Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — 65 years of age or older

• 37.2 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person has reached 65 years of age when he or she ceases to be a member, there shall be paid to that person during his or her lifetime a compensation allowance in an amount calculated under subsection (2).

• Marginal note:Amount

  (2) The amount of the compensation allowance is the amount determined by the formula

  (A × B × 0.03) – (C + D)

  where

  A

  is the person’s average annual pensionable earnings;

  B

  is the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections (3) and (4);

  C

  is an amount equal to the number determined by the calculation referred to in the description of B multiplied by an amount equal to the portion of the person’s average annual pensionable earnings that does not exceed his or her earnings limit for the calendar year in which he or she ceased to be a member multiplied by 0.02;

  D

  is an amount equal to the percentage fixed by the Chief Actuary for the purpose of subsection 17.1(2) of

  • (i) the person’s average maximum pensionable earnings multiplied by B,

  multiplied by

  • (ii) 0.01.

• Marginal note:Pensionable service

  (3) Subject to subsection (4), the person’s pensionable service for the purpose of subsection (2) is

  • (a) the years and portions of years spent as a member after December 31, 2015 during which he or she was required to contribute under this Part, other than any period in respect of which a withdrawal allowance has been paid to the person; and

  • (b) the years and portions of years in respect of which he or she elected on or after January 1, 2016 to bring to his or her credit as time spent as a member.

• Marginal note:Service after contributions under subsection 12(2.1) not to be included

  (4) The person’s service as a member during which he or she was required to contribute under subsection 12(2.1), if any, is not to be included in the calculation under subsection (3) of the person’s pensionable service.

Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — under 65 years of age

• 37.3 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person is under 65 years of age when he or she ceases to be a member, and the person elects to receive a compensation allowance under this section, there shall be paid to that person, beginning on the date specified by him or her,

  • (a) if the specified date is before the person reaches 60 years of age,

    • (i) until the person reaches the age of 60, a compensation allowance in an amount calculated under subsection (2), and

    • (ii) after the person reaches the age of 60, during his or her lifetime, a compensation allowance in an amount calculated under subsection (3); and

  • (b) if the specified date is the day of the person’s 60th birthday or any day after that day, during his or her lifetime, a compensation allowance in an amount calculated under subsection (3).

• Marginal note:Amount of compensation allowance

  (2) For the purposes of subparagraph (1)(a)(i), the amount of the compensation allowance is the amount determined by the formula

  (A × B × 0.03) – (C × D)

  where

  A

  is the person’s average annual pensionable earnings;

  B

  is the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections 37.2(3) and (4);

  C

  is an amount equal to A x B x 0.03; and

  D

  is the product obtained by multiplying 0.01 by the number of years by which the person’s age in years, to the nearest 1/10 of a year, at the time the allowance is payable, is less than 65 years of age.

• Marginal note:Amount of compensation allowance

  (3) For the purposes of subparagraph (1)(a)(ii) and paragraph (1)(b), the amount of the compensation allowance is the amount determined by the formula

  A – (A × B)

  where

  A

  is the allowance that would be payable to the person under subsection 37.2(2) if the person had reached 65 years of age; and

  B

  is the reduction factor.

• Marginal note:Limitation regarding specified date

  (4) The date specified by the person shall not be earlier than the person’s 55th birthday.

• (b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d), 33.1(1) (c) or 33.2(1)(c).

• (b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d), 33.1(1)(c) or 33.2(1)(c).

• Marginal note:Deeming

  (3) For the purposes of subsection (2), if the member or former member has pensionable service that came to his or her credit on or after January 1, 2016, the member or former member is deemed to have received or to have been entitled to receive, as the case may be, a compensation allowance in an amount determined under subsection 37.2(2) without taking into account the calculation referred to in the description of D in that subsection.

• (a) the former member’s retirement allowances and any additional retirement allowance, under Part I; and

• (b) the former member’s compensation allowances, if any, and any additional compensation allowance, under this Part.

Marginal note:Contributions by Prime Minister — January 1, 2013 to December 31, 2015

• 47. (1) Beginning on January 1, 2013 and ending on December 31, 2015, the member who holds the office of Prime Minister shall with respect to each calendar year, by reservation from the annual salary payable to the member as Prime Minister under the Salaries Act, contribute to the Compensation Arrangements Account, in respect of that salary, at the applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(c).

• Marginal note:Contributions by Prime Minister — beginning January 1, 2016

  (2) Beginning on January 1, 2016, the member who holds the office of Prime Minister shall with respect to each calendar year, by reservation from the annual salary payable to the member as Prime Minister under the Salaries Act, contribute to the Compensation Arrangements Account, in respect of that salary, at the contribution rate that is fixed for the purpose of subsection 31.2(2).

Marginal note:Allowance to former Prime Ministers

• 48. (1) There shall be paid to every person who has held the office of Prime Minister for four years before February 6, 2006 an allowance beginning on the day on which that person ceases to be a member or reaches 65 years of age, whichever is the later, equal to 2/3 of the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on that day.

• Marginal note:Allowance to former Prime Ministers

  (2) There shall be paid to every person who has held the office of Prime Minister for four years on or after February 6, 2006 an allowance beginning on the day on which that person ceases to be a member or reaches 67 years of age, whichever is the later, in an amount determined in accordance with subsections (3) and (4).

• Marginal note:Amount

  (3) The amount of the allowance is the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on the later of the days referred to in subsection (2) multiplied by the number of years and portions of years that the member held the office of Prime Minister multiplied by 0.03.

• Marginal note:Maximum

  (4) The maximum allowance payable to a person under subsection (2) is 2/3 of the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on the later of the days referred to in that subsection.

• Marginal note:Duration of entitlement

  (5) An allowance payable to a person under subsection (1) or (2) continues during the lifetime of that person, but is suspended in respect of any period during which the person is a Senator or a member of the House of Commons.

Marginal note:Allowance to former Prime Minister’s survivor

• 49. (1) The survivor of a person described in subsection 48(1) or (2) shall be paid an allowance equal to 1/2 of the allowance that the person was receiving under that subsection at the time of death or would have been eligible to receive if, immediately before the time of death, the person described in that subsection had ceased to hold the office of Prime Minister and had, in the case of a person described in subsection 48(1) reached 65 years of age or, in the case of a person described in subsection 48(2), 67 years of age.

Marginal note:Manner of payment

• 57. (1) Every amount required to be paid by a member under section 11, 11.1, 33, 33.1 or 33.2 shall be paid at his or her option

Marginal note:Beginning of payment of allowances and amount

• 58.1 (1) Despite sections 17.1, 17.2, 37.2 and 37.3, if a former member who has not reached 65 years of age and who is entitled to be paid, but is not yet being paid, a retirement allowance and a compensation allowance under any of those sections becomes entitled to receive a disability pension under the Canada Pension Plan or under a similar provincial pension plan, the retirement allowance and the compensation allowance under those sections are payable to him or her on the day he or she becomes entitled to receive the disability pension and the amount of the retirement allowance and the compensation allowance payable is

  • (a) the amount of the retirement allowance that would have been payable to the person under section 17.1 if he or she had reached 65 years of age; and

  • (b) the amount of the compensation allowance that would have been payable to the person under section 37.2 if he or she had reached 65 years of age.

• Marginal note:Amount

  (2) Despite sections 17.2 and 37.3, if a former member who has not reached 65 years of age and who is being paid a compensation allowance under section 37.3 becomes entitled to receive a disability pension under the Canada Pension Plan or under a similar provincial pension plan, the amount of the retirement allowance and the compensation allowance payable to the person under sections 17.2 and 37.3 on the day he or she becomes entitled to receive the disability pension is

  • (a) the amount of the retirement allowance that would have been payable to the person under section 17.1 if he or she had reached 65 years of age; and

  • (b) the amount of the compensation allowance that would have been payable to the person under section 37.2 if he or she had reached 65 years of age.

Marginal note:Limitation respecting allowances

• 59. (1) Despite anything in this Act, but subject to subsection (2), the aggregate of the retirement allowance payable to a person under section 16 and the compensation allowance payable to him or her under section 36 with respect to service as a member that comes to his or her credit before January 1, 2016 shall not exceed the his or her average annual sessional indemnity multiplied by 0.75.

• Marginal note:Withdrawal allowance

  (2) For the purposes of subsection (1), a period in respect of which a withdrawal allowance has been paid to the person and in respect of which he or she has not elected to bring to his or her credit before January 1, 2016 is not to be included in the person’s service as a member that has come to his or her credit before January 1, 2016.

• Marginal note:Limitation respecting allowances

  (3) Despite anything in this Act, the aggregate of the retirement allowance payable to a person under section 17.1 or 17.2 and the compensation allowance payable to the person under section 37.2 or 37.3 with respect to service as a member that comes to his or her credit on or after January 1, 2016 shall not exceed his or her average annual pensionable earnings multiplied by 0.75.

• Marginal note:Limitation respecting allowances

  (4) Despite anything in this Act, if a person has service as a member that has come to his or her credit before January 1, 2016 and service as a member that has come to his or her credit on or after that date, any time spent by him or her as a member after he or she is required to contribute under subsection 12(2.1) or would be required to contribute under that subsection if he or she were under 71 years of age is not to be included in the calculation of the retirement allowance payable to him or her under section 17.1 or 17.2 or the compensation allowance payable to him or her under section 37.2 or 37.3.