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)
Full Document:
Assented to 2016-12-15
PART 1Amendments to the Canada Pension Plan and the Canada Pension Plan Investment Board Act (continued)
R.S., c. C-8Canada Pension Plan (continued)
Marginal note:2009, c. 31, s. 36
33 (1) Subsection 59.1(1) of the Act is replaced by the following:
Marginal note:Amount of post-retirement benefit
59.1 (1) A post-retirement benefit payable to a contributor is a basic monthly amount that is equal to the aggregate of the amounts calculated as provided in subsections (1.1), (3) and (5).
Marginal note:Calculation of portion of post-retirement benefit
(1.1) Subject to subsections (2) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula
[(A × F/B) × C × D × E]/12
where
- A
- is the amount determined under subsection 53(1) for the year before the year in which the post-retirement benefit commences to be payable;
- B
- is the Year’s Maximum Pensionable Earnings for the year before 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:2009, c. 31, c. 36
(2) The portion of subsection 59.1(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Base unadjusted pensionable earnings for year retirement pension becomes payable
(2) For the purpose of the calculation under subsection (1.1), if the contributor’s base 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 that subsection is the greater of
Marginal note:2009, c. 31, s. 36
(3) Subsection 59.1(3) of the Act is replaced by the following:
Marginal note:Calculation of portion of post-retirement benefit
(3) Subject to subsections (4) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula
[(A/B) × C × D × E]/12
where
- A
- is the amount determined under subsection 53.1(1) for the year before the year in which the post-retirement benefit commences to be payable, except that
(a) if the post-retirement benefit commences in 2020, A is the amount for 2019, multiplied by 0.15,
(b) if the post-retirement benefit commences in 2021, A is the amount for 2020, multiplied by 0.3,
(c) if the post-retirement benefit commences in 2022, A is the amount for 2021, multiplied by 0.5, and
(d) if the post-retirement benefit commences in 2023, A is the amount for 2022, multiplied by 0.75;
- B
- is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;
- C
- is 0.00208;
- D
- is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable; and
- E
- is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable.
Marginal note:First additional unadjusted pensionable earnings for year retirement pension becomes payable
(4) For the purpose of the calculation under subsection (3), if the contributor’s first additional unadjusted pensionable earnings are earned in the year in which the first additional contributory period ends under paragraph 49.1(c), the amount determined for A in that subsection 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(1).
Marginal note:Calculation of portion of post-retirement benefit
(5) Subject to subsections (6) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula
[(A/B) × C × D × E]/12
where
- A
- is the amount determined under section 53.2 for the year before the year in which the post-retirement benefit commences to be payable;
- B
- is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;
- C
- is 0.00833;
- D
- is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable; and
- E
- is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable.
Marginal note:Second additional unadjusted pensionable earnings for year retirement pension becomes payable
(6) For the purpose of the calculation under subsection (5), if the contributor’s second additional unadjusted pensionable earnings are earned in the year in which the second additional contributory period ends under paragraph 49.2(c), the amount determined for A in that subsection is the greater of
(a) zero, and
(b) the amount that is calculated by subtracting the Year’s Additional 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 section 53.2.
Marginal note:Adjustment factor for contributors — 70 years of age or older
(7) For the purposes of the calculations under subsections (1.1), (3) and (5), if the contributor is 70 years of age or older, the adjustment factor referred to in E in each of those subsections is that of a contributor who is 70 years of age.
34 (1) Subsection 65.1(8) of the Act is amended by adding the following in alphabetical order:
- first additional joint contributory period
first additional joint contributory period means the period commencing on January 1, 2019 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending
(a) if both spouses or common-law partners are contributors, with the month in which the later of their respective first additional contributory periods ends; or
(b) if only one spouse or common-law partner is a contributor, with the later of
(i) the month in which the contributor’s first additional contributory period ends, and
(ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved; (première période cotisable conjointe supplémentaire)
- second additional joint contributory period
second additional joint contributory period means the period commencing on January 1, 2024 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending
(a) if both spouses or common-law partners are contributors, with the month in which the later of their respective second additional contributory periods ends; or
(b) if only one spouse or common-law partner is a contributor, with the later of
(i) the month in which the contributor’s second additional contributory period ends, and
(ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved. (deuxième période cotisable conjointe supplémentaire)
Marginal note:2000, c. 12, s. 52(2)
(2) Subsection 65.1(9) of the Act is replaced by the following:
Marginal note:Portion of pension assignable
(9) The portion of a contributor’s retirement pension to be assigned to the contributor’s spouse or common-law partner under this section is an amount equal to the aggregate of
(a) an amount calculated by multiplying
(i) the amount of the portion of the contributor’s retirement pension calculated as provided in paragraph 46(1)(a) and adjusted in accordance with section 45, by
(ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the joint contributory period,
(b) an amount calculated by multiplying
(i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(b) and adjusted in accordance with section 45, by
(ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the first additional joint contributory period, and
(c) an amount calculated by multiplying
(i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(c) and adjusted in accordance with section 45, by
(ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the second additional joint contributory period.
