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. 95(1)

• 51 (1) Subsection 114(2) of the Act is replaced by the following:

  • Marginal note:Effective date of major amendments

    (2) If any enactment of Parliament contains any provision that alters, or the effect of which is to alter, either directly or indirectly and either immediately or in the future, the general level of benefits provided by this Act or the contribution rate, first additional contribution rate or second additional contribution rate for employees, employers or self-employed persons for any year, it shall be deemed to be a term of that enactment, whether or not it is expressly stated in the enactment, that the provision shall come into force only on a day to be fixed by order of the Governor in Council, which day shall not in any case be earlier than the first day of the third year following the year in which any notice of intention to introduce a measure containing a provision to that effect was laid before Parliament.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 57(2)

  (2) Paragraph 114(4)(c) of the Act is replaced by the following:

  • (c) the contribution rate, first additional contribution rate or second additional contribution rate for employees, employers or self-employed persons for any year,

• Marginal note:2003, c. 5, s. 10

  (3) Paragraph 114(4)(e) of the Act is replaced by the following:

  • (e) the management or operation of the Canada Pension Plan Account or the Additional Canada Pension Plan Account, or

• Marginal note:2007, c. 11, s. 13

  (4) Subsection 114(4.1) of the Act is replaced by the following:

  • Marginal note:Exception

    (4.1) Subsections (2) and (4) do not apply in respect of changes under any of subsections 113.1(11.05) to (11.11), (11.141) or (11.142) to benefits, contribution rates, first additional contribution rates or second additional contribution rates.

Marginal note:1997, c. 40, s. 96(1)

• 52 (1) Subsection 115(1) of the Act is replaced by the following:

  Marginal note:Report of Chief Actuary

  • 115 (1) The Chief Actuary of the Office of the Superintendent of Financial Institutions shall, during the first year of each three-year period for which a review is required by subsection 113.1(1), prepare a report setting out, as at a date not earlier than December 31 of the year before the three-year period, the results of an actuarial examination of the operation of this Act based on the state of the Canada Pension Plan Account, the Additional Canada Pension Plan Account and the investments of the Investment Board.

• Marginal note:1997, c. 40, s. 96(1)

  (2) Paragraph 115(1.1)(a) of the Act is replaced by the following:

  • (a) state, for each of the 30 years immediately following the date of the examination,

    • (i) the estimated revenues of the Canada Pension Plan Account and the estimated investment income of the Investment Board in respect of the base Canada Pension Plan, and the estimated amount of all payments under subsection 108(3), and

    • (ii) the estimated revenues of the Additional Canada Pension Plan Account and the estimated investment income of the Investment Board in respect of the additional Canada Pension Plan, and the estimated amount of all payments under subsection 108.2(3);

• Marginal note:1997, c. 40, s. 96(1); 2007, c. 11, s. 14

  (3) Paragraphs 115(1.1)(c) to (d) of the Act are replaced by the following:

  • (c) in respect of the base Canada Pension Plan, specify a contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

    • (i) a contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

    • (ii) a contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) in respect of the base Canada Pension Plan;

  • (d) in respect of the additional Canada Pension Plan, specify a first additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

    • (i) a first additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the first additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

    • (ii) a first additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) that affect the first additional contribution rate;

  • (e) in respect of the additional Canada Pension Plan, specify a second additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

    • (i) a second additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the second additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

    • (ii) a second additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) that affect the second additional contribution rate;

  • (f) specify the rates referred to in subparagraphs (c)(i) and (ii), (d)(i) and (ii) and (e)(i) and (ii) and set out the manner in which those rates were calculated.

• Marginal note:1997, c. 40, s. 96(1)

  (4) Subsections 115(1.2) and (1.3) of the Act are replaced by the following:

  • Marginal note:Relationship between rates

    (1.2) For the purposes of the calculations referred to in paragraphs (1.1)(c) to (e),

    • (a) the rates for employees and employers for a year must be identical; and

    • (b) the rates for self-employed persons for a year must be equal to the sum of the rates for employees and employers for that year.

  • Marginal note:Application of subsection 114(4)

    (1.3) Subsection 114(4) applies, with any modifications that the circumstances require, to the making of the regulations prescribing the manner of the calculation referred to in paragraphs (1.1)(c) to (e) and to the making of any regulation changing that manner of calculation.

53 Subsection 118(1) of the Act is replaced by the following:

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.