings.

Examination of return and notice of assessment

The Minister shall, with all due dispatch, examine each return of self-employed earnings and assess the contributions for the year in respect of those earnings and the interest and penalties, if any, payable, and, after the examination, shall send a notice of assessment to the person by whom the return was filed.

Payment of contributions

(1) If the amount of the contributions required to be made by a person for a year in respect of the person’s self-employed earnings is $40 or less, or a person who is required by this Act to make contributions for a year in respect of the person’s self-employed earnings is not required by

section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of the person’s income tax, the person shall, on or before the person’s balance-due day for the year, pay to the Receiver General the whole amount of the contributions.

Farmers and fishers

(2) Every person to whom

section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of

(

a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or

(

b) the contributions required in respect of the person’s self-employed earnings for the preceding year.

Other persons

(3) Every person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year

(

a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of

(

i) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

(ii)

the contributions required in respect of the person’s self-employed earnings for the preceding year; or

(

b) on or before

(

i) March 15 and June 15 in the year, an amount equal to one quarter of the contributions required in respect of the person’s self-employed earnings for the second preceding year, and

(ii)

September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which

(

A) the contributions required in respect of the person’s self-employed earnings for the preceding year

exceeds

(

B) one half of the contributions required in respect of the person’s self-employed earnings for the second preceding year.

Payment of remainder of estimated contributions

(4) A person referred to in subsection (2) or (3) shall also pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the contributions as estimated under

section 31. However, paragraphs (2)(

a) and (

b) and (3)(

a) and (

b) do not require the payment of any amount in respect of the person that would otherwise become due after the person’s death.

Interest on unpaid contributions

(1) If the amount paid by a person on or before the person’s balance-due day for a year on account of contributions required to be made by the person for the year in respect of the person’s self-employed earnings is less than the amount of the contributions required to be made by the person, interest at a prescribed rate per annum is payable by the person on the difference between those amounts from the balance-due day for the year to the day of payment.

Interest on instalments

(2) In addition to any interest payable under subsection (1), if a person, being required by

section 33 to pay a part or instalment of the contributions required to be made by the person, has failed to pay all or any part of the contributions as required, the person shall, on payment of the amount that the person failed to pay, pay interest on the amount at a prescribed rate per annum from the day on or before which the person was required to make the payment to the day of payment or the beginning of the period in respect of which the person is liable to pay interest on the amount under subsection (1), whichever is the earlier.

Limitation for farmers and fishers

(3) For the purposes of subsection (2), if a person is required by subsection 33(2) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before the day referred to in subsection 33(2) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least amount required to be paid by the person on or before that day:

(

a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

(

b) the contributions required in respect of the person’s self-employed earnings for the preceding year;

(

c) the amount stated to be the amount of the instalment payable by the person for the year in the notice, if any, sent to the person by the Minister.

Limitation for other persons

(4) For the purposes of subsection (2), if a person is required by subsection 33(3) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before each day referred to in subsection 33(3) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least total amount of those parts or instalments required to be paid by the person by that day:

(

a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

(

b) the contributions required in respect of the person’s self-employed earnings for the preceding year;

(

c) the amounts determined under paragraph 33(3)(

b) in respect of the person for the year;

(

d) the amounts stated to be the amounts of instalment payable by the person for the year in the notices, if any, sent to the person by the Minister.

1991, c. 49, s. 212(1)

Subsection 35(1) of the Act is replaced by the following:

Failure to file a return

(1) Every person who fails to file a return of the person’s self-employed earnings for a year as and when required by

section 30 is liable to a penalty of 5% of the part of the amount of the contributions required to be made by the person for the year in respect of the contributions that remained unpaid at the expiration of the time the return was required to be filed, except that, if that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister may reduce the penalty to which the person is liable under this

section or may remit the penalty in whole or in part.

1991, c. 49, s. 213

Sections 36 and 37 of the Act are replaced by the following:

Application of Income Tax Act provisions

Subject to this Part and except as otherwise provided by regulation, the provisions of Divisions I and J of

Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of

Part XV (except

section 221) and subsections 248(7) and (11) of that Act apply, with any modifications that the circumstances require, in relation to any amount paid or payable as or on account of the contributions for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act.

Priority in which payment to be applied

If any payment is made by a person to the Minister on account of taxes specified in

section 228 of the Income Tax Act and of contributions under this Act in respect of self-employed earnings, despite any direction made by the person making the payment with respect to its application, the part of the payment that would be applied under that

section in payment of tax under the Income Tax Act shall be applied in payment of the contributions under this Act and is deemed to be a payment on account of those contributions, and to the extent of the amount so applied shall not discharge liability for tax under the Income Tax Act , and any amount then remaining shall be applied in payment of tax under the Income Tax Act and shall discharge the liability of the person making the payment for that tax to the extent of that amount.

1997, c. 40, s. 67(1); 2004, c. 22, s. 18(1); 2012, c. 19, s. 227(1) and (2); 2013, c. 40, subpar. 236(1)(b)(i)

(1) Subsections 38(1) to (3.1) of the Act are replaced by the following:

Refund of overpayment

(1) If an overpayment has been made by an employee on account of the employee’s contributions under this Act for a year, the Minister must, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under

section 54 or 59 of the Department of Employment and Social Development Act , 10 years — after the end of the year, refund to the employee the amount of the overpayment.

Refund after decision on appeal

(2) If an amount on account of contributions is deducted from the remuneration of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under

section 27, 27.1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.

Refund of excess — employee

(3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contributions for the year required of the employee under

section 8, the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under

section 54 or 59 of the Department of Employment and Social Development Act , 10 years — after the end of the year.

Refund of amount remitted in excess — employer

(3.1) Subject to subsection (3.2) but despite any other provision of this Part, if an employer applies to the Minister and satisfies the Minister that, for any year, the amount remitted by the employer as the employer’s contributions with respect to an employee exceeds the contributions for the year required of the employer under

section 9 with respect to the employee, the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.

2010, c. 25, s. 70

(2) The portion of subsection 38(4) of the Act before paragraph (

b) is replaced by the following:

Refund of excess — self-employed person

(4) If a person has paid, on account of the contributions required to be made by the person for a year in respect of the person’s self-employed earnings, an amount in excess of the contributions, the Minister

(

a) may refund that part of the amount so paid in excess of the contributions on sending the notice of assessment of the contributions, without any application having been made for the refund; and

1991, c. 49, s. 214

(3) Subsection 38(5) of the Act is replaced by the following:

Recovery of amount refunded or credited on liability

(5) If an application under this

section has been made to the Minister for a refund of any amount deducted on account of an employee’s contributions for a year and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has refunded an amount to the employee, or applied an amount to a liability of the employee to Her Majesty in right of Canada, in excess of the amount that should have been refunded or applied, the amount of the excess may be recovered at any time from the employee as a debt due to Her Majesty.

Section 39 of the Act is replaced by the following:

Refund of overpayment in accordance with agreement

(1) Despite anything in this Act, if an overpayment has been made by an employee on account of the employee’s contributions for a year under this Act, the Minister may, in accordance with any agreement that may be entered into by the Minister with the approval of the Governor in Council with the appropriate authority of a province having the administration of the provincial pension plan referred to in subsection 8(2), if application in writing is made to the Minister by the employee not later than four years after the end of the year, refund to the employee the whole amount of the excess referred to in that subsection, in which case the whole of that amount is deemed to be an overpayment made by the employee on account of the employee’s contributions for that year under this Act.

Saving

(2) If, in accordance with any agreement entered into under subsection (1), the appropriate authority of a province has refunded to an employee the whole amount of the excess referred to in subsection 8(2) with respect to that employee, the whole of that amount is deemed to be an overpayment made by the employee on account of the employee’s contributions for that year under the provincial pension plan referred to in that subsection.

Provision for making of financial adjustments

(3) Any agreement entered into under subsection (1) may provide for the making of any financial adjustments required to be made by reason of any payments made to employees in accordance with that agreement and for the crediting or charging of the amount of those adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be.

R.S., c. 30 (2nd Supp.), s. 13(1)

(1) Subparagraph 44(1)(b)(

i) of the Act is replaced by the following:

(

i) has made base contributions for not less than the minimum qualifying period,

(2) Paragraph 44(1)(

c) of the Act is replaced by the following:

(

c) a death benefit shall be paid to the estate or succession of a deceased contributor who has made base contributions for not less than the minimum qualifying period;

2000, c. 12, s. 45(1)

(3) The portion of paragraph 44(1)(

d) of the Act before subparagraph (

i) is replaced by the following:

(

d) subject to subsection (1.1), a survivor’s pension shall be paid to the survivor of a deceased contributor who has made base contributions for not less than the minimum qualifying period, if the survivor

R.S., c. 30 (2nd Supp.), s. 13(3)

(4) Subparagraph 44(1)(e)(

i) of the Act is replaced by the following:

(

i) has made base contributions for not less than the minimum qualifying period,

(5) Paragraph 44(1)(

f) of the Act is replaced by the following:

(

f) an orphan’s benefit shall be paid to each orphan of a deceased contributor who has made base contributions for not less than the minimum qualifying period; and

2012, c. 31, s. 195(1)

(6) The portion of paragraph 44(2)(

a) of the Act before subparagraph (

i) is replaced by the following:

(

a) a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during the contributor’s contributory period on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),

1997, c. 40, s. 69(4)

(7) Subparagraph 44(2)(b)(iv) of the Act is replaced by the following:

(iv)

in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings are less than the basic exemption of the contributor for the year, calculated without regard to subsection 20(2).

2009, c. 31, s. 32(2)

(8) Subsection 44(2.1) of the Act is replaced by the following:

Proration — late applications for disability pensions

(2.1) For the purpose of determining the minimum qualifying period of a contributor referred to in subparagraph (1)(b)(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the base unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12.

2012, c. 31, s. 195(2)

(9) The portion of subsection 44(2.2) of the Act before paragraph (

a) is replaced by the following:

Family allowance — late applications for disability pensions

(2.2) A contributor referred to in subparagraph (1)(b)(ii) is deemed to have made base contributions for not less than the minimum qualifying period for the purpose of subparagraph (1)(b)(

i) if

2012, c. 31, s. 195(2)

(10) Subparagraph 44(2.2)(b)(ii) of the Act is replaced by the following:

(ii)

their base unadjusted pensionable earnings were less than their basic exemption, calculated without regard to subsection 20(2); and

1991, c. 44, s. 4; 2012, c. 31, s. 195(3)

(11) The portion of subsection 44(3) of the Act before paragraph (

b) is replaced by the following:

Calculation for other supplementary benefits

(3) For the purposes of paragraphs (1)(c), (

d) and (f), a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during their contributory period

(

a) for at least one third of the total number of years included either wholly or partly within their contributory period, excluding from the calculation of that contributory period any month in a year after the year in which the contributor reaches 65 years of age and for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for that year, but in no case for less than three years; or

R.S., c. 30 (2nd Supp.), s. 15

(1) Subsection 46(1) of the Act is replaced by the following:

Amount of retirement pension

(1) Subject to this section, a retirement pension payable to a contributor is a basic monthly amount equal to the aggregate of

(a)

25% of their average monthly pensionable earnings,

(b)

8.33% of their first additional monthly pensionable earnings, and

(c)

33.33% of their second additional monthly pensionable earnings.

R.S., c. 30 (2nd Supp.), s. 15

(2) The portion of subsection 46(2) of the Act before paragraph (

b) is replaced by the following:

Special case

(2) Subject to this section, the portion referred to in paragraph (1)(

a) of the basic monthly amount of a retirement pension payable to a former disability pension recipient in respect of whom a division under

section 55 or 55.1 is approved either before or after the commencement of the retirement pension, if the division reduces the retirement pension otherwise payable, is calculated by dividing

(

a) the aggregate of

(

i) the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(

a) that would be payable to the contributor had their base unadjusted pensionable earnings not been subject to the division, multiplied by the number of months that have been excluded from the contributor’s contributory period by reason of disability, and

(ii)

the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(

a) that would be payable following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with

section 49

The Act is amended by adding the following after

section 48:

First additional monthly pensionable earnings

48.1

The first additional monthly pensionable earnings of a contributor are an amount calculated by

(

a) in the case where their first additional contributory period is less than or equal to 480 months, dividing their total first additional pensionable earnings by 480; or

(

b) in the case where their first additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest first additional pensionable earnings for a month by 480.

Second additional monthly pensionable earnings

48.2

The second additional monthly pensionable earnings of a contributor are an amount calculated by

(

a) in the case where their second additional contributory period is less than or equal to 480 months, dividing their total second additional pensionable earnings by 480; or

(

b) in the case where their second additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest second additional pensionable earnings for a month by 480.

R.S., c. 30 (2nd Supp.), s. 17

Paragraph 49(

d) of the Act is replaced by the following:

(

d) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for the year.

The Act is amended by adding the following after

section 49:

First additional contributory period

49.1

The first additional contributory period of a contributor is the period commencing January 1, 2019 or when they reach 18 years of age, whichever is the later, and ending with the earliest of

(

a) the month preceding the month in which they reach 70 years of age,

(

b) the month in which they die, and

(

c) the month preceding the month in which the retirement pension commences.

Second additional contributory period

49.2

The second additional contributory period of a contributor is the period commencing January 1, 2024 or when they reach 18 years of age, whichever is the later, and ending with the earliest of

(

a) the month preceding the month in which they reach 70 years of age,

(

b) the month in which they die, and

(

c) the month preceding the month in which the retirement pension commences.

The Act is amended by adding the following after

section 50:

Total first additional pensionable earnings

50.1

The total first additional pensionable earnings of a contributor are the total for all months in their first additional contributory period of their first additional pensionable earnings for each month calculated as provided in

section 51.

Total second additional pensionable earnings

50.2

The total second additional pensionable earnings of a contributor are the total for all months in their second additional contributory period of their second additional pensionable earnings for each month calculated as provided in

section 51.

1997, c. 40, s. 71

(1) The portion of subsection 51(1) of the Act before the formula is replaced by the following:

Pensionable earnings, or first or second additional pensionable earnings, for month

(1) The pensionable earnings, first additional pensionable earnings or second additional pensionable earnings, as the case may be, of a contributor for a month (in this subsection referred to as the “particular month”) are an amount determined by the formula

1997, c. 40, s. 71

(2) The description of A in subsection 51(1) of the Act is replaced by the following:

(

a) in the case of pensionable earnings, earnings for which the contributor is deemed by

section 52 to have made a base contribution for the particular month;

(

b) in the case of first additional pensionable earnings, earnings for which the contributor is deemed by

section 52.1 to have made a first additional contribution for the particular month; or

(

c) in the case of second additional pensionable earnings, earnings for which the contributor is deemed by

section 52.2 to have made a second additional contribution for the particular month; and

(3) Section 51 of the Act is amended by adding the following after subsection (1):

First additional pensionable earnings — 2019 to 2022

(1.1) Despite subsection (1), the first additional pensionable earnings of a contributor for a month are an amount calculated as provided in subsection (1) multiplied

(

a) for 2019, by 0.15;

(

b) for 2020, by 0.3;

(

c) for 2021, by 0.5; and

(

d) for 2022, by 0.75.

1997, c. 40, s. 71

(4) The portion of subsection 51(2) of the Act before the formula is replaced by the following:

Exception

(2) For the purposes of subsection (1), in the case of pensionable earnings, if the year referred to in the description of C is 1987 or earlier, the Maximum Pensionable Earnings Average for the year is calculated as if the Year’s Maximum Pensionable Earnings for a particular year before 1986 were calculated as the greatest multiple of $100 that is equal to or less than an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1986, which are $25,800, by the ratio

1997, c. 40, s. 71

(5) Subsection 51(3) of the Act is replaced by the following:

Pension Index before 1974

(3) For the purposes of subsection (1), in the case of pensionable earnings, if the beginning of a period that is excluded from the contributor’s contributory period by reason of disability is in a year before 1974, in calculating the Pension Index for the year in which that period begins, paragraph 43.1(2)(

a) of the Canada Pension Plan , R.S.C. 1970, c. C-5, as amended by

section 24 of

chapter 4 of the Statutes of Canada, 1974-75-76, is to be read without reference to the words “or 1.02 times the Pension Index for the preceding year, whichever is the lesser”.

R.S., c. 30 (2nd Supp.), s. 19

Section 52 of the Act is replaced by the following:

Earnings for which base contribution deemed to have been made for month

(1) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which they have made a base contribution, the base contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their base unadjusted pensionable earnings for the year by 12, except that

(

a) for a year in which the contributor reaches 18 years of age or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the base contribution is deemed to have been made for earnings for the months in the year after they reached that age or after the pension ceased to be payable, as the case may be, and

(

b) for a year in which the contributor reaches 70 years of age or dies, in which a retirement pension becomes payable to them under this Act or under a provincial pension plan or in which any month is excluded from their contributory period under this Act or under a provincial pension plan by reason of disability, the base contribution is deemed to have been made for earnings for the months in the year before the contributor reached 70 years of age or died, before the retirement pension became payable or that were not so excluded, as the case may be.

If paragraph (

a) or (

b) applies, the earnings for which the contributor is deemed to have made a base contribution for each such month are an amount calculated by dividing the contributor’s base unadjusted pensionable earnings for that year by the number of those months.

If no base contribution made

(2) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which the contributor made no base contribution, the amount of the earnings for which a base contribution is deemed to have been made for any month in the year is deemed to be zero.

When base contribution deemed to have been made

(3) For the purposes of this Part,

(

a) a contributor is deemed to have made a base contribution for any year for which their base unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no base contribution for any year for which their base unadjusted pensionable earnings do not exceed their basic exemption for the year; and

(

b) a contributor is deemed to have made a base contribution for earnings for any month for which a base contribution is deemed by subsection (1) to have been made by them.

Earnings for which first additional contribution deemed for month

52.1

(1) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which they have made a first additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their first additional unadjusted pensionable earnings for the year by 12, except that

(

a) for a year in which the contributor reaches 18 years of age, the first additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and

(

b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act, the first additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.

If paragraph (

a) or (

b) applies, the earnings for which the contributor is deemed to have made a first additional contribution for each such month are an amount calculated by dividing their first additional unadjusted pensionable earnings for that year by the number of those months.

If no first additional contribution made

(2) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which the contributor made no first additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.

When first additional contribution deemed to have been made

(3) For the purposes of this Part,

(

a) a contributor is deemed to have made a first additional contribution for any year for which their first additional unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no first additional contribution for any year for which their first additional unadjusted pensionable earnings do not exceed their basic exemption for the year; and

(

b) a contributor is deemed to have made a first additional contribution for earnings for any month for which a first additional contribution is deemed by subsection (1) to have been made by them.

Earnings for which second additional contribution deemed for month

52.2

(1) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which they have made a second additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their second additional unadjusted pensionable earnings for the year by 12, except that

(

a) for a year in which the contributor reaches 18 years of age, the second additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and

(

b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act, the second additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.

If paragraph (

a) or (

b) applies, the earnings for which the contributor is deemed to have made a second additional contribution for each such month are an amount calculated by dividing their second additional unadjusted pensionable earnings for that year by the number of those months.

If no second additional contribution made

(2) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which the contributor made no second additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.

When second additional contribution deemed to have been made

(3) For the purposes of this Part, a contributor is deemed to have made a second additional contribution for earnings for any month for which a second additional contribution is deemed by subsection (1) to have been made by them.

2009, c. 31, s. 35

(1) The portion of subsection 53(1) of the Act before paragraph (

a) is replaced by the following:

Base unadjusted pensionable earnings for a year

(1) Subject to

section 54, the base unadjusted pensionable earnings of a contributor for a year are an amount equal to

R.S., c. 30 (2nd Supp.), s. 20(1)

(2) Subparagraph 53(1)(b)(

i) of the Act is replaced by the following:

(

i) the contributor’s earnings on which a base contribution has been made for the year under this Act, calculated as the aggregate of

(

A) the contributor’s salary and wages on which a base contribution has been made for the year, and

(

B) the amount of any base contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year,

(3) The portion of subsection 53(1) of the Act after paragraph (

c) is replaced by the following:

whichever is the least, except that if the amount calculated as provided in paragraph (

a) is equal to or less than the amount of the contributor’s basic exemption for the year, the contributor’s base unadjusted pensionable earnings for that year are deemed to be zero.

R.S., c. 30 (2nd Supp.), s. 21

Section 54 of the Act is replaced by the following:

First additional unadjusted pensionable earnings for a year

53.1

(1) Subject to

section 54.1, for 2019 and each subsequent year, the first additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of

(

a) the aggregate of

(

i) their contributory salary and wages for the year, and

(ii)

their contributory self-employed earnings for the year in the case of an individual described in

section 10,

(

b) the aggregate of

(

i) their earnings on which a first additional contribution has been made for the year calculated as the aggregate of

(

A) their salary and wages on which a first additional contribution has been made for the year, and

(

B) the amount of any first additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the first additional contribution rate for self-employed persons for the year, and

(ii)

their basic exemption for the year, and

(

c) their maximum pensionable earnings for the year.

However, if the amount calculated as provided in paragraph (

a) is equal to or less than the amount of their basic exemption for the year, their first additional unadjusted pensionable earnings for that year are deemed to be zero.

Year in which retirement pension becomes payable

(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,

(

a) the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are before the retirement pension becomes payable is of 12; and

(

b) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12.

Second additional unadjusted pensionable earnings for year

53.2

(1) Subject to

section 54.2, for 2024 and each subsequent year, the second additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of

(

a) the aggregate of

(

i) the amount by which their contributory salary and wages for the year — not exceeding the contributor’s additional maximum pensionable earnings — exceeds the contributor’s maximum pensionable earnings,

(ii)

in the case of an individual described in

section 10, the amount by which their contributory self-employed earnings for the year — not exceeding the contributor’s additional maximum pensionable earnings — exceeds the contributor’s maximum pensionable earnings,

(

b) their earnings on which a second additional contribution has been made for the year calculated as the aggregate of

(

i) their salary and wages on which a second additional contribution has been made for the year, and

(ii)

the amount of any second additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the second additional contribution rate for self-employed persons for the year, and

(

c) the difference between the contributor’s additional maximum pensionable earnings and the contributor’s maximum pensionable earnings.

Year in which retirement pension becomes payable

(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,

(

a) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12; and

(

b) the contributor’s additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12.

Base unadjusted pensionable earnings for years of division

The amount of the base unadjusted pensionable earnings of a contributor for a year determined under

section 53 is to be adjusted for each year in which there is a division of unadjusted pensionable earnings under

section 55 or 55.1 and under a provincial pension plan.

First additional unadjusted pensionable earnings for years of division

54.1

The amount of the first additional unadjusted pensionable earnings of a contributor for a year determined under

section 53.1 is to be adjusted for each year in which there is a division of those earnings under

section 55.1.

Second additional unadjusted pensionable earnings for years of division

54.2

The amount of the second additional unadjusted pensionable earnings of a contributor for a year determined under

section 53.2 is to be adjusted for each year in which there is a division of those earnings under

section 55.1.

R.S., c. 30 (2nd Supp.), s. 23; 2000, c. 12, ss. 48(2) and (3)

(1) Subsections 55.2(5) to (7) of the Act are replaced by the following:

Division of base unadjusted pensionable earnings

(5) If there is a division under

section 55.1, the base unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to base contributions made under this Act, determined in the same manner as the total pensionable earnings of a contributor attributable to base contributions made under this Act are determined in

section 78, are to be added and then divided equally, and the base unadjusted pensionable earnings so divided are to be attributed to each person.

Division of first additional unadjusted pensionable earnings

(5.1) If there is a division of first additional unadjusted pensionable earnings under

section 55.1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the first additional unadjusted pensionable earnings so divided are to be attributed to each person.

Division of second additional unadjusted pensionable earnings

(5.2) If there is a division of second additional unadjusted pensionable earnings under

section 55.1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the second additional unadjusted pensionable earnings so divided are to be attributed to each person.

Effect of division of base unadjusted pensionable earnings

(6) If there is a division of base unadjusted pensionable earnings under

section 55.1 and under a provincial pension plan, for the purposes of benefit calculation and payment under this Act, the total unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their base unadjusted pensionable earnings attributed under subsection (5) and their unadjusted pensionable earnings attributed under a provincial pension plan.

Provincial pension plans

(7) No division of base unadjusted pensionable earnings under

section 55.1 is to be made for any month during which the persons subject to the division cohabited and for which either of them contributed to a provincial pension plan (and, for the purposes of this subsection, months during which the persons cohabited are to be determined in the prescribed manner), unless the unadjusted pensionable earnings attributed to the persons under the provincial pension plan are divided for that month in a manner substantially similar to that described in this

section and

section 55.1.

2000, c. 12, s. 48(3)

(2) The portion of subsection 55.2(8) of the Act before paragraph (

b) is replaced by the following:

No division

(8) No division of base unadjusted pensionable earnings under

section 55.1 for a period of cohabitation of the persons subject to the division is to be made

(

a) for a year in which the total base unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

(3) Section 55.2 of the Act is amended by adding the following after subsection (8):

No division of first additional unadjusted pensionable earnings

(8.1) No division of first additional unadjusted pensionable earnings under

section 55.1 for a period of cohabitation of the persons subject to the division is to be made

(

a) for a year in which the total first additional unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

(

b) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

(

c) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

No division of second additional unadjusted pensionable earnings

(8.2) No division of second additional unadjusted pensionable earnings under

section 55.1 for a period of cohabitation of the persons subject to the division is to be made

(

a) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

(

b) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

R.S., c. 30 (2nd Supp.), s. 24(1)

(1) Paragraph 56(1)(

b) of the Act is replaced by the following:

(b)

75% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

(

i) the amount calculated as provided in subsection (3),

(ii)

the amount calculated as provided in subsection (3.1), and

(iii)

the amount calculated as provided in subsection (3.2).

R.S., c. 30 (2nd Supp.), s. 24(1)

(2) Subsection 56(3) of the Act is replaced by the following:

Calculation for purpose of subparagraph (1)(b)(i)

(3) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(

i) is equal to 25% of their average monthly pensionable earnings calculated as provided in subsections (4) and (5).

Calculation for purpose of subparagraph (1)(b)(ii)

(3.1) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(ii) is equal to 8.33% of their first additional monthly pensionable earnings calculated as provided in subsection (4.01).

Calculation for purpose of subparagraph (1)(b)(iii)

(3.2) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(iii) is equal to 33.33% of the contributor’s second additional monthly pensionable earnings calculated as provided in subsection (4.02).

(3) Section 56 of the Act is amended by adding the following after subsection (4):

First additional monthly pensionable earnings

(4.01) For the purpose of subsection (3.1), a contributor’s first additional monthly pensionable earnings are an amount calculated by

(

a) in the case where their first additional contributory period is less than or equal to 480 months, dividing their total first additional pensionable earnings by 480; or

(

b) in the case where their first additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest first additional pensionable earnings for a month by 480.

Second additional monthly pensionable earnings

(4.02) For the purpose of subsection (3.2), a contributor’s second additional monthly pensionable earnings are an amount calculated by

(

a) in the case where their second additional contributory period is less than or equal to 480 months, dividing their total second additional pensionable earnings by 480; or

(

b) in the case where their second additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest second additional pensionable earnings for a month by 480.

R.S., c. 30 (2nd Supp.), s. 24(1)

(4) Paragraph 56(5)(

d) of the Act is replaced by the following:

(

d) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for the year.

1991, c. 44, s. 10

(5) The portion of subsection 56(6) of the Act before paragraph (

a) is replaced by the following:

If division of unadjusted pensionable earnings occurs

(6) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(i), in the case of a contributor in respect of whom a division of unadjusted pensionable earnings takes place either before or after the commencement of the disability pension, if the division reduces the disability pension otherwise payable, is to be calculated by dividing

R.S., c. 30 (2nd Supp.), s. 24(1)

(6) The portion of subparagraph 56(6)(a)(

i) of the Act before clause (

A) is replaced by the following:

(

i) the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) before the division, multiplied by the aggregate of

R.S., c. 30 (2nd Supp.), s. 24(1)

(7) Subparagraph 56(6)(a)(ii) of the Act is replaced by the following:

(ii)

the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with subsection (5)

(1) Subparagraph 58(1)(a)(ii) of the Act is replaced by the following:

(ii)

37.5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

(

A) the amount calculated as provided in subsection (3),

(

B) the amount calculated as provided in subsection (3.1), and

(

C) the amount calculated as provided in subsection (3.4),

R.S., c. 30 (2nd Supp.), s. 26(2); 2000, c. 12, par. 64(b)

(2) Paragraph 58(1)(

b) of the Act is replaced by the following:

(

b) in the case of a survivor who has reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, a basic monthly amount equal to 60% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

(

i) the amount calculated as provided in subsection (3),

(ii)

the amount calculated as provided in subsection (3.1), and

(iii)

the amount calculated as provided in subsection (3.4).

1997, c. 40, s. 76(1); 2000, c. 12, par. 64(c)

(3) Subparagraphs 58(2)(a)(

i) and (ii) of the Act are replaced by the following:

(

i) the aggregate of

(

A) a flat rate benefit, calculated as provided in subsection (1.1), and

(

B) the lesser of

(

I) the amount determined by the formula

C – D where C

is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and

is the lesser of

(1) 40% of C, and

(2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), and

(II)

an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

(ii)

the amount determined by the formula

C – D where C

is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and

is the lesser of

(1) 40% of C, and

(2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(b), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2), and

(iii)

the amount determined by the formula

C – D where C

is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4), and

is the lesser of

(1) 40% of C, and

(2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(c), without regard to subsections 46(3.1) to (6) and adjusted in accordance with subsection 45(2);

1997, c. 40, s. 76(1); 2000, c. 12, par. 64(c)

(4) Paragraphs 58(2)(

c) and (

d) of the Act are replaced by the following:

(

c) in the case of a survivor who has reached 65 years of age and who was born after December 31, 1932 and whose retirement pension commences to be payable after December 31, 1997, the aggregate of

(

i) the lesser of

(

A) the amount determined by the formula

A – B where A

is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and

is the lesser of

(I)

40% of A, and

(II)

40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), and

(

B) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

(ii)

the amount determined by the formula

A – B where A

is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and

is the lesser of

(I)

40% of A, and

(II)

40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(b), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2), and

(iii)

the amount determined by the formula

A – B where A

is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4), and

is the lesser of

(I)

40% of A, and

(II)

40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(c), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2);

(

d) in any other case, the aggregate of

(

i) the lesser of

(A)

60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and

(

B) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the average of the Year’s Maximum Pensionable Earnings for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, and for each of the two preceding years, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

(ii)

60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and

(iii)

60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4).

1991, c. 44, s. 12(3)

(5) The portion of subsection 58(3) of the Act before paragraph (

a) is replaced by the following:

Calculation of portion of contributor’s retirement pension

(3) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in paragraph 57(2)(a), (

b) or (c), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which

(6) Section 58 of the Act is amended by adding the following after subsection (3):

Calculation of portion of contributor’s retirement pension

(3.1) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.2), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(

a) to (

e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.

Calculation for purpose of subsection (3.1)

(3.2) The amount to be calculated for the purpose of subsection (3.1) is equal to

(

a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 8.33% of their first additional monthly pensionable earnings, or

(

b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying

(

i) an amount equal to 8.33% of their first additional monthly pensionable earnings,

(ii)

the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.

Calculation of first additional monthly pensionable earnings

(3.3) For the purpose of subsection (3.2), the first additional monthly pensionable earnings of a contributor are an amount calculated as provided in

section 48.1, and

(

a) in the case of a contributor to whom a retirement pension was payable for the month in which they died,

section 51 applies; or

(

b) in the case of a contributor to whom no retirement pension was payable for the month in which they died,

section 51 applies but the reference in that

section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.

Calculation of portion of contributor’s retirement pension

(3.4) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.5), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(

a) to (

e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.

Calculation for purpose of subsection (3.4)

(3.5) The amount that is to be calculated for the purpose of subsection (3.4) is equal to

(

a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 33.33% of their second additional monthly pensionable earnings, or

(

b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying

(

i) an amount equal to 33.33% of their second additional monthly pensionable earnings,

(ii)

the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.

Calculation of second additional monthly pensionable earnings

(3.6) For the purpose of subsection (3.5), the second additional monthly pensionable earnings of a contributor are an amount calculated as provided in

section 48.2, and

(

a) in the case of a contributor to whom a retirement pension was payable for the month in which they died,

section 51 applies; or

(

b) in the case of a contributor to whom no retirement pension was payable for the month in which they died,

section 51 applies but the reference in that

section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.

1997, c. 40, s. 76(2); 2000, c. 12, par. 64(d)

(7) Paragraphs 58(6)(

a) and (

b) of the Act are replaced by the following:

(

a) the aggregate of

(

i) the greater of

(

A) the flat rate benefit payable under subparagraph (1)(a)(i), and

(

B) the flat rate benefit payable under paragraph 56(1)(a), and

(ii)

the lesser of

(

A) the aggregate of

(

I) the greater of

the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(

B) and (

C) had not been included in the calculation made under that subparagraph, and

the amount that would have been payable under paragraph 56(1)(

b) if the amounts referred to in subparagraphs 56(1)(b)(ii) and (iii) had not been included in the calculation made under that paragraph, and

(II)

60% of the lesser of the amount described in sub-subclause (I)(1) and the amount described in sub-subclause (I)(2), and

(B)

75% of the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable,

(

b) the aggregate of

(

i) the greater of

(

A) the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(

A) and (

C) had not been included in the calculation made under that subparagraph, and

(

B) the amount that would have been payable under paragraph 56(1)(

b) if the amounts referred to in subparagraphs 56(1)(b)(

i) and (iii) had not been included in the calculation made under that paragraph, and

(ii)

60% of the lesser of the amount described in subclause (

A) and the amount described in subclause (B), and

(

c) the aggregate of

(

i) the greater of

(

A) the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(

A) and (

B) had not been included in the calculation made under that subparagraph, and

(

B) the amount that would have been payable under paragraph 56(1)(

b) if the amounts referred to in subparagraphs 56(1)(b)(

i) and (ii) had not been included in the calculation made under that paragraph, and

(ii)

60% of the lesser of the amount described in subclause (

A) and the amount described in subclause (B).

(8) Subsection 58(8) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (

b) and by adding the following after paragraph (b):

(c)

37.5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

(

i) the amount calculated as provided in subsection (3.1), and

(ii)

the amount calculated as provided in subsection (3.4).

2009, c. 31, s. 36

(1) Subsection 59.1(1) of the Act is replaced by the following:

Amount of post-retirement benefit

59.1

(1) A post-retirement benefit payable to a contributor is a basic monthly amount that is equal to the aggregate of the amounts calculated as provided in subsections (1.1), (3) and (5).

Calculation of portion of post-retirement benefit

(1.1) Subject to subsections (2) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

[(A × F/B) × C × D × E]/12 where A

is the amount determined under subsection 53(1) for the year before the year in which the post-retirement benefit commences to be payable;

is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

is 0.00625;

is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;

is the adjustment factor referred to in subsection 46(3) or (3.1), as the case may be, based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and

is the amount determined by the formula

G/H where G

is the amount of the earnings referred to in subparagraph 53(1)(b)(i), and

is the aggregate of the earnings referred to in subparagraph 53(1)(b)(

i) and those referred to in subparagraph 53(1)(b)(ii).

2009, c. 31, c. 36

(2) The portion of subsection 59.1(2) of the Act before paragraph (

a) is replaced by the following:

Base unadjusted pensionable earnings for year retirement pension becomes payable

(2) For the purpose of the calculation under subsection (1.1), if the contributor’s base unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)(iii), the amount determined for A in that subsection is the greater of

2009, c. 31, s. 36

(3) Subsection 59.1(3) of the Act is replaced by the following:

Calculation of portion of post-retirement benefit

(3) Subject to subsections (4) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

[(A/B) × C × D × E]/12 where A

is the amount determined under subsection 53.1(1) for the year before the year in which the post-retirement benefit commences to be payable, except that

(

a) if the post-retirement benefit commences in 2020, A is the amount for 2019, multiplied by 0.15,

(

b) if the post-retirement benefit commences in 2021, A is the amount for 2020, multiplied by 0.3,

(

c) if the post-retirement benefit commences in 2022, A is the amount for 2021, multiplied by 0.5, and

(

d) if the post-retirement benefit commences in 2023, A is the amount for 2022, multiplied by 0.75;

is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

is 0.00208;

is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable; and

is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable.

First additional unadjusted pensionable earnings for year retirement pension becomes payable

(4) For the purpose of the calculation under subsection (3), if the contributor’s first additional unadjusted pensionable earnings are earned in the year in which the first additional contributory period ends under paragraph 49.1(c), the amount determined for A in that subsection is the greater of

(

a) zero, and

(

b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53.1(1).

Calculation of portion of post-retirement benefit

(5) Subject to subsections (6) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

[(A/B) × C × D × E]/12 where A

is the amount determined under

section 53.2 for the year before the year in which the post-retirement benefit commences to be payable;

is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

is 0.00833;

is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable; and

is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable.

Second additional unadjusted pensionable earnings for year retirement pension becomes payable

(6) For the purpose of the calculation under subsection (5), if the contributor’s second additional unadjusted pensionable earnings are earned in the year in which the second additional contributory period ends under paragraph 49.2(c), the amount determined for A in that subsection is the greater of

(

a) zero, and

(

b) the amount that is calculated by subtracting the Year’s Additional Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under

section 53.2.

Adjustment factor for contributors — 70 years of age or older

(7) For the purposes of the calculations under subsections (1.1), (3) and (5), if the contributor is 70 years of age or older, the adjustment factor referred to in E in each of those subsections is that of a contributor who is 70 years of age.

(1) Subsection 65.1(8) of the Act is amended by adding the following in alphabetical order:

first additional joint contributory period means the period commencing on January 1, 2019 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

(

a) if both spouses or common-law partners are contributors, with the month in which the later of their respective first additional contributory periods ends; or

(

b) if only one spouse or common-law partner is a contributor, with the later of

(

i) the month in which the contributor’s first additional contributory period ends, and

(ii)

the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved; ( première période cotisable conjointe supplémentaire )

second additional joint contributory period means the period commencing on January 1, 2024 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

(

a) if both spouses or common-law partners are contributors, with the month in which the later of their respective second additional contributory periods ends; or

(

b) if only one spouse or common-law partner is a contributor, with the later of

(

i) the month in which the contributor’s second additional contributory period ends, and

(ii)

the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved. ( deuxième période cotisable conjointe supplémentaire )

2000, c. 12, s. 52(2)

(2) Subsection 65.1(9) of the Act is replaced by the following:

Portion of pension assignable

(9) The portion of a contributor’s retirement pension to be assigned to the contributor’s spouse or common-law partner under this

section is an amount equal to the aggregate of

(

a) an amount calculated by multiplying

(

i) the amount of the portion of the contributor’s retirement pension calculated as provided in paragraph 46(1)(

a) and adjusted in accordance with

section 45, by

(ii)

50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the joint contributory period,

(

b) an amount calculated by multiplying

(

i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(

b) and adjusted in accordance with

section 45, by

(ii)

50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the first additional joint contributory period, and

(

c) an amount calculated by multiplying

(

i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(

c) and adjusted in accordance with

section 45, by

(ii)

50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the second additional joint contributory period.

Paragraph 77(

a) of the Act is replaced by the following:

(

a) the total pensionable earnings of the contributor attributable to base contributions made under this Act,

2012, c. 31, s. 201(1)

The portion of

section 78 of the Act before paragraph (

b) is replaced by the following:

Total pensionable earnings attributable to base contributions made under Act

The total pensionable earnings of a contributor attributable to base contributions made under this Act are an amount equal to the amount that their total pensionable earnings would be if the base unadjusted pensionable earnings of the contributor for a year were that proportion of their base unadjusted pensionable earnings for the year that

(

a) the contributor’s earnings on which a base contribution has been made for the year under this Act, calculated as provided in subparagraph 53(1)(b)(i),

are of

R.S., c. 30 (2nd Supp.), s. 43

Section 79 of the Act is replaced by the following:

Total pensionable earnings attributable to base contributions made under Act as a result of division

For a year of a division as determined under

section 55 or 55.1 and under a provincial pension plan, the total pensionable earnings of a contributor attributable to base contributions made under this Act are an amount equal to the amount that their total pensionable earnings would be if the base unadjusted pensionable earnings of the contributor for the year were that proportion of their base unadjusted pensionable earnings for the year that

(

a) their base unadjusted pensionable earnings attributed under subsection 55(4) or 55.2(5)

are of

(

b) their total base unadjusted pensionable earnings for the year determined under subsection 55(5) or 55.2(6).

Subsection 80(3) of the Act is replaced by the following:

Provision for making of financial adjustments

(3) Any agreement entered into under subsection (1) may provide for the making of any financial adjustments required to be made by reason of any payments made to or in respect of a contributor in accordance with that agreement, and for the crediting or charging of the amount of those adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be.

(1) Paragraph 89(1)(

e) of the Act is replaced by the following:

(

e) respecting the determination of disability subject to this Part and the conditions on which any amount as or on account of a benefit in respect of the disability of a person shall be paid or shall continue to be paid, including the initial and subsequent periodic or other assessments of that disability and the reasonable rehabilitation measures to be undergone by that person, and providing for the payment out of the Consolidated Revenue Fund of the cost of any such assessments of disability and rehabilitation measures and for the charging of the amount of the payment to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be, as a cost of administration of this Act;

1991, c. 44, s. 23

(2) Paragraph 89(1)(

j) of the Act is replaced by the following:

(

j) providing, in any case or class of cases not covered by the provisions of an agreement under subsection 80(1), for the issue of cheques by the Government of Canada in the amount of any benefit payable under this Act to or in respect of a contributor and in the amount of any like benefit payable under a provincial pension plan to or in respect of the same contributor, or for the payment by other means by the Government of Canada of such an amount, if arrangements satisfactory to the Governor in Council have been made with the government of that province for the issue of cheques, or for the payment by other means, by that government on a reciprocal basis and for the making of any financial adjustments by that government required to be made by reason of those arrangements, and providing for the making of any financial adjustments by the Government of Canada required to be made by reason of those arrangements and for the crediting or charging of the amount of the adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be;

Section 91 of the Act is amended by adding the following in alphabetical order:

additional Canada Pension Plan means the part of the Canada Pension Plan relating to the portions of benefits that are referred to in paragraphs 46(1)(

b) and (c), subparagraphs 56(1)(b)(ii) and (iii), clauses 58(1)(a)(ii)(

B) and (C), subparagraphs 58(1)(b)(ii) and (iii) and subsections 59.1(3) and (5) and all contributions in respect of those portions of benefits. ( régime de pensions supplémentaire du Canada )

base Canada Pension Plan means the part of the Canada Pension Plan relating to benefits and contributions under this Act, other than the portions of those benefits and contributions that are included in the additional Canada Pension Plan. ( régime de pensions de base du Canada )

Subsection 98(3) of the Act is replaced by the following:

Application — individual with self-employed earnings

(3) Every individual who is required by

section 30 to file a return of their self-employed earnings for a year, other than an individual to whom subsection (1) or (2) applies, shall on or before the first day on or before which they are required by

section 33 to pay any amount as or on account of the contributions required to be made by them for that year in respect of those earnings, if they have not earlier been assigned a Social Insurance Number, apply to the Minister, in the form and manner that may be prescribed, for the assignment to them of a Social Insurance Number.

2012, c. 19, s. 306

Paragraph 99(2)(

b) of the Act is replaced by the following:

(

b) if the individual is not employed in pensionable employment but later becomes so employed, or is required to make a contribution under this Act in respect of their self-employed earnings, within 60 days after the day on which the individual becomes so employed or after the first day on or before which they are required under

section 33 to pay any amount as or on account of the contributions required to be made by them in respect of those earnings, as the case may be.

Subsection 107(3) of the Act is replaced by the following:

Regulations for giving effect to agreements

(3) For the purpose of giving effect to any agreement entered into under subsection (1), the Governor in Council may make any regulations respecting the manner in which this Act is to apply to any case or class of cases affected by the agreement, and for adapting this Act to any such case or class of cases, that appear to the Governor in Council to be necessary for that purpose, and any regulations so made may provide for the making of any financial adjustments required under the agreement and for the crediting or charging of the amount of any of those adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be.

(1) Paragraph 108(2)(

a) of the Act is replaced by the following:

(

a) all amounts received under this Act as or on account of contributions under subsections 8(1), 9(1) and 10(1) or otherwise on account of the base Canada Pension Plan;

1995, c. 33, s. 46(1); 1997, c. 40, s. 89(1)

(2) Paragraphs 108(2)(

c) to (

g) of the Act are replaced by the following:

(

d) any amount of money received under

section 107.1 on account of the base Canada Pension Plan and any proceeds from the disposition of any securities or other property received under that

section on account of the base Canada Pension Plan;

(

e) all amounts charged for the use of resources that are associated with the administration of this Act in relation to the base Canada Pension Plan;

(

f) any interest or administrative charge collected in relation to money payable under this Act in relation to the base Canada Pension Plan; and

(

g) all amounts received under subsection 56(1) of the Canada Pension Plan Investment Board Act .

(3) Paragraph 108(3)(

a) of the Act is replaced by the following:

(

a) all amounts payable under this Act in relation to the base Canada Pension Plan as or on account of benefits or otherwise;

(4) Paragraph 108(3)(

c) of the Act is replaced by the following:

(

c) the costs of administration of this Act in relation to the base Canada Pension Plan, under the authority of Parliament;

2012, c. 19, s. 234(2); 2013, c. 40, subpar. 236(1)(b)(iv)

(5) Paragraph 108(3)(

e) of the Act is replaced by the following:

(

e) the costs, in relation to the base Canada Pension Plan, of administering

Part 5 of the Department of Employment and Social Development Act in respect of appeals respecting this Act.

2003, c. 5, s. 2

(6) Paragraph 108(4)(

b) of the Act is replaced by the following:

(

b) the fair market value of the assets of the Investment Board less its liabilities, in relation to the base Canada Pension Plan.

2003, c. 5, s. 3

Subsection 108.1(2) of the Act is replaced by the following:

Payment by Investment Board

(2) The Minister may, by notice, and in accordance with any agreement entered into under

section 111.1, require the Investment Board to pay into the Consolidated Revenue Fund any amount necessary to offset amounts charged or required to be charged to the Canada Pension Plan Account under subsection 108(3) and any interest charged under subsection 110(1).

The Act is amended by adding the following after

section 108.1:

Additional Canada Pension Plan Account

108.2

(1) There is established in the accounts of Canada an account to be known as the Additional Canada Pension Plan Account.

Amounts to be credited to Account

(2) There is to be paid into the Consolidated Revenue Fund and credited to the Additional Canada Pension Plan Account

(

a) all amounts received under this Act as or on account of contributions under subsections 8(1.1) and (1.2), 9(1.1) and (1.2) and 10(1.1) and (1.2) or otherwise on account of the additional Canada Pension Plan;

(

b) all amounts required to be credited to the Additional Canada Pension Plan Account under any agreement entered into under subsection 39(1) or 80(1) or under any regulation made under paragraph 89(1)(

j) or subsection 107(3);

(

c) any amount of money received under

section 107.1 on account of the additional Canada Pension Plan and any proceeds from the disposition of any securities or other property received under that

section on account of the additional Canada Pension Plan;

(

d) all amounts charged for the use of resources that are associated with the administration of this Act in relation to the additio