35 Paragraph 77(a) of the Act is replaced by the following:
(a) the total pensionable earnings of the contributor attributable to base contributions made under this Act,
Marginal note:2012, c. 31, s. 201(1)
36 The portion of section 78 of the Act before paragraph (b) is replaced by the following:
Marginal note:Total pensionable earnings attributable to base contributions made under Act
78 The total pensionable earnings of a contributor attributable to base contributions made under this Act are an amount equal to the amount that their total pensionable earnings would be if the base unadjusted pensionable earnings of the contributor for a year were that proportion of their base unadjusted pensionable earnings for the year that
(a) the contributor’s earnings on which a base contribution has been made for the year under this Act, calculated as provided in subparagraph 53(1)(b)(i),
are of
Marginal note:R.S., c. 30 (2nd Supp.), s. 43
37 Section 79 of the Act is replaced by the following:
Marginal note:Total pensionable earnings attributable to base contributions made under Act as a result of division
79 For a year of a division as determined under section 55 or 55.1 and under a provincial pension plan, the total pensionable earnings of a contributor attributable to base contributions made under this Act are an amount equal to the amount that their total pensionable earnings would be if the base unadjusted pensionable earnings of the contributor for the year were that proportion of their base unadjusted pensionable earnings for the year that
(a) their base unadjusted pensionable earnings attributed under subsection 55(4) or 55.2(5)
are of
(b) their total base unadjusted pensionable earnings for the year determined under subsection 55(5) or 55.2(6).
38 Subsection 80(3) of the Act is replaced by the following:
Marginal note:Provision for making of financial adjustments
(3) Any agreement entered into under subsection (1) may provide for the making of any financial adjustments required to be made by reason of any payments made to or in respect of a contributor in accordance with that agreement, and for the crediting or charging of the amount of those adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be.
39 (1) Paragraph 89(1)(e) of the Act is replaced by the following:
(e) respecting the determination of disability subject to this Part and the conditions on which any amount as or on account of a benefit in respect of the disability of a person shall be paid or shall continue to be paid, including the initial and subsequent periodic or other assessments of that disability and the reasonable rehabilitation measures to be undergone by that person, and providing for the payment out of the Consolidated Revenue Fund of the cost of any such assessments of disability and rehabilitation measures and for the charging of the amount of the payment to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be, as a cost of administration of this Act;
Marginal note:1991, c. 44, s. 23
(2) Paragraph 89(1)(j) of the Act is replaced by the following:
(j) providing, in any case or class of cases not covered by the provisions of an agreement under subsection 80(1), for the issue of cheques by the Government of Canada in the amount of any benefit payable under this Act to or in respect of a contributor and in the amount of any like benefit payable under a provincial pension plan to or in respect of the same contributor, or for the payment by other means by the Government of Canada of such an amount, if arrangements satisfactory to the Governor in Council have been made with the government of that province for the issue of cheques, or for the payment by other means, by that government on a reciprocal basis and for the making of any financial adjustments by that government required to be made by reason of those arrangements, and providing for the making of any financial adjustments by the Government of Canada required to be made by reason of those arrangements and for the crediting or charging of the amount of the adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be;
40 Section 91 of the Act is amended by adding the following in alphabetical order:
- additional Canada Pension Plan
additional Canada Pension Plan means the part of the Canada Pension Plan relating to the portions of benefits that are referred to in paragraphs 46(1)(b) and (c), subparagraphs 56(1)(b)(ii) and (iii), clauses 58(1)(a)(ii)(B) and (C), subparagraphs 58(1)(b)(ii) and (iii) and subsections 59.1(3) and (5) and all contributions in respect of those portions of benefits. (régime de pensions supplémentaire du Canada)
- base Canada Pension Plan
base Canada Pension Plan means the part of the Canada Pension Plan relating to benefits and contributions under this Act, other than the portions of those benefits and contributions that are included in the additional Canada Pension Plan. (régime de pensions de base du Canada)
41 Subsection 98(3) of the Act is replaced by the following:
Marginal note:Application — individual with self-employed earnings
(3) Every individual who is required by section 30 to file a return of their self-employed earnings for a year, other than an individual to whom subsection (1) or (2) applies, shall on or before the first day on or before which they are required by section 33 to pay any amount as or on account of the contributions required to be made by them for that year in respect of those earnings, if they have not earlier been assigned a Social Insurance Number, apply to the Minister, in the form and manner that may be prescribed, for the assignment to them of a Social Insurance Number.
Marginal note:2012, c. 19, s. 306
42 Paragraph 99(2)(b) of the Act is replaced by the following:
(b) if the individual is not employed in pensionable employment but later becomes so employed, or is required to make a contribution under this Act in respect of their self-employed earnings, within 60 days after the day on which the individual becomes so employed or after the first day on or before which they are required under section 33 to pay any amount as or on account of the contributions required to be made by them in respect of those earnings, as the case may be.
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