An Act to amend the Canada Pension Plan and the Old Age Security Act (S.C. 2007, c. 11)

Assented to 2007-05-03

An Act to amend the Canada Pension Plan and the Old Age Security Act

S.C. 2007, c. 11

Assented to 2007-05-03

An Act to amend the Canada Pension Plan and the Old Age Security Act

SUMMARY

This enactment amends the Canada Pension Plan to implement the existing full funding provision for new benefits and benefit enhancements. It also provides for their calculation, the requirements for public reporting of those costs and the integration of those costs into the process for setting the contribution rate.

It changes the contributory requirement for disability benefits under the Canada Pension Plan for contributors with 25 or more years of contributions to the Canada Pension Plan, to require contributions in only three of the last six years in the contributory period. Other contributors will continue to have to meet the existing requirement of contributions in four of the last six years in their contributory period.

It also makes changes to the Canada Pension Plan of an administrative nature to modernize service delivery. It authorizes the Governor in Council to make regulations respecting the payment of interest on amounts owing to Her Majesty under Part II of the Act. It also addresses anomalies in the Act, amends the penalty provisions and clarifies certain language used in the Act.

In addition, this enactment amends the Old Age Security Act to authorize the Governor in Council to make regulations respecting the payment of interest on amounts owing to Her Majesty under the Act. The enactment also eliminates the ability of estates or successions to apply for income-tested benefits and ensures that sponsored immigrants are treated the same for the purpose of determining entitlements to income-tested benefits. It also corrects anomalies in the Act, amends the penalty provisions, modernizes and simplifies the application and delivery of the Old Age Security program and clarifies certain language used in the Act.

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

R.S., c. C-8CANADA PENSION PLAN

 The Canada Pension Plan is amended by adding the following after section 4:

ELECTRONIC ALTERNATIVES

Marginal note:Power of Ministers

4.1 The Minister of Social Development and the Minister of National Revenue may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act.

 Paragraph 44(2)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (i) and by adding the following after subparagraph (i):

  • (i.1) for at least 25 calendar years included either wholly or partly in the contributor’s contributory period, of which at least three are in the last six calendar years included either wholly or partly in the contributor’s contributory period, or

Marginal note:2000, c. 12, s. 47
  •  (1) The portion of paragraph 55.1(1)(b) of the Act before subparagraph (i) is replaced by the following:

    • (b) in the case of spouses, following the approval by the Minister of an application made by or on behalf of either spouse, by the estate or succession of either spouse or by any person that may be prescribed, if

  • Marginal note:2000, c. 12, s. 47

    (2) Paragraph 55.1(1)(c) of the Act is replaced by the following:

    • (c) in the case of common-law partners, following the approval by the Minister of an application made by or on behalf of either former common-law partner, by the estate or succession of one of those former common-law partners or by any person that may be prescribed, if

      • (i) the former common-law partners have been living separate and apart for a period of one year or more, or one of the former common-law partners has died during that period, and

      • (ii) the application is made within four years after the day on which the former common-law partners commenced to live separate and apart or, if both former common-law partners agree in writing, at any time after the end of that four-year period.

Marginal note:1997, c. 40, s. 80
  •  (1) Subsection 66(2) of the Act is replaced by the following:

    • Marginal note:Recovery of amount of payment

      (2) If a person has received or obtained a benefit payment to which the person is not entitled, or a benefit payment in excess of the amount of the benefit payment to which the person is entitled, the amount of the benefit payment or the excess amount, as the case may be, constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.

    • Marginal note:Recovery of amount of interest

      (2.01) Interest payable under this Part constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.

  • (2) Section 66 of the Act is amended by adding the following after subsection (2.01):

    • Marginal note:Recovery of amount of penalty

      (2.02) The amount of a penalty imposed on a person under section 90.1 constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.

  • Marginal note:1997, c. 40, s. 80

    (3) Subsection 66(2.1) of the French version of the Act is replaced by the following:

    • Marginal note:Déduction

      (2.1) Le montant de la créance peut en outre être déduit, de la façon réglementaire, des sommes à payer au débiteur ou à sa succession en vertu de la présente loi ou de toute autre loi dont l’application incombe au ministre ou au titre de tout programme dont la gestion lui est confiée.

  • Marginal note:1997, c. 40, s. 80

    (4) Subsection 66(2.7) of the Act is replaced by the following:

    • Marginal note:Garnishment

      (2.7) If the Minister knows or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment to Her Majesty under this Part, the Minister may, by a notice served personally or by confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability.

  • (5) Section 66 of the Act is amended by adding the following after subsection (5):

  •  (1) Subsection 89(1) of the Act is amended by striking out the word “and” at the end of paragraph (l) and by adding the following after paragraph (l):

    • (l.1) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Part, including

      • (i) the technology or process, and the format, that must be used,

      • (ii) the place where an electronic document is to be made or sent,

      • (iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received,

      • (iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and

      • (v) the circumstances in which an electronic document must be signed with an electronic signature or a secure electronic signature;

    • (l.2) providing that a requirement under a provision of this Part to provide a document or information by non-electronic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with; and

  • (2) Section 89 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Regulations — payment of interest

      (2) The Governor in Council may make regulations respecting the payment of interest on amounts owing to Her Majesty under this Part, including regulations prescribing

      • (a) the circumstances in which interest is payable;

      • (b) rates of interest or the manner of calculating rates of interest;

      • (c) terms and conditions for the imposition and payment of interest; and

      • (d) terms and conditions under which the Minister may waive, reduce or remit the interest payable.

    • Marginal note:Personal Information Protection and Electronic Documents Act

      (3) In paragraphs (1)(l.1) and (l.2), “electronic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act.

 The heading before section 90.1 of the English version of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following:

Administrative Monetary Penalties
  •  (1) The portion of subsection 90.1(1) of the French version of the Act before paragraph (a), as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following:

    Marginal note:Pénalités
    • 90.1 (1) S’il prend connaissance de faits qui, à son avis, démontrent qu’une personne a commis l’un des actes ou omissions ci-après, le ministre peut lui infliger une pénalité pour chacun de ces actes ou omissions :

  • (2) Paragraph 90.1(1)(d) of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following:

    • (d) received or obtained by cheque or otherwise a benefit payment to which the person knew that they were not entitled, or a benefit payment that the person knew was in excess of the amount of the benefit payment to which they were entitled, and did not return the cheque or the amount of the benefit payment, or the excess amount, as the case may be, without delay; or

  • (3) Paragraph 90.1(1)(e) of the French version of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following:

    • e) participer, consentir ou acquiescer à la commission de tout acte ou omission visé à l’un ou l’autre des alinéas a) à d).

  • (4) Section 90.1 of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is amended by adding the following after subsection (1):

    • Marginal note:Purpose of penalty

      (1.1) The purpose of the penalty is to promote compliance with this Act and not to punish.

  • (5) Subsection 90.1(4) of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following:

    • Marginal note:Rescission, etc., of penalty

      (4) The Minister may rescind the imposition of a penalty under subsection (1), or reduce the penalty,

      • (a) on the presentation of new facts;

      • (b) on being satisfied that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact;

      • (c) on being satisfied that the penalty cannot be collected within the reasonably foreseeable future; or

      • (d) on being satisfied that payment of the penalty would cause undue hardship to the debtor.

 The Act is amended by adding the following before section 90.2:

Administration and Enforcement
 
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