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Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

Assented to 2018-06-21

PART 6Various Measures (continued)

DIVISION 19R.S., c. C-8Canada Pension Plan (continued)

Amendments to the Act (continued)

 Subsection 15.1(1) of the Act is replaced by the following:

Marginal note:Amount of salary and wages on which first additional contribution made

  • 15.1 (1) The amount of a person’s salary and wages on which a first additional contribution has been made for a year is the greater of the following amounts, divided by the first additional contribution rate for employees for the year:

    • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a.1), and

    • (b) an amount equal to

      • (i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act or under a provincial pension plan,

      minus

      • (ii) the sum of

        • (A) the amount determined under paragraph 8(2)(c), and

        • (B) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act or under a provincial pension plan, minus the sum of the amounts determined under paragraphs 8(2)(a.1) and (c).

  • Marginal note:Employer’s failure to deduct amount

    (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s first additional contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year.

 Subsection 15.2(1) of the Act is replaced by the following:

Marginal note:Amount of salary and wages on which second additional contribution made

  • 15.2 (1) The amount of a person’s salary and wages on which a second additional contribution has been made for a year is an amount equal to the product obtained when the ratio referred to in subsection 8(8) is multiplied by the following amount, divided by the second additional contribution rate for employees for the year:

    • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year under this Act or under a provincial pension plan and the amounts determined under clauses 15(1)(b)(ii)(B) and 15.1(1)(b)(ii)(B),

    minus

    • (b) the amount determined under subsection 8(2).

  • Marginal note:Employer’s failure to deduct amount

    (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s second additional contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year.

 Subsection 21(3.1) of the Act is replaced by the following:

  • Marginal note:Payment and deemed notification

    (3.1) Once the decision under subsection 27.2(3) or section 28 is communicated to the employer, the employer is liable without interest or penalties under this Act to pay any contribution required to be paid by the employer with respect to the employee. On payment by the employer of any amount as or on account of that contribution, the employee is deemed to have notified the Minister as required by subsection 15(1.1), 15.1(1.1) or 15.2(1.1) of the employer’s failure to deduct the amount of that contribution from the remuneration of the employee.

 Paragraph 40(1)(f) of the Act is replaced by the following:

  • (f) respecting the manner in which any provision of this Act that applies or extends to an employer of an employee shall apply or extend to any person by whom the remuneration of an employee in respect of pensionable employment is paid either wholly or in part, and to the employer of any such employee;

  •  (1) Paragraph 44(1)(d) of the Act is replaced by the following:

    • (d) a survivor’s pension shall be paid

      • (i) before 2019, to the survivor of a deceased contributor who has made base contributions for not less than the minimum qualifying period, if the survivor

        • (A) has reached 65 years of age, or

        • (B) in the case of a survivor who has not reached 65 years of age,

          • (I) had at the time of the death of the contributor reached 35 years of age,

          • (II) was at the time of the death of the contributor a survivor with dependent children, or

          • (III) is disabled, and

      • (ii) after 2018, to the survivor of a deceased contributor who has made base contributions for not less than the minimum qualifying period;

  • (2) Subparagraphs 44(1)(e)(ii) and (iii) of the Act are replaced by the following:

    • (ii) is a contributor to whom a disability pension or a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if an application for a disability pension or a post-retirement disability benefit had been received before the application was actually received, or

    • (iii) is a contributor to whom a disability pension or a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if a division of unadjusted pensionable earnings that was made under section 55 or 55.1, had not been made;

  • (3) Subsection 44(1) of the Act is amended by striking out “and” at the end of paragraph (f) and by replacing paragraph (g) with the following:

    • (g) a post-retirement benefit shall be paid to a beneficiary of a retirement pension under this Act or under a provincial pension plan who has made a contribution in respect of the post-retirement benefit; and

  • (4) Subsection 44(1) of the Act is amended by adding the following after paragraph (g):

    • (h) a post-retirement disability benefit shall be paid to a beneficiary of a retirement pension who has not reached 65 years of age, is disabled and who

      • (i) has made base contributions for not less than the minimum qualifying period,

      • (ii) is a contributor to whom a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if an application for a post-retirement disability benefit had been received before the application was actually received, or

      • (iii) is a contributor to whom a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if a division of unadjusted pensionable earnings that was made under section 55 or 55.1 had not been made.

  • (5) Subsection 44(1.1) of the Act is repealed.

  • (6) The portion of subsection 44(2) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Calculation of minimum qualifying period in case of disability pension and disabled contributor’s child’s benefit

      (2) For the purposes of paragraph (1)(b) and, if a disability pension is payable to a contributor, paragraph (1)(e),

  • (7) Section 44 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Calculation of minimum qualifying period — post-retirement disability benefit

      (4) For the purposes of paragraph (1)(h) and, if a post-retirement disability benefit is payable to a contributor, paragraph (1)(e), the contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),

      • (a) for at least four of the last six years;

      • (b) for at least 25 years of which at least three are in the last six years; or

      • (c) for each year after the month of cessation of the contributor’s previous disability pension or post-retirement disability benefit.

 

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