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

Marginal note:1997, c. 40, s. 94(5)

• 12. (1) The portion of paragraph 113.1(4)(c) of the Act before subparagraph (i) is replaced by the following:

  • (c) the financing objective of having a contribution rate, without taking into account the changes referred to in paragraph (d) for which the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) exceeds zero, that is no lower than the rate

• Marginal note:1997, c. 40, s. 94(8)

  (2) Subsections 113.1(11) to (11.04) of the Act are repealed.

• Marginal note:1997, c. 40, s. 94(8)

  (3) The portion of subsection 113.1(11.05) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Insufficient rates

    (11.05) Subject to subsections (11.12) and (11.13), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), the contribution rate for self-employed persons for the years in that three-year period less the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) is less than the contribution rate most recently calculated under subparagraph 115(1.1)(c)(i) for self-employed persons for those years,

• Marginal note:1997, c. 40, s. 94(8)

  (4) Subsections 113.1(11.06) to (11.11) of the Act are replaced by the following:

  • Marginal note:Interpretation

    (11.06) In the calculations under subsections (11.07) to (11.11),

    A 

    is one half of the contribution rate most recently calculated under subparagraph 115(1.1)(c)(i) for self-employed persons for the years in the three-year period referred to in subsection (11.05);

    B 

    is the contribution rate for employees and employers at October 1 of the third year of the last three-year period for which contribution rates were set for employees and employers, by an Act of Parliament or by a regulation made under subsection (6), on the recommendation of ministers under subsection (1);

    C 

    is one half of the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) for self-employed persons for the years in the three-year period referred to in subsection (11.05); and

    D 

    is the difference between B and C.

  • Marginal note:Determination of rate — 1st case

    (11.07) If neither A nor D is greater than 4.95% and A is greater than D, the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is A plus C.

  • Marginal note:Determination of rate — 2nd case

    (11.08) If A is greater than 4.95%, D is less than or equal to 4.95% and the percentage determined by the formula

    1/2(A - D)

    is less than or equal to 0.1%, then the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is the rate determined by the formula

    4.95% + 1/2(A - 4.95%) + C

  • Marginal note:Determination of rate — 3rd case

    (11.09) If A is greater than 4.95%, D is less than or equal to 4.95% and the percentage determined by the formula

    1/2(A - D)

    is greater than 0.1%, then the contribution rate for employees and employers is

    • (a) for the first year after the October 1 date referred to in subsection (11.05), the rate determined by the formula

      4.95% + 1/6(A - 4.95%) + C

    • (b) for the next year, the rate determined by the formula

      4.95% + 1/3(A - 4.95%) + C

      and

    • (c) for each subsequent year, the rate determined by the formula

      4.95% + 1/2(A - 4.95%) + C

  • Marginal note:Determination of rate — 4th case

    (11.1) If subsections (11.07) to (11.09) do not apply and the percentage determined by the formula

    1/2(A - D)

    is less than or equal to 0.1%, then the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is the rate determined by the formula

    D + 1/2(A - D) + C

  • Marginal note:Determination of rate — 5th case

    (11.11) If subsections (11.07) to (11.1) do not apply, then the contribution rate for employees and employers is

    • (a) for the first year after the October 1 date referred to in subsection (11.05), the rate determined by the formula

      D + 1/6(A - D) + C

    • (b) for the next year, the rate determined by the formula

      D + 1/3(A - D) + C

      and

    • (c) for each subsequent year, the rate determined by the formula

      D + 1/2(A - D) + C

• Marginal note:1997, c. 40, s. 94(8)

  (5) Subsection 113.1(11.14) of the Act is replaced by the following:

  • Marginal note:Adjustment

    (11.14) If a contribution rate determined under any of subsections (11.07) to (11.11) is not a multiple of 0.005%, the contribution rate is to be rounded to the nearest multiple of 0.005%.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 56

  (6) Subsection 113.1(12) of the Act is replaced by the following:

  • Marginal note:Application of subsection 114(2)

    (12) For greater certainty, subsection 114(2) does not apply to any amendments to the schedule made under subsection (6) or subsections (11.05) to (11.11).