Pension Reform Act (S.C. 2012, c. 22)
Full Document:
Assented to 2012-11-01
Marginal note:1992, c. 46, s. 81
31. Paragraph 38(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d), 33.1(1) (c) or 33.2(1)(c).
Marginal note:1992, c. 46, s. 81
32. Paragraph 39(b) of the Act is replaced by the following:
(b) the interest on those contributions that the person has paid under paragraph 33(1)(c) or (2)(d), 33.1(1)(c) or 33.2(1)(c).
33. Section 40 of the Act is amended by adding the following after subsection (2):
Marginal note:Deeming
(3) For the purposes of subsection (2), if the member or former member has pensionable service that came to his or her credit on or after January 1, 2016, the member or former member is deemed to have received or to have been entitled to receive, as the case may be, a compensation allowance in an amount determined under subsection 37.2(2) without taking into account the calculation referred to in the description of D in that subsection.
Marginal note:2000, c. 12, s. 178
34. Paragraphs 45(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 Part I; and
(b) the former member’s compensation allowances, if any, and any additional compensation allowance, under this Part.
Marginal note:1992, c. 46, s. 81
35. Sections 47 and 48 of the Act are replaced by the following:
Marginal note:Contributions by Prime Minister — January 1, 2013 to December 31, 2015
47. (1) Beginning on January 1, 2013 and ending on December 31, 2015, the member who holds the office of Prime Minister shall with respect to each calendar year, by reservation from the annual salary payable to the member as Prime Minister under the Salaries Act, contribute to the Compensation Arrangements Account, in respect of that salary, at the applicable contribution rate that is fixed for the purpose of paragraph 31.1(1)(c).
Marginal note:Contributions by Prime Minister — beginning January 1, 2016
(2) Beginning on January 1, 2016, the member who holds the office of Prime Minister shall with respect to each calendar year, by reservation from the annual salary payable to the member as Prime Minister under the Salaries Act, contribute to the Compensation Arrangements Account, in respect of that salary, at the contribution rate that is fixed for the purpose of subsection 31.2(2).
Marginal note:Allowance to former Prime Ministers
48. (1) There shall be paid to every person who has held the office of Prime Minister for four years before February 6, 2006 an allowance beginning on the day on which that person ceases to be a member or reaches 65 years of age, whichever is the later, equal to 2/3 of the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on that day.
Marginal note:Allowance to former Prime Ministers
(2) There shall be paid to every person who has held the office of Prime Minister for four years on or after February 6, 2006 an allowance beginning on the day on which that person ceases to be a member or reaches 67 years of age, whichever is the later, in an amount determined in accordance with subsections (3) and (4).
Marginal note:Amount
(3) The amount of the allowance is the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on the later of the days referred to in subsection (2) multiplied by the number of years and portions of years that the member held the office of Prime Minister multiplied by 0.03.
Marginal note:Maximum
(4) The maximum allowance payable to a person under subsection (2) is 2/3 of the annual salary payable under the Salaries Act to the Prime Minister as Prime Minister on the later of the days referred to in that subsection.
Marginal note:Duration of entitlement
(5) An allowance payable to a person under subsection (1) or (2) continues during the lifetime of that person, but is suspended in respect of any period during which the person is a Senator or a member of the House of Commons.
Marginal note:2000, c. 12, s. 179(1)
36. Subsection 49(1) of the Act is replaced by the following:
Marginal note:Allowance to former Prime Minister’s survivor
49. (1) The survivor of a person described in subsection 48(1) or (2) shall be paid an allowance equal to 1/2 of the allowance that the person was receiving under that subsection at the time of death or would have been eligible to receive if, immediately before the time of death, the person described in that subsection had ceased to hold the office of Prime Minister and had, in the case of a person described in subsection 48(1) reached 65 years of age or, in the case of a person described in subsection 48(2), 67 years of age.
