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)
Full Document:
Assented to 2016-12-15
Marginal note:R.S., c. 30 (2nd Supp.), s. 8
10 Section 15 of the Act is replaced by the following:
Marginal note:Amount of salary and wages on which base contribution made
15 (1) The amount of the salary and wages of a person on which a base contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the contribution rate for employees for the year:
(a) an amount equal to
(i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year,
minus
(ii) the product obtained when the ratio referred to in subsection 8(3) is multiplied by an amount equal to
(A) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year and on account of the employee’s contribution for the year under a provincial pension plan,
minus
(B) the sum of the amounts determined under paragraphs 8(2)(a) and (b), and
(b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s base contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.
Marginal note:Effect of payment by employer of amount not deducted as required
(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s base contribution for a year is paid by the employer on account of the employee’s base contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.
Marginal note:Amount of salary and wages on which first additional contribution made
15.1 (1) The amount of the salary and wages of a person on which a first additional contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the first additional contribution rate for employees for the year:
(a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a.1), and
(b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s first additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.
Marginal note:Effect of payment by employer of amount not deducted as required
(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s first additional contribution for a year is paid by the employer on account of the employee’s first additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.
Marginal note:Amount of salary and wages on which second additional contribution made
15.2 (1) The amount of the salary and wages of a person on which a second additional contribution has been made for a year is an amount equal to the sum of the following amounts, divided by the second additional contribution rate for employees for the year:
(a) an amount equal to
(i) the sum of the following amounts:
(A) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year,
(B) the amount calculated under subparagraph 15(1)(a)(ii),
(C) the portion of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year that exceeds the amount determined under paragraph 8(2)(a.1),
minus
(ii) the amount of any refund made to that person under section 38 in respect of any amounts deducted on account of the employee’s contributions, or the part of the amount of any refund in respect of those contributions made to the person as described in section 39 that might have been made to the person under subsection 38(1) if no agreement had been entered into under subsection 39(1), and
(b) if an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s second additional contribution for the year and that person has notified the Minister of the employer’s failure to so deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account of that contribution.
Marginal note:Effect of payment by employer of amount not deducted as required
(2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s second additional contribution for a year is paid by the employer on account of the employee’s second additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.
Marginal note:Special rule applicable in prescribed circumstances
15.3 If an employer has filed a return in accordance with this Part showing an amount as the salary and wages on which contributions have been made by an employee for a year under this Act, the amount so shown, multiplied by the contribution rate, the first additional contribution rate or the second additional contribution rate, as the case may be, for employees for the year, may, in prescribed circumstances, be substituted for the amount shown in the return as the aggregate of the amounts deducted by that employer on account of the employee’s contributions for the year under this Act, in calculating the amount to be determined under subsection 15(1), 15.1(1) or 15.2(1).
11 The Act is amended by adding the following after section 17:
Additional Maximum Pensionable Earnings
Marginal note:Amount of additional maximum pensionable earnings
17.1 The amount of the additional maximum pensionable earnings of a person for a year is the amount of the Year’s Additional Maximum Pensionable Earnings except that,
(a) for a year in which the person reaches 18 or 70 years of age or dies, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year
including, if they die, the month in which they die, is of 12;
(b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and
(c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the additional maximum pensionable earnings is equal to that proportion of the amount of the Year’s Additional Maximum Pensionable Earnings that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach 70 years of age or die, whichever is earlier — is of 12.
12 The Act is amended by adding the following after section 18:
Year’s Additional Maximum Pensionable Earnings
Marginal note:Amount of Year’s Additional Maximum Pensionable Earnings
18.1 (1) The amount of a Year’s Additional Maximum Pensionable Earnings is
Marginal note:Rounding
(2) If the amount calculated in accordance with subsection (1) for any year is not a multiple of $100, the Year’s Additional Maximum Pensionable Earnings for that year is the amount that is the next multiple of $100 below that amount.
- Date modified: