Pension Reform Act (S.C. 2012, c. 22)
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Assented to 2012-11-01
R.S., c. M-5MEMBERS OF PARLIAMENT RETIRING ALLOWANCES ACT
Marginal note:2003, c. 16, s. 7
27. (1) The portion of subsection 36(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Compensation allowance
36. (1) Subject to sections 58 and 59, a compensation allowance determined in accordance with this section shall be paid to a person during his or her lifetime in respect of contributions made under this Part, other than those made in respect of salary or annual allowance and those made under subsection 34(2) or (2.1), as that subsection read on December 31, 2012 — and those made under paragraph 31.1(1)(a) or (2)(a) if the person was contributing at the contribution rate referred to in subsection 2.7(9) —, if the person
Marginal note:2003, c. 16, s. 7
(2) The portion of paragraph 36(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) the person’s average annual sessional indemnity multiplied by, subject to subsections (3) and (3.1), the number of years and portions of years of pensionable service calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6), multiplied by
Marginal note:2003, c. 16, s. 7
(3) Clause 36(2)(a)(i)(C) of the Act is replaced by the following:
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
Marginal note:2003, c. 16, s. 7
(4) Clause 36(2)(a)(ii)(C) of the Act is replaced by the following:
(C) 0.01 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
(5) Subparagraph 36(2)(a)(iii) of the Act is amended by striking out “and” at the end of clause (A) and by adding the following after clause (B):
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election referred to in clause (A) or (B) or subparagraph (a)(iv), and
Marginal note:2003, c. 16, s. 7
(6) Subparagraph 36(2)(a)(iv) of the Act is replaced by the following:
(iv) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election referred to in clause (iii)(A) or (B),
Marginal note:2003, c. 16, s. 7
(7) Paragraph 36(2)(b) of the Act is replaced by the following:
(b) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001; and
(c) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4.1), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 7
(8) The portion of subsection 36(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Years of service — clauses (2)(a)(iii)(A) and (B)
(3) For the purposes of clauses (2)(a)(iii)(A) and (B), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for
Marginal note:2003, c. 16, s. 7
(9) Subsections 36(4) and (5) of the Act are replaced by the following:
Marginal note:Years of service — clause (2)(a)(iii)(C) and subparagraphs (2)(a)(iv) and (6)(a)(iv)
(3.1) For the purposes of clause (2)(a)(iii)(C) and subparagraphs (2)(a)(iv) and (6)(a)(iv), a person, on ceasing to be a member, is deemed to have the same number of years and portions of years of pensionable service to his or her credit that would be calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6) if the person were a person required to contribute under Part I.
Marginal note:Years of service — paragraphs (2)(b) and 2(6)(b)
(4) For the purposes of paragraphs (2)(b) and (6)(b), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount — equal to 7% of the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during a calendar year — that, during the period beginning on January 1, 2001 and ending on December 31, 2012, he or she contributed or elected to contribute under subsection 31(1) or 33(1) in respect of that portion of the sessional indemnity that exceeded his or her earnings limit for the calendar year.
Marginal note:Years of service — paragraphs (2)(c) and (6)(c)
(4.1) For the purposes of paragraphs (2)(c) and (6)(c), for each of the calendar years from 2013 to 2015, a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount equal to the amount determined under subsection (4.2) that, during that calendar year, the person contributed or elected to contribute under section 31.1 or subsection 33.1(1) in respect of that portion of the sessional indemnity that exceeded his or her earnings limit for the calendar year.
Marginal note:Amount
(4.2) The amount for the purposes of subsection (4.1) in respect of a person for a calendar year is the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during the calendar year multiplied by the contribution rate that is fixed for the calendar year for the purpose of paragraph 31.1(2)(a).
Marginal note:Application of subsections (3), (4), (4.1) and (7)
(5) In the application of subsections (3), (4), (4.1) and (7), the deeming provision of subsection 16(6) in relation to a portion of a year’s pensionable service shall apply, with any modifications that the circumstances require.
Marginal note:2003, c. 16, s. 7
(10) Subparagraphs 36(6)(a)(ii) and (iii) of the Act are replaced by the following:
(ii) subject to subparagraphs (iii) and (iv), if the person has reached 60 years of age, 0.01,
(iii) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday, and
(iv) if the person contributed after he or she reached 71 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday,
Marginal note:2003, c. 16, s. 7
(11) Paragraph 36(6)(b) of the Act is replaced by the following:
(b) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001; and
(c) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4.1), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 7
(12) Paragraph 36(8)(c) of the Act is replaced by the following:
(c) if the person contributed after he or she reached 71 years of age, 0.04 for the years and portions of years of pensionable service calculated by reference to contributions made on or after the 71st birthday, other than those made under an election made before that birthday.
Marginal note:2003, c. 16, s. 7
(13) Subsection 36(9) of the Act is replaced by the following:
Marginal note:Special case — January 1, 2001 to December 31, 2015
(9) For the purposes of calculating the compensation allowance payable under subsection (1) to a person who, during the period that begins on January 1, 2001 and ends on December 31, 2015, elected to contribute under this Part in respect of any session or part of a session before December 31, 2015, the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out in that paragraph, be
(a) if the person has not reached 60 years of age, 0.03;
(b) subject to paragraphs (c) and (d), if the person has reached 60 years of age, 0.01;
(c) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday; and
(d) if the person contributed after he or she reached 71 years of age, 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday.
Marginal note:2001, c. 20, s. 26(1)
28. (1) Clause 37(2)(a)(i)(C) of the Act is replaced by the following:
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
Marginal note:2001, c. 20, s. 26(1)
(2) Clause 37(2)(a)(ii)(C) of the Act is replaced by the following:
(C) 0.01 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
(3) Subparagraph 37(2)(a)(iii) of the Act is amended by striking out “and” at the end of clause (A) and by adding the following after clause (B):
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election referred to in clause (A) or (B), and
Marginal note:2001, c. 20, s. 26(1)
(4) Subparagraph 37(2)(a)(iv) of the Act is replaced by the following:
(iv) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election referred to in subparagraph (iii), and
Marginal note:2001, c. 20, s. 26(1)
(5) Subparagraphs 37(2)(b)(i) to (iii) of the Act are replaced by the following:
(i) 0.05 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after January 1, 1992 and before July 13, 1995,
(ii) 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made, or in respect of which an election was made, on or after July 13, 1995 and before January 1, 2001, otherwise than under an election referred to in subparagraph (i), and
(iii) 0.03 for the years and portions of years of pensionable service calculated by reference to those contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001, and
(iv) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 8
(6) Paragraph 37(3)(c) of the Act is replaced by the following:
(c) each amount, equal to 7% of the sessional indemnity payable to the person as a member of the Senate or House of Commons, as the case may be, during a calendar year, that the person — during the period beginning on January 1, 2001 and ending on December 31, 2012 — has contributed or elected to contribute under subsection 31(3), paragraph 31(4)(b) or subsection 31(5) or 33(1), other than amounts paid under subsection 33(1) in respect of sessional indemnity or as interest.
(7) Section 37 of the Act is amended by adding the following after subsection (3):
Marginal note:Years of pensionable service
(3.1) For the purposes of paragraph (2)(b), for each of the calendar years from 2013 to 2015, a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount equal to the amount determined under subsection (3.2) that, during that calendar year, the person contributed or elected to contribute under paragraph 31.1(1)(c) or (2)(b) or subsection 33.1(1), other than amounts paid under subsection 33.1(1) in respect of sessional indemnity or as interest.
Marginal note:Amount
(3.2) The amount for the purposes of subsection (3.1) in respect of a person for a calendar year is the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during the calendar year multiplied by the contribution rate that is fixed for the calendar year for the purpose of paragraph 31.1(2)(a).
Marginal note:2001, c. 20, s. 26(3)
(8) Subparagraph 37(5)(a)(iii) of the Act is replaced by the following:
(iii) if the person has reached 71 years of age and contributed after reaching that age, 0.04 for the years and portions of years of pensionable service calculated by reference to those contributions made on or after the 71st birthday, other than those made under an election made before that birthday; and
Marginal note:2001, c. 20, s. 26(3)
(9) Subsection 37(6) of the Act is replaced by the following:
Marginal note:Special case — January 1, 2001 to December 31, 2015
(6) For the purposes of calculating the additional compensation allowance payable under subsection (2) to a person who, during the period begining on January 1, 2001 and ending on December 31, 2015, elected to contribute under this Part in respect of any session or part of a session before December 31, 2015, the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out in that paragraph, be
(a) if the person has not reached 60 years of age, 0.03;
(b) subject to paragraphs (c) and (d), if the person has reached 60 years of age, 0.01;
(c) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday; and
(d) if the person contributed after he or she reached 71 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday.
Marginal note:1995, c. 30, s. 11
29. The portion of subsection 37.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Beginning of payment of allowances — July 13, 1995 to December 31, 2015
37.1 (1) Despite sections 36 and 37, the allowances otherwise payable to a person under those sections in respect of pensionable service calculated by reference to contributions made during the period beginning on July 13, 1995 and ending on December 31, 2015, other than those made under an election made before July 13, 1995, are not payable until the earlier of
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