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An Act to amend the Canada Pension Plan and the Canada Pension Plan Investment Board Act (S.C. 2003, c. 5)

Assented to 2003-04-03

An Act to amend the Canada Pension Plan and the Canada Pension Plan Investment Board Act

S.C. 2003, c. 5

Assented to 2003-04-03

An Act to amend the Canada Pension Plan and the Canada Pension Plan Investment Board Act

SUMMARY

This enactment amends the Canada Pension Plan and the Canada Pension Plan Investment Board Act to

  • (a) permit all amounts held to the credit of the Canada Pension Plan Account to be transferred to the Canada Pension Plan Investment Board, by repealing the requirement to maintain in the Account a three-month operating balance;

  • (b) establish a means by which the Investment Board may be required to transfer funds to the government, to the credit of the Canada Pension Plan Account, so that the immediate obligations of the Account can be met;

  • (c) transfer to the Investment Board, over a three-year period, the right, title or interest in each security held by the Minister of Finance, and establish the conditions on which the securities may be redeemed or replaced;

  • (d) provide that the foreign property limit in the Income Tax Act applies to the Investment Board and its subsidiaries on a consolidated basis and to provide that the Investment Board will be considered to hold the property of its subsidiaries for the purpose of applying the foreign property limit; and

  • (e) make housekeeping amendments to the Investment Board’s reporting requirements.

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

Marginal note:1996, c. 11, par. 95(b)

 Section 91 of the Canada Pension Plan and the heading before it are replaced by the following:

Interpretation

Marginal note:Definitions

91. The following definitions apply in this Part.

“Investment Board”

« Office »

“Investment Board” means the Canada Pension Plan Investment Board established by section 3 of the Canada Pension Plan Investment Board Act.

“Minister”

« ministre »

“Minister” means the Minister of Human Resources Development.

 Subsection 108(4) of the Act is replaced by the following:

  • Marginal note:Limitation

    (4) No payment shall be made out of the Consolidated Revenue Fund under this section in excess of the total of

    • (a) the amount of the balance to the credit of the Canada Pension Plan Account, and

    • (b) the fair market value of the assets of the Investment Board less its liabilities.

 The Act is amended by adding the following after section 108:

Marginal note:Management of Account
  • 108.1 (1) Any amounts standing to the credit of the Canada Pension Plan Account that exceed the immediate obligations of that Account shall be transferred to the Investment Board, unless any agreement entered into under section 111.1 provides otherwise. The amounts shall be paid out of the Consolidated Revenue Fund and charged to the Canada Pension Plan Account.

  • Marginal note:Payment by Investment Board

    (2) The Minister may, by notice, and in accordance with any agreement entered into under section 111.1, require the Investment Board to pay into the Consolidated Revenue Fund any amount necessary to offset amounts charged or required to be charged to the Canada Pension Plan Account under subsection 108(3) and any interest charged under subsection 110(2).

  • Marginal note:Interest

    (3) The Minister of Finance shall credit interest to the Canada Pension Plan Account at market rates, as determined by that Minister, on any amount standing to the credit of that Account. The interest shall be paid out of the Consolidated Revenue Fund.

  •  (1) Subsection 109(1) of the Act is repealed.

  • (2) Subsection 109(2) of the Act is replaced by the following:

    • Marginal note:Amounts to be charged and credited to Account

      (2) There shall be paid out of the Consolidated Revenue Fund and charged to the Canada Pension Plan Account the cost of all securities purchased by the Minister of Finance under section 110, and there shall be paid into the Consolidated Revenue Fund and credited to the Canada Pension Plan Account the proceeds of redemption in whole or in part of any securities purchased by that Minister under that section.

    • Marginal note:Matured securities — amounts to be charged to Fund

      (3) Where, on the maturity of a security of a province held to the credit of the Canada Pension Plan Investment Fund that was issued before January 1, 1998, the Minister of Finance does not purchase another security under subsection 110(3) or uses only a portion of the principal amount of the matured security to purchase another security, the principal amount of the matured security or the unused portion, as the case may be, shall be charged to the Canada Pension Plan Investment Fund.

    • Marginal note:Redemption before maturity — amounts to be charged to Fund

      (4) Where the Minister of Finance, under subsection 110(6.4), redeems a security in whole or in part before maturity, the principal amount of the redeemed security, or the amount of the part that is redeemed, shall be charged to the Canada Pension Plan Investment Fund.

  • (3) Subsections 109(2) to (4) of the Act are repealed.

