Marginal note:Amount of basic exemption
19 The amount of the basic exemption of a person for a year is the amount of the Year’s Basic Exemption except that,
(a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year
(i) after
(A) they reach eighteen years of age, or
(B) the disability pension ceases to be payable, or
(ii) before
(A) they reach seventy years of age,
(B) they die, or
(C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,
including, if they die, the month in which they die, is of 12;
(b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12;
(c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12;
(d) despite paragraphs (a) to (c), for a year in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the retirement pension becomes payable — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12 unless the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the amount, adjusted by that proportion, of the Year’s Maximum Pensionable Earnings, in which case, the amount of the basic exemption is increased by the lesser of
(i) the product obtained by multiplying
(A) the Year’s Basic Exemption
by
(B) one-twelfth of the amount by which the number of months in the year for which a retirement pension is payable exceeds the greater of
(I) the number of months for which an election referred to in subparagraph 12(1)(c)(ii) or paragraph 13(1)(b) has effect, and
(II) the number of months after they reach seventy years of age or die, whichever is earlier, and
(ii) the amount by which the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the product obtained by multiplying
(A) the Year’s Maximum Pensionable Earnings
by
(B) one-twelfth of the amount by which the number of months in the year before the retirement pension becomes payable exceeds the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability.
- R.S., 1985, c. C-8, s. 19
- R.S., 1985, c. 30 (2nd Supp.), s. 11
- 2009, c. 31, s. 29
- Date modified: