Additional Canada Pension Plan Sustainability Regulations (SOR/2021-6)

Marginal note:Determination of other benefits

15 Benefits, other than those that become payable in a year, are to be determined, for each year to which paragraph 14(2)(a) or (3)(a) or (b) applies and for the first year to which paragraph 14(2)(b) or (3)(c) applies, by multiplying the previous year’s benefits not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the following formula, as the case may be:

• (a) for each year to which paragraph 14(2)(a) or (3)(a) applies,

  (1 + S3 + S4) × (PI_t / PI_t–1) – (S3+ S4)

  where

  S3, S4, PI_t and PI_t–1

  have the same values as in the applicable paragraph;

• (b) for each year to which paragraph 14(3)(b) applies,

  (1 + S3) × (PI_t / PI_t–1) – S3

  where

  S3, PI_t and PI_t–1

  have the same values as in that paragraph; or

• (c) for the first year to which paragraph 14(2)(b) or (3)(c) applies,

  (FTBM / BM_t–1) × (PI_t / PI_t–1)

  where

  FTBM

  is the final target benefit multiplier,

  BM_t–1

  is the benefit multiplier for the year before that year,

  PI_t

  is the Pension Index for that year, and

  PI_t–1

  is the Pension Index for the year before that year.