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

Full Document:  

Act current to 2019-07-01 and last amended on 2018-12-15. Previous Versions

PART IIPensions and Supplementary Benefits (continued)

DIVISION BCalculation of Benefits (continued)

Retirement Pension (continued)

Marginal note:Attribution of amount for first additional contributory period — one child

  •  (1) An amount, determined by the following formula, shall be attributed to a contributor for a year during which they were a family allowance recipient with respect to one child, if that amount is greater than their first additional unadjusted pensionable earnings for that year and is greater than their basic exemption for the year:

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

    where

    A
    is the first additional unadjusted pensionable earnings of the contributor for the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that fifth year;
    B
    is the first additional unadjusted pensionable earnings of the contributor for the fourth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that fourth year;
    C
    is the first additional unadjusted pensionable earnings of the contributor for the third year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that third year;
    D
    is the first additional unadjusted pensionable earnings of the contributor for the second year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that second year;
    E
    is the first additional unadjusted pensionable earnings of the contributor for the year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that prior year;
    F
    is,
    • (a) in the case where an amount has been previously attributed by this section for the year in which the contributor became a family allowance recipient with respect to the child, that amount, or

    • (b) in any other case,

      • (i) if the contributor became a family allowance recipient with respect to the child in January, zero, or

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

        G/[H × (M6/12)]

        where

        G
        is the first additional unadjusted pensionable earnings of the contributor for the year in which the contributor became a family allowance recipient with respect to the child, and
        H
        is the Year’s Maximum Pensionable Earnings for the year in which the contributor became a family allowance recipient with respect to the child;
    M1
    is the lesser of
    • (a) the number of months in the contributor’s first additional contributory period in the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, and

    • (b) the number determined by the formula

      12 − M6

    M2
    is the number of months in the contributor’s first additional contributory period in the fourth year before the year in which the contributor became a family allowance recipient with respect to the child;
    M3
    is the number of months in the contributor’s first additional contributory period in the third year before the year in which the contributor became a family allowance recipient with respect to the child;
    M4
    is the number of months in the contributor’s first additional contributory period in the second year before the year in which the contributor became a family allowance recipient with respect to the child;
    M5
    is the number of months in the contributor’s first additional contributory period in the year before the year in which the contributor became a family allowance recipient with respect to the child;
    M6
    is the number of months in the contributor’s first additional contributory period in the year in which the contributor became a family allowance recipient with respect to the child that are before the month in which they became a family allowance recipient with respect to that child;
    Q
    is, as the case may be,
    • (a) if the sum of M1, M2, M3, M4, M5 and M6 is less than 36, the number determined by the formula

      [36 − (M1 + M2 + M3 + M4 + M5 + M6)] × 0.4

    • (b) in any other case, zero;

    R
    is the greater of 36 and the sum of M1, M2, M3, M4, M5 and M6; and
    T
    is the Year’s Maximum Pensionable Earnings for the year for which the amount is to be attributed.
  • Marginal note:Attribution of amount for first additional contributory period — more than one child

    (2) If the contributor is a family allowance recipient with respect to more than one child in a year, an amount shall be attributed to the contributor for that year that is the greater of each amount determined under subsection (1), calculated with respect to each child without regard to the other children.

  • Marginal note:Year in which retirement pension becomes payable

    (3) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act, the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are before the retirement pension becomes payable is of 12.

  • 2018, c. 12, s. 380

Marginal note:Attribution of amount for second additional contributory period — one child

  •  (1) An amount, determined by the following formula, shall be attributed to a contributor for a year during which they were a family allowance recipient with respect to one child, if that amount is greater than their second additional unadjusted pensionable earnings for that year:

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

    where

    A
    is the second additional unadjusted pensionable earnings of the contributor for the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings, for that fifth year;
    B
    is the second additional unadjusted pensionable earnings of the contributor for the fourth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that fourth year;
    C
    is the second additional unadjusted pensionable earnings of the contributor for the third year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that third year;
    D
    is the second additional unadjusted pensionable earnings of the contributor for the second year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that second year;
    E
    is the second additional unadjusted pensionable earnings of the contributor for the year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that prior year;
    F
    is,
    • (a) in the case where an amount has been previously attributed by this section for the year in which the contributor became a family allowance recipient with respect to the child, that amount, or

    • (b) in any other case

      • (i) if the contributor became a family allowance recipient with respect to the child in January, zero, or

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

        G/[H × (M6/12)]

        where

        G
        is the second additional unadjusted pensionable earnings of the contributor for the year in which the contributor became a family allowance recipient with respect to the child, and
        H
        is the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for the year in which the contributor became a family allowance recipient with respect to the child;
    M1
    is the lesser of
    • (a) the number of months in the contributor’s second additional contributory period in the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, and

    • (b) the number determined by the formula

      12 − M6

    M2
    is the number of months in the contributor’s second additional contributory period in the fourth year before the year in which the contributor became a family allowance recipient with respect to the child;
    M3
    is the number of months in the contributor’s second additional contributory period in the third year before the year in which the contributor became a family allowance recipient with respect to the child;
    M4
    is the number of months in the contributor’s second additional contributory period in the second year before the year in which the contributor became a family allowance recipient with respect to the child;
    M5
    is the number of months in the contributor’s second additional contributory period in the year before the year in which the contributor became a family allowance recipient with respect to the child;
    M6
    is the number of months in the contributor’s second additional contributory period in the year in which the contributor became a family allowance recipient with respect to the child that are before the month in which they became a family allowance recipient with respect to that child;
    R
    is the greater of 36 and the sum of M1, M2, M3, M4, M5 and M6; and
    T
    is the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for the year for which the amount is to be attributed.
  • Marginal note:Attribution of amount for second additional contributory period — more than one child

    (2) If the contributor is a family allowance recipient with respect to more than one child in a year, an amount shall be attributed to the contributor for that year that is the greater of each amount determined under subsection (1), calculated with respect to each child without regard to the other children.

  • 2018, c. 12, s. 380
 
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