His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act”.

Part 1 of this enactment amends the Canada Pension Plan to, among other things,

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the contribution rate for that employee, employer and self-employed person for the year determined in accordance with Insertion start section 11.‍1 Insertion end ; (taux de cotisation)

salary and wages on which a Insertion start base Insertion end contribution has been made for a year means an amount calculated in accordance with section 15; (traitement et salaire sur lesquels a été versée une cotisation de base)

total pensionable earnings of a contributor attributable to Insertion start base Insertion end contributions made under this Act means an amount calculated in accordance with section 78; (total des gains d’un cotisant ouvrant droit à pension, afférents à des cotisations de base versées selon la présente loi)

unadjusted pensionable earnings means base unadjusted pensionable earnings, first additional unadjusted pensionable earnings and second additional unadjusted pensionable earnings; (gains non ajustés ouvrant droit à pension)

additional maximum pensionable earnings of a person for a year has the meaning assigned by section 17.‍1; (maximum supplémentaire des gains ouvrant droit à pension)

base contribution means a contribution under subsection 8(1), 9(1) or 10(1); (cotisation de base)

base unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53; (gains non ajustés de base ouvrant droit à pension)

first additional contribution means a contribution under subsection 8(1.‍1), 9(1.‍1) or 10(1.‍1); (première cotisation supplémentaire)

first additional contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the first additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.‍2; (premier taux de cotisation supplémentaire)

first additional contributory period of a contributor has the meaning assigned by section 49.‍1; (première période cotisable supplémentaire)

first additional monthly pensionable earnings of a person means an amount calculated in accordance with section 48.‍1; (premiers gains mensuels supplémentaires ouvrant droit à pension)

first additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53.‍1; (premiers gains non ajustés supplémentaires ouvrant droit à pension)

salary and wages on which a first additional contribution has been made for a year means an amount calculated in accordance with section 15.‍1; (traitement et salaire sur lesquels a été versée une première cotisation supplémentaire)

salary and wages on which a second additional contribution has been made for a year means an amount calculated in accordance with section 15.‍2; (traitement et salaire sur lesquels a été versée une deuxième cotisation supplémentaire)

second additional contribution means a contribution under subsection 8(1.‍2), 9(1.‍2) or 10(1.‍2); (deuxième cotisation supplémentaire)

second additional contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the second additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.‍2; (deuxième taux de cotisation supplémentaire)

second additional contributory period of a contributor has the meaning assigned by section 49.‍2; (deuxième période cotisable supplémentaire)

second additional monthly pensionable earnings of a person means an amount calculated in accordance with section 48.‍2; (deuxièmes gains mensuels supplémentaires ouvrant droit à pension)

second additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53.‍2; (deuxièmes gains non ajustés supplémentaires ouvrant droit à pension)

total first additional pensionable earnings of a contributor means an amount calculated in accordance with section 50.‍1; (total des premiers gains supplémentaires ouvrant droit à pension)

total second additional pensionable earnings of a contributor means an amount calculated in accordance with section 50.‍2; (total des deuxièmes gains supplémentaires ouvrant droit à pension)

Year’s Additional Maximum Pensionable Earnings has the meaning assigned by section 18.‍1; (maximum supplémentaire des gains annuels ouvrant droit à pension)

When specified age deemed to be reached

(2) For the purposes of any provision of this Act in which reference is made to the reaching by a person of a specified age — other than a reference in paragraph 13(1)‍(c) or (e) or (1.‍2)‍(c), 17(c), Insertion start 17.‍1(c) Insertion end , 19(c) or (d) or 44(3)‍(a), section 70 or paragraph 72(1)‍(c) — the person is deemed to have reached the specified age at the beginning of the month following the month in which the person actually reached that age, and in computing

• (h) employment in Canada by an employer who employs persons in Canada but under the terms of a reciprocal agreement between the Government of Canada and the government of another country is exempt from liability to make the Insertion start contributions Insertion end imposed on an employer by this Act;

Employee’s base contribution

8 (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 Insertion start base Insertion end 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

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 contribution has been made for the year by the employee under a provincial pension plan.

  End of inserted block

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 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.

Excess amount

(2) An excess amount has been paid Insertion start if Insertion end 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 Insertion start contributions Insertion end for the year under this Act or under a provincial pension plan exceeds the sum obtained by adding the following amounts:

• Start of inserted block

  (a.‍1) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year 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 employee’s basic exemption for the year, and

  • (ii) the employee’s maximum contributory earnings for the year;

• (a.‍2) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year 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 employee’s additional maximum pensionable earnings for the year,

• exceeds

  • (ii) the employee’s maximum pensionable earnings for the year; and

    End of inserted block

Employer’s base contribution

9 (1) Every employer shall, in respect of each employee employed by the employer in pensionable employment, make an employer’s Insertion start base Insertion end contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the contribution rate for employers for the year is multiplied by the lesser of

Employer’s first additional contribution

(1.‍1) For 2019 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s first additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employers 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 employee’s 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 on which a contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

  End of inserted block

Employer’s second additional contribution

(1.‍2) For 2024 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s second additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employers for the year is multiplied by 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.

Succession of employers

(2) If one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition —  with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1), Insertion start (1.‍1) and (1.‍2) Insertion end and 8(1), Insertion start (1.‍1) and (1.‍2) Insertion end and section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer’s contributions, the employer shall also take them into account with respect to the employee’s contributions.

Self-employment succeeded by employment

(3) For the application of subsections (1), Insertion start (1.‍1) and (1.‍2) Insertion end and 8(1), Insertion start (1.‍1) and (1.‍2) Insertion end and section 21, if a person, in a year, is self-employed, ceases to be self-employed and becomes an employee of a corporation Insertion start that is Insertion end controlled by the person, the corporation may

Base contribution in respect of self-employed earnings

10 (1) Every individual who is resident in Canada for the purposes of the Income Tax Act during a year and who has contributory self-employed earnings for the year shall make a Insertion start base Insertion end contribution for the year of an amount equal to the product obtained when the contribution rate for self-employed persons for the year is multiplied by the lesser of

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

First additional contribution in respect of self-employed earnings

(1.‍1) For 2019 and each subsequent year, an individual referred to in subsection (1) shall also make a first additional contribution for the year of an amount equal to the product obtained when the first additional contribution rate for self-employed persons for the year is multiplied by the lesser of

• (a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers under section 8, and

• (b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a first additional contribution has been made for the year.

  End of inserted block

Second additional contribution in respect of self-employed earnings

(1.‍2) For 2024 and each subsequent year, an individual referred to in subsection (1) shall also make a second additional contribution for the year of an amount equal to the product obtained when the second additional contribution rate for self-employed persons for the year is multiplied by

• (a) the amount by which the individual’s contributory self-employed earnings for the year — not exceeding the individual’s additional maximum pensionable earnings for the year — exceeds the individual’s maximum pensionable earnings for the year,

minus

• (b) the individual’s salary and wages, if any, on which a second additional contribution has been made for the year.

  End of inserted block

Employment succeeded by self-employment

(2) For the Insertion start application Insertion end of Insertion start subsections Insertion end (1), Insertion start (1.‍1) and (1.‍2) Insertion end , if a person, in a year, is an employee of a corporation Insertion start that is Insertion end controlled by the person, ceases to be employed by that corporation and becomes self-employed, the person may

Contribution rates after 1986

(2) The contribution rate for employees, employers and self-employed persons for 1987 and subsequent years is as set out in Schedule Insertion start 1 Insertion end , as amended from time to time Insertion start under Insertion end section 113.‍1.

First Additional Contribution Rate and Second Additional Contribution Rate

First and second additional contribution rates

11.‍2 The first additional contribution rate and the second additional contribution rate for employees, employers and self-employed persons for 2019 and subsequent years is as set out in Schedule 2, as amended from time to time under section 113.‍1.

Calculation of contributory salary and wages

(1.‍2) If a person does not revoke — in respect of an employer — an election in the prescribed form and manner, the contributory salary and wages referred to in paragraphs 8(1)‍(a) and Insertion start (1.‍1)‍(a), subsection 8(1.‍2) Insertion end , paragraphs 9(1)‍(a) and Insertion start (1.‍1)‍(a) and subsection 9(1.‍2) Insertion end do not, for the purposes of those provisions, include income from that employment. However, Insertion start the person Insertion end may — in respect of that income — make an election under subsection 13(3) and pay the Insertion start contributions Insertion end required under section 10 within one year after Insertion start the person’s Insertion end balance-due day.

Election to include certain earnings — base contribution

(3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of Insertion start subsection Insertion end 10 Insertion start (1) Insertion end shall, if the person or their representative makes an election in the prescribed Insertion start form and Insertion end manner within one year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under section 38, from the day on which the Minister refunds the amount — include any amount by which

• (i)  Insertion start the person’s Insertion end salary and wages on which a Insertion start base Insertion end contribution has been made for the year and Insertion start the Insertion end amount, if any, Insertion start that Insertion end is determined in Insertion start the Insertion end prescribed manner to be Insertion start the person’s Insertion end salary and wages on which a contribution has been made for the year by Insertion start the person Insertion end under a provincial pension plan, and

Earnings — first additional contribution

(3.‍1) For 2019 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.‍1) shall include any amount by which

• (a) the lesser of

  • (i) the person’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, and

  • (ii) the person’s maximum pensionable earnings for the year,

exceeds

• (b) the aggregate of

  • (i) the person’s salary and wages on which a first additional contribution has been made for the year, and

  • (ii) the lesser of

    • (A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8, and

    • (B) the person’s basic exemption for the year.

      End of inserted block

Earnings — second additional contribution

(3.‍2) For 2024 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.‍2) shall include any amount by which

• (a) the lesser of

  • (i) the person’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, and

  • (ii) the person’s additional maximum pensionable earnings for the year,

exceeds

• (b) the aggregate of

  • (i) the person’s salary and wages on which a first additional contribution has been made for the year and the person’s salary and wages on which a second additional contribution has been made for the year,

  • (ii) the lesser of

    • (A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8, and

    • (B) the person’s basic exemption for the year, and

  • (iii) the amount calculated under subsection (3) or (3.‍1), if any.

    End of inserted block

Amount of salary and wages on which base contribution made

15 (1) The amount of the salary and wages of a person on which a Insertion start base Insertion end contribution has been made for a year is an amount equal to Insertion start the sum of the following amounts Insertion end , divided by the contribution rate for employees for the year:

• (a) an amount equal to

  • Insertion start (i) Insertion end  the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s Insertion start base Insertion end contribution for the year,

• minus

  • Start of inserted block

    (ii) the product obtained when the ratio referred to in subsection 8(3) is multiplied by an amount equal to

    • (A) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year and on account of the employee’s contribution for the year under a provincial pension plan,

  • minus

    • (B) the sum of the amounts determined under paragraphs 8(2)‍(a) and (b), and

      End of inserted block

• (b)  Insertion start if Insertion end an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s Insertion start base Insertion end contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account Insertion start of that contribution Insertion end .

Effect of payment by employer of amount not deducted as required

(2) For the purposes of subsection 8(2) and this section, Insertion start if Insertion end an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s Insertion start base Insertion end contribution for a year is paid by the employer on account of the employee’s Insertion start base Insertion end contribution for that year, the amount so paid Insertion start is Insertion end deemed to have been deducted by the employer on account of that contribution.

Amount of salary and wages on which first additional contribution made

15.‍1 (1) The amount of the salary and wages of a person on which a first additional contribution has been made for a year is an amount equal to the sum 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, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)‍(a.‍1), and

• (b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s first additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

  End of inserted block

Effect of payment by employer of amount not deducted as required

(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s first additional contribution for a year is paid by the employer on account of the employee’s first additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Amount of salary and wages on which second additional contribution made

15.‍2 (1) The amount of the salary and wages of a person on which a second additional contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the second additional contribution rate for employees for the year:

• (a) an amount equal to

  • (i) the sum of the following amounts:

    • (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,

    • (B) the amount calculated under subparagraph 15(1)‍(a)‍(ii),

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

• minus

  • (ii) the amount of any refund made to that person under section 38 in respect of any amounts deducted on account of the employee’s contributions, or the part of the amount of any refund in respect of those contributions made to the person as described in section 39 that might have been made to the person under subsection 38(1) if no agreement had been entered into under subsection 39(1), and

• (b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s second additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.

  End of inserted block

Effect of payment by employer of amount not deducted as required

(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s second additional contribution for a year is paid by the employer on account of the employee’s second additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Special rule applicable in prescribed circumstances

15.‍3 If an employer has filed a return in accordance with this Part showing an amount as the salary and wages on which contributions have been made by an employee for a year under this Act, the amount so shown, multiplied by the contribution rate, the first additional contribution rate or the second additional contribution rate, as the case may be, for employees for the year, may, in prescribed circumstances, be substituted for the amount shown in the return as the aggregate of the amounts deducted by that employer on account of the employee’s contributions for the year under this Act, in calculating the amount to be determined under subsection 15(1), 15.‍1(1) or 15.‍2(1).

Additional Maximum Pensionable Earnings

Amount of additional maximum pensionable earnings

17.‍1 The amount of the additional maximum pensionable earnings of a person for a year is the amount of the Year’s Additional Maximum Pensionable Earnings except that,

• (a) for a year in which the person reaches 18 or 70 years of age or dies, 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 additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year

  • (i) after

    • (A) they reach 18 years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach 70 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 additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings 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; and

• (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 additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings 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 70 years of age or die, whichever is earlier — is of 12.

  End of inserted block

Year’s Additional Maximum Pensionable Earnings

Amount of Year’s Additional Maximum Pensionable Earnings

18.‍1 (1) The amount of a Year’s Additional Maximum Pensionable Earnings is

• (a) for 2024, 1.‍07 multiplied by the Year’s Maximum Pensionable Earnings for that year; and

• (b) for 2025 and each subsequent year, 1.‍14 multiplied by the Year’s Maximum Pensionable Earnings for that year.

  End of inserted block

Rounding

(2) If the amount calculated in accordance with subsection (1) for any year is not a multiple of $100, the Year’s Additional Maximum Pensionable Earnings for that year is the amount that is the next multiple of $100 below that amount.

Amount to be deducted and remitted by employer

21 (1) Every employer paying remuneration to an employee employed by the employer at any time in pensionable employment shall deduct from that remuneration as or on account of the employee’s Insertion start contributions Insertion end for the year in which the remuneration in respect of the pensionable employment is paid to the employee any amount that is determined in accordance with prescribed rules and shall remit that amount, together with any amount that is prescribed with respect to the Insertion start contributions Insertion end required to be made by the employer under this Act, to the Receiver General at any time that is prescribed and, if at that prescribed time the employer is a prescribed person, the remittance shall be made to the account of the Receiver General at a financial institution (within the meaning that would be assigned by the definition financial institution in subsection 190(1) of the Income Tax Act if that definition were read without reference to its paragraphs (d) and (e)).

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 Insertion start any Insertion end 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 paragraph 15(1)‍(b), Insertion start 15.‍1(1)‍(b) or 15.‍2(1)‍(b) Insertion end of the employer’s failure to deduct the amount of that contribution from the remuneration of the employee.

Montant déduit non remis

(3) L’employeur qui a déduit de la rémunération d’un employé un montant au titre Insertion start des cotisations Insertion end que ce dernier est tenu de verser, ou à valoir sur Insertion start celles-ci Insertion end , mais ne l’a pas remis au receveur général est réputé, malgré toute autre garantie au sens du paragraphe 224(1.‍3) de la Loi de l’impôt sur le revenu concernant le montant, le détenir en fiducie pour Sa Majesté, séparé de ses propres biens et des biens détenus par son créancier garanti, au sens de ce paragraphe qui, en l’absence de la garantie, seraient ceux de l’employeur, et en vue de le verser à Sa Majesté selon les modalités et dans le délai prévus par la présente loi.

Estimate to be made

31 Every person Insertion start who is Insertion end required by section 30 to file a return of Insertion start the person’s Insertion end self-employed earnings shall in the return estimate the amount of the Insertion start contributions Insertion end to be made by Insertion start the person Insertion end in respect Insertion start of those earnings Insertion end .

Examination of return and notice of assessment

32 The Minister shall, with all due dispatch, examine each return of self-employed earnings and assess the Insertion start contributions Insertion end for the year in respect Insertion start of those earnings Insertion end and the interest and penalties, if any, payable, and, after the examination, shall send a notice of assessment to the person by whom the return was filed.

Payment of contributions

33 (1)  Insertion start If Insertion end the amount of the Insertion start contributions Insertion end required to be made by a person for a year in respect of Insertion start the person’s Insertion end self-employed earnings is $40 or less, or a person who is required by this Act to make Insertion start contributions Insertion end for a year in respect of Insertion start the person’s Insertion end self-employed earnings is not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of Insertion start the person’s Insertion end income tax, the person shall, on or before Insertion start the person’s Insertion end balance-due day for the year, pay to the Receiver General the whole amount of the Insertion start contributions Insertion end .

Farmers and fishers

(2) Every person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of

• (a) the Insertion start contributions Insertion end required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or

• (b) the Insertion start contributions Insertion end required in respect of the person’s self-employed earnings for the preceding year.

Other persons

(3) Every person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year

• (a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of

  • (i) the Insertion start contributions Insertion end required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

  • (ii) the Insertion start contributions Insertion end required in respect of the person’s self-employed earnings for the preceding year; or

• (b) on or before

  • (i) March 15 and June 15 in the year, an amount equal to one quarter of the Insertion start contributions Insertion end required in respect of the person’s self-employed earnings for the second preceding year, and

  • (ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which

    • (A) the Insertion start contributions Insertion end required in respect of the person’s self-employed earnings for the preceding year

  • exceeds

    • (B) one half of the Insertion start contributions Insertion end required in respect of the person’s self-employed earnings for the second preceding year.

Payment of remainder of estimated contributions

Insertion start (4) Insertion end Insertion start   Insertion end Insertion start A person referred to in subsection (2) or (3) shall also pay to the Receiver General Insertion end , on or before the person’s balance-due day for the year, the remainder of the Insertion start contributions Insertion end as estimated under section 31. Insertion start However Insertion end , paragraphs Insertion start (2) Insertion end (a) and (b) Insertion start and (3)‍(a) and (b) do Insertion end not require the payment of any amount in respect of the person that would otherwise become due after the person’s death.

Interest on unpaid contributions

34 (1)  Insertion start If Insertion end the amount paid by a person on or before the person’s balance-due day for a year on account of contributions required to be made by the person for the year in respect of the person’s self-employed earnings is less than the amount of Insertion start the contributions Insertion end required to be made Insertion start by the person Insertion end , interest at a prescribed rate per annum is payable by the person on the difference between those amounts from the balance-due day for the year to the day of payment.

Interest on instalments

(2) In addition to any interest payable under subsection (1), Insertion start if Insertion end a person, being required by section 33 to pay a part or instalment of Insertion start the contributions required to be made by the person Insertion end , has failed to pay all or any part Insertion start of the contributions Insertion end as required, Insertion start the person Insertion end shall, on payment of the amount Insertion start that the person Insertion end failed to pay, pay interest Insertion start on the amount Insertion end at a prescribed rate per annum from the day on or before which Insertion start the person was Insertion end required to make the payment to the day of payment or the beginning of the period in respect of which Insertion start the person Insertion end is liable to pay interest Insertion start on the amount Insertion end under subsection (1), whichever is the earlier.

Limitation for farmers and fishers

(3) For the purposes of subsection (2), Insertion start if Insertion end a person is required by subsection 33(2) to pay a part or instalment of Insertion start the contributions required to be made by the person Insertion end in respect of the person’s self-employed earnings, the person Insertion start is Insertion end deemed to have been liable to pay on or before the day referred to in subsection 33(2) a part or instalment Insertion start that is equal to one of the following amounts Insertion end , whichever gives rise to the least amount required to be paid by the person on or before that day:

• (a) the Insertion start contributions Insertion end required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

• (b) the Insertion start contributions Insertion end required in respect of the person’s self-employed earnings for the preceding year;

• (c) the amount stated to be the amount of the instalment payable by the person for the year in the notice, if any, sent to the person by the Minister.

Limitation for other persons

(4) For the purposes of subsection (2), Insertion start if Insertion end a person is required by subsection 33(3) to pay a part or instalment of Insertion start the contributions required to be made by the person Insertion end in respect of the person’s self-employed earnings, the person Insertion start is Insertion end deemed to have been liable to pay on or before each day referred to in subsection 33(3) a part or instalment Insertion start that is equal to one of the following amounts Insertion end , whichever gives rise to the least total amount of those parts or instalments required to be paid by the person by that day:

• (a) the Insertion start contributions Insertion end required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

• (b) the Insertion start contributions Insertion end required in respect of the person’s self-employed earnings for the preceding year;

• (c) the amounts determined under paragraph 33(3)‍(b) in respect of the person for the year;

• (d) the amounts stated to be the amounts of instalment payable by the person for the year in the notices, if any, sent to the person by the Minister.

Failure to file a return

35 (1) Every person who fails to file a return of Insertion start the Insertion end person’s self-employed earnings for a year as and when required by section 30 is liable to a penalty of 5% of Insertion start the Insertion end part of the amount of the Insertion start contributions Insertion end required to be made by Insertion start the Insertion end person for the year in respect Insertion start of the contributions that Insertion end remained unpaid at the expiration of the time the return was required to be filed, except that, Insertion start if Insertion end that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister may reduce the penalty to which Insertion start the Insertion end person is liable under this section or may remit the penalty in whole or in part.

Application of Income Tax Act provisions

36 Subject to this Part and except as otherwise provided by regulation, the provisions of Divisions I and J of Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of Part XV (except section 221) and subsections 248(7) and (11) of that Act apply, with Insertion start any Insertion end modifications Insertion start that Insertion end the circumstances require, in relation to any amount paid or payable as or on account of the Insertion start contributions Insertion end for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act.

Priority in which payment to be applied

37  Insertion start If Insertion end any payment is made by a person to the Minister on account of taxes specified in section 228 of the Income Tax Act and of Insertion start contributions Insertion end under this Act in respect of self-employed earnings, Insertion start despite Insertion end any direction made by the person making the payment with respect to its application, the part of the payment that would be applied under that section in payment of tax under the Income Tax Act shall be applied in payment of the Insertion start contributions Insertion end under this Act and Insertion start is Insertion end deemed to be a payment on account Insertion start of those contributions Insertion end , and to the extent of the amount so applied shall not discharge liability for tax under the Income Tax Act, and any amount then remaining shall be applied in payment of tax under the Income Tax Act and shall discharge the liability of the person making the payment for that tax to the extent of that amount.

Refund of overpayment

38 (1) If an overpayment has been made by an employee on account of the employee’s Insertion start contributions Insertion end under this Act for a year, the Minister must, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year, refund to the employee the amount of the overpayment.

