Economic Recovery Act (stimulus) (S.C. 2009, c. 31)
Full Document:
Assented to 2009-12-15
30. (1) Subsection 38(1) of the Act is replaced by the following:
Marginal note:Refund of overpayment
38. (1) If an overpayment has been made by an employee on account of the employee’s contribution under this Act for a year, the Minister shall, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year, refund to the employee the amount of the overpayment.
Marginal note:2004, c. 22, s. 18(1)
(2) Subsection 38(3) of the Act is replaced by the following:
Marginal note:Refund of excess — employee
(3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contribution for the year required of the employee under subsection 8(1), the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.
(3) Paragraph 38(4)(b) of the Act is replaced by the following:
(b) shall make such a refund after mailing the notice of assessment, if application is made in writing by the contributor not later than four years — or, in the case of a contributor who is notified after the coming into force of this paragraph of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.
Marginal note:1992, c. 1, s. 23
31. Paragraph 42(2)(b) of the Act is replaced by the following:
(b) a person is deemed to have become or to have ceased to be disabled at the time that is determined in the prescribed manner to be the time when the person became or ceased to be, as the case may be, disabled, but in no case shall a person — including a contributor referred to in subparagraph 44(1)(b)(ii) — be deemed to have become disabled earlier than fifteen months before the time of the making of any application in respect of which the determination is made.
32. (1) Subsection 44(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and’’ at the end of paragraph (f) and by adding the following after paragraph (f):
(g) a post-retirement benefit shall be paid to a beneficiary of a retirement pension under this Act or under a provincial pension plan.
(2) Section 44 of the Act is amended by adding the following after subsection (2):
Marginal note:Proration — late applications for disability pensions
(2.1) For the purposes of determining the minimum qualifying period of a contributor referred to in subparagraph (1)(b)(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12.
Marginal note:R.S., c. 30 (2nd Supp.), s. 15; R.S., c. 18 (3rd Supp.), s. 29; 1991, c. 44, s. 5
33. Subsections 46(3) to (6) of the Act are replaced by the following:
Marginal note:Upward or downward adjustment factor — up to 2010
(3) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 1986 and before January 1, 2011 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed by the Minister, on the advice of the Chief Actuary of the Office of the Superintendent of Financial Institutions, to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years.
Marginal note:Upward or downward adjustment factor — after 2010
(3.1) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 2010 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed under subsection (7).
Marginal note:Exception if division of unadjusted pensionable earnings increases retirement pension
(4) Subject to subsection (5), if, as a result of a division of unadjusted pensionable earnings under section 55 or 55.1, a retirement pension that was payable increases, the adjustment factor applicable after the increase to the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, instead of the adjustment factor referred to in subsection (3) or (3.1), as the case may be, shall be determined by the formula
[(F1 × P1) + (F2 × E)] / P2
where
- F1
- is an amount equal to the adjustment factor referred to in subsection (3) or (3.1), as the case may be, at the time the retirement pension first became payable;
- P1
- is the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, before the division;
- F2
- is the lesser of
(a) an amount equal to what the adjustment factor referred to in subsection (3) or (3.1), as the case may be, would have been if the retirement pension had commenced in the month in which the increase commences to be payable, and
(b) 1;
- E
- is equal to the excess of P2 over P1; and
- P2
- is the basic monthly amount of the retirement pension immediately following the division.
Marginal note:Exception if survivor’s pension reduced
(5) Unless otherwise provided by an agreement under section 80, if a person receives a retirement pension under this Act and a survivor’s pension under this Act and the survivor’s pension is at any time reduced from its full amount under subsection 58(2), any downward adjustment factor resulting from the application of subsection (3), (3.1) or (4) at that time shall not be applied to the whole of the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, but only to the amount remaining when that basic monthly amount is reduced by the product obtained by multiplying
(a) the amount by which the survivor’s pension has been reduced
by
(b) the ratio that the Pension Index for the year in which the retirement pension first commenced to be payable bears to the Pension Index for the year in which the survivor’s pension is reduced.
Marginal note:Exception if division after age 65 precedes commencement of retirement pension
(6) If, after a person has reached 65 years of age but before the person commences to receive a retirement pension, a division of unadjusted pensionable earnings takes place under section 55 or 55.1 in respect of that person, the upward adjustment factor referred to in subsection (3) or (3.1), as the case may be, to be applied to any increase in the retirement pension that is attributable to the division shall be based on the time interval between the taking place of the division and the commencement of the retirement pension, and shall not take into account the time interval between the month in which the person reaches 65 years of age and the month in which the division takes place.
Marginal note:Regulations
(7) For the purposes of subsection (3.1), the Governor in Council may make regulations fixing one or more adjustment factors or the methods of calculating them — including factors or methods that may apply on specified dates — to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years.
Marginal note:Condition
(8) The Governor in Council may only make regulations under subsection (7) or repeal them on the recommendation of the Minister of Finance and only if the lieutenant governor in council of each of at least two thirds of the included provinces, as defined in subsection 114(1), having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the making or repeal of the regulations.
Marginal note:Amendment
(9) Regulations made under subsection (7) may only be amended in accordance with subsection 113.1(14).
34. (1) Paragraph 48(4)(a) of the Act is replaced by the following:
(a) from the number of months remaining, a number of months equal to the lesser of
(i) subject to subsection (5), if the retirement pension or other benefit becomes payable commencing with a month before January 2012, fifteen per cent of the number remaining — and sixteen per cent commencing with a month after December 2011 and before January 2014 and seventeen per cent commencing with a month after December 2013 — and, if that per cent includes a fraction of a month, the fraction shall be taken to be a complete month, and
(ii) the number of months by which the number remaining exceeds one hundred and twenty; and
(2) Section 48 of the Act is amended by adding the following after subsection (4):
Marginal note:Exception — same percentage
(5) The percentage used in a calculation of the amount of average monthly pensionable earnings under subsection (4) is to be used in the calculation of other benefits based on that amount.
35. Section 53 of the Act is renumbered as subsection 53(1) and is amended by adding the following:
Marginal note:Year in which retirement pension commences
(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,
(a) the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12; and
(b) the contributor’s 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 that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12.
- Date modified: