Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)
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Assented to 2018-06-21
PART 6Various Measures (continued)
DIVISION 19R.S., c. C-8Canada Pension Plan (continued)
Amendments to the Act (continued)
375 Paragraph 52.1(1)(b) of the Act is replaced by the following:
(b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the first additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.
376 Paragraph 52.2(1)(b) of the Act is replaced by the following:
(b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the second additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.
377 Subparagraph 53(1)(b)(ii) of the Act is replaced by the following:
(ii) the contributor’s earnings on which a base contribution has been made for the year under a provincial pension plan, calculated as the aggregate of
(A) the amount that is determined in the prescribed manner to be the contributor’s salary and wages on which a base contribution has been made for the year by the contributor under a provincial pension plan, and
(B) the amount of any base contribution required to be made by the contributor for the year under a provincial pension plan in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year, and
378 (1) The portion of subsection 53.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:First additional unadjusted pensionable earnings for a year
53.1 (1) Subject to sections 53.5 and 54.1, for 2019 and each subsequent year, the first additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of
(2) Paragraph 53.1(1)(b) of the Act is amended by striking out “and” at the end of subparagraph (i) and by replacing subparagraph (ii) with the following:
(ii) their earnings on which a first additional contribution has been made for the year under a provincial pension plan, calculated as the aggregate of
(A) the amount that is determined in the prescribed manner to be their salary and wages on which a first additional contribution has been made for the year by them under a provincial pension plan, and
(B) the amount of any first additional contribution required to be made by the contributor for the year under a provincial pension plan in respect of the contributor’s self-employed earnings divided by the first additional contribution rate for self-employed persons for the year, and
(iii) their basic exemption for the year, and
379 (1) The portion of subsection 53.2(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Second additional unadjusted pensionable earnings for year
53.2 (1) Subject to sections 53.6 and 54.2, for 2024 and each subsequent year, the second additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of
(2) Paragraph 53.2(1)(b) of the Act is amended by striking out “and” at the end of subparagraph (i) and by replacing subparagraph (ii) with the following:
(ii) their earnings on which a second additional contribution has been made for the year under a provincial pension plan, calculated as the aggregate of
(A) the amount that is determined in the prescribed manner to be their salary and wages on which a second additional contribution has been made for the year by them under a provincial pension plan, and
(B) the amount of any second additional contribution required to be made by the contributor for the year under a provincial pension plan in respect of the contributor’s self-employed earnings divided by the second additional contribution rate for self-employed persons for the year, and
(iii) the amount of any second additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the second additional contribution rate for self-employed persons for the year, and
380 Sections 54 to 54.2 of the Act are replaced by the following:
Marginal note:Attribution of amount for first additional contributory period — one child
53.3 (1) An amount, determined by the following formula, shall be attributed to a contributor for a year during which they were a family allowance recipient with respect to one child, if that amount is greater than their first additional unadjusted pensionable earnings for that year and is greater than their basic exemption for the year:
[[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F) + Q]/R] × T
where
- A
- is the first additional unadjusted pensionable earnings of the contributor for the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that fifth year;
- B
- is the first additional unadjusted pensionable earnings of the contributor for the fourth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that fourth year;
- C
- is the first additional unadjusted pensionable earnings of the contributor for the third year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that third year;
- D
- is the first additional unadjusted pensionable earnings of the contributor for the second year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that second year;
- E
- is the first additional unadjusted pensionable earnings of the contributor for the year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that prior year;
- F
- is,
(a) in the case where an amount has been previously attributed by this section for the year in which the contributor became a family allowance recipient with respect to the child, that amount, or
(b) in any other case,
(i) if the contributor became a family allowance recipient with respect to the child in January, zero, or
(ii) in any other case, the lesser of 1 and the number determined by the formula
G/[H × (M6/12)]
where
- G
- is the first additional unadjusted pensionable earnings of the contributor for the year in which the contributor became a family allowance recipient with respect to the child, and
- H
- is the Year’s Maximum Pensionable Earnings for the year in which the contributor became a family allowance recipient with respect to the child;
- M1
- is the lesser of
- M2
- is the number of months in the contributor’s first additional contributory period in the fourth year before the year in which the contributor became a family allowance recipient with respect to the child;
- M3
- is the number of months in the contributor’s first additional contributory period in the third year before the year in which the contributor became a family allowance recipient with respect to the child;
- M4
- is the number of months in the contributor’s first additional contributory period in the second year before the year in which the contributor became a family allowance recipient with respect to the child;
- M5
- is the number of months in the contributor’s first additional contributory period in the year before the year in which the contributor became a family allowance recipient with respect to the child;
- M6
- is the number of months in the contributor’s first additional contributory period in the year in which the contributor became a family allowance recipient with respect to the child that are before the month in which they became a family allowance recipient with respect to that child;
- Q
- is, as the case may be,
- R
- is the greater of 36 and the sum of M1, M2, M3, M4, M5 and M6; and
- T
- is the Year’s Maximum Pensionable Earnings for the year for which the amount is to be attributed.
Marginal note:Attribution of amount for first additional contributory period — more than one child
(2) If the contributor is a family allowance recipient with respect to more than one child in a year, an amount shall be attributed to the contributor for that year that is the greater of each amount determined under subsection (1), calculated with respect to each child without regard to the other children.
Marginal note:Year in which retirement pension becomes payable
(3) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act, the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are before the retirement pension becomes payable is of 12.
Marginal note:Attribution of amount for second additional contributory period — one child
53.4 (1) An amount, determined by the following formula, shall be attributed to a contributor for a year during which they were a family allowance recipient with respect to one child, if that amount is greater than their second additional unadjusted pensionable earnings for that year:
[[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F)]/R] × T
where
- A
- is the second additional unadjusted pensionable earnings of the contributor for the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings, for that fifth year;
- B
- is the second additional unadjusted pensionable earnings of the contributor for the fourth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that fourth year;
- C
- is the second additional unadjusted pensionable earnings of the contributor for the third year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that third year;
- D
- is the second additional unadjusted pensionable earnings of the contributor for the second year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that second year;
- E
- is the second additional unadjusted pensionable earnings of the contributor for the year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that prior year;
- F
- is,
(a) in the case where an amount has been previously attributed by this section for the year in which the contributor became a family allowance recipient with respect to the child, that amount, or
(b) in any other case
(i) if the contributor became a family allowance recipient with respect to the child in January, zero, or
(ii) in any other case, the lesser of 1 and the number determined by the formula
G/[H × (M6/12)]
where
- G
- is the second additional unadjusted pensionable earnings of the contributor for the year in which the contributor became a family allowance recipient with respect to the child, and
- H
- is the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for the year in which the contributor became a family allowance recipient with respect to the child;
- M1
- is the lesser of
- M2
- is the number of months in the contributor’s second additional contributory period in the fourth year before the year in which the contributor became a family allowance recipient with respect to the child;
- M3
- is the number of months in the contributor’s second additional contributory period in the third year before the year in which the contributor became a family allowance recipient with respect to the child;
- M4
- is the number of months in the contributor’s second additional contributory period in the second year before the year in which the contributor became a family allowance recipient with respect to the child;
- M5
- is the number of months in the contributor’s second additional contributory period in the year before the year in which the contributor became a family allowance recipient with respect to the child;
- M6
- is the number of months in the contributor’s second additional contributory period in the year in which the contributor became a family allowance recipient with respect to the child that are before the month in which they became a family allowance recipient with respect to that child;
- R
- is the greater of 36 and the sum of M1, M2, M3, M4, M5 and M6; and
- T
- is the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for the year for which the amount is to be attributed.
Marginal note:Attribution of amount for second additional contributory period — more than one child
(2) If the contributor is a family allowance recipient with respect to more than one child in a year, an amount shall be attributed to the contributor for that year that is the greater of each amount determined under subsection (1), calculated with respect to each child without regard to the other children.
Marginal note:First additional unadjusted pensionable earnings for years of attribution
53.5 For each year in which there is an attribution of an amount under section 53.3, the amount of the first additional unadjusted pensionable earnings of a contributor for the year determined under section 53.1 is to be replaced by that amount and that amount is considered to be the contributor’s first additional unadjusted pensionable earnings for that year.
Marginal note:Second additional unadjusted pensionable earnings for years of attribution
53.6 For each year in which there is an attribution of an amount under section 53.4, the amount of the second additional unadjusted pensionable earnings of a contributor for the year determined under section 53.2 is to be replaced by that amount and that amount is considered to be the contributor’s second additional unadjusted pensionable earnings for that year.
Marginal note:Base unadjusted pensionable earnings for years of division
54 The amount of the base unadjusted pensionable earnings of a contributor for a year determined under section 53 is to be adjusted for each year in which there is a division of base unadjusted pensionable earnings under section 55 or 55.1 and under a provincial pension plan.
Marginal note:First additional unadjusted pensionable earnings for years of division
54.1 The amount of the first additional unadjusted pensionable earnings of a contributor for a year determined under section 53.1 is to be adjusted for each year in which there is a division of those earnings under section 55.1 and under a provincial pension plan.
Marginal note:Second additional unadjusted pensionable earnings for years of division
54.2 The amount of the second additional unadjusted pensionable earnings of a contributor for a year determined under section 53.2 is to be adjusted for each year in which there is a division of those earnings under section 55.1 and under a provincial pension plan.
- Date modified: