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

Full Document:  

Act current to 2019-08-28 and last amended on 2018-12-15. Previous Versions

PART IContributions (continued)

DIVISION AContributions Payable (continued)

Pensionable Employment (continued)

Marginal note:Regulations respecting employment to be included in pensionable employment

  •  (1) The Governor in Council may make regulations for including in pensionable employment

    • (a) any employment outside Canada or partly outside Canada, being employment that would be pensionable employment if it were in Canada;

    • (b) the entire employment under one employer of a person who is engaged by the employer partly in pensionable employment and partly in other employment;

    • (c) any employment if it appears to the Governor in Council that the nature of the work performed is similar to the work performed by persons employed in pensionable employment;

    • (d) the performance of services for remuneration if it appears to the Governor in Council that the terms or conditions on which the services are performed and the remuneration is paid are analogous to a contract of service, whether or not they constitute a contract of service;

    • (e) pursuant to an agreement with the government of a province, employment in Canada by Her Majesty in right of the province or by an agent of Her Majesty in right of the province;

    • (f) pursuant to an agreement with the employing government or organization, employment in Canada by the government of a country other than Canada or by an international organization; and

    • (g) any excepted employment other than employment described in paragraph 6(2)(g) or (i).

  • Marginal note:Regulations respecting employment to be excepted from pensionable employment

    (2) The Governor in Council may make regulations for excepting from pensionable employment

    • (a) any employment if it appears to the Governor in Council by reason of the laws of any country other than Canada that a duplication of contributions or benefits will result;

    • (b) any employment of a person by an employer resident outside Canada unless arrangements satisfactory to the Minister have been made for the payment of the contributions required by this Act to be made in respect of that employment;

    • (c) the entire employment under one employer of a person who is engaged by the employer partly in pensionable employment and partly in other employment;

    • (d) any employment if it appears to the Governor in Council that the nature of the work performed by persons employed in that employment is similar to the nature of the work performed by persons employed in employment that is not pensionable employment;

    • (e) any employment if it appears to the Governor in Council that the services are performed and the remuneration is paid in a manner analogous to the earning of income from the carrying on of a business; and

    • (f) any employment in which persons are ordinarily employed to an inconsiderable extent.

  • Marginal note:Extent of authority to make regulations

    (3) A regulation made under subsection (1) or (2) may be conditional or unconditional, qualified or unqualified, and may be general or restricted to a specific area, a person or a group or class of persons, and the authority conferred by subsection (1) to make regulations to include in pensionable employment any employment described in that subsection includes authority to make such other regulations to provide for the manner in which the provisions of this Act shall apply with respect thereto, and to adapt the provisions of this Act with respect thereto, as appear to the Governor in Council to be necessary to give effect to the regulations made under that subsection.

  • Marginal note:Limitation

    (4) No regulation under this section shall require the payment of an employer’s contribution by the government of a country other than Canada or by an international organization unless the regulation is made pursuant to an agreement referred to in paragraph (1)(f).

  • R.S., c. C-5, s. 7
  • 1974-75-76, c. 4, s. 3

Contributions by Employees and Employers in respect of Pensionable Employment

Marginal note:Employee’s base contribution

  •  (1) Every employee who is employed by an employer in pensionable employment shall, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s base contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

    • (a) the employee’s contributory salary and wages for the year paid by the employer, minus such amount as or on account of the basic exemption for the year as is prescribed, and

    • (b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a base contribution has been made for the year by the employee under a provincial pension plan.

  • Marginal note:Employee’s first additional contribution

    (1.1) For 2019 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s first additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employees for the year is multiplied by the lesser of

    • (a) the employee’s contributory salary and wages for the year paid by the employer, minus the amount as or on account of the basic exemption for the year that is prescribed, and

    • (b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a first additional contribution has been made for the year by the employee under a provincial pension plan.

  • Marginal note:Employee’s second additional contribution

    (1.2) For 2024 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s second additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employees for the year is multiplied by the amount equal to

    • (a) the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year,

    minus

    • (b) the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a second additional contribution has been made for the year by the employee under a provincial pension plan.

