Bill C-43

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Transitional Provisions

First fiscal year — payment into C.R.F.

146. The 15-month period that begins after the last calendar year for which the net income of the Exchange Fund Account was paid into or charged to the Consolidated Revenue Fund under section 20 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 20 of that Act, as enacted by section 143 of this Act, applies.

First fiscal year — report to Parliament

147. The 15-month period that begins after the last calendar year for which the Minister of Finance reported to Parliament under section 21 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 21 of that Act, as enacted by section 143 of this Act, applies.

Coming into Force

Order in council

148. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 19

AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT

1996, c. 16

Department of Public Works and Government Services Act

149. Section 2 of the Department of Public Works and Government Services Act is amended by adding the following in alphabetical order:

“materiel”
« matériel »

“materiel” includes goods;

150. Paragraphs 6(b) and (c) of the Act are replaced by the following:

(b) the acquisition and provision of services, including construction services, for departments;

(c) the planning and organizing of the provision of materiel and services, including construction services, required by departments;

151. Paragraphs 7(1)(b) and (c) of the Act are replaced by the following:

(b) acquire materiel and services, including construction services, in accordance with any applicable regulations relating to government contracts;

(c) plan and organize the provision of materiel and related services to departments including construction services, the preparation of specifications and standards, the cataloguing of materiel, the determination of aggregate requirements for materiel, the assuring of quality of materiel, and the maintenance, distribution, storage and disposal of materiel and other activities associated with the management of materiel; and

152. Section 9 of the Act is replaced by the following:

Other authorities

9. Subject to any conditions that may be imposed by the Treasury Board or any regulations that the Treasury Board may make for the purposes of this section, the Minister shall exercise the powers in relation to the acquisition and provision of materiel and services, including construction services but not including legal services, for the use of any department that are conferred on any minister or other authority under any Act of Parliament or any other law, except to the extent that those powers have been delegated by the Minister.

153. Section 20 of the Act is replaced by the following:

Contracts

20. Despite subsection 32(1) of the Financial Administration Act but subject to any conditions that may be imposed by the Governor in Council or the Treasury Board and any regulations that the Governor in Council or the Treasury Board may make for the purposes of this section, the Minister may, on behalf of the Government of Canada, enter into contracts for the performance of any matter or thing that falls within the ambit of the Minister’s powers, duties or functions.

Coming into Force

Order in council

154. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 20

AMENDMENTS RELATED TO THE PREMIUM RATE PROVIDED FOR UNDER THE EMPLOYMENT INSURANCE ACT

1996, c. 23

Employment Insurance Act

2001, c. 5, s. 9; 2003, c. 15, s. 21; 2004, c. 22, ss. 25 and 26

155. Sections 66 to 67 of the Employment Insurance Act are replaced by the following:

Chief actuary

65.3 (1) The chief actuary referred to in section 31 of the Department of Human Resources Development Act shall determine the premium rate for a year that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.

Changes to payments

(2) If the Minister has announced, on or before October 14 of the previous year, any changes to payments to be made under paragraph 77(1)(a), (b) or (c) for a year, the chief actuary shall, at the request of the Minister, take into account those changes and make another determination of the premium rate that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that would be made under subsection 77(1) during that year if the changes were to commence on the date specified by the Minister.

Report to the Commission

(3) The chief actuary shall provide to the Commission a report setting out the premium rate determined under subsection (1) or (2) for a year, on or before October 14 of the previous year, and the Commission shall, as soon as possible after receiving the report, make it available to the public.

Annual premium rate setting

66. (1) Subject to subsection (2) and sections 66.1 and 66.3, the Commission shall set the premium rate for a year, taking into account

(a) the principle that the premium rate should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year, based on the information provided by the Minister of Finance under section 66.2, taking into account any regulations made under section 69, and considering any changes to payments made under subsection 77(1) that have been announced by the Minister;

(b) the report of the chief actuary to the Commission for that year; and

Difference year to year

(2) The premium rate for a year may not be increased or decreased by more than fifteen one-hundredths of one per cent (0.15%) relative to the premium rate for the previous year.

Time limit

(3) The Commission shall set the premium rate for a year on or before November 14 in the previous year.

Cap on rate

66.1 For 2006 and 2007, the premium rate in each year may not be greater than 1.95%.

Forecast values

66.2 The Minister of Finance shall, on or before September 30 of a year, provide to the chief actuary and the Commission the most current forecast values of the economic variables that are relevant to the determination, under section 65.3 or under subsection 66(1), as the case may be, of a premium rate for the following year.

Governor in Council

66.3 Subject to subsection 66(2) and section 66.1, on the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before November 30 in a year, substitute a premium rate for the following year that is different from the one set by the Commission under subsection 66(1), if the Governor in Council considers it to be in the public interest.

