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

Full Document:  

Act current to 2020-05-17 and last amended on 2020-03-01. Previous Versions

PART IIPensions and Supplementary Benefits (continued)

DIVISION BCalculation of Benefits (continued)

Retirement Pension (continued)

Marginal note:Value determined — disabled contributor’s second additional contributory period

 For each month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, a value shall be determined by the formula

[[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F) + (M7 × G)]/R] × 0.7

where

A
is, in respect of the sixth year before the year in which they were deemed to have become disabled, the greater of
  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that sixth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that sixth year;

B
is, in respect of the fifth year before the year in which they were deemed to have become disabled, the greater of
  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that fifth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that fifth year;

C
is, in respect of the fourth year before the year in which they were deemed to have become disabled, the greater of
  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that fourth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that fourth year;

D
is, in respect of the third year before the year in which they were deemed to have become disabled, the greater of
  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that third year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that third year;

E
is, in respect of the second year before the year in which they were deemed to have become disabled, the greater of
  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that second year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that second year;

F
is, in respect of the year before the year in which they were deemed to have become disabled, the greater of
  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that prior year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that prior year;

G
is, in respect of the year in which they were deemed to have become disabled, the greater of
  • (a) the following number:

    • (i) in the case where the contributor was deemed to have become disabled in January, zero, or

    • (ii) in any other case, the lesser of 1 and the number determined by the formula

      H/[I × (M7/12)]

      where

      H
      is the second additional unadjusted pensionable earnings for that year, and
      I
      is the Year’s Maximum Pensionable Earnings for that year, and
  • (b) any value that was determined in accordance with this section for a month in that year;

M1
is the lesser of
  • (a) the number of months in the contributor’s second additional contributory period in the sixth year before the year in which they were deemed to have become disabled, and

  • (b) the number of months determined by the formula

    12 − M7

M2
is the number of months in the contributor’s second additional contributory period in the fifth year before the year in which they were deemed to have become disabled;
M3
is the number of months in the contributor’s second additional contributory period in the fourth year before the year in which they were deemed to have become disabled;
M4
is the number of months in the contributor’s second additional contributory period in the third year before the year in which they were deemed to have become disabled;
M5
is the number of months in the contributor’s second additional contributory period in the second year before the year in which they were deemed to have become disabled;
M6
is the number of months in the contributor’s second additional contributory period in the year before the year in which they were deemed to have become disabled;
M7
is the number of months in the contributor’s second additional contributory period in the year in which they were deemed to have become disabled that are before the month in which they were deemed to have become disabled; and
R
is the greater of 1 and the number of months determined by the formula

M1 + M2 + M3 + M4 + M5 + M6 + M7

  • 2018, c. 12, s. 374

Marginal note:Time when contributor deemed disabled

 For the purposes of sections 51.1 and 51.2 and despite paragraph 42(2)(b), a contributor is deemed to have become disabled at the time that is determined in the prescribed manner to be the time when the contributor became disabled, without regard to the time when their application was made.

  • 2018, c. 12, s. 374

Marginal note:Earnings for which base contribution deemed to have been made for month

  •  (1) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which they have made a base contribution, the base contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their base unadjusted pensionable earnings for the year by 12, except that

    • (a) for a year in which the contributor reaches 18 years of age or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the base contribution is deemed to have been made for earnings for the months in the year after they reached that age or after the pension ceased to be payable, as the case may be, and

    • (b) for a year in which the contributor reaches 70 years of age or dies, in which a retirement pension becomes payable to them under this Act or under a provincial pension plan or in which any month is excluded from their contributory period under this Act or under a provincial pension plan by reason of disability, the base contribution is deemed to have been made for earnings for the months in the year before the contributor reached 70 years of age or died, before the retirement pension became payable or that were not so excluded, as the case may be.

    If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a base contribution for each such month are an amount calculated by dividing the contributor’s base unadjusted pensionable earnings for that year by the number of those months.

  • Marginal note:If no base contribution made

    (2) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which the contributor made no base contribution, the amount of the earnings for which a base contribution is deemed to have been made for any month in the year is deemed to be zero.

  • Marginal note:When base contribution deemed to have been made

    (3) For the purposes of this Part,

    • (a) a contributor is deemed to have made a base contribution for any year for which their base unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no base contribution for any year for which their base unadjusted pensionable earnings do not exceed their basic exemption for the year; and

    • (b) a contributor is deemed to have made a base contribution for earnings for any month for which a base contribution is deemed by subsection (1) to have been made by them.

  • R.S., 1985, c. C-8, s. 52
  • R.S., 1985, c. 30 (2nd Supp.), s. 19
  • 2016, c. 14, s. 27

Marginal note:Earnings for which first additional contribution deemed for month

  •  (1) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which they have made a first additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their first additional unadjusted pensionable earnings for the year by 12, except that

    • (a) for a year in which the contributor reaches 18 years of age, the first additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and

    • (b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the first additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.

    If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a first additional contribution for each such month are an amount calculated by dividing their first additional unadjusted pensionable earnings for that year by the number of those months.

  • Marginal note:If no first additional contribution made

    (2) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which the contributor made no first additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.

  • Marginal note:When first additional contribution deemed to have been made

    (3) For the purposes of this Part,

    • (a) a contributor is deemed to have made a first additional contribution for any year for which their first additional unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no first additional contribution for any year for which their first additional unadjusted pensionable earnings do not exceed their basic exemption for the year; and

    • (b) a contributor is deemed to have made a first additional contribution for earnings for any month for which a first additional contribution is deemed by subsection (1) to have been made by them.

  • 2016, c. 14, s. 27
  • 2018, c. 12, s. 375
 
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