Bill C-37

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	RECOMMENDATION
	Her 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 Parliament of Canada Act and the Members of Parliament Retiring Allowances Act''.
	SUMMARY
	The main purposes of this enactment are to
	(a) provide members of the House of Commons under 55 years of age who cease to be members with a severance allowance that takes into account any pension immediately payable;
	(b) provide all members of the House of Commons with coverage under the Members of Parliament Retiring Allowances Act as of the coming into force of this enactment; and
	(c) permit the application of that Act in respect of service before the coming into force of this enactment.
	EXPLANATORY NOTES
	Parliament of Canada Act
	Clause 1: Subsection 70(4.1) is new. Subsection 70(4) reads as follows:
	(4) Subject to subsection (5), the severance allowance to be paid to or in respect of a person under subsection (1) or (2) shall be a lump sum amount equal to fifty per cent of the aggregate of
	(a) the sessional allowance under section 55, and
	(b) any salary or allowance under section 60, 61 or 62 of this Act or section 4 or 5 of the Salaries Act
	to which the person was entitled immediately before ceasing to be a member of Parliament.
	(2) Subsections 70(6) and (7) read as follows:
	(6) Subject to subsection (8), a person to whom or in respect of whom a severance allowance is payable under subsection (1) or (2) who was entitled to elect under section 2.1 or 2.6 of the Members of Parliament Retiring Allowances Act and who did not elect shall be paid a supplementary severance allowance in accordance with subsection (7).
	(7) The supplementary severance allowance shall be a lump sum amount equal to one twelfth of the sessional allowance under section 55 and any salary or allowance under section 60, 61 or 62 of this Act or section 4 or 5 of the Salaries Act to which the person was entitled immediately before ceasing to be a member, for every year the member was a member, to a maximum of twelve years.
	(3) Subsection 70(10) reads as follows:
	(10) For the purposes of subsections (7) and (8), a member is deemed to have been a member for a year if the member was a member for six months or more in any twelve month period.
	Clause 2: Section 71 reads as follows:
	71. A severance allowance shall not be paid under subsection 70(1) or (2) to or in respect of any person to or in respect of whom an allowance is immediately payable under the Members of Parliament Retiring Allowances Act.
	Members of Parliament Retiring Allowances Act
	Clause 3: New.
	Clause 4: (1) and (2) New.
	(3) Paragraph 10(3)(d) is new. The relevant portion of subsection 10(3) reads as follows:
	(3) Where a person ceases to be a member and subsequently becomes a member, the person may elect under subsection (1) to contribute under this Part in respect of a previous session only if
	. . .
	(c) the person was a person to whom a withdrawal allowance under section 2.3 was paid and who did not subsequently elect under section 2.6 to have the Act recommence to apply to the person.
	Clause 5: (1) New.
	(2) Subsection 11(2) reads as follows:
	(2) Notwithstanding clause (1)(a)(i)(B), where the aggregate of amounts paid to a person as a member in respect of one or more previous sessions in a calendar year by way of sessional indemnity, salary or annual allowance exceeds
	(a) the earnings limit of the member for that calendar year, or
	(b) where the person was not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,
	the member shall not, in respect of that previous session, contribute under that clause on the excess amount.
	Clause 6: New.
	Clause 7: (1) and (2) New.
	(3) Paragraph 32(3)(d) is new. The relevant portion of subsection 32(3) reads as follows:
	(3) A person may elect under subsection (1) to contribute under this Part in respect of a previous session only if
	. . .
	(c) the person was a person to whom a withdrawal allowance under section 2.3 was paid and who did not subsequently elect under section 2.6 to have the Act recommence to apply to the person.
	Clause 8: (1) and (2) New.

Bill C-37

RECOMMENDATION

SUMMARY

EXPLANATORY NOTES

Parliament of Canada Act

Members of Parliament Retiring Allowances Act