Pension Reform Act (S.C. 2012, c. 22)
Full Document:
Assented to 2012-11-01
Marginal note:1992, c. 46, s. 81
15. (1) Paragraphs 17(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) and (5), the number of those years and portions of years multiplied by 0.05; and
(b) subject to subsection (2), 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 0.02.
Marginal note:2001, c. 20, s. 19
(2) Paragraph 17(4)(b) of the Act is replaced by the following:
(b) during the period that begins on January 1, 2001 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, the 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 the person as a member of the Senate or House of Commons, as the case may be, during any calendar year, that the person has, during that calendar year, contributed under subsection 9(2) or elected to contribute under subparagraph 11(1)(a)(i).
(3) Section 17 of the Act is amended by adding the following after subsection (5):
Marginal note:Limitation — pensionable service before January 1, 2016
(6) The additional retirement allowance payable to a person under subsection (1) is only payable in respect of his or her pensionable service before January 1, 2016.
16. The Act is amended by adding the following after section 17:
Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — 65 years of age or older
17.1 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person has reached 65 years of age when he or she ceases to be a member, there shall be paid to that person during his or her lifetime a retirement allowance in an amount calculated under subsection (2).
Marginal note:Amount
(2) The amount of the retirement allowance is equal to the portion of the person’s average annual pensionable earnings that does not exceed his or her earnings limit for the calendar year in which he or she ceased to be a member multiplied by the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections (3) and (4) multiplied by 0.02, minus an amount equal to the percentage fixed by the Chief Actuary of
(a) the person’s average maximum pensionable earnings,
multiplied by
(b) the number of years and portions of years of the person’s pensionable service calculated in accordance with subsections (3) and (4) multiplied by 0.02.
Marginal note:Pensionable service
(3) Subject to subsection (4), the person’s pensionable service for the purposes of subsection (2) is
(a) the years and portions of years spent as a member after December 31, 2015 during which he or she was required to contribute under this Part, other than any period in respect of which a withdrawal allowance has been paid to the person; and
(b) the years and portions of years in respect of which he or she elected on or after January 1, 2016 to bring to his or her credit as time spent as a member.
Marginal note:Service after contributions under subsection 12(2.1) not to be included
(4) The person’s service as a member during which he or she was required to contribute under subsection 12(2.1), if any, is not to be included in the calculation under subsection (3) of the person’s pensionable service.
Marginal note:Retirement pension to be taken into account
(5) In fixing the percentage for the purposes of subsection (2), the Chief Actuary shall take into account the retirement pension payable to a person under the Canada Pension Plan or under a similar provincial pension plan.
Marginal note:Allowance on ceasing to be member on or after January 1, 2016 — under 65 years of age
17.2 (1) Subject to sections 58 and 59, if a person ceases to be a member after December 31, 2015, having contributed or elected to contribute under this Part or Part I or III of the former Act as a member for at least six years and the person is under 65 years of age when he or she ceases to be a member, and the person has elected to receive an allowance under section 37.3, there shall be paid to that person, subject to subsection (3), during his or her lifetime, a retirement allowance in an amount calculated under subsection (2).
Marginal note:Amount of retirement allowance
(2) For the purposes of subsection (1), the amount of the retirement allowance is equal to the amount of the retirement allowance determined under section 17.1 as though that section applied to the person, minus the product obtained by multiplying that amount by the reduction factor.
Marginal note:When retirement allowance becomes payable
(3) The retirement allowance payable under subsection (1) becomes payable on the later of
(a) the day the person reaches the age of 60, and
(b) the day the person begins to receive his or her allowance under section 37.3.
Marginal note:1992, c. 46, s. 81
17. Paragraph 18(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under section 11 or 11.1 or under section 23 of the former Act.
Marginal note:1992, c. 46, s. 81
18. Paragraph 19(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under section 11 or 11.1 or under section 23 of the former Act.
19. Section 20 of the Act is amended by adding the following after subsection (2):
Marginal note:Deeming
(3) For the purpose of subsection (2), if any amount was or would have been subtracted in the calculation of the amount of the member or former member’s retirement allowance under section 17.1 or 17.2, the member or former member is deemed to have received or to have been entitled to receive, as the case may be, a retirement allowance under that section calculated without that subtracted amount.
Marginal note:2000, c. 12, s. 177
20. Paragraphs 25(1)(a) and (b) of the Act are replaced by the following:
(a) the former member’s retirement allowances and any additional retirement allowance, under this Part; and
(b) the former member’s compensation allowances, if any, and any additional compensation allowance, under Part II.
Marginal note:1992, c. 46, s. 81
21. (1) Paragraph 28(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 Compensation Arrangements Account, calculated and credited in accordance with subsection (2).
(2) Section 28 of the Act is amended by adding the following after subsection (1):
Marginal note:Determination of amount
(1.1) The amount referred to in paragraph (1)(b) is to be credited to the Compensation Arrangements 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 (1.2).
Marginal note:Rate
(1.2) The rate for the purpose of subsection (1.1) is the effective quarterly rate derived from the valuation interest rate for the calendar 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
22. Section 29 of the Act is replaced by the following:
Marginal note:Amounts to be credited to meet total cost
29. There shall be credited to the Compensation Arrangements 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 Part III and all supplementary benefits payable under Part IV in respect of those allowances or benefits.
Marginal note:Amounts to be debited
29.1 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 Compensation Arrangements Account exceeds the total cost of all allowances and other benefits payable under this Part and Part III 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.
23. Section 31 of the Act is amended by adding the following after subsection (5):
Marginal note:Cessation
(6) This section ceases to apply on December 31, 2012.
24. The Act is amended by adding the following after section 31:
Marginal note:Contributions — January 1, 2013 to December 31, 2015 — under 71 years of age
31.1 (1) During the period that begins on January 1, 2013 and ends on December 31, 2015, a member who has not reached 71 years of age shall with respect to each calendar year contribute to the Compensation Arrangements Account,
(a) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the portion of the sessional indemnity payable to him or her that exceeds his or her earnings limit for the calendar year;
(b) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the sessional indemnity payable to him or her; and
(c) by reservation from any salary or annual allowance that he or she receives, at the applicable contribution rates in respect of that salary or annual allowance, unless he or she elects not to contribute under this paragraph.
Marginal note:Contributions — January 1, 2013 to December 31, 2015 — over 71 years of age
(2) During the period that begins on January 1, 2013 and ends on December 31, 2015, a member who has reached 71 years of age shall with respect to each calendar year contribute to the Compensation Arrangements Account,
(a) by reservation from his or her sessional indemnity, at the applicable contribution rate in respect of the sessional indemnity payable to him or her; and
(b) by reservation from any salary or annual allowance that he or she receives, at the applicable contribution rate in respect of that salary or annual allowance, unless he or she elects not to contribute under this paragraph.
Marginal note:Contributions — from January 1, 2016 — under 71 years of age
31.2 (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 the member’s pensionable earnings, contribute to the Compensation Arrangements Account
(a) at the applicable contribution rate in respect of the portion of his or her pensionable earnings that exceeds his or her earnings limit for the calendar year; and
(b) at the applicable contribution rate in respect of his or her pensionable earnings.
Marginal note:Contributions — from January 1, 2016 — 71 years of age or older
(2) Beginning on January 1, 2016, a member who has reached 71 years of age shall, by reservation from his or her pensionable earnings, contribute to the Compensation Arrangements Account, at the applicable contribution rate in respect of the member’s pensionable earnings.
Marginal note:Different rates
(3) Without restricting the generality of subsection 2.7(3), the Chief Actuary shall fix rates for the purposes of paragraph (1)(a) that are different for members who are required to contribute under subsection 12(2.1) than those for other members, and rates for the purposes of subsection (2) that are different for members who would be required to contribute under subsection 12(2.1) if they were under 71 years of age than those for other members.
- Date modified: