Canada Pension Plan (R.S.C., 1985, c. C-8)

Act current to 2014-06-12 and last amended on 2013-12-12. Previous Versions

Contributory Self-Employed Earnings

Marginal note:Amount of contributory self-employed earnings
  •  (1) The amount of the contributory self-employed earnings of a person for a year is the amount of the self-employed earnings except that,

    • (a) for a year in which the person reaches eighteen or seventy years of age, 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 contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year

      • (i) after

        • (A) they reach eighteen years of age, or

        • (B) the disability pension ceases to be payable, or

      • (ii) before

        • (A) they reach seventy years of age, or

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

      is of 12;

    • (b) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they make an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is deemed to be made — 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;

    • (c) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they revoke an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is deemed to be revoked — minus the number of months after they reach seventy years of age — is of 12;

    • (d) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is made — 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

    • (e) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is revoked — minus the number of months after they reach seventy years of age — is of 12.

  • Marginal note:Election

    (1.1) An election referred to in paragraph (1)(b) or (c)

    • (a) shall be made or revoked in the prescribed form and manner;

    • (b) may be made only once for a year;

    • (c) may not be revoked for the year for which it is deemed to be made;

    • (d) may not be made for a year for which an election is revoked;

    • (e) is deemed to be made or revoked on the first day of the month referred to in the election or revocation, as the case may be; and

    • (f) may not be made for a year for which the person has income from pensionable employment.

  • Marginal note:Condition

    (1.2) For the purposes of paragraph (1.1)(e), the month may not be

    • (a) before the one in which the person reaches sixty-five years of age;

    • (b) before the one in which the retirement pension becomes payable; or

    • (c) after the one in which they reach seventy years of age.

  • Marginal note:Excluded earnings

    (2) Subject to subsection (1), the contributory self-employed earnings of a person do not include earnings for

    • (a) any period described in paragraph 12(1)(a), (b), (c) or (d); or

    • (b) any year that

      • (i) follows a year for which the person makes an election to exclude self-employed earnings, and

      • (ii) is not a year for which they revoke the election.

  • Marginal note:Election to include certain earnings

    (3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of section 10 shall, if the person or their representative makes an election in the prescribed 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

    • (a) the lesser of

      • (i) his contributory salary and wages for the year, and

      • (ii) his maximum pensionable earnings for the year,

    exceeds

    • (b) the aggregate of

      • (i) his salary and wages on which a contribution has been made for the year and such amount, if any, as is determined in prescribed manner to be his salary and wages on which a contribution has been made for the year by him under a provincial pension plan, and

      • (ii) the lesser of

        • (A) the aggregate of all amounts deducted as prescribed on account of his basic exemption for the year by one or more employers pursuant to section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers pursuant to such a plan, and

        • (B) his basic exemption for the year.

  • Marginal note:Self-employed earnings where resident in province

    (4) A reference in this Act to the contributory self-employed earnings of a person for a year shall, in relation to any self-employed earnings of a person who was resident on the last day of the year in a province providing a comprehensive pension plan, be construed as a reference to his self-employed earnings for the year as such earnings are required to be computed under the provincial pension plan of that province.

  • R.S., 1985, c. C-8, s. 13;
  • R.S., 1985, c. 30 (2nd Supp.), s. 6;
  • 1997, c. 40, s. 60;
  • 2009, c. 31, s. 27.