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Canada Pension Plan (R.S.C., 1985, c. C-8)

Full Document:  

Act current to 2021-11-17 and last amended on 2020-03-01. Previous Versions

PART IIPensions and Supplementary Benefits (continued)

DIVISION BCalculation of Benefits (continued)

Division of Unadjusted Pensionable Earnings (continued)

Marginal note:Application of section 55.1

Footnote * Section 55.1 applies

  • (a) in respect of judgments granting a divorce and judgments of nullity of a marriage, rendered on or after January 1, 1987;

  • (b) in respect of spouses and former spouses who commence to live separate and apart on or after January 1, 1987 but before the coming into force of this section (spouse having in this paragraph the meaning that it had immediately before that coming into force); and

  • (c) in respect of spouses and former common-law partners who commence to live separate and apart after the coming into force of this section.

  • 2000, c. 12, s. 47
  • 2012, c. 31, s. 199
  •  (1) [Repealed, 2000, c. 12, s. 48]

  • Marginal note:Agreement or court order not binding on Minister

    (2) Except as provided in subsection (3), where, on or after June 4, 1986, a written agreement between persons subject to a division under section 55 or 55.1 was entered into, or a court order was made, the provisions of that agreement or court order are not binding on the Minister for the purposes of a division of unadjusted pensionable earnings under section 55 or 55.1.

  • Marginal note:Agreement binding on Minister

    (3) Where

    • (a) a written agreement between persons subject to a division under section 55 or 55.1 entered into on or after June 4, 1986 contains a provision that expressly mentions this Act and indicates the intention of the persons that there be no division of unadjusted pensionable earnings under section 55 or 55.1,

    • (b) that provision of the agreement is expressly permitted under the provincial law that governs such agreements,

    • (c) the agreement was entered into

      • (i) in the case of a division under section 55 or paragraph 55.1(1)(b) or (c), before the day of the application for the division, or

      • (ii) in the case of a division under paragraph 55.1(1)(a), before the rendering of the judgment granting a divorce or the judgment of nullity of the marriage, as the case may be, and

    • (d) that provision of the agreement has not been invalidated by a court order,

    that provision of the agreement is binding on the Minister and, consequently, the Minister shall not make a division under section 55 or 55.1.

  • Marginal note:Minister to notify parties

    (4) The Minister shall, without delay after being informed of a judgment granting a divorce or a judgment of nullity of a marriage or after receiving an application under section 55 or paragraph 55.1(1)(b) or (c), notify each of the persons subject to the division, in the prescribed manner, of the periods of unadjusted pensionable earnings to be divided, and of any other information that the Minister considers necessary.

  • Marginal note:Division of base unadjusted pensionable earnings

    (5) If there is a division under section 55.1, the base unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to base contributions made under this Act, determined in the same manner as the total pensionable earnings of a contributor attributable to base contributions made under this Act are determined in section 78, are to be added and then divided equally, and the base unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Division of first additional unadjusted pensionable earnings

    (5.1) If there is a division under section 55.1, the first additional unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to first additional contributions made under this Act, determined in the same manner as the total first additional pensionable earnings of a contributor attributable to first additional contributions made under this Act are determined in section 78.1, are to be added and then divided equally, and the first additional unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Division of second additional unadjusted pensionable earnings

    (5.2) If there is a division under section 55.1, the second additional unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to second additional contributions made under this Act, determined in the same manner as the total second additional pensionable earnings of a contributor attributable to second additional contributions made under this Act are determined in section 78.2, are to be added and then divided equally, and the second additional unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Effect of division of base unadjusted pensionable earnings

    (6) If there is a division of base unadjusted pensionable earnings under section 55.1 and under a provincial pension plan, for the purposes of benefit calculation and payment under this Act, the total base unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their base unadjusted pensionable earnings attributed under subsection (5) and their base unadjusted pensionable earnings attributed under a provincial pension plan.

  • Marginal note:Effect of division of first additional unadjusted pensionable earnings

    (6.1) If there is a division of first additional unadjusted pensionable earnings under section 55.1 and under a provincial pension plan, for the purposes of benefit calculation and payment under this Act, the total first additional unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their first additional unadjusted pensionable earnings attributed under subsection (5.1) and their first additional unadjusted pensionable earnings attributed under a provincial pension plan.

  • Marginal note:Effect of division of second additional unadjusted pensionable earnings

    (6.2) If there is a division of second additional unadjusted pensionable earnings under section 55.1 and under a provincial pension plan, for the purposes of benefit calculation and payment under this Act, the total second additional unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their second additional unadjusted pensionable earnings attributed under subsection (5.2) and their second additional unadjusted pensionable earnings attributed under a provincial pension plan.

