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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)

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  •  (1) [Repealed, 2000, c. 12, s. 48]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
 
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