Pension Reform Act (S.C. 2012, c. 22)
Full Document:
Assented to 2012-11-01
Marginal note:2001, c. 20, s. 15
4. Paragraphs 4(1)(a) and (b) of the Act are replaced by the following:
(a) the contributions paid under sections 9, 9.1, 11 and 11.1 on or after January 1, 1992 and contributions made under subsections 21(7) and 22(3) of the former Act that are paid on or after that date;
(b) the interest paid under sections 11 and 11.1; and
Marginal note:1992, c. 46, s. 81
5. (1) Paragraph 5(1)(b) of the Act is replaced by the following:
(b) an amount representing interest on the balance from time to time to the credit of the Retiring Allowances Account, calculated and credited in accordance with subsection (2).
Marginal note:1992, c. 46, s. 81
(2) Subsection 5(2) of the Act is replaced by the following:
Marginal note:Determination of amount
(2) The amount referred to in paragraph (1)(b) is to be credited to the Retiring Allowances Account in respect of each quarter in each fiscal year on the last day of the quarter and is to be determined by multiplying an amount equal to the balance to the credit of the Account on the last day of the preceding quarter by the rate referred to in subsection (3).
Marginal note:Rate
(3) The rate for the purpose of subsection (2) is the effective quarterly rate derived from the valuation interest rate for the fiscal year that is set out in the most recent valuation report for this Act that is laid before the Senate and the House of Commons under section 9 of the Public Pensions Reporting Act.
Marginal note:1992, c. 46, s. 81
6. Section 6 of the Act is repealed.
Marginal note:1992, c. 46, s. 81
7. Section 8 of the Act is replaced by the following:
Marginal note:Amounts to be credited to meet total cost
8. There shall be credited to the Retiring Allowances Account, at the time and in the manner determined by the Minister, an amount that, in the Minister’s opinion, based on actuarial advice, together with the amount estimated by the Minister to be to the credit of that Account at that time, is necessary to meet the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits.
Marginal note:Amounts to be debited
8.1 If the Minister is of the opinion, based on actuarial advice, that the amount estimated by the Minister to be to the credit of the Retiring Allowances Account exceeds the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits, there may be debited from that Account, at the time and in the manner determined by the Minister, an amount specified by the Minister.
Marginal note:2001, c. 20, s. 16(1)
8. (1) Subsection 9(1) of the Act is replaced by the following:
Marginal note:Contributions — January 1, 2001 to December 31, 2015
9. (1) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member shall with respect to each calendar year, by reservation from his or her sessional indemnity, contribute to the Retiring Allowances Account 4% of that portion of that sessional indemnity that does not exceed his or her earnings limit for the calendar year.
Marginal note:Non-application
(1.01) Subsection (1) does not apply to a member who is required to make a contribution under subsection 12(2).
Marginal note:2001, c. 20, s. 16(2); 2003, c. 16, s. 1
(2) Subsection 9(2) of the Act is replaced by the following:
Marginal note:Additional contributions
(2) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member to whom subsection 12(2) applies who is in receipt of a salary or an annual allowance shall with respect to each calendar year, by reservation from that salary or allowance, contribute to the Retiring Allowances Account an amount equal to 4% of that portion of that salary or allowance that does not exceed his or her earnings limit for the calendar year, unless he or she elects in respect of that salary or allowance
(a) not to contribute under this subsection and has also elected before December 31, 2015 not to contribute under subsection 31(4) or (5) or paragraph 31.1(1)(c) or (2)(b); or
(b) to contribute at a lesser rate than that specified in this subsection.
9. The Act is amended by adding the following after section 9:
Marginal note:Contributions — beginning on January 1, 2016
9.1 (1) Beginning on January 1, 2016, a member shall with respect to each calendar year, by reservation from his or her pensionable earnings, contribute to the Retiring Allowances Account at the applicable contribution rate in respect of any part specified by the Chief Actuary of the portion of the member’s pensionable earnings that does not exceed the member’s earnings limit for the calendar year.
Marginal note:Exception
(2) Subsection (1) does not apply to a member who is required to make a contribution under subsection 12(2.1).
Marginal note:2001, c. 20, s. 17(1)
10. The portion of subsection 11(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Contributions in respect of previous sessions — election before January 1, 2016
11. (1) If a member elects before January 1, 2016 to contribute to the Retiring Allowances Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
11. The Act is amended by adding the following after section 11:
Marginal note:Contributions in respect of previous sessions — election made on or after January 1, 2016
11.1 (1) If a member elects on or after January 1, 2016 to contribute to the Retiring Allowances Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
(a) a contribution, calculated at the contribution rates fixed for the purposes of section 9.1 that are in force on the day on which the election is made, in respect of the portion of his or her pensionable earnings during that previous session that does not exceed his or her earnings limit for the year during that previous session; and
(b) interest on that contribution, calculated at a rate and in the manner prescribed, from the day on which the final payment by way of pensionable earnings was made to the member in respect of that session to the day on which the election is made.
Marginal note:Earnings limit for part of year
(2) For the purpose of subsection (1), if the person was not a member during the whole of a calendar year, the earnings limit for that calendar year is determined by multiplying the member’s earnings limit for the calendar year by the ratio that the part of the calendar year during which he or she was a member is to the whole calendar year.
Marginal note:2001, c. 20, s. 18(1); 2003, c. 16, s. 2(1)
12. (1) Subsection 12(1) of the Act is amended by adding “or” at the end of paragraph (a) and by replacing paragraphs (b) and (c) with by the following:
(b) after the member has reached 71 years of age.
Marginal note:2003, c. 16, s. 2(2)
(2) Subsection 12(2) of the Act is replaced by the following:
Marginal note:Contribution of 1%
(2) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from his or her sessional indemnity, after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member’s credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75, contribute under this Part 1% of that portion of the sessional indemnity that does not exceed his or her earnings limit for the calendar year.
Marginal note:Contributions on or after January 1, 2016
(2.1) Beginning on January 1, 2016, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from his or her pensionable earnings, after the aggregate of the products obtained under subsection (2) and the product obtained by multiplying the number of years of pensionable service on or after January 1, 2016 to the member’s credit by 0.02 equals 0.75, contribute under this Part at the applicable contribution rate in respect of the portion of the member’s pensionable earnings that does not exceed the member’s earnings limit for the calendar year.
Marginal note:1992, c. 46, s. 81
13. Paragraph 14(1)(b) of the Act is replaced by the following:
(b) with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (4) and (5), the number of those years and portions of years multiplied by 0.05.
Marginal note:1992, c. 46, s. 81
14. (1) Paragraphs 16(1)(a) and (b) of the Act are replaced by the following:
(a) with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (3), (4) and (6), the number of those years and portions of years multiplied by 0.03, in the case of a member of the Senate, and by 0.05, in the case of a member of the House of Commons; and
(b) subject to subsection (2), with respect to each year and portion of a year of pensionable service calculated in accordance with subsections (5) and (6), the number of those years and portions of years multiplied by 0.02.
Marginal note:1992, c. 46, s. 81
(2) The portion of subsection 16(5) of the Act before paragraph (a) is replaced by the following:
Marginal note:Calculation of years of pensionable service between January 1, 1992 and December 31, 2015
(5) For the purposes of paragraph (1)(b), in respect of time spent as a member during the period that begins on January 1, 1992 and ends on December 31, 2015, or any period of pensionable service in respect of which an election under section 10 has been made during that period, a person is, on ceasing to be a member, deemed to have one year of pensionable service to his or her credit for each amount, equal to 4% of the sessional indemnity payable to a member during any 12-month period beginning
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