An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act (S.C. 2016, c. 14)

Marginal note:1997, c. 40, s. 94(1)

• 50 (1) Subsection 113.1(1) of the Act is replaced by the following:

  Marginal note:Review every three years

  • 113.1 (1) Once every three years after 1997, the Minister of Finance and ministers of the Crown from the included provinces shall review the financial state of the Canada Pension Plan and may make recommendations as to whether benefits, contribution rates, first additional contribution rates or second additional contribution rates should be changed.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 56; 1997, c. 40, s. 94(4)

  (2) Subparagraphs 113.1(4)(b)(i) to (iv) of the Act are replaced by the following:

  • (i) the outstanding balance of the Canada Pension Plan Account and the Additional Canada Pension Plan Account,

  • (ii) the projected revenues into and payments out of the Canada Pension Plan Account and the Additional Canada Pension Plan Account,

  • (iii) the ratio of the projected assets over the projected expenditures of the base Canada Pension Plan and the additional Canada Pension Plan, and

  • (iv) the changes, if any, to the amounts and ratios projected at the previous review under this section attributable to changing demographic and economic circumstances or to changes to the base Canada Pension Plan or the additional Canada Pension Plan affecting payments or contributions under the Canada Pension Plan;

• Marginal note:1997, c. 40, s. 94(5); 2007, c. 11, s. 12(1)

  (3) Paragraphs 113.1(4)(c) and (d) of the Act are replaced by the following:

  • (c) the financing objective, for the base Canada Pension Plan, of having a contribution rate, without taking into account the changes, if any, referred to in paragraph (e) for which the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) exceeds zero, that is no lower than the rate

    • (i) that, beginning with the year 2003, is the lowest constant rate that can be maintained over the foreseeable future, and

    • (ii) that results in the ratio of the projected assets of the base Canada Pension Plan at the end of any given year over the projected expenditures of the base Canada Pension Plan in the following year being generally constant;

  • (d) the financing objective, for the additional Canada Pension Plan, of having additional contribution rates, without taking into account the changes, if any, referred to in paragraph (e) for which the additional contribution rates most recently calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) exceed zero, that are no lower than the rates

    • (i) that, beginning with the year 2024, are the lowest constant rates that can be maintained over the foreseeable future, and

    • (ii) that result in projected contributions and investment income that are sufficient to fully pay the projected expenditures of the additional Canada Pension Plan over the foreseeable future; and

  • (e) that changes to the Act that increase benefits or add new benefits must be accompanied by a permanent increase in the contribution rates under this Act to cover the extra costs of the increased or new benefits and by a temporary increase in the contribution rates under this Act for a number of years that is consistent with common actuarial practice to fully pay any unfunded liability resulting from the increased or new benefits.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 56; 1997, c. 40, s. 94(6)

  (4) Subsections 113.1(5) to (7) of the Act are replaced by the following:

  • Marginal note:Recommendations made on completion of review

    (5) On the completion of a review required by subsection (1), the Minister of Finance may recommend to the Governor in Council that the Governor in Council make regulations under subsection (6) to amend Schedule 1 or 2 to give effect to any recommendations made under subsection (1). If the recommendations made under subsection (1) are that no changes be made to benefits, contribution rates, first additional contributions rates or second additional contribution rates, the Minister of Finance shall cause those recommendations to be published in the Canada Gazette.

  • Marginal note:Regulation to change rates

    (6) Subject to subsections (7) and (8), the Governor in Council may, on the recommendation of the Minister of Finance made under subsection (5), by regulation amend Schedule 1 or 2 to change the contribution rates, first additional contribution rates or second additional contribution rates for any or all of the years following the review.

  • Marginal note:Limitation on changes

    (7) The following shall apply with respect to any changes to and setting of the rates under subsection (6):

    • (a) the rates for employees and employers for a year must be identical;

    • (b) the rates for self-employed persons for a year must be equal to the sum of the rates for employees and employers for that year;

    • (c) no rate for employees and employers for a year may be increased by more than one-tenth of a percentage point above the rate for the previous year; and

    • (d) no rate for self-employed persons for a year may be increased by more than two-tenths of a percentage point above the rate for the previous year.

• Marginal note:1997, c. 40, s. 94(8)

  (5) Paragraph 113.1(11.05)(a) of the Act is replaced by the following:

  • (a) the amount of the benefits payable in respect of the base Canada Pension Plan in the three-year period shall be determined as if the ratios referred to in paragraphs 45(2)(b) and 56(2)(c), subsection 58(1.1) and subparagraph 59(c)(ii) were each 1; and

• Marginal note:1997, c. 40, s. 94(8)

  (6) The portion of paragraph 113.1(11.05)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) Schedule 1 is deemed to have been amended as of the next day after that October 1

• Marginal note:1997, c. 40, s. 94(8); 2007, c. 11, s. 12(6)

  (7) Subsections 113.1(11.15) and (12) of the Act are replaced by the following:

  • Marginal note:Deemed changes to rates — additional Canada Pension Plan

    (11.141) Subject to subsection (11.143), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), either of the following conditions is met, Schedule 2 is deemed to have been amended as of the next day after that October 1 to change the first additional contribution rates or second additional contribution rates, if required, in accordance with the calculations set out in the regulations:

    • (a) the difference between the first additional contribution rate most recently calculated under paragraph 115(1.1)(d) and the first additional contribution rate for self-employed persons set out in Schedule 2 for a prescribed year is not within the range set out in the regulations; and

    • (b) the difference between the second additional contribution rate most recently calculated under paragraph 115(1.1)(e) and the second additional contribution rate for self-employed persons set out in Schedule 2 for a prescribed year is not within the range set out in the regulations.

  • Marginal note:Determination of benefits — additional Canada Pension Plan

    (11.142) Subject to subsection (11.143), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), either of the conditions set out in paragraphs (11.141)(a) and (b) is met, the portions of benefits under this Act in respect of the additional Canada Pension Plan for the three-year period shall be determined in accordance with the regulations.

  • Marginal note:Non-application of subsections (11.141) and (11.142)

    (11.143) Subsections (11.141) and (11.142) do not apply if

    • (a) a recommendation was made under subsection (1) in the three years before the three-year period referred to in subsection (11.141) that the first additional contribution rates or second additional contribution rates for one or more of the years in that three-year period be changed and the rates were changed before October 1 of the year before that three-year period, by an Act of Parliament or by a regulation made under subsection (6), to give effect to that recommendation; or

    • (b) a recommendation was made under subsection (1) in the three years before the three-year period referred to in subsection (11.141) that the first additional contribution rates or second additional contribution rates for the years in that three-year period not be changed and the Minister of Finance before October 1 of the year before that three-year period has caused that recommendation to be published in the Canada Gazette.

  • Marginal note:Regulations

    (11.144) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations respecting

    • (a) the calculation of deemed changes to rates for the purposes of subsection (11.141);

    • (b) the determination of the ranges referred to in paragraphs (11.141)(a) and (b); and

    • (c) the determination of portions of benefits for the purposes of subsection (11.142).

  • Marginal note:Provincial consent

    (11.145) Regulations under subsection (11.144) may only be made if the lieutenant governor in council of each of at least two thirds of the included provinces, having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province.

  • Marginal note:Rates to be published

    (11.15) The Minister of Finance shall publish in the Canada Gazette any amendment to Schedule 1 or 2 deemed to have been made under this section.

  • Marginal note:Non-application of subsection 114(2)

    (12) For greater certainty, subsection 114(2) does not apply to any amendment to Schedule 1 or 2 made under subsection (6), (11.05) to (11.11) or (11.141).