An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (S.C. 2016, c. 14)

Marginal note:1997, c. 40, s. 98

54 The schedule to the Act is renumbered as Schedule 1.

55 Schedule 1 to the Act is amended by replacing the references after the heading “SCHEDULE 1” with the following:

56 The Act is amended by adding, after Schedule 1, the Schedule 2 that is set out in the schedule to this Act.

1997, c. 40Canada Pension Plan Investment Board Act

Marginal note:2003, c. 5, s. 13

57 Paragraph 5(b) of the Canada Pension Plan Investment Board Act is replaced by the following:

58 Section 39 of the Act is amended by adding the following after subsection (7):

59 The heading before section 56 of the Act is replaced by the following:

Marginal note:2003, c. 5, s. 18

60 Subsection 56(1) of the Act is replaced by the following:

61 Section 57 of the Act is replaced by the following:

Transitional Provisions

Marginal note:Definitions

62 The following definitions apply in sections 63 and 64.

additional Canada Pension Plan

additional Canada Pension Plan has the same meaning as in section 91 of the Canada Pension Plan. (régime de pensions supplémentaire du Canada)

Additional Canada Pension Plan Account

Additional Canada Pension Plan Account means the account established under subsection 108.2(1) of the Canada Pension Plan. (compte supplémentaire du régime de pensions du Canada)

Canada Pension Plan Account

Canada Pension Plan Account means the account established under subsection 108(1) of the Canada Pension Plan. (compte du régime de pensions du Canada)

Minister

Minister means the Minister of Employment and Social Development. (ministre)

Marginal note:Initial costs of administration

• 63 (1) Despite paragraphs 108.2(3)(c), (d) and (f) of the Canada Pension Plan, until a date determined by the Minister, the costs of administration in relation to the additional Canada Pension Plan must be paid out of the Consolidated Revenue Fund and charged to the Canada Pension Plan Account. The date determined by the Minister must not be later than December 31, 2020.

• Marginal note:Interest

  (2) The Minister of Finance must calculate interest, at rates determined by that Minister, on any amount paid out of the Consolidated Revenue Fund under subsection (1). Interest must be calculated for the period beginning on the day on which the amount is paid out of the Consolidated Revenue Fund under subsection (1) and ending on the day on which the amount is credited to the Canada Pension Plan Account under subsection (3).

• Marginal note:Amounts credited to Canada Pension Plan Account

  (3) After the date determined by the Minister under subsection (1) but before March 31, 2021, all amounts charged to the Canada Pension Plan Account under subsection (1) and all interest calculated under subsection (2) must be credited to the Canada Pension Plan Account and charged to the Additional Canada Pension Plan Account.

Marginal note:Initial administration costs — Investment Board

• 64 (1) Despite section 57.1 of the Canada Pension Plan Investment Board Act, until the date determined under subsection 63(1), the administration costs referred to in that section 57.1 must be paid out of the Consolidated Revenue Fund and charged to the Canada Pension Plan Account.

• Marginal note:Interest

  (2) The Minister of Finance must calculate interest, at rates determined by that Minister, on any amount paid out of the Consolidated Revenue Fund under subsection (1). Interest must be calculated for the period beginning on the day on which the amount is paid out of the Consolidated Revenue Fund under subsection (1) and ending on the day on which the amount is credited to the Canada Pension Plan Account under subsection (3).

• Marginal note:Amounts credited to Canada Pension Plan Account

  (3) After the date referred to in subsection (1) but before March 31, 2021, all amounts charged to the Canada Pension Plan Account under subsection (1) and all interest calculated under subsection (2) must be credited to the Canada Pension Plan Account and charged to the Additional Canada Pension Plan Account.

Coming into Force

Marginal note:Subsection 114(2) of Canada Pension Plan does not apply

• 65 (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in this Part.

• Marginal note:Order in council

  (2) This Part comes into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.

PART 2R.S., c. 1 (5th Supp.)Related Amendments to the Income Tax Act

• 66 (1) Paragraph 60(e) of the Income Tax Act is replaced by the following:

  • Marginal note:CPP/QPP contributions on self-employed earnings

    (e) the total of

    • (i) 1/2 of the lesser of

      • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1) of the Canada Pension Plan or as a like contribution under a provincial pension plan, as defined in section 3 of that Act, and

      • (B) the maximum amount of such contributions payable by the taxpayer for the year under the plan, and

    • (ii) the lesser of

      • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.1) or (1.2) of the Canada Pension Plan, and

      • (B) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

  • Marginal note:Enhanced CPP contributions

    (e.1) the lesser of

    • (i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.1) or (1.2) of the Canada Pension Plan, and

    • (ii) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

• (2) Subsection (1) comes into force on January 1, 2019.