Economic Recovery Act (stimulus) (S.C. 2009, c. 31)
Full Document:
Assented to 2009-12-15
Marginal note:R.S., c. 30 (2nd Supp.), s. 6
27. (1) Subsections 13(1) and (2) of the Act are replaced by the following:
Marginal note:Amount of contributory self-employed earnings
13. (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:1997, c. 40, s. 60
(2) The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following:
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
Marginal note:R.S., c. 30 (2nd Supp.), s. 9
28. Section 17 of the Act is replaced by the following:
Marginal note:Amount of maximum pensionable earnings
17. The amount of the maximum pensionable earnings of a person for a year is the amount of the Year’s Maximum Pensionable Earnings except that,
(a) for a year in which the person reaches eighteen or seventy years of age or die, 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 maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable 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,
(B) they die, or
(C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,
including, if they die, the month in which they die, is of 12;
(b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year before the election is made or deemed to be made, as the case may be — 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
(c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12.
Marginal note:R.S., c. 30 (2nd Supp.), s. 11
29. Section 19 of the Act is replaced by the following:
Marginal note:Amount of basic exemption
19. The amount of the basic exemption of a person for a year is the amount of the Year’s Basic Exemption except that,
(a) for a year in which the person reaches eighteen or seventy years of age or die, 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 basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption 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,
(B) they die, or
(C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,
including, if they die, the month in which they die, is of 12;
(b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the election is made or deemed to be made, as the case may be — 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 an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12;
(d) despite paragraphs (a) to (c), for a year in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the retirement pension becomes payable — 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 unless the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the amount, adjusted by that proportion, of the Year’s Maximum Pensionable Earnings, in which case, the amount of the basic exemption is increased by the lesser of
(i) the product obtained by multiplying
(A) the Year’s Basic Exemption
by
(B) one-twelfth of the amount by which the number of months in the year for which a retirement pension is payable exceeds the greater of
(I) the number of months for which an election referred to in subparagraph 12(1)(c)(ii) or paragraph 13(1)(b) has effect, and
(II) the number of months after they reach seventy years of age or die, whichever is earlier, and
(ii) the amount by which the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the product obtained by multiplying
(A) the Year’s Maximum Pensionable Earnings
by
(B) one-twelfth of the amount by which the number of months in the year before the retirement pension becomes payable exceeds the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability.
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