Marginal note:1997, c. 40, s. 90(1)
  •  (1) The portion of subsection 110(1) of the Act before the definition “appropriate provincial Minister” is replaced by the following:

    Marginal note:Definitions
    • 110. (1) In this section and sections 113 and 117,

  • Marginal note:1997, c. 40, s. 90(3)

    (2) The definitions “Investment Board” and “operating balance” in subsection 110(1) of the Act are repealed.

  • (3) Subsection 110(1) of the Act is repealed.

  • (4) Subsection 110(2) of the Act is replaced by the following:

    • Marginal note:Interest shall be charged to Account

      (2) The Minister of Finance shall charge interest to the Canada Pension Plan Account at market rates, as determined by that Minister, on any amount paid out of the Consolidated Revenue Fund under subsection 108(3) that exceeds the balance to the credit of the Canada Pension Plan Account. Interest shall be charged for the period beginning on the day on which the amount is paid out of the Consolidated Revenue Fund under subsection 108(3) and ending on the day on which the Investment Board pays that amount into the Consolidated Revenue Fund under section 56 of the Canada Pension Plan Investment Board Act.

  • Marginal note:R.S., c. 30 (2nd Supp.), s. 55(2)

    (5) Subsection 110(2.1) of the Act is repealed.

  • Marginal note:1997, c. 40, s. 90(4)

    (6) Subsection 110(3) of the Act is replaced by the following:

    • Marginal note:Replacement security

      (3) On the maturity of a security of a province held to the credit of the Canada Pension Plan Investment Fund that was issued before January 1, 1998, the Minister of Finance shall purchase another security issued by the province if requested to do so, in writing, by the appropriate provincial Minister of that province at least 30 days before the date of maturity.

  • (7) Subsections 110(3) to (6.1) of the Act are repealed.

  • Marginal note:1997, c. 40, s. 90(4)

    (8) Subsections 110(6.2) and (6.3) of the Act are repealed.

  • Marginal note:2000, c. 14, s. 45

    (9) The portion of subsection 110(6.4) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Redemption at request of province

      (6.4) The Minister of Finance shall redeem a security in whole or in part before maturity if

  • (10) Subsections 110(6.4) to (7) of the Act are repealed.

  • (11) Subsection 110(8) of the Act is repealed.

Marginal note:1997, c. 40, s. 91

 Section 111 of the Act is repealed.

Marginal note:1997, c. 40, s. 91

 Section 111.1 of the Act is replaced by the following:

Marginal note:Administration agreement
  • 111.1 (1) The Minister of Finance may, on terms and conditions satisfactory to the Minister, enter into an agreement with the Investment Board with respect to the administration of any matter referred to in sections 107.1 to 110, including the payment of amounts out of the Consolidated Revenue Fund to the Investment Board, and the payment of amounts by the Investment Board into the Consolidated Revenue Fund.

  • Marginal note:Administration agreement

    (2) The Minister of Finance may enter into an agreement with the Investment Board with respect to the administration of any matter referred to in section 113.

Marginal note:1997, c. 40, s. 91

 Paragraphs 112(1)(a) and (b) of the Act are replaced by the following:

  • (a) a statement of the amounts credited to or charged to the Canada Pension Plan Account during the year;

  • (b) a statement consolidating the accounts of the Canada Pension Plan Account and the Investment Board for the year; and

  •  (1) Paragraph 113(1)(b) of the Act is replaced by the following:

    • (b) the Minister of Finance shall pay an amount calculated as provided in subsection (2) to the government of that province, by the transfer to that government in the first instance and to the extent necessary for that purpose, of securities of that province that are designated securities as defined in section 2 of the Canada Pension Plan Investment Board Act, and in the second instance and to the extent necessary for that purpose, of securities of Canada that are designated securities as defined in section 2 of that Act, and by the payment to that government of any balance then remaining in any manner that may be prescribed.

  • (2) Section 113 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Payment by Investment Board

      (1.1) The Minister of Finance may, by notice, and in accordance with any agreement entered into under section 111.1, require the Investment Board to pay to that Minister any amount that the Minister considers necessary for the purposes of subsection (1).

    • Marginal note:Rights in securities extinguished

      (1.2) For greater certainty, where the Minister of Finance transfers to the government of a province a security of that province or of Canada, any right, title or interest of the Investment Board in the security is extinguished.

  • (3) Subsections 113(1.1) and (1.2) of the Act are replaced by the following:

    • Marginal note:Transfer by Investment Board

      (1.1) The Minister of Finance may, by notice, and in accordance with any agreement entered into under section 111.1, require the Investment Board to pay to that Minister any amount, and to transfer to that Minister any securities of the province or of Canada referred to in paragraph (1)(b), that are necessary for the purposes of subsection (1).

 

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