Canada Pension Plan

Marginal note:Effect of regulation made under subsection 3(2)

• 113 (1) Where any regulation has been made under subsection 3(2) prescribing a province as a province described in paragraph (b) of the definition “province providing a comprehensive pension plan” in subsection 3(1),

  • (a) all obligations and liabilities accrued or accruing as described in that paragraph, for the assumption of which under the provincial pension plan of that province provision has been made by any law of that province, shall, from and after the day on which the regulation became effective, cease to be obligations or liabilities accrued or accruing with respect to the payment of benefits under this Act attributable to contributions made under this Act in respect of employment in that province or in respect of self-employed earnings of persons resident in that province; and

  • (b) the Minister of Finance shall pay an amount calculated as provided in subsection (2) to the government of that province, by the transfer to that government in the first instance and to the extent necessary for that purpose, of securities of that province held to the credit of the Canada Pension Plan Investment Fund, and in the second instance and to the extent necessary for that purpose, of securities of Canada held to the credit of that Fund, and by the payment to that government of any balance then remaining in such manner as may be prescribed.

• Marginal note:Payment by Investment Board

  (1.1) The Minister of Finance may, by notice, and in accordance with any agreement entered into under section 111.1, require the Investment Board to pay to that Minister any amount that the Minister considers necessary for the purposes of subsection (1).

• Marginal note:Rights in securities extinguished

  (1.2) For greater certainty, where the Minister of Finance transfers to the government of a province a security of that province or of Canada, any right, title or interest of the Investment Board in the security is extinguished.

• Marginal note:Amount to be paid to government of province

  (2) For the purposes of subsection (1), the amount to be calculated as provided in this subsection in the case of any province shall be calculated by the Minister of Finance as the amount obtained by adding

  • (a) the total amount of all contributions credited to the Canada Pension Plan Account, to the day on which the regulation referred to in subsection (1) became effective, in respect of employment in that province or in respect of self-employed earnings of persons resident in that province, and

  • (b) the part of

    • (i) the net investment return of the Investment Board, and

    • (ii) all interest credited to or accrued to the credit of the Canada Pension Plan Account,

    to the day on which the regulation referred to in subsection (1) became effective, that is derived from the contributions referred to in paragraph (a),

  and subtracting from the total so obtained

  • (c) such part of all amounts paid as or on account of benefits under this Act as would not have been payable under this Act if that province had been a province described in paragraph (a) of the definition “province providing a comprehensive pension plan” in subsection 3(1), and

  • (d) such part of the costs of administration of this Act, to the day on which the regulation referred to in subsection (1) became effective, as is equal to the proportion of those costs that the total amount of the contributions referred to in paragraph (a) is of the total amount of all contributions credited to the Canada Pension Plan Account to that day.

• Marginal note:Agreement respecting assumption of obligations and liabilities

  (3) Where notice in writing has been given to the Minister by the government of a province as described in the definition “province providing a comprehensive pension plan” in subsection 3(1), the Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement with the government of that province,

  • (a) for the furnishing of that government under prescribed conditions with any information obtained under this Act, including records of any amounts that are shown in the Record of Earnings to the accounts of persons who have made contributions under this Act in respect of employment in that province or as persons resident in that province in respect of self-employed earnings; and

  • (b) generally for the making of all such arrangements as may be necessary to permit provision to be made for the assumption, under the provincial pension plan referred to in the notice, of all obligations and liabilities accrued or accruing as described in paragraph (b) of the definition “province providing a comprehensive pension plan” in subsection 3(1).