  • Marginal note:Provincial pension plans

    (7) No division of unadjusted pensionable earnings under section 55.1 is to be made for any month during which the persons subject to the division cohabited and for which either of them contributed to a provincial pension plan (and, for the purposes of this subsection, months during which the persons cohabited are to be determined in the prescribed manner), unless the unadjusted pensionable earnings attributed to the persons under the provincial pension plan are divided for that month in a manner substantially similar to that described in this section and section 55.1.

  • Marginal note:No division

    (8) No division of base unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for a year in which the total base unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

    • (b) for the period before which one of the persons reached eighteen years of age or after which one of the persons reached seventy years of age;

    • (c) for the period in which one of the persons was a beneficiary of a retirement pension under this Act or under a provincial pension plan; and

    • (d) for any month that is excluded from the contributory period of one of the persons under this Act or a provincial pension plan by reason of disability.

  • Marginal note:No division of first additional unadjusted pensionable earnings

    (8.1) No division of first additional unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for a year in which the total first additional unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

    • (b) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

    • (c) for the period in which one of the persons was a beneficiary of a retirement pension under this Act or under a provincial pension plan.

  • Marginal note:No division of second additional unadjusted pensionable earnings

    (8.2) No division of second additional unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

    • (b) for the period in which one of the persons was a beneficiary of a retirement pension under this Act or under a provincial pension plan.

  • Marginal note:Payment of benefit

    (9) Where there is a division under section 55.1 and a benefit is or becomes payable under this Act to or in respect of either of the persons subject to the division for a month not later than the month following the month in which the division takes place, the basic amount of the benefit shall be calculated and adjusted in accordance with section 46 and adjusted in accordance with subsection 45(2) but subject to the division, and the adjusted benefit shall be paid effective the month following the month in which the division takes place but in no case shall a benefit that was not payable in the absence of the division be paid in respect of the month in which the division takes place or any prior month.

  • Marginal note:Notification of division

    (10) Where there is a division under section 55.1, both persons subject to the division, or their respective estates, shall be notified in the prescribed manner.

  • Marginal note:Regulations

    (11) The Governor in Council may make regulations prescribing

    • (a) the time, manner and form of making applications for a division of unadjusted pensionable earnings or withdrawal of applications for such division;

    • (b) the procedures to be followed in dealing with and approving such applications and the information and evidence to be furnished in connection therewith; and

    • (c) the effective dates of the approval or taking place of a division and of the attribution of pensionable earnings following a division.

  • R.S., 1985, c. 30 (2nd Supp.), s. 23
  • 1991, c. 44, s. 8
  • 1995, c. 33, s. 28
  • 1997, c. 40, s. 73
  • 2000, c. 12, s. 48
  • 2012, c. 31, s. 200
  • 2016, c. 14, s. 30
  • 2018, c. 12, s. 381

Marginal note:Incapacity

  •  (1) Where an application for a division of unadjusted pensionable earnings is made under subsection 55(1) or paragraph 55.1(1)(b) or (c) or the Minister receives the prescribed information referred to in paragraph 55.1(1)(a) and the Minister is satisfied, on the basis of evidence provided by or on behalf of a person subject to the division, that the person had been incapable of forming or expressing an intention to make an application or to provide the information to the Minister on the day on which the application was actually made or the information was actually received, the Minister may deem the application to have been made or the information to have been received in the first month in which a division could have taken place or in the month that the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

  • Marginal note:Incapacity

    (2) Where an application for a division of unadjusted pensionable earnings is made under subsection 55(1) or paragraph 55.1(1)(b) or (c) or the Minister receives the prescribed information referred to in paragraph 55.1(1)(a) and the Minister is satisfied, on the basis of evidence provided by or on behalf of a person subject to the division, that

    • (a) the person had been incapable of forming or expressing an intention to make an application or to provide the information to the Minister before the day on which the application was actually made or the information was actually received by the Minister,

    • (b) the person had ceased to be so incapable before that day, and

    • (c) the application was actually made or the information was actually received by the Minister

      • (i) within the period that begins on the day on which the person had ceased to be so incapable and that comprises the same number of days, not exceeding twelve months, as in the period of incapacity, or

      • (ii) where the period referred to in subparagraph (i) comprises fewer than thirty days, not more than one month after the month in which the person had ceased to be so incapable,

    the Minister may deem the application to have been made or the information to have been received in the first month in which a division could have taken place or in the month in which the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

  • Marginal note:Period of incapacity

    (3) For the purposes of subsections (1) and (2), a period of incapacity must be a continuous period except as otherwise prescribed.

  • Marginal note:Application

    (4) This section applies only to individuals who were incapacitated on or after January 1, 1991.

  • 1991, c. 44, s. 9
  • 2000, c. 12, s. 49

Disability Pension

Marginal note:Amount of disability pension

  •  (1) A disability pension payable to a contributor is a basic monthly amount consisting of

    • (a) a flat rate benefit, calculated as provided in subsection (2); and

    • (b) 75% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

      • (i) the amount calculated as provided in subsection (3),

      • (ii) the amount calculated as provided in subsection (3.1), and

      • (iii) the amount calculated as provided in subsection (3.2).

  • Marginal note:Calculation of flat rate benefit

    (2) The amount of the flat rate benefit mentioned in paragraph (1)(a) is

    • (a) in the case of a flat rate benefit commencing to be payable for a month in the year 1986, ninety-one dollars and six cents;

    • (b) in the case of a flat rate benefit payable for a month in the year 1987, an amount calculated by multiplying

      • (i) two hundred and thirty-three dollars and thirty-eight cents

      by

      • (ii) the ratio that the Pension Index for 1987 bears to the Pension Index for 1986; and

    • (c) in the case of a flat rate benefit commencing to be payable for a month in the year 1988 or any subsequent year, an amount calculated by multiplying

      • (i) the amount of the flat rate benefit that would have been payable for a month in the year preceding that year

      by

      • (ii) the ratio that the Pension Index for the year in which the benefit commences to be payable bears to the Pension Index for the year preceding that year.

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(i)

    (3) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(i) is equal to 25% of their average monthly pensionable earnings calculated as provided in subsections (4) and (5).

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(ii)

    (3.1) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(ii) is equal to 8.33% of their first additional monthly pensionable earnings calculated as provided in subsection (4.01).

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(iii)

    (3.2) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(iii) is equal to 33.33% of the contributor’s second additional monthly pensionable earnings calculated as provided in subsection (4.02).

  • Marginal note:Average monthly pensionable earnings

    (4) For the purposes of subsection (3), the average monthly pensionable earnings of a contributor who is deemed to have become disabled for the purposes of this Act after December 31, 1997 is, subject to subsections 48(2) and (4), the amount obtained by dividing

    • (a) the contributor’s total pensionable earnings

    by

    • (b) the total number of months in the contributor’s contributory period or 48, whichever is greater.

  • Marginal note:First additional monthly pensionable earnings

    (4.01) For the purpose of subsection (3.1), a contributor’s first additional monthly pensionable earnings are an amount calculated by

    • (a) in the case where their first additional contributory period is less than or equal to 480 months, dividing their total first additional pensionable earnings by 480; or

    • (b) in the case where their first additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest first additional pensionable earnings for a month by 480.

  • Marginal note:Second additional monthly pensionable earnings

    (4.02) For the purpose of subsection (3.2), a contributor’s second additional monthly pensionable earnings are an amount calculated by

    • (a) in the case where their second additional contributory period is less than or equal to 480 months, dividing their total second additional pensionable earnings by 480; or

    • (b) in the case where their second additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest second additional pensionable earnings for a month by 480.

  • Marginal note:Average monthly pensionable earnings

    (4.1) For the purposes of subsection (3), the average monthly pensionable earnings of a contributor who is deemed to have become disabled for the purposes of this Act in 1997 is, subject to subsections 48(2) and (4), the amount obtained by dividing

    • (a) the contributor’s total pensionable earnings

    by

    • (b) the total number of months in the contributor’s contributory period or 24, whichever is greater.

  • Marginal note:Contributory period

    (5) For the purposes of subsection (4), the contributory period of a contributor is the period

    • (a) commencing January 1, 1966 or when he reaches eighteen years of age, whichever is the later, and

    • (b) ending with the month in which he is determined to have become disabled for the purpose of paragraph 44(1)(b),

    but excluding

    • (c) any month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, and

    • (d) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for the year.

  • Marginal note:If division of unadjusted pensionable earnings occurs

    (6) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(i), in the case of a contributor in respect of whom a division of unadjusted pensionable earnings takes place either before or after the commencement of the disability pension, if the division reduces the disability pension otherwise payable, is to be calculated by dividing

    • (a) the aggregate of

      • (i) the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) before the division, multiplied by the aggregate of

        • (A) the number of months that have been excluded from the contributor’s contributory period under this Act or a provincial pension plan by reason of disability, and

        • (B) the number of months remaining until the month in which the contributor reaches sixty-five years of age, and

      • (ii) the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with subsection (5)

    by

    • (b) the aggregate of

      • (i) the number of months that have been excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability,

      • (ii) the number of months remaining until the month in which the contributor reaches sixty-five years of age, and

      • (iii) the number of months in the contributor’s contributory period calculated in accordance with subsection (5).

  • R.S., 1985, c. C-8, s. 56
  • R.S., 1985, c. 30 (2nd Supp.), s. 24
  • 1991, c. 44, s. 10
  • 1997, c. 40, s. 74
  • 2016, c. 14, s. 31
 
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