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

Full Document:  

Act current to 2019-08-15 and last amended on 2018-12-15. Previous Versions

PART IIPensions and Supplementary Benefits (continued)

DIVISION BCalculation of Benefits (continued)

Disabled Contributor’s Child’s Benefit and Orphan’s Benefit

Marginal note:Amount of benefit

 A disabled contributor’s child’s benefit payable to the child of a disabled contributor and an orphan’s benefit payable to the orphan of a contributor is a basic monthly amount consisting of

  • (a) in the year 1991, one hundred and thirteen dollars and fourteen cents;

  • (b) in the year 1992, the aggregate of

    • (i) one hundred and thirteen dollars and fourteen cents, multiplied by the ratio referred to in subparagraph (c)(ii), and

    • (ii) thirty-five dollars; or

  • (c) in the year 1993 or any subsequent year, an amount calculated by multiplying

    • (i) the amount of the 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.

  • R.S., 1985, c. C-8, s. 59
  • R.S., 1985, c. 30 (2nd Supp.), s. 27
  • 1991, c. 44, s. 13

Post-retirement Benefit

Marginal note:Amount of post-retirement benefit

  •  (1) A post-retirement benefit payable to a contributor is a basic monthly amount that is equal to the aggregate of the amounts calculated as provided in subsections (1.1), (3) and (5).

  • Marginal note:Calculation of portion of post-retirement benefit

    (1.1) Subject to subsections (2) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

    [(A × F/B) × C × D × E]/12

    where

    A
    is the amount determined under subsection 53(1) for the year before the year in which the post-retirement benefit commences to be payable;
    B
    is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;
    C
    is 0.00625;
    D
    is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;
    E
    is the adjustment factor referred to in subsection 46(3) or (3.1), as the case may be, based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and
    F
    is the amount determined by the formula

    G/H

    where

    G
    is the amount of the earnings referred to in subparagraph 53(1)(b)(i), and
    H
    is the aggregate of the earnings referred to in subparagraph 53(1)(b)(i) and those referred to in subparagraph 53(1)(b)(ii).
  • Marginal note:Base unadjusted pensionable earnings for year retirement pension becomes payable

    (2) For the purpose of the calculation under subsection (1.1), if the contributor’s base unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)(iii), the amount determined for A in that subsection is the greater of

    • (a) zero, and

    • (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53(1).

  • Marginal note:Calculation of portion of post-retirement benefit

    (3) Subject to subsections (4) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

    [(A × F/B) × C × D × E]/12

    where

    A
    is the amount determined under subsection 53.1(1) for the year before the year in which the post-retirement benefit commences to be payable, except that
    • (a) if the post-retirement benefit commences in 2020, A is the amount for 2019, multiplied by 0.15,

    • (b) if the post-retirement benefit commences in 2021, A is the amount for 2020, multiplied by 0.3,

    • (c) if the post-retirement benefit commences in 2022, A is the amount for 2021, multiplied by 0.5, and

    • (d) if the post-retirement benefit commences in 2023, A is the amount for 2022, multiplied by 0.75;

    B
    is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;
    C
    is 0.00208;
    D
    is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;
    E
    is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and
    F
    is the amount determined by the formula

    G/H

    where

    G
    is the amount of the earnings referred to in subparagraph 53.1(1)(b)(i), and
    H
    is the aggregate of the earnings referred to in subparagraph 53.1(1)(b)(i) and those referred to in subparagraph 53.1(1)(b)(ii).
  • Marginal note:First additional unadjusted pensionable earnings for year retirement pension becomes payable

    (4) For the purpose of the calculation under subsection (3), if the contributor’s first additional unadjusted pensionable earnings are earned in the year in which the first additional contributory period ends under paragraph 49.1(c), the amount determined for A in that subsection is the greater of

    • (a) zero, and

    • (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year  —  multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12  —  from the amount determined under subsection 53.1(1).

  • Marginal note:Calculation of portion of post-retirement benefit

    (5) Subject to subsections (6) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

    [(A × F/B) × C × D × E]/12

    where

    A
    is the amount determined under section 53.2 for the year before the year in which the post-retirement benefit commences to be payable;
    B
    is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;
    C
    is 0.00833;
    D
    is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;
    E
    is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and
    F
    is the amount determined by the formula

    G/H

    where

    G
    is the amount of the earnings referred to in subparagraph 53.2(1)(b)(i), and
    H
    is the aggregate of the earnings referred to in subparagraph 53.2(1)(b)(i) and those referred to in subparagraph 53.2(1)(b)(ii).
  • Marginal note:Second additional unadjusted pensionable earnings for year retirement pension becomes payable

    (6) For the purpose of the calculation under subsection (5), if the contributor’s second additional unadjusted pensionable earnings are earned in the year in which the second additional contributory period ends under paragraph 49.2(c), the amount determined for A in that subsection is the greater of

    • (a) zero, and

    • (b) the amount that is calculated by subtracting the Year’s Additional Maximum Pensionable Earnings for that year  —  multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12  —  from the amount determined under section 53.2.

  • Marginal note:Adjustment factor for contributors  —  70 years of age or older

    (7) For the purposes of the calculations under subsections (1.1), (3) and (5), if the contributor is 70 years of age or older, the adjustment factor referred to in E in each of those subsections is that of a contributor who is 70 years of age.

  • 2009, c. 31, s. 36
  • 2016, c. 14, s. 33
  • 2018, c. 12, s. 384

Post-retirement Disability Benefit

Marginal note:Amount of benefit

 A post-retirement disability benefit payable to a contributor is a basic monthly amount that is

  • (a) in the case of a benefit payable for a month in the year 2019, an amount calculated by multiplying

    by

    • (ii) the ratio that the Pension Index for 2019 bears to the Pension Index for 2018; and

  • (b) in the case of a benefit payable for a month in the year 2020 or any subsequent year, an amount calculated by multiplying

    • (i) the amount of the 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 is payable bears to the Pension Index for the year preceding that year.

  • 2018, c. 12, s. 385
 
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