Refund after decision on appeal

(2)  Insertion start If Insertion end an amount on account of Insertion start contributions Insertion end is deducted from the remuneration of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under section 27, 27.‍1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.

Refund of excess — employee

(3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the Insertion start contributions Insertion end for the year required of the employee under Insertion start section Insertion end 8, the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year.

Refund of amount remitted in excess — employer

(3.‍1) Subject to subsection (3.‍2) but despite any other provision of this Part, if an employer applies to the Minister and satisfies the Minister that, for any year, the amount remitted by the employer as Insertion start the Insertion end employer’s contributions with respect to an employee exceeds the Insertion start contributions Insertion end for the year required of the employer under section 9 with respect to the employee, the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.

Refund of excess — self-employed person

(4)  Insertion start If Insertion end a person has paid, on account of the Insertion start contributions Insertion end required to be made by Insertion start the person Insertion end for a year in respect of Insertion start the person’s Insertion end self-employed earnings, an amount in excess of the Insertion start contributions Insertion end , the Minister

• (a) may refund that part of the amount so paid in excess of the Insertion start contributions Insertion end on sending the notice of assessment of the Insertion start contributions Insertion end , without any application having been made for the refund; and

Recovery of amount refunded or credited on liability

(5)  Insertion start If Insertion end an application under this section has been made to the Minister for a refund of any amount deducted on account of an employee’s Insertion start contributions Insertion end for a year and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has refunded an amount to the employee, or applied an amount to a liability of the employee to Her Majesty in right of Canada, in excess of the amount that should have been refunded or applied, the amount of the excess may be recovered at any time from the employee as a debt due to Her Majesty.

Refund of overpayment in accordance with agreement

39 (1)  Insertion start Despite Insertion end anything in this Act, Insertion start if Insertion end an overpayment has been made by an employee on account of the employee’s Insertion start contributions Insertion end for a year under this Act, the Minister may, in accordance with any agreement that may be entered into by Insertion start the Minister Insertion end with the approval of the Governor in Council with the appropriate authority of a province having the administration of the provincial pension plan referred to in subsection 8(2), if application in writing is made to the Minister by the employee not later than four years after the end of the year, refund to the employee the whole amount of the excess referred to in that subsection, in which case the whole of that amount Insertion start is Insertion end deemed to be an overpayment made by the employee on account of Insertion start the employee’s contributions Insertion end for that year under this Act.

Saving

(2)  Insertion start If Insertion end , in accordance with any agreement entered into under subsection (1), the appropriate authority of a province has refunded to an employee the whole amount of the excess referred to in subsection 8(2) with respect to that employee, the whole of that amount Insertion start is Insertion end deemed to be an overpayment made by the employee on account of Insertion start the employee’s contributions Insertion end for that year under the provincial pension plan referred to in that subsection.

Provision for making of financial adjustments

(3) Any agreement entered into under subsection (1) may provide for the making of any financial adjustments required to be made by reason of any payments made to employees in accordance with that agreement and for the crediting or charging of the amount of those adjustments to the Canada Pension Plan Account Insertion start or the Additional Canada Pension Plan Account, as the case may be Insertion end .

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

• (c) a death benefit shall be paid to the estate Insertion start or succession Insertion end of a deceased contributor who has made Insertion start base Insertion end contributions for not less than the minimum qualifying period;

• (d) subject to subsection (1.‍1), a survivor’s pension shall be paid to the survivor of a deceased contributor who has made Insertion start base Insertion end contributions for not less than the minimum qualifying period, if the survivor

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

• (f) an orphan’s benefit shall be paid to each orphan of a deceased contributor who has made Insertion start base Insertion end contributions for not less than the minimum qualifying period; and

• (a) a contributor Insertion start is deemed Insertion end to have made Insertion start base Insertion end contributions for not less than the minimum qualifying period only if the contributor has made Insertion start base Insertion end contributions during the contributor’s contributory period on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),

• (iv) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s Insertion start base Insertion end unadjusted pensionable earnings are less than the basic exemption of the contributor for the year, calculated without regard to subsection 20(2).

Proration — late applications for disability pensions

(2.‍1) For the Insertion start purpose Insertion end of determining the minimum qualifying period of a contributor referred to in subparagraph (1)‍(b)‍(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the Insertion start base Insertion end unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12.

Family allowance — late applications for disability pensions

(2.‍2) A contributor referred to in subparagraph (1)‍(b)‍(ii) is deemed to have made Insertion start base Insertion end contributions for not less than the minimum qualifying period for the Insertion start purpose Insertion end of subparagraph (1)‍(b)‍(i) if

• (ii) their Insertion start base Insertion end unadjusted pensionable earnings were less than their basic exemption, calculated without regard to subsection 20(2); and

Calculation for other supplementary benefits

(3) For the purposes of paragraphs (1)‍(c), (d) and (f), a contributor Insertion start is deemed Insertion end to have made Insertion start base Insertion end contributions for not less than the minimum qualifying period only if the contributor has made Insertion start base Insertion end contributions during Insertion start their Insertion end contributory period

• (a) for at least one third of the total number of years included either wholly or partly within Insertion start their Insertion end contributory period, excluding from the calculation of that contributory period any month in a year after the year in which Insertion start the contributor Insertion end reaches 65 years of age and for which Insertion start the contributor’s base Insertion end unadjusted pensionable earnings were equal to or less than Insertion start the contributor’s Insertion end basic exemption for that year, but in no case for less than three years; or

Amount of retirement pension

46 (1) Subject to this section, a retirement pension payable to a contributor is a basic monthly amount equal to Insertion start the aggregate of Insertion end

• Insertion start (a) Insertion end  25% of Insertion start their Insertion end average monthly pensionable earnings,

• Start of inserted block

  (b) 8.‍33% of their first additional monthly pensionable earnings, and

• (c) 33.‍33% of their second additional monthly pensionable earnings.

  End of inserted block

Special case

(2) Subject to this section, the Insertion start portion referred to in paragraph (1)‍(a) of Insertion end the basic monthly amount of a retirement pension payable to a former disability pension recipient in respect of whom a division Insertion start under section 55 or 55.‍1 Insertion end is approved either before or after the commencement of the retirement pension, Insertion start if Insertion end the division reduces the retirement pension otherwise payable, Insertion start is Insertion end calculated by dividing

• (a) the aggregate of

  • (i) the Insertion start portion of Insertion end the basic monthly amount of the retirement pension calculated in Insertion start accordance with paragraph (1)‍(a) Insertion end that would be payable to the contributor had Insertion start their base Insertion end unadjusted pensionable earnings not been subject to the division, multiplied by the number of months that have been excluded from the contributor’s contributory period by reason of disability, and

  • (ii) the Insertion start portion of Insertion end the basic monthly amount of the retirement pension calculated in Insertion start accordance with paragraph (1)‍(a) Insertion end that would be payable following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with section 49

by

First additional monthly pensionable earnings

48.‍1 The first additional monthly pensionable earnings of a contributor are an amount calculated by

• (a) in the case where their first additional contributory period is less than or equal to 480 months, dividing their total first additional pensionable earnings by 480; or 

• (b) in the case where their first additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest first additional pensionable earnings for a month by 480.

  End of inserted block

Second additional monthly pensionable earnings

48.‍2 The second additional monthly pensionable earnings of a contributor are an amount calculated by

• (a) in the case where their second additional contributory period is less than or equal to 480 months, dividing their total second additional pensionable earnings by 480; or

• (b) in the case where their second additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest second additional pensionable earnings for a month by 480.

  End of inserted block

• (d) in relation to any benefits payable under this Act for any month after December, 1977, any month for which Insertion start the contributor Insertion end was a family allowance recipient in a year for which Insertion start the contributor’s base Insertion end unadjusted pensionable earnings were equal to or less than Insertion start the contributor’s Insertion end basic exemption for the year.

First additional contributory period

49.‍1 The first additional contributory period of a contributor is the period commencing January 1, 2019 or when they reach 18 years of age, whichever is the later, and ending with the earliest of

• (a) the month preceding the month in which they reach 70 years of age,

• (b) the month in which they die, and

• (c) the month preceding the month in which the retirement pension commences.

  End of inserted block

Second additional contributory period

49.‍2 The second additional contributory period of a contributor is the period commencing January 1, 2024 or when they reach 18 years of age, whichever is the later, and ending with the earliest of

• (a) the month preceding the month in which they reach 70 years of age,

• (b) the month in which they die, and

• (c) the month preceding the month in which the retirement pension commences.

  End of inserted block

Total first additional pensionable earnings

50.‍1 The total first additional pensionable earnings of a contributor are the total for all months in their first additional contributory period of their first additional pensionable earnings for each month calculated as provided in section 51.

Total second additional pensionable earnings

50.‍2 The total second additional pensionable earnings of a contributor are the total for all months in their second additional contributory period of their second additional pensionable earnings for each month calculated as provided in section 51.

Pensionable earnings, or first or second additional pensionable earnings, for month

51 (1) The pensionable earnings, Insertion start first additional pensionable earnings or second additional pensionable earnings, as the case may be Insertion end , of a contributor for a month (in this subsection referred to as the “particular month”) are an amount determined by the formula

First additional pensionable earnings — 2019 to 2022

(1.‍1) Despite subsection (1), the first additional pensionable earnings of a contributor for a month are an amount calculated as provided in subsection (1) multiplied

• (a) for 2019, by 0.‍15;

• (b) for 2020, by 0.‍3;

• (c) for 2021, by 0.‍5; and

• (d) for 2022, by 0.‍75.

  End of inserted block

Exception

(2) For the purposes of subsection (1), Insertion start in the case of pensionable earnings, if Insertion end the year referred to in the description of C is 1987 or earlier, the Maximum Pensionable Earnings Average for the year Insertion start is Insertion end calculated as if the Year’s Maximum Pensionable Earnings for a particular year before 1986 were calculated as the greatest multiple of $100 that is equal to or less than an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1986, which are $25,800, by the ratio

Pension Index before 1974

(3) For the Insertion start purposes Insertion end of subsection (1), Insertion start in the case of pensionable earnings, if Insertion end the beginning of a period that is excluded from the contributor’s contributory period by reason of disability is in a year before 1974, in calculating the Pension Index for the year in which that period begins, paragraph 43.‍1(2)‍(a) of the Canada Pension Plan, R.‍S.‍C. 1970, c. C-5, as amended by section 24 of chapter 4 of the Statutes of Canada, 1974-75-76, Insertion start is to be Insertion end read without reference to the words “or 1.‍02 times the Pension Index for the preceding year, whichever is the lesser”.

Earnings for which base contribution deemed to have been made for month

52 (1) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which Insertion start they have Insertion end made a Insertion start base Insertion end contribution, the Insertion start base Insertion end contribution Insertion start is Insertion end deemed to have been made for all months in the year, and the earnings for which Insertion start the contributor is Insertion end deemed to have made Insertion start that Insertion end contribution for each month in the year are an amount calculated by dividing Insertion start their base Insertion end unadjusted pensionable earnings for the year by 12, except that

• (a) for a year in which the contributor reaches 18 years of age or in which a disability pension ceases to be payable to Insertion start them Insertion end under this Act or under a provincial pension plan, the Insertion start base Insertion end contribution Insertion start is Insertion end deemed to have been made for earnings for the months in the year after Insertion start they Insertion end reached that age or after the pension ceased to be payable, as the case may be, and

• (b) for a year in which the contributor reaches 70 years of age or dies, in which a retirement pension becomes payable to Insertion start them Insertion end under this Act or under a provincial pension plan or in which any month is excluded from Insertion start their Insertion end contributory period under this Act or under a provincial pension plan by reason of disability, the Insertion start base Insertion end contribution Insertion start is Insertion end deemed to have been made for earnings for the months in the year before the contributor reached 70 years of age or died, before the retirement pension became payable or that were not so excluded, as the case may be.

Insertion start If paragraph (a) or (b) applies Insertion end , the earnings for which Insertion start the contributor is Insertion end deemed to have made a Insertion start base Insertion end contribution for each such month Insertion start are Insertion end an amount calculated by dividing Insertion start the contributor’s base Insertion end unadjusted pensionable earnings for that year by the number of those months.

If no base contribution made

(2) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which the contributor made no Insertion start base Insertion end contribution, the amount of the earnings for which a Insertion start base Insertion end contribution Insertion start is Insertion end deemed to have been made for any month in the year Insertion start is Insertion end deemed to be zero.

When base contribution deemed to have been made

(3) For the purposes of this Part,

• (a) a contributor Insertion start is Insertion end deemed to have made a Insertion start base Insertion end contribution for any year for which Insertion start their base Insertion end unadjusted pensionable earnings exceed Insertion start their Insertion end basic exemption for the year, and Insertion start is Insertion end deemed to have made no Insertion start base Insertion end contribution for any year for which Insertion start their base Insertion end unadjusted pensionable earnings do not exceed Insertion start their Insertion end basic exemption for the year; and

• (b) a contributor Insertion start is Insertion end deemed to have made a Insertion start base Insertion end contribution for earnings for any month for which a Insertion start base Insertion end contribution is deemed by subsection (1) to have been made by Insertion start them Insertion end .

Earnings for which first additional contribution deemed for month

52.‍1 (1) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which they have made a first additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their first additional unadjusted pensionable earnings for the year by 12, except that

• (a) for a year in which the contributor reaches 18 years of age, the first additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and

• (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, 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.

If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a first additional contribution for each such month are an amount calculated by dividing their first additional unadjusted pensionable earnings for that year by the number of those months.

If no first additional contribution made

(2) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which the contributor made no first additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.

When first additional contribution deemed to have been made

(3) For the purposes of this Part,

• (a) a contributor is deemed to have made a first additional contribution for any year for which their first additional unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no first additional contribution for any year for which their first additional unadjusted pensionable earnings do not exceed their basic exemption for the year; and

• (b) a contributor is deemed to have made a first additional contribution for earnings for any month for which a first additional contribution is deemed by subsection (1) to have been made by them.

  End of inserted block

Earnings for which second additional contribution deemed for month

52.‍2 (1) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which they have made a second additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their second additional unadjusted pensionable earnings for the year by 12, except that

• (a) for a year in which the contributor reaches 18 years of age, the second additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and

• (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, 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.

If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a second additional contribution for each such month are an amount calculated by dividing their second additional unadjusted pensionable earnings for that year by the number of those months.

If no second additional contribution made

(2) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which the contributor made no second additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.

When second additional contribution deemed to have been made

(3) For the purposes of this Part, a contributor is deemed to have made a second additional contribution for earnings for any month for which a second additional contribution is deemed by subsection (1) to have been made by them.

Base unadjusted pensionable earnings for a year

53 (1) Subject to section 54, the Insertion start base Insertion end unadjusted pensionable earnings of a contributor for a year are an amount equal to

• (i)  Insertion start the contributor’s Insertion end earnings on which a Insertion start base Insertion end contribution has been made for the year under this Act, calculated as the aggregate of

  • (A)  Insertion start the contributor’s Insertion end salary and wages on which a Insertion start base Insertion end contribution has been made for the year, and

  • (B) the amount of any Insertion start base Insertion end contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year,

whichever is the least, except that Insertion start if Insertion end the amount calculated as provided in paragraph (a) is equal to or less than the amount of Insertion start the contributor’s Insertion end basic exemption for the year, Insertion start the contributor’s base Insertion end unadjusted pensionable earnings for that year Insertion start are Insertion end deemed to be zero.

First additional unadjusted pensionable earnings for a year

53.‍1 (1) Subject to section 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

• (a) the aggregate of

  • (i) their contributory salary and wages for the year, and

  • (ii) their contributory self-employed earnings for the year in the case of an individual described in section 10,

• (b) the aggregate of

  • (i) their earnings on which a first additional contribution has been made for the year calculated as the aggregate of

    • (A) their salary and wages on which a first additional contribution has been made for the year, and

    • (B) the amount of any first additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the first additional contribution rate for self-employed persons for the year, and

  • (ii) their basic exemption for the year, and

• (c) their maximum pensionable earnings for the year.

However, if the amount calculated as provided in paragraph (a) is equal to or less than the amount of their basic exemption for the year, their first additional unadjusted pensionable earnings for that year are deemed to be zero.

Year in which retirement pension becomes payable

(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,

• (a) 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; and

• (b) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12.

  End of inserted block

Second additional unadjusted pensionable earnings for year

53.‍2 (1) Subject to section 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

• (a) the aggregate of

  • (i) the amount by which their contributory salary and wages for the year — not exceeding the contributor’s additional maximum pensionable earnings — exceeds the contributor’s maximum pensionable earnings,

  • (ii) in the case of an individual described in section 10, the amount by which their contributory self-employed earnings for the year — not exceeding the contributor’s additional maximum pensionable earnings — exceeds the contributor’s maximum pensionable earnings,

• (b) their earnings on which a second additional contribution has been made for the year calculated as the aggregate of

  • (i) their salary and wages on which a second additional contribution has been made for the year, and

  • (ii) 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

• (c) the difference between the contributor’s additional maximum pensionable earnings and the contributor’s maximum pensionable earnings.

  End of inserted block

Year in which retirement pension becomes payable

(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,

• (a) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12; and

• (b) the contributor’s additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12.

  End of inserted block

Base unadjusted pensionable earnings for years of division

54 The amount of the Insertion start base Insertion end unadjusted pensionable earnings of a contributor for a year determined under section 53 Insertion start is to Insertion end be adjusted for each year in which there is a division of unadjusted pensionable earnings under section 55 or 55.‍1 and under a provincial pension plan.

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.

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.

Division of base unadjusted pensionable earnings

(5)  Insertion start If Insertion end there is a division under section 55.‍1, the Insertion start base Insertion end unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to Insertion start base Insertion end contributions made under this Act, determined in the same manner as the total pensionable earnings Insertion start of a contributor Insertion end attributable to Insertion start base Insertion end contributions made under this Act are determined in section 78, Insertion start are to be Insertion end added and then divided equally, and the Insertion start base Insertion end unadjusted pensionable earnings so divided Insertion start are to be Insertion end attributed to each person.

Division of first additional unadjusted pensionable earnings

(5.‍1) If there is a division of first additional unadjusted pensionable earnings under section 55.‍1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the first additional unadjusted pensionable earnings so divided are to be attributed to each person.

Division of second additional unadjusted pensionable earnings

(5.‍2) If there is a division of second additional unadjusted pensionable earnings under section 55.‍1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the second additional unadjusted pensionable earnings so divided are to be attributed to each person.

Effect of division of base unadjusted pensionable earnings

(6)  Insertion start If Insertion end there is a division Insertion start of base unadjusted pensionable earnings Insertion end under section 55.‍1 and under a provincial pension plan, for the purposes of benefit calculation and payment under this Act, the total unadjusted pensionable earnings of a contributor for a year of division Insertion start are Insertion end the aggregate of Insertion start their base Insertion end unadjusted pensionable earnings attributed under subsection (5) and Insertion start their Insertion end unadjusted pensionable earnings attributed under a provincial pension plan.

Provincial pension plans

(7) No division Insertion start of base unadjusted pensionable earnings Insertion end under section 55.‍1 Insertion start is to Insertion end be made for any month during which the persons subject to the division cohabited and for which either of them contributed to a provincial pension plan (and, for the purposes of this subsection, months during which the persons cohabited Insertion start are to be Insertion end determined in the prescribed manner), unless the unadjusted pensionable earnings attributed to the persons under the provincial pension plan are divided for that month in a manner substantially similar to that described in this section and section 55.‍1.

No division

(8) No division Insertion start of base unadjusted pensionable earnings Insertion end under section 55.‍1 for a period of cohabitation of the persons subject to the division Insertion start is to Insertion end be made

• (a) for a year in which the total Insertion start base Insertion end unadjusted pensionable earnings of the persons Insertion start do Insertion end not exceed twice the Year’s Basic Exemption;

No division of first additional unadjusted pensionable earnings

(8.‍1) No division of first additional unadjusted pensionable earnings under section 55.‍1 for a period of cohabitation of the persons subject to the division is to be made

• (a) for a year in which the total first additional unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

• (b) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

• (c) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

  End of inserted block

No division of second additional unadjusted pensionable earnings

(8.‍2) No division of second additional unadjusted pensionable earnings under section 55.‍1 for a period of cohabitation of the persons subject to the division is to be made

• (a) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

• (b) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

  End of inserted block

• (b) 75% of the amount of the contributor’s retirement pension, Insertion start which amount is calculated as the aggregate of Insertion end

  • Insertion start (i) Insertion end Insertion start   Insertion end Insertion start the amount Insertion end calculated as provided in Insertion start subsection (3) Insertion end ,

  • Start of inserted block

    (ii) the amount calculated as provided in subsection (3.‍1), and

  • (iii) the amount calculated as provided in subsection (3.‍2).

    End of inserted block

Calculation for purpose of subparagraph (1)‍(b)‍(i)

(3) The amount of the Insertion start portion of the Insertion end contributor’s retirement pension Insertion start that is Insertion end to be used for the purpose of Insertion start subparagraph Insertion end (1)‍(b) Insertion start (i) Insertion end is equal to 25% of Insertion start their Insertion end average monthly pensionable earnings calculated as provided in subsections (4) and (5).

Calculation for purpose of subparagraph (1)‍(b)‍(ii)

(3.‍1) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)‍(b)‍(ii) is equal to 8.‍33% of their first additional monthly pensionable earnings calculated as provided in subsection (4.‍01).

Calculation for purpose of subparagraph (1)‍(b)‍(iii)

(3.‍2) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)‍(b)‍(iii) is equal to 33.‍33% of the contributor’s second additional monthly pensionable earnings calculated as provided in subsection (4.‍02).

First additional monthly pensionable earnings

(4.‍01) For the purpose of subsection (3.‍1), a contributor’s first additional monthly pensionable earnings are an amount calculated by

• (a) in the case where their first additional contributory period is less than or equal to 480 months, dividing their total first additional pensionable earnings by 480; or

• (b) in the case where their first additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest first additional pensionable earnings for a month by 480.

  End of inserted block

Second additional monthly pensionable earnings

(4.‍02) For the purpose of subsection (3.‍2), a contributor’s second additional monthly pensionable earnings are an amount calculated by

• (a) in the case where their second additional contributory period is less than or equal to 480 months, dividing their total second additional pensionable earnings by 480; or

• (b) in the case where their second additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest second additional pensionable earnings for a month by 480.

  End of inserted block

• (d) in relation to any benefits payable under this Act for any month after December, 1977, any month for which Insertion start the contributor Insertion end was a family allowance recipient in a year for which Insertion start the contributor’s base Insertion end unadjusted pensionable earnings were equal to or less than Insertion start the contributor’s Insertion end basic exemption for the year.

If division of unadjusted pensionable earnings occurs

(6) The amount Insertion start of the portion Insertion end of the contributor’s retirement pension Insertion start that is Insertion end to be used for the purpose of Insertion start subparagraph Insertion end (1)‍(b) Insertion start (i) Insertion end , in the case of a contributor in respect of whom a division of unadjusted pensionable earnings takes place either before or after the commencement of the disability pension, Insertion start if Insertion end the division reduces the disability pension otherwise payable, Insertion start is to be Insertion end calculated by dividing

• (i) the amount Insertion start of the portion Insertion end of the contributor’s retirement pension, Insertion start which amount is Insertion end calculated in accordance with subsections (3), Insertion start (4), (4.‍1) and Insertion end (5) before the division, multiplied by the aggregate of

• (ii) the amount Insertion start of the portion Insertion end of the contributor’s retirement pension, Insertion start which amount is Insertion end calculated in accordance with subsections (3), Insertion start (4), (4.‍1) and Insertion end (5) following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with subsection (5)

• (ii) 37.‍5% of the amount of the contributor’s retirement pension, Insertion start which amount is calculated as the aggregate of Insertion end

  • Insertion start (A) Insertion end Insertion start   Insertion end Insertion start the amount Insertion end calculated as provided in subsection (3),

  • Start of inserted block

    (B) the amount calculated as provided in subsection (3.‍1), and

  • (C) the amount calculated as provided in subsection (3.‍4),

    End of inserted block

• (b) in the case of a survivor who has reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, a basic monthly amount equal to 60% of the amount of the contributor’s retirement pension, Insertion start which amount is calculated as the aggregate of Insertion end

  • Insertion start (i) Insertion end Insertion start   Insertion end Insertion start the amount Insertion end calculated as provided in subsection (3),

  • Start of inserted block

    (ii) the amount calculated as provided in subsection (3.‍1), and

  • (iii) the amount calculated as provided in subsection (3.‍4).

    End of inserted block

• (i)  Insertion start the aggregate of Insertion end

  • (A) a flat rate benefit, calculated as provided in subsection (1.‍1), and

  • (B) the lesser of

    • Insertion start (I) Insertion end  the amount determined by the formula

      C – D

      where

      C

      is 37.‍5% of the amount of the Insertion start portion of the Insertion end contributor’s retirement pension, Insertion start which amount is Insertion end calculated as provided in subsection (3), and

      D

      is the lesser of

      Insertion start (1) Insertion end  40% of C, and

      Insertion start (2) Insertion end  40% of the Insertion start amount of the portion of the Insertion end survivor’s retirement pension, Insertion start which amount is Insertion end calculated Insertion start as provided in paragraph 46(1)‍(a) Insertion end , without regard to subsections 46(3) to (6), Insertion start and adjusted Insertion end in accordance with subsection 45(2), and

    • Insertion start (II) Insertion end  an amount that, when added to the Insertion start amount of the portion of the Insertion end survivor’s retirement pension Insertion start that is Insertion end calculated Insertion start as provided in paragraph 46(1)‍(a) Insertion end , without regard to subsections 46(3) to (6), Insertion start and adjusted Insertion end in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

• Start of inserted block

  (ii) the amount determined by the formula

  C – D

  where

  C

  is 37.‍5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.‍1), and

  D

  is the lesser of

  (1) 40% of C, and

  (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)‍(b), without regard to subsections 46(3.‍1) to (6), and adjusted in accordance with subsection 45(2), and

• (iii) the amount determined by the formula

  C – D

  where

  C

  is 37.‍5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.‍4), and

  D

  is the lesser of

  (1) 40% of C, and

  (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)‍(c), without regard to subsections 46(3.‍1) to (6) and adjusted in accordance with subsection 45(2);

  End of inserted block

• (c) in the case of a survivor who has reached 65 years of age and who was born after December 31, 1932 and whose retirement pension commences to be payable after December 31, 1997, Insertion start the aggregate of Insertion end

  • (i) the lesser of

    • Insertion start (A) Insertion end  the amount determined by the formula

      A – B

      where

      A

      is 60% of the amount Insertion start of the portion Insertion end of the contributor’s retirement pension, Insertion start which amount is Insertion end calculated as provided in subsection (3), and

      B

      is the lesser of

      (I) 40% of A, and

      (II) 40% of the Insertion start amount of the portion of the Insertion end survivor’s retirement pension, Insertion start which amount is Insertion end calculated Insertion start as provided in paragraph 46(1)‍(a) Insertion end , without regard to subsections 46(3) to (6), Insertion start and adjusted Insertion end in accordance with subsection 45(2), and

    • Insertion start (B) Insertion end  an amount that, when added to the Insertion start amount of the portion of the Insertion end survivor’s retirement pension Insertion start that is Insertion end calculated Insertion start as provided in paragraph 46(1)‍(a) Insertion end , without regard to subsections 46(3) to (6), Insertion start and adjusted Insertion end in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

  • Start of inserted block

    (ii) the amount determined by the formula

    A – B

    where

    A

    is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.‍1), and

    B

    is the lesser of

    (I) 40% of A, and

    (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)‍(b), without regard to subsections 46(3.‍1) to (6), and adjusted in accordance with subsection 45(2), and

  • (iii) the amount determined by the formula

    A – B

    where

    A

    is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.‍4), and

    B

    is the lesser of

    (I) 40% of A, and

    (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)‍(c), without regard to subsections 46(3.‍1) to (6), and adjusted in accordance with subsection 45(2);

    End of inserted block

• or

• (d) in any other case, Insertion start the aggregate of Insertion end

  • (i) the lesser of

    • Insertion start (A) Insertion end  60% of the amount of Insertion start the portion of Insertion end the contributor’s retirement pension, Insertion start which amount is Insertion end calculated as provided in subsection (3), and

    • Insertion start (B) Insertion end  an amount that, when added to the Insertion start amount of the portion of the Insertion end survivor’s retirement pension Insertion start that is Insertion end calculated Insertion start as provided in paragraph 46(1)‍(a) Insertion end , without regard to subsections 46(3) to (6), Insertion start and adjusted Insertion end in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the average of the Year’s Maximum Pensionable Earnings for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, and for each of the two preceding years, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,

  • Start of inserted block

    (ii) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.‍1), and

  • (iii) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.‍4).

    End of inserted block

Calculation of portion of contributor’s retirement pension

(3) The amount of the Insertion start portion of the Insertion end contributor’s retirement pension Insertion start that is Insertion end to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in paragraph 57(2)‍(a), (b) or (c), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which

Calculation of portion of contributor’s retirement pension

(3.‍1) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.‍2), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(a) to (e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.

Calculation for purpose of subsection (3.‍1)

(3.‍2) The amount to be calculated for the purpose of subsection (3.‍1) is equal to

• (a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 8.‍33% of their first additional monthly pensionable earnings, or

• (b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying

  • (i) an amount equal to 8.‍33% of their first additional monthly pensionable earnings,

• by

  • (ii) the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.

    End of inserted block

Calculation of first additional monthly pensionable earnings

(3.‍3) For the purpose of subsection (3.‍2), the first additional monthly pensionable earnings of a contributor are an amount calculated as provided in section 48.‍1, and

• (a) in the case of a contributor to whom a retirement pension was payable for the month in which they died, section 51 applies; or

• (b) in the case of a contributor to whom no retirement pension was payable for the month in which they died, section 51 applies but the reference in that section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.

  End of inserted block

Calculation of portion of contributor’s retirement pension

(3.‍4) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.‍5), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(a) to (e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.

Calculation for purpose of subsection (3.‍4)

(3.‍5) The amount that is to be calculated for the purpose of subsection (3.‍4) is equal to

• (a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 33.‍33% of their second additional monthly pensionable earnings, or

• (b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying

  • (i) an amount equal to 33.‍33% of their second additional monthly pensionable earnings,

• by

  • (ii) the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.

    End of inserted block

Calculation of second additional monthly pensionable earnings

(3.‍6) For the purpose of subsection (3.‍5), the second additional monthly pensionable earnings of a contributor are an amount calculated as provided in section 48.‍2, and

• (a) in the case of a contributor to whom a retirement pension was payable for the month in which they died, section 51 applies; or

• (b) in the case of a contributor to whom no retirement pension was payable for the month in which they died, section 51 applies but the reference in that section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.

  End of inserted block

• (a)  Insertion start the aggregate of Insertion end

  • (i) the greater of

    • Insertion start (A) Insertion end  the flat rate benefit payable under subparagraph (1)‍(a)‍(i), and

    • Insertion start (B) Insertion end  the flat rate benefit payable under paragraph 56(1)‍(a), and

  • (ii) the lesser of

    • (A) the aggregate of

      • (I) the greater of

        • Start of inserted block

          1 the amount that would have been payable under subparagraph (1)‍(a)‍(ii) if the amounts referred to in clauses (1)‍(a)‍(ii)‍(B) and (C) had not been included in the calculation made under that subparagraph, and

        • 2 the amount that would have been payable under paragraph 56(1)‍(b) if the amounts referred to in subparagraphs 56(1)‍(b)‍(ii) and (iii) had not been included in the calculation made under that paragraph, and

          End of inserted block

      • (II) 60% of the lesser of the amount described in Insertion start sub-subclause (I)‍(1) Insertion end and the amount described in Insertion start sub-subclause (I)‍(2) Insertion end , and

    • (B) 75% of the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable,

• Start of inserted block

  (b) the aggregate of

  • (i) the greater of

    • (A) the amount that would have been payable under subparagraph (1)‍(a)‍(ii) if the amounts referred to in clauses (1)‍(a)‍(ii)‍(A) and (C) had not been included in the calculation made under that subparagraph, and

    • (B) the amount that would have been payable under paragraph 56(1)‍(b) if the amounts referred to in subparagraphs 56(1)‍(b)‍(i) and (iii) had not been included in the calculation made under that paragraph, and

  • (ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B), and

• (c) the aggregate of

  • (i) the greater of

    • (A) the amount that would have been payable under subparagraph (1)‍(a)‍(ii) if the amounts referred to in clauses (1)‍(a)‍(ii)‍(A) and (B) had not been included in the calculation made under that subparagraph, and

    • (B) the amount that would have been payable under paragraph 56(1)‍(b) if the amounts referred to in subparagraphs 56(1)‍(b)‍(i) and (ii) had not been included in the calculation made under that paragraph, and

  • (ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B).

    End of inserted block

• Start of inserted block

  (c) 37.‍5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

  • (i) the amount calculated as provided in subsection (3.‍1), and

  • (ii) the amount calculated as provided in subsection (3.‍4).

    End of inserted block

Amount of post-retirement benefit

59.‍1 (1) A post-retirement benefit payable to a contributor is a basic monthly amount Insertion start that is equal to the aggregate of the amounts calculated as provided in subsections (1.‍1), (3) and (5) Insertion end .

Calculation of portion of post-retirement benefit

Insertion start (1.‍1) Insertion end  Subject to subsections (2) and ( Insertion start 7 Insertion end ), the amount Insertion start that is to be used for the purpose of subsection (1) Insertion end is determined by the formula

Base unadjusted pensionable earnings for year retirement pension becomes payable

(2) For the purpose of the calculation under subsection Insertion start (1.‍1) Insertion end , if the Insertion start contributor’s base Insertion end unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)‍(iii), the amount determined for A Insertion start in that subsection Insertion end is the greater of

Calculation of portion of post-retirement benefit

(3) Subject to subsections (4) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

First additional unadjusted pensionable earnings for year retirement pension becomes payable

(4) For the purpose of the calculation under subsection (3), if the contributor’s first additional unadjusted pensionable earnings are earned in the year in which the first additional contributory period ends under paragraph 49.‍1(c), the amount determined for A in that subsection is the greater of

• (a) zero, and

• (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53.‍1(1).

  End of inserted block

Calculation of portion of post-retirement benefit

(5) Subject to subsections (6) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

Second additional unadjusted pensionable earnings for year retirement pension becomes payable

(6) For the purpose of the calculation under subsection (5), if the contributor’s second additional unadjusted pensionable earnings are earned in the year in which the second additional contributory period ends under paragraph 49.‍2(c), the amount determined for A in that subsection is the greater of

• (a) zero, and

• (b) the amount that is calculated by subtracting the Year’s Additional Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under section 53.‍2.

  End of inserted block

Adjustment factor for contributors — 70 years of age or older

Insertion start (7) Insertion end  For the Insertion start purposes Insertion end of the Insertion start calculations Insertion end under Insertion start subsections (1.‍1), (3) and (5) Insertion end , if the contributor is 70 years of age or older, the Insertion start adjustment factor referred to in Insertion end E Insertion start in each of those subsections Insertion end is Insertion start that of Insertion end a contributor who is 70 years of age.

first additional joint contributory period means the period commencing on January 1, 2019 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

• (a) if both spouses or common-law partners are contributors, with the month in which the later of their respective first additional contributory periods ends; or

• (b) if only one spouse or common-law partner is a contributor, with the later of

  • (i) the month in which the contributor’s first additional contributory period ends, and

  • (ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved; (première période cotisable conjointe supplémentaire)

second additional joint contributory period means the period commencing on January 1, 2024 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

• (a) if both spouses or common-law partners are contributors, with the month in which the later of their respective second additional contributory periods ends; or

• (b) if only one spouse or common-law partner is a contributor, with the later of

  • (i) the month in which the contributor’s second additional contributory period ends, and

  • (ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved. (deuxième période cotisable conjointe supplémentaire)

    End of inserted block

Portion of pension assignable

(9) The portion of a contributor’s retirement pension to be assigned to the contributor’s spouse or common-law partner under this section is Insertion start an amount equal to the aggregate of Insertion end

• (a) an amount calculated by multiplying

  • Insertion start (i) Insertion end  the amount of the Insertion start portion of the Insertion end contributor’s retirement pension calculated Insertion start as provided in paragraph 46(1)‍(a) and adjusted in accordance with section 45 Insertion end , by

  • Insertion start (ii) Insertion end  50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the joint contributory period,

• Start of inserted block

  (b) an amount calculated by multiplying

  • (i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)‍(b) and adjusted in accordance with section 45, by

  • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the first additional joint contributory period, and

• (c) an amount calculated by multiplying

  • (i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)‍(c) and adjusted in accordance with section 45, by

  • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the second additional joint contributory period.

    End of inserted block

• (a) the total pensionable earnings of the contributor attributable to Insertion start base Insertion end contributions made under this Act,

Total pensionable earnings attributable to base contributions made under Act

78 The total pensionable earnings of a contributor attributable to Insertion start base Insertion end contributions made under this Act are an amount equal to the amount that Insertion start their Insertion end total pensionable earnings would be if the Insertion start base Insertion end unadjusted pensionable earnings of the contributor for a year were that proportion of Insertion start their base Insertion end unadjusted pensionable earnings for the year that

• (a) the contributor’s earnings on which a Insertion start base Insertion end contribution has been made for the year under this Act, calculated as provided in subparagraph 53(1)‍(b)‍(i),

are of

Total pensionable earnings attributable to base contributions made under Act as a result of division

79 For a year of a division as determined under section 55 or 55.‍1 and under a provincial pension plan, the total pensionable earnings of a contributor attributable to Insertion start base Insertion end contributions made under this Act are an amount equal to the amount that Insertion start their Insertion end total pensionable earnings would be if the Insertion start base Insertion end unadjusted pensionable earnings of the contributor for the year were that proportion of Insertion start their base Insertion end unadjusted pensionable earnings for the year that

• (a)  Insertion start their base Insertion end unadjusted pensionable earnings attributed under subsection 55(4) or 55.‍2(5)

are of

• (b)  Insertion start their Insertion end total Insertion start base Insertion end unadjusted pensionable earnings for the year determined under subsection 55(5) or 55.‍2(6).

Provision for making of financial adjustments

(3) Any agreement entered into under subsection (1) may provide for the making of any financial adjustments required to be made by reason of any payments made to or in respect of a contributor in accordance with that agreement, and for the crediting or charging of the amount of those adjustments to the Canada Pension Plan Account Insertion start or the Additional Canada Pension Plan Account, as the case may be Insertion end .

• (e) respecting the determination of disability subject to this Part and the conditions on which any amount as or on account of a benefit in respect of the disability of a person shall be paid or shall continue to be paid, including the initial and subsequent periodic or other assessments of that disability and the reasonable rehabilitation measures to be undergone by that person, and providing for the payment out of the Consolidated Revenue Fund of the cost of any such assessments of disability and rehabilitation measures and for the charging of the amount of Insertion start the payment Insertion end to the Canada Pension Plan Account Insertion start or the Additional Canada Pension Plan Account, as the case may be Insertion end , as a cost of administration of this Act;

• (j) providing, in any case or class of cases not covered by the provisions of an agreement under subsection 80(1), for the issue of cheques by the Government of Canada in the amount of any benefit payable under this Act to or in respect of a contributor and in the amount of any like benefit payable under a provincial pension plan to or in respect of the same contributor, or for the payment by other means by the Government of Canada of such an amount, if arrangements satisfactory to the Governor in Council have been made with the government of that province for the issue of cheques, or for the payment by other means, by that government on a reciprocal basis and for the making of any financial adjustments by that government required to be made by reason Insertion start of those arrangements Insertion end , and providing for the making of any financial adjustments by the Government of Canada required to be made by reason of those arrangements and for the crediting or charging of the amount Insertion start of the adjustments Insertion end to the Canada Pension Plan Account Insertion start or the Additional Canada Pension Plan Account, as the case may be Insertion end ;

additional Canada Pension Plan means the part of the Canada Pension Plan relating to the portions of benefits that are referred to in paragraphs 46(1)‍(b) and (c), subparagraphs 56(1)‍(b)‍(ii) and (iii), clauses 58(1)‍(a)‍(ii)‍(B) and (C), subparagraphs 58(1)‍(b)‍(ii) and (iii) and subsections 59.‍1(3) and (5) and all contributions in respect of those portions of benefits. (régime de pensions supplémentaire du Canada)

base Canada Pension Plan means the part of the Canada Pension Plan relating to benefits and contributions under this Act, other than the portions of those benefits and contributions that are included in the additional Canada Pension Plan.‍ (régime de pensions de base du Canada)

Application — individual with self-employed earnings

(3) Every individual who is required by section 30 to file a return of Insertion start their Insertion end self-employed earnings for a year, other than an individual to whom subsection (1) or (2) applies, shall on or before the first day on or before which Insertion start they are Insertion end required by section 33 to pay any amount as or on account of the Insertion start contributions Insertion end required to be made by Insertion start them Insertion end for that year in respect of those earnings, if Insertion start they have Insertion end not earlier been assigned a Social Insurance Number, apply to the Minister, in Insertion start the Insertion end form and manner Insertion start that Insertion end may be prescribed, for the assignment to Insertion start them Insertion end of a Social Insurance Number.

• (b) if the individual is not employed in pensionable employment but later becomes so employed, or is required to make a contribution under this Act in respect of their self-employed earnings, within 60 days after the day on which the individual becomes so employed or after the first day on or before which they are required under section 33 to pay any amount as or on account of the Insertion start contributions Insertion end required to be made by them in respect of those earnings, as the case may be.

Regulations for giving effect to agreements

(3) For the purpose of giving effect to any agreement entered into under subsection (1), the Governor in Council may make any regulations respecting the manner in which this Act Insertion start is to Insertion end apply to any case or class of cases affected by the agreement, and for adapting this Act Insertion start to any such case or class of cases, that Insertion end appear to the Governor in Council to be necessary for that purpose, and any regulations so made may provide for the making of any financial adjustments required under the agreement and for the crediting or charging of the amount of any of those adjustments to the Canada Pension Plan Account Insertion start or the Additional Canada Pension Plan Account, as the case may be Insertion end .

• (a) all amounts received under this Act as or on account of contributions Insertion start under subsections 8(1), 9(1) and 10(1) or otherwise on account of the base Canada Pension Plan Insertion end ;

• (d) any amount of money received under section 107.‍1 Insertion start on account of the base Canada Pension Plan Insertion end and any proceeds from the disposition of any securities or other property received under that section Insertion start on account of the base Canada Pension Plan Insertion end ;

• (e) all amounts charged for the use of resources that are associated with the administration of this Act Insertion start in relation to the base Canada Pension Plan Insertion end ;

• (f) any interest or administrative charge collected in relation to money payable under this Act Insertion start in relation to the base Canada Pension Plan Insertion end ; and

• (g) all amounts received Insertion start under subsection Insertion end 56 Insertion start (1) Insertion end of the Canada Pension Plan Investment Board Act.

• (a) all amounts payable under this Act Insertion start in relation to the base Canada Pension Plan Insertion end as or on account of benefits or otherwise;

• (c) the costs of administration of this Act Insertion start in relation to the base Canada Pension Plan Insertion end , under the authority of Parliament;

• (e) the costs, Insertion start in relation to the base Canada Pension Plan Insertion end , of administering Part 5 of the Department of Employment and Social Development Act in respect of appeals respecting this Act.

• (b) the fair market value of the assets of the Investment Board less its liabilities, Insertion start in relation to the base Canada Pension Plan Insertion end .

Payment by Investment Board

(2) The Minister may, by notice, and in accordance with any agreement entered into under section 111.‍1, require the Investment Board to pay into the Consolidated Revenue Fund any amount necessary to offset amounts charged or required to be charged to the Canada Pension Plan Account under subsection 108(3) and any interest charged under subsection 110( Insertion start 1 Insertion end ).

Additional Canada Pension Plan Account

108.‍2 (1) There is established in the accounts of Canada an account to be known as the Additional Canada Pension Plan Account.

Amounts to be credited to Account

(2) There is to be paid into the Consolidated Revenue Fund and credited to the Additional Canada Pension Plan Account

• (a) all amounts received under this Act as or on account of contributions under subsections 8(1.‍1) and (1.‍2), 9(1.‍1) and (1.‍2) and 10(1.‍1) and (1.‍2) or otherwise on account of the additional Canada Pension Plan;

• (b) all amounts required to be credited to the Additional Canada Pension Plan Account under any agreement entered into under subsection 39(1) or 80(1) or under any regulation made under paragraph 89(1)‍(j) or subsection 107(3);

• (c) any amount of money received under section 107.‍1 on account of the additional Canada Pension Plan and any proceeds from the disposition of any securities or other property received under that section on account of the additional Canada Pension Plan;

• (d) all amounts charged for the use of resources that are associated with the administration of this Act in relation to the additional Canada Pension Plan;

• (e) any interest or administrative charge collected in relation to money payable under this Act in relation to the additional Canada Pension Plan; and

• (f) all amounts received under subsection 56(1.‍1) of the Canada Pension Plan Investment Board Act.

  End of inserted block

Amounts to be charged to Account

(3) There is to be paid out of the Consolidated Revenue Fund and charged to the Additional Canada Pension Plan Account

• (a) all amounts payable under this Act in relation to the additional Canada Pension Plan as or on account of benefits or otherwise;

• (b) all amounts required to be charged to the Additional Canada Pension Plan Account under any agreement entered into under subsection 39(1) or 80(1) or under any regulation made under paragraph 89(1)‍(j) or subsection 107(3);

• (c) all amounts credited to the Additional Canada Pension Plan Account under paragraph (2)‍(d);

• (d) the costs of administration of this Act in relation to the additional Canada Pension Plan, under the authority of Parliament;

• (e) all amounts required to be charged to the Additional Canada Pension Plan Account under section 57.‍1 of the Canada Pension Plan Investment Board Act; and

• (f) the costs, in relation to the additional Canada Pension Plan, of administering Part 5 of the Department of Employment and Social Development Act in respect of appeals respecting this Act.

  End of inserted block

Limitation

(4) No payment is to be made out of the Consolidated Revenue Fund under this section in excess of the total of

• (a) the amount of the balance to the credit of the Additional Canada Pension Plan Account, and

• (b) the fair market value of the assets of the Investment Board less its liabilities, in relation to the additional Canada Pension Plan.

  End of inserted block

Management of Account

108.‍3 (1) Any amounts standing to the credit of the Additional Canada Pension Plan Account that exceed the immediate obligations of that Account are to be transferred to the Investment Board, unless any agreement entered into under section 111.‍1 provides otherwise. The amounts are to be paid out of the Consolidated Revenue Fund and charged to the Additional Canada Pension Plan Account.

Payment by Investment Board

(2) The Minister may, by notice, and in accordance with any agreement entered into under section 111.‍1, require the Investment Board to pay into the Consolidated Revenue Fund any amount necessary to offset amounts charged or required to be charged to the Additional Canada Pension Plan Account under subsection 108.‍2(3) and any interest charged under subsection 110(2).

Interest

(3) The Minister of Finance shall credit interest to the Additional Canada Pension Plan Account at market rates, as determined by that Minister, on any amount standing to the credit of that Account. The interest is to be paid out of the Consolidated Revenue Fund.

Interest — Canada Pension Plan Account

110  Insertion start (1) Insertion end  The Minister of Finance shall charge interest to the Canada Pension Plan Account at market rates, as determined by that Minister, on any amount paid out of the Consolidated Revenue Fund under subsection 108(3) that exceeds the balance to the credit of the Canada Pension Plan Account. Interest is to be charged for the period beginning on the day on which the amount is paid out of the Consolidated Revenue Fund under subsection 108(3) and ending on the day on which the Investment Board pays that amount into the Consolidated Revenue Fund under Insertion start subsection Insertion end 56 Insertion start (1) Insertion end of the Canada Pension Plan Investment Board Act.

Interest — Additional Canada Pension Plan Account

(2) The Minister of Finance shall charge interest to the Additional Canada Pension Plan Account at market rates, as determined by that Minister, on any amount paid out of the Consolidated Revenue Fund under subsection 108.‍2(3) that exceeds the balance to the credit of the Additional Canada Pension Plan Account. Interest is to be charged for the period beginning on the day on which the amount is paid out of the Consolidated Revenue Fund under subsection 108.‍2(3) and ending on the day on which the Investment Board pays that amount into the Consolidated Revenue Fund under subsection 56(1.‍1) of the Canada Pension Plan Investment Board Act.

Annual financial statements

112 (1) The Minister shall, as soon as possible after the end of each fiscal year, prepare Insertion start one set of Insertion end annual financial statements for the Canada Pension Plan in respect of that year setting out

• (a) a statement Insertion start combining Insertion end the amounts credited to or charged to the Canada Pension Plan Account, the Insertion start Additional Canada Pension Plan Account and the accounts of the Investment Board during the year Insertion end ;

• (b) a Insertion start schedule combining Insertion end the amounts Insertion start credited to or charged to Insertion end the Canada Pension Plan Account and the Insertion start accounts of the Insertion end Investment Board Insertion start in relation to the base Canada Pension Plan during the year Insertion end ;

• Start of inserted block

  (c) a schedule combining the amounts credited to or charged to the Additional Canada Pension Plan Account and the accounts of the Investment Board in relation to the additional Canada Pension Plan during the year;

• (d) a statement combining the accounts of the Canada Pension Plan Account, the Additional Canada Pension Plan Account and the Investment Board as at the end of the year;

• (e) a schedule combining the accounts of the Canada Pension Plan Account and the Investment Board in relation to the base Canada Pension Plan as at the end of the year;

• (f) a schedule combining the accounts of the Additional Canada Pension Plan Account and the Investment Board in relation to the additional Canada Pension Plan as at the end of the year; and

  End of inserted block

• Insertion start (g) Insertion end  any other accounts and information that the Minister considers appropriate to present fairly the financial transactions and the financial position of the Canada Pension Plan for the year.

• (a) the total amount of all contributions credited to the Canada Pension Plan Account Insertion start and the Additional Canada Pension Plan Account Insertion end , 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 the net investment return of the Investment Board and all interest credited to or accrued to the credit of the Canada Pension Plan Account Insertion start and the Additional Canada Pension Plan Account Insertion end , 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),

• (d)  Insertion start the Insertion end part of the costs of administration of this Act, to the day on which the regulation referred to in subsection (1) became effective, Insertion start that Insertion end 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 Insertion start and the Additional Canada Pension Plan Account Insertion end to that day.

Review every three years

113.‍1 (1) Once every three years after 1997, the Minister of Finance and ministers of the Crown from the included provinces shall review the financial state of the Canada Pension Plan and may make recommendations as to whether benefits, contribution rates, Insertion start first additional contribution rates or second additional contribution rates Insertion end should be changed.

• (i) the outstanding balance of the Canada Pension Plan Account Insertion start and the Additional Canada Pension Plan Account Insertion end ,

• (ii) the projected revenues into and payments out of the Canada Pension Plan Account Insertion start and the Additional Canada Pension Plan Account Insertion end ,

• (iii) the ratio of the projected assets over the projected expenditures of the Insertion start base Insertion end Canada Pension Plan and Insertion start the additional Insertion end Canada Pension Plan, Insertion start and Insertion end

• Insertion start (iv) Insertion end  the changes, if any, to the amounts and Insertion start ratios Insertion end projected at the previous review under this section attributable to changing demographic and economic circumstances or to changes to the Insertion start base Insertion end Canada Pension Plan Insertion start or the additional Canada Pension Plan Insertion end affecting payments or contributions Insertion start under the Canada Pension Plan Insertion end ;

• (c) the financing objective, Insertion start for the base Canada Pension Plan Insertion end , of having a contribution rate, without taking into account the changes, Insertion start if any Insertion end , referred to in paragraph ( Insertion start e Insertion end ) for which the contribution rate most recently calculated under subparagraph 115(1.‍1)‍(c)‍(ii) exceeds zero, that is no lower than the rate

  • (i) that, beginning with the year 2003, is the lowest constant rate that can be maintained over the foreseeable future, and

  • (ii) that results in the ratio of the projected assets of the Insertion start base Insertion end Canada Pension Plan at the end of any given year over the projected expenditures of the Insertion start base Insertion end Canada Pension Plan in the following year being generally constant;

• Start of inserted block

  (d) the financing objective, for the additional Canada Pension Plan, of having additional contribution rates, without taking into account the changes, if any, referred to in paragraph (e) for which the additional contribution rates most recently calculated under subparagraphs 115(1.‍1)‍(d)‍(ii) and (e)‍(ii) exceed zero, that are no lower than the rates

  • (i) that, beginning with the year 2024, are the lowest constant rates that can be maintained over the foreseeable future, and

  • (ii) that result in projected contributions and investment income that are sufficient to fully pay the projected expenditures of the additional Canada Pension Plan over the foreseeable future; and

    End of inserted block

• Insertion start (e) Insertion end  that changes to the Act that increase benefits or add new benefits must be accompanied by a permanent increase in the contribution rates Insertion start under this Act Insertion end to cover the extra costs of the increased or new benefits and by a temporary increase in the contribution rates Insertion start under this Act Insertion end for a number of years that is consistent with common actuarial practice to fully pay any unfunded liability resulting from the increased or new benefits.

Recommendations made on completion of review

(5) On the completion of a review required by subsection (1), the Minister of Finance may recommend to the Governor in Council that the Governor in Council make regulations under subsection (6) to amend Schedule Insertion start 1 or 2 Insertion end to give effect to any recommendations made under subsection (1). Insertion start If Insertion end the recommendations made under subsection (1) are that no changes be made to benefits, contribution rates, Insertion start first additional contributions rates or second additional contribution rates Insertion end , the Minister of Finance shall cause those recommendations to be published in the Canada Gazette.

Regulation to change rates

(6) Subject to subsections (7) and (8), the Governor in Council may, on the recommendation of the Minister of Finance made under subsection (5), by regulation amend Schedule Insertion start 1 or 2 Insertion end to change the contribution rates, Insertion start first additional contribution rates or second additional contribution rates Insertion end for any or all of the years following the review.

Limitation on changes

(7) The following shall apply with respect to any Insertion start changes to Insertion end and setting of Insertion start the Insertion end rates Insertion start under Insertion end subsection (6):

• (a) the Insertion start rates Insertion end for employees and employers for a year must be identical;

• (b) the Insertion start rates Insertion end for self-employed persons for a year must be equal to the sum of the rates for employees and employers for that year;

• (c) no rate for employees and employers for a year may be increased by more than one-tenth of a percentage point above the rate for the previous year; and

• (d) no rate for self-employed persons for a year may be increased by more than two-tenths of a percentage point above the rate for the previous year.

• (a) the Insertion start amount of the Insertion end benefits payable Insertion start in respect of the base Canada Pension Plan Insertion end in the three-year period shall be determined as if the ratios referred to in paragraphs 45(2)‍(b) and 56(2)‍(c), subsection 58(1.‍1) and subparagraph 59(c)‍(ii) were each 1; and

• (b) Schedule Insertion start 1 Insertion end is deemed to have been amended as of the next day after that October 1

Deemed changes to rates — additional Canada Pension Plan

(11.‍141) Subject to subsection (11.‍143), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), either of the following conditions is met, Schedule 2 is deemed to have been amended as of the next day after that October 1 to change the first additional contribution rates or second additional contribution rates, if required, in accordance with the calculations set out in the regulations:

• (a) the difference between the first additional contribution rate most recently calculated under paragraph 115(1.‍1)‍(d) and the first additional contribution rate for self-employed persons set out in Schedule 2 for a prescribed year is not within the range set out in the regulations; and

• (b) the difference between the second additional contribution rate most recently calculated under paragraph 115(1.‍1)‍(e) and the second additional contribution rate for self-employed persons set out in Schedule 2 for a prescribed year is not within the range set out in the regulations.

  End of inserted block

Determination of benefits — additional Canada Pension Plan

(11.‍142) Subject to subsection (11.‍143), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), either of the conditions set out in paragraphs (11.‍141)‍(a) and (b) is met, the portions of benefits under this Act in respect of the additional Canada Pension Plan for the three-year period shall be determined in accordance with the regulations.

Non-application of subsections (11.‍141) and (11.‍142)

(11.‍143) Subsections (11.‍141) and (11.‍142) do not apply if

• (a) a recommendation was made under subsection (1) in the three years before the three-year period referred to in subsection (11.‍141) that the first additional contribution rates or second additional contribution rates for one or more of the years in that three-year period be changed and the rates were changed before October 1 of the year before that three-year period, by an Act of Parliament or by a regulation made under subsection (6), to give effect to that recommendation; or

• (b) a recommendation was made under subsection (1) in the three years before the three-year period referred to in subsection (11.‍141) that the first additional contribution rates or second additional contribution rates for the years in that three-year period not be changed and the Minister of Finance before October 1 of the year before that three-year period has caused that recommendation to be published in the Canada Gazette.

  End of inserted block

Regulations

(11.‍144) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations respecting

• (a) the calculation of deemed changes to rates for the purposes of subsection (11.‍141);

• (b) the determination of the ranges referred to in paragraphs (11.‍141)‍(a) and (b); and

• (c) the determination of portions of benefits for the purposes of subsection (11.‍142).

  End of inserted block

Provincial consent

(11.‍145) Regulations under subsection (11.‍144) may only be made if the lieutenant governor in council of each of at least two thirds of the included provinces, having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province.

Rates to be published

(11.‍15) The Minister of Finance shall publish in the Canada Gazette any amendment to Schedule Insertion start 1 or 2 Insertion end deemed to have been made under this section.

Non-application of subsection 114(2)

(12) For greater certainty, subsection 114(2) does not apply to any amendment to Schedule Insertion start 1 or 2 Insertion end made under subsection (6), (11.‍05) to (11.‍11) Insertion start or (11.‍141) Insertion end .

Effective date of major amendments

(2)  Insertion start If Insertion end any enactment of Parliament contains any provision that alters, or the effect of which is to alter, either directly or indirectly and either immediately or in the future, the general level of benefits provided by this Act or the contribution rate, Insertion start first additional contribution rate or second additional contribution rate Insertion end for employees, employers or self-employed persons for any year, it shall be deemed to be a term of that enactment, whether or not it is expressly stated in the enactment, that the provision shall come into force only on a day to be fixed by order of the Governor in Council, which day shall not in any case be earlier than the first day of the third year following the year in which any notice of intention to introduce a measure containing a provision to that effect was laid before Parliament.

• (c) the contribution rate, Insertion start first additional contribution rate or second additional contribution rate Insertion end for employees, employers or self-employed persons for any year,

• (e) the management or operation of the Canada Pension Plan Account Insertion start or the Additional Canada Pension Plan Account Insertion end , or

Exception

(4.‍1) Subsections (2) and (4) do not apply in respect of changes under any of subsections 113.‍1(11.‍05) to (11.‍11), Insertion start (11.‍141) or (11.‍142) Insertion end to benefits, contribution rates, Insertion start first additional contribution rates or second additional contribution rates Insertion end .

Report of Chief Actuary

115 (1) The Chief Actuary of the Office of the Superintendent of Financial Institutions shall, during the first year of each three-year period for which a review is required by subsection 113.‍1(1), prepare a report setting out, as at a date not earlier than December 31 of the year before the three-year period, the results of an actuarial examination of the operation of this Act based on the state of the Canada Pension Plan Account, Insertion start the Additional Canada Pension Plan Account Insertion end and the investments of the Investment Board.

• (a) state, for each of the 30 years immediately following the date of the examination,

  • Insertion start (i) Insertion end  the estimated revenues of the Canada Pension Plan Account and the estimated investment income of the Investment Board in Insertion start respect of the base Canada Pension Plan Insertion end , and the estimated amount of all payments under subsection 108(3), and

  • Start of inserted block

    (ii) the estimated revenues of the Additional Canada Pension Plan Account and the estimated investment income of the Investment Board in respect of the additional Canada Pension Plan, and the estimated amount of all payments under subsection 108.‍2(3);

    End of inserted block

• (c)  Insertion start in respect of the base Canada Pension Plan Insertion end , specify a contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

  • (i) a contribution rate, calculated in the prescribed manner, without taking into account the changes, Insertion start if any Insertion end , referred to in paragraph 113.‍1(4)‍( Insertion start e Insertion end ) for which the contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

  • (ii) a contribution rate calculated in the prescribed manner in respect of the changes, Insertion start if any Insertion end , referred to in paragraph 113.‍1(4)‍( Insertion start e Insertion end ) Insertion start in respect of the base Canada Pension Plan Insertion end ;

• Start of inserted block

  (d) in respect of the additional Canada Pension Plan, specify a first additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

  • (i) a first additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.‍1(4)(e) for which the first additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

  • (ii) a first additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.‍1(4)(e) that affect the first additional contribution rate;

• (e) in respect of the additional Canada Pension Plan, specify a second additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining

  • (i) a second additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.‍1(4)(e) for which the second additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and

  • (ii) a second additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.‍1(4)(e) that affect the second additional contribution rate;

    End of inserted block

• Insertion start (f) Insertion end  specify the Insertion start rates Insertion end referred to in subparagraphs (c)‍(i) and (ii), Insertion start (d)‍(i) and (ii) and (e)‍(i) and (ii) Insertion end and set out the manner in which Insertion start those rates were Insertion end calculated.

Relationship between rates

(1.‍2) For the purposes of the calculations referred to in Insertion start paragraphs Insertion end (1.‍1)‍(c) Insertion start to (e) Insertion end ,

• (a) the Insertion start rates Insertion end for employees and employers for a year must be identical; and

• (b) the Insertion start rates Insertion end for self-employed persons for a year must be equal to the sum of the rates for employees and employers for that year.

Application of subsection 114(4)

(1.‍3) Subsection 114(4) applies, with Insertion start any Insertion end modifications Insertion start that Insertion end the circumstances require, to the making of the regulations prescribing the manner of the calculation referred to in Insertion start paragraphs Insertion end (1.‍1)‍(c) Insertion start to (e) Insertion end and to the making of any regulation changing that manner of calculation.

Government contributions — Canada Pension Plan Account

118 (1) There Insertion start is to Insertion end be charged to the Consolidated Revenue Fund and credited to the Canada Pension Plan Account an amount equal to

• (a) the contributions required to be made by Her Majesty in right of Canada Insertion start under subsection 9(1) Insertion end in respect of persons in employment under Her Majesty in right of Canada that is not excepted employment under this Act, and

• (b) the amount required by subsection 21(2) to be paid by Her Majesty in right of Canada as a result of the failure to deduct and remit, in accordance with this Act, the required amount as or on account of contributions Insertion start required to be made under subsection 8(1) by persons referred to in paragraph (a) Insertion end .

Government contributions — Additional Canada Pension Plan Account

(1.‍1) There is to be charged to the Consolidated Revenue Fund and credited to the Additional Canada Pension Plan Account an amount equal to

• (a) the contributions required to be made by Her Majesty in right of Canada under subsections 9(1.‍1) and (1.‍2) in respect of persons in employment under Her Majesty in right of Canada that is not excepted employment under this Act, and

• (b) the amount required by subsection 21(2) to be paid by Her Majesty in right of Canada as a result of the failure to deduct and remit, in accordance with this Act, the required amount as or on account of contributions required to be made under subsections 8(1.‍1) and (1.‍2) by persons referred to in paragraph (a).

  End of inserted block

• (b) to manage any amounts transferred to it under Insertion start sections Insertion end 108.‍1 Insertion start and 108.‍3 Insertion end of the Canada Pension Plan, and its right, title or interest in any designated securities, in the best interests of the contributors and beneficiaries under that Act; and

Jointly and separately

(8) The financial statements required to be prepared under this section shall be prepared, as one set of statements, jointly and separately in relation to amounts managed by the Board for the purposes of the base Canada Pension Plan and the additional Canada Pension Plan, as defined in section 91 of the Canada Pension Plan.

Canada Pension Plan Account Insertion start and Additional Canada Pension Plan Account Insertion end

Duty of Board — Canada Pension Plan Account

56 (1) The Board shall pay into the Consolidated Revenue Fund, for credit to the Canada Pension Plan Account established under subsection 108(1) of the Canada Pension Plan,

• Insertion start (a) Insertion end  any amount required under subsection 108.‍1(2) of that Act; and

• Start of inserted block

  (b) any amount required under subsection 113(1.‍1) of that Act in relation to the base Canada Pension Plan, as defined in section 91 of that Act.

  End of inserted block

Duty of Board — Additional Canada Pension Plan Account

(1.‍1) The Board shall pay into the Consolidated Revenue Fund, for credit to the Additional Canada Pension Plan Account established under subsection 108.‍2(1) of the Canada Pension Plan,

• (a) any amount required under subsection 108.‍3(2) of that Act; and

• (b) any amount required under subsection 113(1.‍1) of that Act in relation to the additional Canada Pension Plan, as defined in section 91 of that Act.

  End of inserted block

Administration costs — Canada Pension Plan Account

57  Insertion start If Insertion end the Minister is of the opinion that the Board cannot pay its administration costs Insertion start in relation to the base Canada Pension Plan, as defined in section 91 of the Canada Pension Plan Insertion end , the Minister shall pay those costs out of the Consolidated Revenue Fund and Insertion start the Insertion end payment shall be charged to the Canada Pension Plan Account established under subsection 108(1) of Insertion start that Act Insertion end .

Administration costs — Additional Canada Pension Plan Account

57.‍1 If the Minister is of the opinion that the Board cannot pay its administration costs in relation to the additional Canada Pension Plan, as defined in section 91 of the Canada Pension Plan, the Minister shall pay those costs out of the Consolidated Revenue Fund and the payment shall be charged to the Additional Canada Pension Plan Account established under subsection 108.‍2(1) of that Act.

• CPP/QPP contributions on self-employed earnings

  Start of inserted block

  (e) the total of

  End of inserted block

• (i) 1/2 of the lesser of

  • Insertion start (A) Insertion end  the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under Insertion start subsection 10(1) of Insertion end the Canada Pension Plan or Insertion start as a like contribution Insertion end under a provincial pension plan, Insertion start as defined in Insertion end section 3 of that Act, and

  • Insertion start (B) Insertion end  the maximum amount of such contributions payable by the taxpayer for the year under the plan, and

• Start of inserted block

  (ii) the lesser of

  • (A) the total of all amounts each of which is an amount payable by the taxpayer in respect of self-employed earnings for the year as a contribution under subsection 10(1.‍1) or (1.‍2) of the Canada Pension Plan, and

  • (B) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

    End of inserted block

• Enhanced CPP contributions

  Start of inserted block

  (e.‍1) the lesser of

  • (i) the total of all amounts each of which is an amount payable by the taxpayer for the year as an employee’s contribution under subsection 8(1.‍1) or (1.‍2) of the Canada Pension Plan, and

  • (ii) the maximum amount of such contributions payable by the taxpayer for the year under the plan;

    End of inserted block

Annual adjustment

117.‍1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)‍(s), each of the amounts expressed in dollars in subparagraph 6(1)‍(b)‍(v.‍1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.‍01(2), the descriptions of C and F in subsection 118.‍2(1) and subsections 118.‍3(1), 122.‍5(3) and 122.‍51(1) and (2), the amount of $400,000 referred to in the formula in paragraph 110.‍6(2)‍(a), the amounts of $ Insertion start 1,192 Insertion end and $ Insertion start 2,165 Insertion end referred to in the description of A, and the amounts of $10,500 and $14,500 referred to in the description of B, in the formula in subsection 122.‍7(2), the amount of $462.‍50 referred to in the description of C, and the amounts of $ Insertion start 20,844 Insertion end and $ Insertion start 32,491 Insertion end referred to in the description of D, in the formula in subsection 122.‍7(3), and each of the amounts expressed in dollars in Part I.‍2 in relation to tax payable under this Part or Part I.‍2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

(2) Subsection (1) applies to the 2019 and subsequent taxation years, except that the adjustment provided for in subsection 117.‍1(1) of the Act, as amended by subsection (1), does not apply for the 2019 taxation year in respect of the amounts of $1,192, $2,165, $20,844 and $32,491.