Marginal note:1992, c. 46, s. 81
37. The portion of subsection 57(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Manner of payment
57. (1) Every amount required to be paid by a member under section 11, 11.1, 33, 33.1 or 33.2 shall be paid at his or her option
38. The Act is amended by adding the following after section 58:
Marginal note:Beginning of payment of allowances and amount
58.1 (1) Despite sections 17.1, 17.2, 37.2 and 37.3, if a former member who has not reached 65 years of age and who is entitled to be paid, but is not yet being paid, a retirement allowance and a compensation allowance under any of those sections becomes entitled to receive a disability pension under the Canada Pension Plan or under a similar provincial pension plan, the retirement allowance and the compensation allowance under those sections are payable to him or her on the day he or she becomes entitled to receive the disability pension and the amount of the retirement allowance and the compensation allowance payable is
(a) the amount of the retirement allowance that would have been payable to the person under section 17.1 if he or she had reached 65 years of age; and
(b) the amount of the compensation allowance that would have been payable to the person under section 37.2 if he or she had reached 65 years of age.
Marginal note:Amount
(2) Despite sections 17.2 and 37.3, if a former member who has not reached 65 years of age and who is being paid a compensation allowance under section 37.3 becomes entitled to receive a disability pension under the Canada Pension Plan or under a similar provincial pension plan, the amount of the retirement allowance and the compensation allowance payable to the person under sections 17.2 and 37.3 on the day he or she becomes entitled to receive the disability pension is
(a) the amount of the retirement allowance that would have been payable to the person under section 17.1 if he or she had reached 65 years of age; and
(b) the amount of the compensation allowance that would have been payable to the person under section 37.2 if he or she had reached 65 years of age.
Marginal note:1992, c. 46, s. 81
39. Section 59 of the Act is replaced by the following:
Marginal note:Limitation respecting allowances
59. (1) Despite anything in this Act, but subject to subsection (2), the aggregate of the retirement allowance payable to a person under section 16 and the compensation allowance payable to him or her under section 36 with respect to service as a member that comes to his or her credit before January 1, 2016 shall not exceed the his or her average annual sessional indemnity multiplied by 0.75.
Marginal note:Withdrawal allowance
(2) For the purposes of subsection (1), a period in respect of which a withdrawal allowance has been paid to the person and in respect of which he or she has not elected to bring to his or her credit before January 1, 2016 is not to be included in the person’s service as a member that has come to his or her credit before January 1, 2016.
Marginal note:Limitation respecting allowances
(3) Despite anything in this Act, the aggregate of the retirement allowance payable to a person under section 17.1 or 17.2 and the compensation allowance payable to the person under section 37.2 or 37.3 with respect to service as a member that comes to his or her credit on or after January 1, 2016 shall not exceed his or her average annual pensionable earnings multiplied by 0.75.
Marginal note:Limitation respecting allowances
(4) Despite anything in this Act, if a person has service as a member that has come to his or her credit before January 1, 2016 and service as a member that has come to his or her credit on or after that date, any time spent by him or her as a member after he or she is required to contribute under subsection 12(2.1) or would be required to contribute under that subsection if he or she were under 71 years of age is not to be included in the calculation of the retirement allowance payable to him or her under section 17.1 or 17.2 or the compensation allowance payable to him or her under section 37.2 or 37.3.
Marginal note:1992, c. 46, s. 81
40. (1) Paragraphs 64(1)(a) and (b) of the Act are replaced by the following:
(b) prescribing, for the purposes of any of sections 11, 11.1, 33, 33.1 and 33.2 and subsection 63(2), the rate of interest and the manner of calculating interest;
Marginal note:2001, c. 20, s. 28
(2) Paragraph 64(1)(l) of the Act is replaced by the following:
(l) prescribing, for the purposes of this Act, the manner of determining a portion of the member’s earnings limit for a year;
Marginal note:Terminology
41. The Act is amended by replacing “or portions of years” by “and portions of years” in the following provisions:
(a) clauses 36(2)(a)(i)(A) and (B);
(b) clauses 36(2)(a)(ii)(A) and (B);
(c) clauses 36(2)(a)(iii)(A) and (B);
(d) the portion of paragraph 36(6)(a) before subparagraph (i);
(e) the portion of paragraph 37(2)(a) before subparagraph (i);
(f) clauses 37(2)(a)(i)(A) and (B);
(g) clauses 37(2)(a)(ii)(A) and (B); and
(h) clauses 37(2)(a)(iii)(A) and (B).
- Date modified: