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:Contribution rates after 1986

  (2) The contribution rate for employees, employers and self-employed persons for 1987 and subsequent years is as set out in Schedule 1, as amended from time to time under section 113.1.

First Additional Contribution Rate and Second Additional Contribution Rate

Marginal note:First and second additional contribution rates

11.2 The first additional contribution rate and the second additional contribution rate for employees, employers and self-employed persons for 2019 and subsequent years is as set out in Schedule 2, as amended from time to time under section 113.1.

• Marginal note:Calculation of contributory salary and wages

  (1.2) If a person does not revoke — in respect of an employer — an election in the prescribed form and manner, the contributory salary and wages referred to in paragraphs 8(1)(a) and (1.1)(a), subsection 8(1.2), paragraphs 9(1)(a) and (1.1)(a) and subsection 9(1.2) do not, for the purposes of those provisions, include income from that employment. However, the person may — in respect of that income — make an election under subsection 13(3) and pay the contributions required under section 10 within one year after the person’s balance-due day.

Marginal note:Amount of salary and wages on which base contribution made

• 15 (1) The amount of the salary and wages of a person on which a base contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the contribution rate for employees for the year:

  • (a) an amount equal to

    • (i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year,

    minus

    • (ii) the product obtained when the ratio referred to in subsection 8(3) is multiplied by an amount equal to

      • (A) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year and on account of the employee’s contribution for the year under a provincial pension plan,

      minus

      • (B) the sum of the amounts determined under paragraphs 8(2)(a) and (b), and

  • (b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s base contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

• Marginal note:Effect of payment by employer of amount not deducted as required

  (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s base contribution for a year is paid by the employer on account of the employee’s base contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Marginal note:Amount of salary and wages on which first additional contribution made

• 15.1 (1) The amount of the salary and wages of a person on which a first additional contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the first additional contribution rate for employees for the year:

  • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a.1), and

  • (b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s first additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

• Marginal note:Effect of payment by employer of amount not deducted as required

  (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s first additional contribution for a year is paid by the employer on account of the employee’s first additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Marginal note:Amount of salary and wages on which second additional contribution made

• 15.2 (1) The amount of the salary and wages of a person on which a second additional contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the second additional contribution rate for employees for the year:

  • (a) an amount equal to

    • (i) the sum of the following amounts:

      • (A) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year,

      • (B) the amount calculated under subparagraph 15(1)(a)(ii),

      • (C) the portion of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year that exceeds the amount determined under paragraph 8(2)(a.1),

    minus

    • (ii) the amount of any refund made to that person under section 38 in respect of any amounts deducted on account of the employee’s contributions, or the part of the amount of any refund in respect of those contributions made to the person as described in section 39 that might have been made to the person under subsection 38(1) if no agreement had been entered into under subsection 39(1), and

  • (b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s second additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

• Marginal note:Effect of payment by employer of amount not deducted as required

  (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s second additional contribution for a year is paid by the employer on account of the employee’s second additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Marginal note:Special rule applicable in prescribed circumstances

15.3 If an employer has filed a return in accordance with this Part showing an amount as the salary and wages on which contributions have been made by an employee for a year under this Act, the amount so shown, multiplied by the contribution rate, the first additional contribution rate or the second additional contribution rate, as the case may be, for employees for the year, may, in prescribed circumstances, be substituted for the amount shown in the return as the aggregate of the amounts deducted by that employer on account of the employee’s contributions for the year under this Act, in calculating the amount to be determined under subsection 15(1), 15.1(1) or 15.2(1).

Additional Maximum Pensionable Earnings

Marginal note:Amount of additional maximum pensionable earnings

17.1 The amount of the additional maximum pensionable earnings of a person for a year is the amount of the Year’s Additional Maximum Pensionable Earnings except that,

• (a) for a year in which the person reaches 18 or 70 years of age or dies, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year

  • (i) after

    • (A) they reach 18 years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach 70 years of age,

    • (B) they die, or

    • (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

  including, if they die, the month in which they die, is of 12;

• (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

• (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach 70 years of age or die, whichever is earlier — is of 12.

Year’s Additional Maximum Pensionable Earnings

Marginal note:Amount of Year’s Additional Maximum Pensionable Earnings

• 18.1 (1) The amount of a Year’s Additional Maximum Pensionable Earnings is

  • (a) for 2024, 1.07 multiplied by the Year’s Maximum Pensionable Earnings for that year; and

  • (b) for 2025 and each subsequent year, 1.14 multiplied by the Year’s Maximum Pensionable Earnings for that year.

• Marginal note:Rounding

  (2) If the amount calculated in accordance with subsection (1) for any year is not a multiple of $100, the Year’s Additional Maximum Pensionable Earnings for that year is the amount that is the next multiple of $100 below that amount.

• Marginal note:Montant déduit non remis

  (3) L’employeur qui a déduit de la rémunération d’un employé un montant au titre des cotisations que ce dernier est tenu de verser, ou à valoir sur celles-ci, mais ne l’a pas remis au receveur général est réputé, malgré toute autre garantie au sens du paragraphe 224(1.3) de la Loi de l’impôt sur le revenu concernant le montant, le détenir en fiducie pour Sa Majesté, séparé de ses propres biens et des biens détenus par son créancier garanti, au sens de ce paragraphe qui, en l’absence de la garantie, seraient ceux de l’employeur, et en vue de le verser à Sa Majesté selon les modalités et dans le délai prévus par la présente loi.