  • (1.3) [Repealed, 2016, c. 14, s. 3]

  • Marginal note:Excess amount

    (2) An excess amount has been paid if the aggregate of all amounts deducted as required from the remuneration of an employee for a year, whether by one or more employers, on account of the employee’s contributions for the year under this Act or under a provincial pension plan exceeds the sum obtained by adding the following amounts:

    • (a) the product obtained when the contribution rate for employees for the year under this Act is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (4), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (5);

    • (a.1) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year under this Act is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (4), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (5);

    • (a.2) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year under this Act is multiplied by the amount by which

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply — not exceeding the prorated portion of the employee’s additional maximum pensionable earnings for the year calculated under subsection (8),

      exceeds

      • (ii) the prorated portion of the employee’s maximum pensionable earnings for the year calculated under subsection (9);

    • (b) the product obtained when the base contribution rate for employees for the year under a provincial pension plan is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of a provincial pension plan apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (6), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (7);

    • (c) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year under a provincial pension plan is multiplied by the lesser of

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of the provincial pension plan apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (6), and

      • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (7); and

    • (d) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year under a provincial pension plan is multiplied by the amount by which

      • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of the provincial pension plan apply — not exceeding the prorated portion of the employee’s additional maximum pensionable earnings for the year calculated under subsection (10),

      exceeds

      • (ii) the prorated portion of the employee’s maximum pensionable earnings for the year calculated under subsection (11).

  • Marginal note:Overpayment

    (3) The overpayment made by the employee on account of the employee’s contributions for the year under this Act is the lesser of

    • (a) the aggregate of all amounts deducted as required from the remuneration of that employee on account of the employee’s contributions under this Act for the year, minus the sum of the amounts determined under paragraphs (2)(a) to (a.2), and

    • (b) the excess amount calculated in accordance with subsection (2).

  • Marginal note:Prorated portion of employee’s basic exemption

    (4) For the purposes of subparagraphs (2)(a)(i) and (a.1)(i), the prorated portion of the employee’s basic exemption for the year is the product obtained when the employee’s basic exemption is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s maximum contributory earnings

    (5) For the purposes of subparagraphs (2)(a)(ii) and (a.1)(ii), the prorated portion of the employee’s maximum contributory earnings for the year is the product obtained when the employee’s maximum contributory earnings is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to

      • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

      • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s basic exemption

    (6) For the purposes of subparagraphs (2)(b)(i) and (c)(i), the prorated portion of the employee’s basic exemption for the year is the difference between the employee’s basic exemption, determined without taking into account paragraphs 19(b) and (c), and the prorated portion calculated under subsection (4).

  • Marginal note:Prorated portion of employee’s maximum contributory earnings

    (7) For the purposes of subparagraphs (2)(b)(ii) and (c)(ii), the prorated portion of the employee’s maximum contributory earnings for the year is the difference between the employee’s maximum contributory earnings, determined without taking into account paragraphs 17(b) and (c) and 19(b) and (c), and the prorated portion calculated under subsection (5).

  • Marginal note:Prorated portions of employee’s additional maximum pensionable earnings

    (8) For the purposes of subparagraph (2)(a.2)(i), the prorated portion of the employee’s additional maximum pensionable earnings for the year is the product obtained when the employee’s additional maximum pensionable earnings is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s maximum pensionable earnings

    (9) For the purposes of subparagraph (2)(a.2)(ii), the prorated portion of the employee’s maximum pensionable earnings for the year is the product obtained when the employee’s maximum pensionable earnings for the year is multiplied by the ratio that

    • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment,

    bears to

    • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment.

  • Marginal note:Prorated portion of employee’s additional maximum pensionable earnings

    (10) For the purposes of subparagraph (2)(d)(i), the prorated portion of the employee’s additional maximum pensionable earnings for the year is the difference between the employee’s additional maximum pensionable earnings, determined without taking into account paragraphs 17.1(b) and (c), and the prorated portion calculated under subsection (8).

  • Marginal note:Prorated portion of employee’s maximum pensionable earnings

    (11) For the purposes of subparagraph (2)(d)(ii), the prorated portion of the employee’s maximum pensionable earnings for the year is the difference between the employee’s maximum pensionable earnings, determined without taking into account paragraphs 17(b) and (c), and the prorated portion calculated under subsection (9).

  • R.S., 1985, c. C-8, s. 8
  • R.S., 1985, c. 30 (2nd Supp.), s. 3
  • 1997, c. 40, s. 58
  • 2011, c. 24, s. 173
  • 2013, c. 33, s. 155
  • 2016, c. 14, s. 3
  • 2018, c. 12, s. 362
 
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