Bill C-2
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Financial Review of the Canada Pension Plan |
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R.S., c. 30
(2nd Supp.),
s. 56
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94. (1) Subsection 113.1(1) of the Act is
replaced by the following:
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Review every
three years
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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 recommenda
tions as to whether benefits or contribution
rates or both should be changed .
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R.S., c. 30
(2nd Supp.),
s. 56
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(2) Subsection 113.1(2) of the Act is
repealed.
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R.S., c. 30
(2nd Supp.),
s. 56
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(3) Subsection 113.1(3) of the Act is
replaced by the following:
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Completion of
review
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(3) If possible, the review in each three year
period must be completed in time to permit
the Minister of Finance to make recommenda
tions to the Governor in Council before the
end of the second year of the three year period .
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R.S., c. 30
(2nd Supp.),
s. 56
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(4) Subparagraph 113.1(4)(b)(iii) of the
Act is replaced by the following:
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R.S., c. 30
(2nd Supp.),
s. 56
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(5) Subsection 113.1(4) of the Act is
amended by striking out the word ``and'' at
the end of paragraph (b) and by replacing
paragraph (c) with the following:
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R.S., c. 30
(2nd Supp.),
s. 56
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(6) Subsections 113.1(5) and (6) of the Act
are replaced by the following:
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Role of
Minister when
recommenda- tions made
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(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 the schedule in
accordance with that subsection to give effect
to any recommendations made under subsec
tion (1). Where the recommendations made
under subsection (1) are that no changes be
made to benefits or contribution rates, the
Minister of Finance shall cause those recom
mendations to be published in the Canada
Gazette.
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Regulation to
adjust rates
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(6) Subject to subsections (7) and (8), the
Governor in Council may, on the recommen
dation of the Minister of Finance made under
subsection (5) , by regulation amend the
schedule to change the contribution rate for
employees, employers and self-employed per
sons for any or all of the years following the
review .
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R.S., c. 30
(2nd Supp.),
s. 56
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(7) Subsection 113.1(8) of the Act is
replaced by the following:
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Coming into
force of
regulation
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(8) Where a review takes place in a three
year period as required by subsection (1) and
the Governor in Council before October 1 of
the third year of that period makes a regulation
under subsection (6) , the regulation shall, by
order made by the Governor in Council, come
into force, or is deemed to have come into
force, on January 1 of the year after that
period.
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Provincial
consent
required
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(8.1) An order made under subsection (8)
may not be made unless the lieutenant gover
nor 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, before the October 1
date referred to in that subsection , signified
the consent of that province to the coming into
force of the regulation.
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R.S., c. 30
(2nd Supp.),
s. 56
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(8) Subsection 113.1(11) of the Act is
replaced by the following:
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Interpreta- tion
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(11) In subsections (11.01) to (11.03),
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A is one half of the contribution rate most re
cently specified before October 1, 2000 un
der paragraph 115(1.1)(c) for self-
employed persons for 2003; and
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B is the contribution rate at October 1, 2000
for employees and employers for 2003.
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Where rate is
insufficient -
1st case
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(11.01) Subject to subsection (11.04), if
neither A nor B is greater than 4.95% and A is
greater than B, the schedule is deemed to have
been amended as of October 2, 2000 to
increase the contribution rate for employees
and employers for each year after 2002 to A.
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Where rate is
insufficient -
2nd case
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(11.02) Subject to subsection (11.04), if A
is greater than 4.95% and B is less than or
equal to 4.95%,
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4.95% + 1/2(A - 4.95%)
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Where rate is
insufficient -
3rd case
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(11.03) Subject to subsection (11.04), if
subsections (11.01) and (11.02) do not apply
and A is greater than B,
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B + 1/2(A - B)
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Where
subsections
(11.01) to
(11.03) do not
apply
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(11.04) Subsections (11.01) to (11.03) do
not apply where
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Where rates
are
insufficient
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(11.05) Subject to subsections (11.12) and
(11.13), where, after 2002, at October 1 of the
year before a three year period for which a
review is required by subsection (1), the
contribution rate for self-employed persons
for the years in that three year period is less
than the contribution rate most recently speci
fied under paragraph 115(1.1)(c) for self-
employed persons for those years,
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Interpreta- tion
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(11.06) In subsections (11.07) to (11.11),
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A is one half of the contribution rate most re
cently specified under paragraph
115(1.1)(c) for self-employed persons for
the years in the three year period referred to
in subsection (11.05); and
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B is the contribution rate for employees and
employers on October 1 of the third year of
the last three year period for which con
tribution rates were set for employees and
employers, by an Act of Parliament or by a
regulation made under subsection (6), on
the recommendation of ministers under
subsection (1).
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Determi- nation of rate - 1st case
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(11.07) If neither A nor B is greater than
4.95% and A is greater than B, the contribu
tion rate for employees and employers for
each year after the October 1 date referred to
in subsection (11.05) is A.
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Determi- nation of rate - 2nd case
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(11.08) If A is greater than 4.95%, B is less
than or equal to 4.95% and the percentage
determined by the formula
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1/2(A - B)
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is less than or equal to 0.1%, the contribution
rate for employees and employers for each
year after the October 1 date referred to in sub
section (11.05) is the rate determined by the
formula
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4.95% + 1/2(A - 4.95%)
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Determi- nation of rate - 3rd case
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(11.09) If A is greater than 4.95%, B is less
than or equal to 4.95% and the percentage
determined by the formula
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1/2(A - B)
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is greater than 0.1%, the contribution rate for
employees and employers is
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4.95% + 1/6(A - 4.95%)
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4.95% + 1/3(A - 4.95%)
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4.95% + 1/2(A - 4.95%)
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Determi- nation of rate - 4th case
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(11.1) If subsections (11.07) to (11.09) do
not apply and the percentage determined by
the formula
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1/2(A - B)
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is less than or equal to 0.1%, the contribution
rate for employees and employers for each
year after the October 1 date referred to in sub
section (11.05) is the rate determined by the
formula
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B + 1/2(A - B)
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Determi- nation of rate - 5th case
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(11.11) If subsections (11.07) to (11.1) do
not apply, the contribution rate for employees
and employers is
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B + 1/6(A - B)
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B + 1/3(A - B)
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B + 1/2(A - B)
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Where
paragraph
(11.05)(a)
does not apply
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(11.12) Paragraph (11.05)(a) does not apply
if subsection (11.07) applies.
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Where
subsection
(11.05) does
not apply
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(11.13) Subsection (11.05) does not apply
where
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Adjustment
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(11.14) If a contribution rate determined
under any of subsections (11.01) to (11.03)
and (11.07) to (11.11) is not a multiple of
0.005%, the contribution rate is to be rounded
to the nearest multiple of 0.005%.
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Rates to be
published
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(11.15) The Minister of Finance shall
publish in the Canada Gazette any amend
ment to the schedule deemed to have been
made under this section.
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R.S., c. 30
(2nd Supp.),
s. 57(1)
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95. (1) Subsection 114(2) of the Act is
replaced by the following:
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Effective date
of major
amendments
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(2) Where 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 for employees, em
ployers 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.
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(2) Paragraph 114(4)(f) is replaced by the
following:
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(3) The portion of subsection 114(4) of the
Act after paragraph (f) is replaced by the
following:
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it shall be deemed to be a term of that enact
ment, 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 order may
not be made and shall not in any case have any
force or effect unless the lieutenant governor
in council of each of at least two thirds of the
included provinces, having in the aggregate
not less than two thirds of the population of all
of the included provinces, has signified the
consent of that province to the enactment .
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