Rounding percentage rates

66.4 If the calculation of a premium rate under section 65.3, 66 or 66.3 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one-hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.

Statutory Instruments Act

66.5 The Statutory Instruments Act does not apply in respect of a premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68. However, the premium rates must, as soon as possible, be published by the Commission in Part I of the Canada Gazette.

User Fees Act

66.6 For greater certainty, the User Fees Act does not apply in respect of the premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68.

Employee’s premium

67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66 or 66.3, as the case may be.

1996, c. 11

Department of Human Resources Development Act

156. Section 31 of the Department of Human Resources Development Act is amended by adding the following after subsection (1):

Chief actuary

(1.1) The employee or officer who holds the position of chief actuary shall be under the direction of the Commission in the performance of the chief actuary’s functions under section 65.3 of the Employment Insurance Act.

157. The Act is amended by adding the following after section 31:

Persons who have specialized knowledge

31.1 Despite section 31, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.

Coordinating Amendments

Bill C-23

158. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 1st session of the 38th Parliament and entitled the Department of Human Resources and Skills Development Act (in this section referred to as the “other Act”), receives royal assent.

(2) On the later of the coming into force of section 155 of this Act and section 28 of the other Act,

(a) section 28 of the other Act is amended by adding the following after subsection (1):

Chief actuary

(b) the other Act is amended by adding the following after section 28:

Persons who have specialized knowledge

28.1 Despite section 28, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.

Chief actuary

65.3 (1) The chief actuary referred to in section 28 of the Department of Human Resources and Skills Development Act shall determine the premium rate for a year that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.

(3) If section 28 of the other Act comes into force before sections 156 and 157 of this Act, then, on the day on which this Act receives royal assent, the heading before section 156 and sections 156 and 157 of this Act are repealed.

PART 21

1996, c. 23

AMENDMENTS TO THE EMPLOYMENT INSURANCE ACT (PROVINCIAL PLANS)

159. Section 23 of the Employment Insurance Act is amended by adding the following after subsection (3.4):

Limitation

(3.5) If benefits are payable to a claimant for the reasons set out in this section and any allowances, money or other benefits are payable to the claimant for the same reasons under a provincial law, the benefits payable to the claimant under this Act are to be reduced or eliminated as prescribed.

160. The Act is amended by adding the following after section 153.1:

PART VIII.2

REGULATIONS — PROVINCIAL PLANS

Regulations

153.2 (1) Despite any other provisions of this Act, if the Government of Canada has entered into an agreement with a province in respect of a provincial law that has the effect of reducing or eliminating special benefits payable as described in subsection 69(2), the Commission may, with the approval of the Governor in Council, for the purposes of implementing the agreement and taking into account the application or effect of the provincial law, make any regulations that it considers necessary, including regulations

(a) respecting the manner in which and the extent to which any provision of this Act or the regulations applies; and

(b) adapting any provision of this Act or the regulations.

Regulations

(2) The regulations may provide for

(a) the making of any financial adjustments and for the crediting or charging of the amount of any of those adjustments to the Employment Insurance Account, including

(i) refunds of overpayments with respect to employees’ premiums,

(ii) adjustment payments between the province and the Government of Canada with respect to premiums, and

(iii) reimbursement by the province of benefits paid by the Government of Canada in accordance with any administrative agreement between the province and the Government of Canada;

(b) the exchange of any information obtained under the provincial law or this Act; and

(c) the administration of benefits payable under this Act to persons employed or residing in the province or who have made a claim under the provincial law, and the increase or decrease in the amount of benefits payable and in the number of weeks for which benefits may be paid under this Act to and in respect of those persons.

PART 22

AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

R.S., c. F-11

Financial Administration Act

1996, c. 18, s. 3

161. Section 7.1 of the Financial Administration Act is replaced by the following:

Group insurance and benefit programs

7.1 (1) The Treasury Board may establish or modify any group insurance or other benefit programs for employees of the public service of Canada and any other persons or classes of persons it may designate to be members of those programs, may take any measure necessary for that purpose, including contracting for services, may set any terms and conditions in respect of those programs, including those relating to premiums, contributions, benefits, management, control and expenditures and may audit and make payments in respect of those programs, including payments relating to premiums, contributions, benefits and other expenditures.

Remainder of Act does not apply

(2) This Act, other than this section, does not apply to any contributions or other payments made or premiums paid by the Treasury Board or the members in respect of any program established or modified pursuant to subsection (1) or any benefits received by the members of such a program.

Incorporation by letters patent

7.2 (1) On the recommendation of the National Joint Council of the Public Service, the President of the Treasury Board may issue letters patent of incorporation that take effect on the date stated in them for a corporation without share capital that is charged with the administration of any group insurance or benefit program described in subsection 7.1(1).

Content of letters patent

(2) The letters patent must set out

(a) the name of the corporation;

(b) the programs described in subsection 7.1(1) in respect of which the corporation is charged with the administration;

(d) the appointment and the operations of the corporation’s board of directors;

(e) the corporation’s reporting obligations;

(f) the corporation’s obligations with respect to audits of its accounts and financial transactions by an independent auditor;

(g) the code of conduct for the corporation’s directors and officers; and

(h) any other provision that is necessary to fulfil the corporation’s purpose.

Supplementary letters patent

(3) The President of the Treasury Board may, on the recommendation of the National Joint Council of the Public Service, after consulting with the board of directors, issue supplementary letters patent amending the corporation’s letters patent and the supplementary letters patent take effect on the date stated in them.

Statutory Instruments Act

(4) The corporation’s letters patent and supplementary letters patent are not regulations within the meaning of the Statutory Instruments Act. However, they must be published in the Canada Gazette.

Capacity of a natural person

(5) The corporation has, subject to its letters patent and this Act, the capacity of a natural person.

Status of corporation

(6) The corporation is neither a Crown corporation nor an agent of Her Majesty.

Board of directors

7.3 The corporation’s board of directors consists of

(a) one director appointed by the President of the Treasury Board, on the recommendation of the National Joint Council of the Public Service, who is the chairperson;

(b) one director appointed by the President of the Treasury Board, on the recommendation of the National Joint Council of the Public Service, who, in the opinion of the President, represents the pensioners;

(d) four directors appointed by that portion of the National Joint Council of the Public Service that represents the employees.

Regulations

7.4 The Treasury Board may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of the Canada Business Corporations Act and the Canada Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation.

Replacement of “chairman”

162. The English version of the Act is amended by replacing the expression “chairman” with the expression “chairperson” wherever it occurs in the following provisions:

(a) the definition “chairman” in subsection 83(1);

(b) subsection 102(2);

(d) subsection 107(1);

(e) section 108; and

(f) section 154.

Coordinating Amendments

2003, c. 22

163. On the later of the coming into force of section 7 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003, and the coming into force of section 161 of this Act, subsection 7.1(1) of the English version of the Financial Administration Act is replaced by the following:

Group insurance and benefit programs

7.1 (1) The Treasury Board may establish or modify any group insurance or other benefit programs for employees of the federal public administration and any other persons or classes of persons it may designate to be members of those programs, may take any measure necessary for that purpose, including contracting for services, may set any terms and conditions in respect of those programs, including those relating to premiums, contributions, benefits, management, control and expenditures and may audit and make payments in respect of those programs, including payments relating to premiums, contributions, benefits and other expenditures.

Bill C-21

164. If Bill C-21, introduced in the first session of the thirty-eighth Parliament and entitled the Canada Not-for-profit Corporations Act (in this section referred to as the “other Act”), receives royal assent, then, on the later of the coming into force of section 161 of this Act and section 307 of the other Act, section 7.4 of the Financial Administration Act is replaced by the following:

Regulations

7.4 The Treasury Board may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of the Canada Business Corporations Act and the Canada Not-for-profit Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation.

PART 23

R.S., c. O-9

AMENDMENTS TO THE OLD AGE SECURITY ACT

1998, c. 21, s. 108(1); 1999, c. 22, s. 88(1); 2000, c. 12, par. 207(1)(a)

165. Subsections 12(1) and (2) of the Old Age Security Act are replaced by the following:

Amounts on April 1, 2005

12. (1) The amount of the supplement that may be paid to a pensioner for any month in the payment quarter commencing on April 1, 2005 is,

(a) in the case of a person other than a person described in paragraph (b), five hundred and sixty-two dollars and ninety-three cents, and

(b) in the case of a person who, on the day immediately before that payment quarter, had a spouse or common-law partner to whom a pension may be paid for any month in that payment quarter,

(i) in respect of any month in that payment quarter before the first month for which a pension may be paid to the spouse or common-law partner, five hundred and sixty-two dollars and ninety-three cents, and

(ii) in respect of any month in that payment quarter commencing with the first month for which a pension may be paid to the spouse or common-law partner, three hundred and sixty-six dollars and sixty-seven cents,

minus one dollar for each full two dollars of the pensioner’s monthly base income.

Increase on January 1, 2006

(1.1) The amount of the supplement that may be paid to a pensioner for any month in the payment quarter commencing on January 1, 2006 is the amount of the supplement that would otherwise be payable plus

(a) eighteen dollars, in the case of a person described in paragraph (1)(a) or subparagraph (1)(b)(i); and

(b) fourteen dollars and fifty cents, in the case of a person described in subparagraph (1)(b)(ii).

Increase on January 1, 2007

(1.2) The amount of the supplement that may be paid to a pensioner for any month in the payment quarter commencing on January 1, 2007 is the amount of the supplement that would otherwise be payable plus

(a) eighteen dollars, in the case of a person described in paragraph (1)(a) or subparagraph (1)(b)(i); and

(b) fourteen dollars and fifty cents, in the case of a person described subparagraph (1)(b)(ii).

Indexation

(2) Subject to subsections (1.1) and (1.2), the amount of the supplement that may be paid to a pensioner for any month in any payment quarter commencing after June 30, 2005 is the amount obtained by multiplying

(a) the maximum amount of the supplement that might have been paid to the pensioner for any month in the three-month period immediately before that payment quarter

(b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter,

minus one dollar for each full two dollars of the pensioner’s monthly base income.

R.S., c. 34 (1st Supp.), s. 5(1); 2000, c. 12, s. 198(1) and par. 208(1)(e)

166. (1) The definitions “supplement equivalent” and “supplement equivalent for the survivor” in subsection 22(1) of the Act are replaced by the following:

“supplement equivalent”
« valeur du supplément »

“supplement equivalent” means, in respect of any month in a payment quarter, the amount of the supplement that would be payable for that month under subsection 12(1), (1.1), (1.2), (2), (3) or (4), as the case may be, to a pensioner whose spouse or common-law partner is also a pensioner when both the pensioner and the spouse or common-law partner have no income in the base calendar year and both are in receipt of a full pension;

“supplement equivalent for the survivor”
« valeur du supplément pour le survivant »

“supplement equivalent for the survivor” means, in respect of any month in a payment quarter, the amount determined under subsection (4.1), (4.2), (4.3) or (4.4), as the case may be.

(2) Section 22 of the Act is amended by adding the following after subsection (4):

Supplement equivalent for the survivor

(4.1) The amount of the supplement equivalent for the survivor is

(a) four hundred and fifty-four dollars and nine cents, for any month in the payment quarter commencing on April 1, 2005;

(b) the amount of the supplement equivalent for the survivor that would otherwise be payable plus eighteen dollars, for any month in the payment quarter commencing on January 1, 2006; and

(c) the amount of the supplement equivalent for the survivor that would otherwise be payable plus eighteen dollars, for any month in the payment quarter commencing on January 1, 2007.

Indexation of supplement equivalent for the survivor

(4.2) Subject to paragraphs (4.1)(b) and (c), the amount of the supplement equivalent for the survivor for any month in a payment quarter commencing after June 30, 2005 is the amount obtained by multiplying

(a) the amount of the supplement equivalent for the survivor for any month in the three-month period immediately before that payment quarter

No decrease

(4.3) Despite subsection (4.2), the amount of the supplement equivalent for the survivor for any month in a payment quarter may not be less than the amount of the supplement equivalent for the survivor for any month in the three-month period immediately before that payment quarter.

Reduction in Consumer Price Index

(4.4) If, in relation to any payment quarter, the Consumer Price Index for the first adjustment quarter is lower than the Consumer Price Index for the second adjustment quarter,

(a) no adjustment of the supplement equivalent for the survivor is to be made under subsection (4.2) in respect of that payment quarter; and

(b) no adjustment of the supplement equivalent for the survivor is to be made under that subsection in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph is deemed to be the second adjustment quarter that relates to that subsequent payment quarter.

PART 24

PAYMENTS TO CERTAIN PROVINCES AND TERRITORIES

Payment to Quebec

Payment of $200,000,000

167. (1) For the purposes of giving effect to the Canada–Quebec Final Agreement on the Quebec Parental Insurance Plan and to support its implementation, the Minister of Finance may make a cash payment of two hundred million dollars to Quebec.

Payment out of C.R.F.

(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.

Payment to British Columbia

Payment of $100,000,000

168. (1) The Minister of Finance may make a cash payment of one hundred million dollars to British Columbia to assist the province in meeting the costs arising from the mountain pine beetle infestation, including the costs of damages caused by the infestation and of measures to combat the spread of the infestation.

Payment out of C.R.F.

Payment to Saskatchewan

Payment of $6,500,000

169. (1) The Minister of Finance may make a cash payment of six million and five hundred thousand dollars to Saskatchewan.

Payment out of C.R.F.

Payment to Yukon

Payment of $13,700,000

170. (1) The Minister of Finance may make a cash payment of thirteen million and seven hundred thousand dollars to Yukon.

Payment out of C.R.F.

Payment to the Northwest Territories

Payment of $22,500,000

171. (1) The Minister of Finance may make a cash payment of twenty two million and five hundred thousand dollars to the Northwest Territories.

Payment out of C.R.F.

Payment to Nunavut

Payment of $21,800,000

172. (1) The Minister of Finance may make a cash payment of twenty one million and eight hundred thousand dollars to Nunavut.

Payment out of C.R.F.

Published under authority of the Speaker of the House of Commons

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