Canada Pension Plan Investment Board Act (S.C. 1997, c. 40)

Act current to 2016-11-21 and last amended on 2014-10-09. Previous Versions

Canada Pension Plan Investment Board Act

S.C. 1997, c. 40

Assented to 1997-12-18

An Act to establish the Canada Pension Plan Investment Board and to amend the Canada Pension Plan and the Old Age Security Act and to make consequential amendments to other Acts

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

Short Title

Marginal note:Short title

 This Act may be cited as the Canada Pension Plan Investment Board Act.

Interpretation

Marginal note:Definitions

 The definitions in this section apply in this Act.

appropriate provincial Minister

ministre provincial compétent

appropriate provincial Minister, in respect of a province, means the province’s minister of the Crown who has primary responsibility for that province’s finances. (ministre provincial compétent)

Board

Office

Board means the Canada Pension Plan Investment Board established by section 3. (Office)

by-law

Version anglaise seulement

by-law means a by-law of the Board. (Version anglaise seulement)

court

tribunal

court means

  • (a) in the Province of Ontario, the Ontario Court (General Division);

  • (b) in the Province of Quebec, the Superior Court of the Province;

  • (c) in the Provinces of Nova Scotia and British Columbia, the Supreme Court of the Province;

  • (d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen’s Bench for the Province;

  • (e) in the Provinces of Prince Edward Island and Newfoundland, the trial division of the Supreme Court of the Province; and

  • (f) the Supreme Court of Yukon, the Supreme Court of the Northwest Territories and the Nunavut Court of Justice. (tribunal)

designated security

titre désigné

designated security means

  • (a) an obligation

    • (i) that, before April 1, 1998, was held to the credit of the Canada Pension Plan Investment Fund, as established under subsection 109(1) of the Canada Pension Plan,

    • (ii) that, as applied to Canada, is an obligation of the Government of Canada and, as applied to a province, is an obligation of the government of the province or an obligation of any agent of Her Majesty in right of the province that is guaranteed as to principal and interest by that government, and

    • (iii) that complies with the conditions that were set out in section 111 of the Canada Pension Plan as that section read immediately before April 1, 1998; or

  • (b) an obligation that

    • (i) on or after April 1, 1998, was purchased by the Minister of Finance under section 110 of the Canada Pension Plan or is purchased by the Board under section 6.1, and

    • (ii) is an obligation of the government of a province or an obligation of any agent of Her Majesty in right of a province that is guaranteed as to principal and interest by that government. (titre désigné)

entity

entité

entity means a body corporate, a trust, a partnership, a fund, an unincorporated association or organization, Her Majesty in right of Canada or of a province or an agency of Her Majesty in right of Canada or of a province and the government of a foreign country or any political subdivision or agency of the government of a foreign country. (entité)

Minister

ministre

Minister means the Minister of Finance. (ministre)

participating province

province participante

participating province means a province other than

  • (a) a territory; and

  • (b) a province providing a comprehensive pension plan as defined in subsection 3(1) of the Canada Pension Plan. (province participante)

subsidiary

filiale

subsidiary means a corporation that is wholly owned by the Board directly or indirectly through any number of subsidiaries each of which is wholly owned directly or indirectly by the Board. (filiale)

  • 1997, c. 40, s. 2;
  • 1999, c. 3, s. 19;
  • 2002, c. 7, s. 112(E);
  • 2003, c. 5, s. 12.

Constitution of the Board

Marginal note:Board established
  •  (1) There is established a corporation to be known as the Canada Pension Plan Investment Board.

  • Marginal note:Not agent of Her Majesty

    (2) The Board is not an agent of Her Majesty.

  • Marginal note:Not part of federal public administration

    (3) Directors, officers, employees and agents of the Board are not part of the federal public administration.

  • Marginal note:Acts not applicable to Board

    (4) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and the Canada Not-for-profit Corporations Act do not apply to the Board.

  • 1997, c. 40, s. 3;
  • 2003, c. 22, s. 224(E);
  • 2009, c. 23, s. 317.

Capital and Shares

Marginal note:Capital
  •  (1) The capital of the Board is $100. The Minister shall pay the capital of the Board out of the Consolidated Revenue Fund.

  • Marginal note:Shares

    (2) The capital is divided into 10 shares having a par value of $10 each. The shares shall be issued to the Minister to be held on behalf of Her Majesty in right of Canada.

  • Marginal note:Registration

    (3) The shares issued to the Minister shall be registered by the Board in the name of the Minister.

Objects and Powers

Marginal note:Objects

 The objects of the Board are

  • (a) to assist the Canada Pension Plan in meeting its obligations to contributors and beneficiaries under the Canada Pension Plan;

  • (b) to manage any amounts transferred to it under section 108.1 of the Canada Pension Plan, and its right, title or interest in any designated securities, in the best interests of the contributors and beneficiaries under that Act; and

  • (c) to invest its assets with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the factors that may affect the funding of the Canada Pension Plan and the ability of the Canada Pension Plan to meet its financial obligations on any given business day.

  • 1997, c. 40, s. 5;
  • 2003, c. 5, s. 13.
Marginal note:Powers of Board
  •  (1) The Board has the capacity and, subject to this Act, the rights, powers and privileges of a natural person.

  • Marginal note:No inconsistent business or activity

    (2) The Board and its subsidiaries shall not, directly or indirectly, carry on any business or activity or exercise any power that is inconsistent with the Board’s objects, or that the Board is restricted by this Act from carrying on or exercising, and shall not, directly or indirectly, exercise any of its powers in a manner contrary to this Act.

  • Marginal note:No invalidity

    (3) No act of the Board, including a transfer of property, is invalid by reason only that the Board was without the capacity or power to so act.

Designated Securities

Marginal note:Replacement security
  •  (1) On the maturity of a designated security of a province that was issued before January 1, 1998, the Board shall purchase another security issued by that province if the Board is requested to do so, in writing, by the appropriate provincial Minister of that province at least 30 days before the date of maturity.

  • Marginal note:Principal amount

    (2) The principal amount of the replacement security shall be not more than the principal outstanding under the maturing designated security.

  • Marginal note:Term to maturity

    (3) The replacement security shall be for a term of 20 years.

  • Marginal note:Interest

    (4) The replacement security shall bear interest at a rate fixed by the Board, in accordance with any agreement entered into between the Board and the Minister. The rate shall be substantially the same as the interest rate that the province would be required to pay if it were to borrow the same amount for the same term through the issuance of a security on the public capital market.

  • Marginal note:Features of replacement security

    (5) The replacement security shall be issued to or payable to the Board and shall be expressed to be not negotiable and not transferable or assignable.

  • Marginal note:Redemption at request of province

    (6) The Board shall redeem a designated security in whole or in part before maturity if

    • (a) the Board is requested to do so, in writing, by the appropriate provincial Minister of a province at least 30 days before the proposed redemption date; and

    • (b) the appropriate provincial Minister has agreed to pay on the proposed redemption date

      • (i) any payments of principal or interest due on or before the proposed redemption date but not yet paid,

      • (ii) interest on the principal amount being redeemed accrued to the proposed redemption date, and

      • (iii) an amount equal to the present value of the remaining instalments of principal being redeemed and interest on that principal.

  • Marginal note:Calculation of present value

    (7) For the purposes of subparagraph (6)(b)(iii), the present value shall be calculated by discounting the instalments of principal being redeemed and interest on that principal using an interest rate fixed by the Board, in accordance with any agreement entered into between the Board and the Minister of Finance. In fixing that rate, the Board shall choose a rate that

    • (a) if the designated security to be redeemed was issued before January 1, 1998, is substantially the same as the rate that the Government of Canada would be required to pay if it were to borrow the principal amount being redeemed for a term equal to the remaining term of that designated security through the issuance of a security on the public capital market; or

    • (b) if the designated security to be redeemed was issued on or after January 1, 1998, is substantially the same as the rate that the province would be required to pay if it were to borrow the principal amount being redeemed for a term equal to the remaining term of that designated security through the issuance of a security on the public capital market.

  • Marginal note:Consolidation of securities

    (8) At the request of the provincial treasurer or other similar officer of a province, the Board may accept in the place of any series of designated securities of that province acquired during any consecutive period of not more than twelve months, on payment of any interest then accrued on the securities, another security of that province that is in an amount equal to the aggregate amount then outstanding of the designated securities of that series, and that bears interest at a rate determined by the Board.

  • Marginal note:Obligation guaranteed by the provincial government

    (9) Any security purchased by the Board under this section must be an obligation of the government of a province or an obligation of an agent of Her Majesty in right of a province that is guaranteed as to principal and interest by that government.

  • 2003, c. 5, s. 14.
 
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