Pension Reform Act (S.C. 2012, c. 22)
Full Document:
Assented to 2012-11-01
25. Section 33 of the Act is amended by adding the following after subsection (4):
Marginal note:Application
(5) This section applies only in respect of elections made before January 1, 2013.
Marginal note:1992, c. 46, s. 81; 2001, c. 20, s. 24(2); 2003, c. 16, s. 6
26. Section 34 of the Act is replaced by the following:
Marginal note:Contributions in respect of previous sessions — election made between January 1, 2013 and December 31, 2015
33.1 (1) If a member elects, during the period that begins on January 1, 2013 and ends on December 31, 2015, to contribute to the Compensation Arrangements Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
(a) if the member has not reached 71 years of age at the time the election is made, a contribution equal to the aggregate of
(i) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(a) that is in force on the day on which the election is made in respect of the portion of the sessional indemnity paid to the member during that previous session that exceeds his or her earnings limit for the year during that previous session,
(ii) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(b) that is in force on the day on which the election is made in respect of the sessional indemnity paid to the member during that previous session, and
(iii) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(c) that is in force on the day on which the election is made in respect of any salary or annual allowance paid to the member during that previous session, if he or she elects to contribute in respect of that salary or annual allowance;
(b) if the member has reached 71 years of age at the time the election is made, a contribution equal to the aggregate of
(i) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(2)(a) that is in force on the day on which the election is made in respect of the sessional indemnity paid to the member during that previous session, and
(ii) an amount calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.1(2)(b) that is in force on the day on which the election is made in respect of any salary or annual allowance paid to the member during that previous session, if he or she elects to contribute in respect of that salary or annual allowance; and
(c) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that previous 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:Contributions in respect of previous sessions — election made on or after January 1, 2016
33.2 (1) If a member elects on or after January 1, 2016 to contribute to the Compensation Arrangements Account in respect of a previous session, he or she shall pay into the Consolidated Revenue Fund
(a) if the member has not reached 71 years of age at the time the election is made,
(i) a contribution, calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.2(1)(a) that is in force on the day on which the election is made, in respect of the portion of the member’s pensionable earnings during that previous session that exceeds his or her earnings limit for the year during that previous session, and
(ii) a contribution, calculated at his or her applicable contribution rate that is fixed for the purpose of paragraph 31.2(1)(b) that is in force on the day on which the election is made, in respect of the member’s pensionable earnings during that previous session, and
(b) if the member has reached 71 years of age at the time the election is made, a contribution, calculated at his or her applicable contribution rate that is fixed for the purpose of subsection 31.2(2) that is in force on the day on which the election is made, in respect of the member’s pensionable earnings during that previous session; and
(c) the 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 previous 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:Limits on contributions
34. Despite anything in this Part, no contribution shall be paid by a member under this Part in respect of any session in the course of which the member ceases to be a Senator by reason of disqualification or was expelled from the House of Commons.
Marginal note:Contribution of 1% — January 1, 2001 to December 31, 2012 — 69 years of age or more
34.1 (1) During the period that begins on January 1, 2001 and ends on December 31, 2012, a member who has reached 69 years of age shall with respect to each calendar year, by reservation from the sessional indemnity payable to him or her, contribute under this Part 1% of the amount payable to him or her by way of 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.
Marginal note:Exception for 1%
(2) During the period that begins on January 1, 2001 and ends on December 31, 2012, a member to whom subsection 12(2) applies shall with respect to each calendar year, by reservation from the sessional indemnity payable to him or her, contribute to the Compensation Arrangements Account 1% of that portion of his or her sessional indemnity for the calendar year that exceeds the his or her earnings limit for that year.
Marginal note:Exclusions from computation of contributions
34.2 In a computation of the total amount that a member has contributed or elected to contribute under this Part, there shall not be included
(a) any contributions in respect of which a withdrawal allowance has been paid under this Part;
(b) any contributions in respect of which the member’s election has been revoked under this Part; or
(c) any amount paid by way of interest.
Marginal note:2003, c. 16, s. 7
27. (1) The portion of subsection 36(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Compensation allowance
36. (1) Subject to sections 58 and 59, a compensation allowance determined in accordance with this section shall be paid to a person during his or her lifetime in respect of contributions made under this Part, other than those made in respect of salary or annual allowance and those made under subsection 34(2) or (2.1), as that subsection read on December 31, 2012 — and those made under paragraph 31.1(1)(a) or (2)(a) if the person was contributing at the contribution rate referred to in subsection 2.7(9) —, if the person
Marginal note:2003, c. 16, s. 7
(2) The portion of paragraph 36(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) the person’s average annual sessional indemnity multiplied by, subject to subsections (3) and (3.1), the number of years and portions of years of pensionable service calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6), multiplied by
Marginal note:2003, c. 16, s. 7
(3) Clause 36(2)(a)(i)(C) of the Act is replaced by the following:
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
Marginal note:2003, c. 16, s. 7
(4) Clause 36(2)(a)(ii)(C) of the Act is replaced by the following:
(C) 0.01 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — on or after January 1, 2001 and before January 1, 2016, other than those made under an election referred to in clause (A) or (B),
(5) Subparagraph 36(2)(a)(iii) of the Act is amended by striking out “and” at the end of clause (A) and by adding the following after clause (B):
(C) 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election referred to in clause (A) or (B) or subparagraph (a)(iv), and
Marginal note:2003, c. 16, s. 7
(6) Subparagraph 36(2)(a)(iv) of the Act is replaced by the following:
(iv) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election referred to in clause (iii)(A) or (B),
Marginal note:2003, c. 16, s. 7
(7) Paragraph 36(2)(b) of the Act is replaced by the following:
(b) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001; and
(c) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4.1), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 7
(8) The portion of subsection 36(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Years of service — clauses (2)(a)(iii)(A) and (B)
(3) For the purposes of clauses (2)(a)(iii)(A) and (B), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for
Marginal note:2003, c. 16, s. 7
(9) Subsections 36(4) and (5) of the Act are replaced by the following:
Marginal note:Years of service — clause (2)(a)(iii)(C) and subparagraphs (2)(a)(iv) and (6)(a)(iv)
(3.1) For the purposes of clause (2)(a)(iii)(C) and subparagraphs (2)(a)(iv) and (6)(a)(iv), a person, on ceasing to be a member, is deemed to have the same number of years and portions of years of pensionable service to his or her credit that would be calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6) if the person were a person required to contribute under Part I.
Marginal note:Years of service — paragraphs (2)(b) and 2(6)(b)
(4) For the purposes of paragraphs (2)(b) and (6)(b), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount — equal to 7% of the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during a calendar year — that, during the period beginning on January 1, 2001 and ending on December 31, 2012, he or she contributed or elected to contribute under subsection 31(1) or 33(1) in respect of that portion of the sessional indemnity that exceeded his or her earnings limit for the calendar year.
Marginal note:Years of service — paragraphs (2)(c) and (6)(c)
(4.1) For the purposes of paragraphs (2)(c) and (6)(c), for each of the calendar years from 2013 to 2015, a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount equal to the amount determined under subsection (4.2) that, during that calendar year, the person contributed or elected to contribute under section 31.1 or subsection 33.1(1) in respect of that portion of the sessional indemnity that exceeded his or her earnings limit for the calendar year.
Marginal note:Amount
(4.2) The amount for the purposes of subsection (4.1) in respect of a person for a calendar year is the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during the calendar year multiplied by the contribution rate that is fixed for the calendar year for the purpose of paragraph 31.1(2)(a).
Marginal note:Application of subsections (3), (4), (4.1) and (7)
(5) In the application of subsections (3), (4), (4.1) and (7), the deeming provision of subsection 16(6) in relation to a portion of a year’s pensionable service shall apply, with any modifications that the circumstances require.
Marginal note:2003, c. 16, s. 7
(10) Subparagraphs 36(6)(a)(ii) and (iii) of the Act are replaced by the following:
(ii) subject to subparagraphs (iii) and (iv), if the person has reached 60 years of age, 0.01,
(iii) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday, and
(iv) if the person contributed after he or she reached 71 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday,
Marginal note:2003, c. 16, s. 7
(11) Paragraph 36(6)(b) of the Act is replaced by the following:
(b) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2001 and ending on December 31, 2012, other than those made under an election made before January 1, 2001; and
(c) the person’s average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4.1), multiplied by 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made during the period beginning on January 1, 2013 and ending on December 31, 2015, other than those made under an election made before January 1, 2013.
Marginal note:2003, c. 16, s. 7
(12) Paragraph 36(8)(c) of the Act is replaced by the following:
(c) if the person contributed after he or she reached 71 years of age, 0.04 for the years and portions of years of pensionable service calculated by reference to contributions made on or after the 71st birthday, other than those made under an election made before that birthday.
Marginal note:2003, c. 16, s. 7
(13) Subsection 36(9) of the Act is replaced by the following:
Marginal note:Special case — January 1, 2001 to December 31, 2015
(9) For the purposes of calculating the compensation allowance payable under subsection (1) to a person who, during the period that begins on January 1, 2001 and ends on December 31, 2015, elected to contribute under this Part in respect of any session or part of a session before December 31, 2015, the multipliers referred to in paragraph (2)(a) shall, in lieu of the numbers set out in that paragraph, be
(a) if the person has not reached 60 years of age, 0.03;
(b) subject to paragraphs (c) and (d), if the person has reached 60 years of age, 0.01;
(c) if the person contributed after he or she reached 69 years of age, 0.03 for the years and portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 69th birthday and January 1, 2001 and ending on December 31, 2012, other than those made under an election made before that birthday; and
(d) if the person contributed after he or she reached 71 years of age, 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made — or in respect of which an election was made — during the period beginning on the later of the 71st birthday and January 1, 2013 and ending on December 31, 2015, other than those made under an election made before that birthday.
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