Post-retirement Benefit

Marginal note:Amount of post-retirement benefit

• 59.1 (1) Subject to subsections (2) and (3), a post-retirement benefit payable to a contributor is a basic monthly amount determined by the formula

  [(A × F/B) × C × D × E] / 12

  where

  A

  is the amount determined under subsection 53(1) for the year prior to the year in which the post-retirement benefit commences to be payable;

  B

  is the Year’s Maximum Pensionable Earnings for the year prior to the year in which the post-retirement benefit commences to be payable;

  C

  is 0.00625;

  D

  is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;

  E

  is the adjustment factor referred to in subsection 46(3) or (3.1), as the case may be, based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and

  F

  is the amount determined by the formula

  G / H

  where

  G

  is the amount of the earnings referred to in subparagraph 53(1)(b)(i), and

  H

  is the aggregate of the earnings referred to in subparagraph 53(1)(b)(i) and those referred to in subparagraph 53(1)(b)(ii).

• Marginal note:Unadjusted pensionable earnings for the year in which the retirement pension becomes payable

  (2) For the purpose of the calculation under subsection (1), if the unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)(iii), the amount determined for A in subsection (1) is the greater of

  • (a) zero, and

  • (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53(1).

• Marginal note:Adjustment factor for contributors who are 70 years of age or older

  (3) For the purpose of the calculation under subsection (1), if the contributor is seventy years of age or older, the amount determined for E in subsection (1) is the adjustment factor for a contributor who is seventy years of age.

• Marginal note:Application for post-retirement benefit deemed to be made

  (1.1) An application for a post-retirement benefit under subsection (1) is deemed to be made on January 1 of the year following the year of the unadjusted pensionable earnings referred to in section 76.1 if

  • (a) the person is a beneficiary of a retirement pension on that day; and

  • (b) the Minister has the information necessary to determine whether a post-retirement benefit is payable to them.

• Marginal note:Commencement of retirement pension — on or after January 1, 2012

  (3.1) For a retirement pension that commences to be payable on or after January 1, 2012 and if the applicant is not an estate, subject to section 62, if payment of the retirement pension is approved, the pension is payable for each month commencing with the latest of

  • (a) the month in which the applicant reached sixty years of age,

  • (b) the month following the month in which the application was received if they were under sixty-five years of age when they applied,

  • (c) the eleventh month preceding the month in which the application was received if they have reached sixty-five years of age when they applied, but in no case earlier than the month in which they reached sixty-five years of age, and

  • (d) the month chosen by the applicant in their application.

Post-retirement Benefit

Marginal note:Commencement of benefit

76.1 Subject to section 62, a post-retirement benefit is payable to a beneficiary of a retirement pension for each month commencing with January 1 of the year following the year of a contributor’s earnings if

• (a) a contribution has been made in respect of those earnings;

• (b) those earnings exceed the contributor’s basic exemption; and

• (c) those earnings are for a period that

  • (i) begins after 2011 and after the contributory period ends under subparagraph 49(b)(iii), and

  • (ii) ends with the month preceding the month in which the contributor reaches seventy years of age.

Marginal note:Duration of payment

76.2 Subject to this Act, a post-retirement benefit shall continue to be paid during the lifetime of the beneficiary and shall cease with the payment for the month in which the beneficiary dies.

• Marginal note:Adjustment factors

  (1.11) In the first report prepared after 2015 and in every third report that follows, the Chief Actuary shall specify, in reference to the adjustment factors fixed under subsection 46(7), the factors as calculated according to a methodology that he or she considers appropriate; the Chief Actuary may also, if he or she considers it necessary, specify the factors in any report prepared under subsection (1) after 2015.