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. 19
27 Section 52 of the Act is replaced by the following:
Marginal note:Earnings for which base contribution deemed to have been made for month
52 (1) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which they have made a base contribution, the base contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their base unadjusted pensionable earnings for the year by 12, except that
(a) for a year in which the contributor reaches 18 years of age or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the base contribution is deemed to have been made for earnings for the months in the year after they reached that age or after the pension ceased to be payable, as the case may be, and
(b) for a year in which the contributor reaches 70 years of age or dies, in which a retirement pension becomes payable to them under this Act or under a provincial pension plan or in which any month is excluded from their contributory period under this Act or under a provincial pension plan by reason of disability, the base contribution is deemed to have been made for earnings for the months in the year before the contributor reached 70 years of age or died, before the retirement pension became payable or that were not so excluded, as the case may be.
If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a base contribution for each such month are an amount calculated by dividing the contributor’s base unadjusted pensionable earnings for that year by the number of those months.
Marginal note:If no base contribution made
(2) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which the contributor made no base contribution, the amount of the earnings for which a base contribution is deemed to have been made for any month in the year is deemed to be zero.
Marginal note:When base contribution deemed to have been made
(3) For the purposes of this Part,
(a) a contributor is deemed to have made a base contribution for any year for which their base unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no base contribution for any year for which their base unadjusted pensionable earnings do not exceed their basic exemption for the year; and
(b) a contributor is deemed to have made a base contribution for earnings for any month for which a base contribution is deemed by subsection (1) to have been made by them.
Marginal note:Earnings for which first additional contribution deemed for month
52.1 (1) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which they have made a first additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their first additional unadjusted pensionable earnings for the year by 12, except that
(a) for a year in which the contributor reaches 18 years of age, the first additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and
(b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act, the first additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.
If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a first additional contribution for each such month are an amount calculated by dividing their first additional unadjusted pensionable earnings for that year by the number of those months.
Marginal note:If no first additional contribution made
(2) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which the contributor made no first additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.
Marginal note:When first additional contribution deemed to have been made
(3) For the purposes of this Part,
(a) a contributor is deemed to have made a first additional contribution for any year for which their first additional unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no first additional contribution for any year for which their first additional unadjusted pensionable earnings do not exceed their basic exemption for the year; and
(b) a contributor is deemed to have made a first additional contribution for earnings for any month for which a first additional contribution is deemed by subsection (1) to have been made by them.
Marginal note:Earnings for which second additional contribution deemed for month
52.2 (1) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which they have made a second additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their second additional unadjusted pensionable earnings for the year by 12, except that
(a) for a year in which the contributor reaches 18 years of age, the second additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and
(b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act, the second additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.
If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a second additional contribution for each such month are an amount calculated by dividing their second additional unadjusted pensionable earnings for that year by the number of those months.
Marginal note:If no second additional contribution made
(2) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which the contributor made no second additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.
Marginal note:When second additional contribution deemed to have been made
(3) For the purposes of this Part, a contributor is deemed to have made a second additional contribution for earnings for any month for which a second additional contribution is deemed by subsection (1) to have been made by them.
Marginal note:2009, c. 31, s. 35
28 (1) The portion of subsection 53(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Base unadjusted pensionable earnings for a year
53 (1) Subject to section 54, the base unadjusted pensionable earnings of a contributor for a year are an amount equal to
Marginal note:R.S., c. 30 (2nd Supp.), s. 20(1)
(2) Subparagraph 53(1)(b)(i) of the Act is replaced by the following:
(i) the contributor’s earnings on which a base contribution has been made for the year under this Act, calculated as the aggregate of
(A) the contributor’s salary and wages on which a base contribution has been made for the year, and
(B) the amount of any base contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year,
(3) The portion of subsection 53(1) of the Act after paragraph (c) is replaced by the following:
whichever is the least, except that if the amount calculated as provided in paragraph (a) is equal to or less than the amount of the contributor’s basic exemption for the year, the contributor’s base unadjusted pensionable earnings for that year are deemed to be zero.
Marginal note:R.S., c. 30 (2nd Supp.), s. 21
29 Section 54 of the Act is replaced by the following:
Marginal note:First additional unadjusted pensionable earnings for a year
53.1 (1) Subject to section 54.1, for 2019 and each subsequent year, the first additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of
(a) the aggregate of
(b) the aggregate of
(i) their earnings on which a first additional contribution has been made for the year calculated as the aggregate of
(A) their salary and wages on which a first additional contribution has been made for the year, and
(B) the amount of any first additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the first additional contribution rate for self-employed persons for the year, and
(ii) their basic exemption for the year, and
(c) their maximum pensionable earnings for the year.
However, if the amount calculated as provided in paragraph (a) is equal to or less than the amount of their basic exemption for the year, their first additional unadjusted pensionable earnings for that year are deemed to be zero.
Marginal note:Year in which retirement pension becomes payable
(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,
(a) the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are before the retirement pension becomes payable is of 12; and
(b) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12.
Marginal note:Second additional unadjusted pensionable earnings for year
53.2 (1) Subject to section 54.2, for 2024 and each subsequent year, the second additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of
(a) the aggregate of
(i) the amount by which their contributory salary and wages for the year — not exceeding the contributor’s additional maximum pensionable earnings — exceeds the contributor’s maximum pensionable earnings,
(ii) in the case of an individual described in section 10, the amount by which their contributory self-employed earnings for the year — not exceeding the contributor’s additional maximum pensionable earnings — exceeds the contributor’s maximum pensionable earnings,
(b) their earnings on which a second additional contribution has been made for the year calculated as the aggregate of
(i) their salary and wages on which a second additional contribution has been made for the year, and
(ii) the amount of any second additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the second additional contribution rate for self-employed persons for the year, and
(c) the difference between the contributor’s additional maximum pensionable earnings and the contributor’s maximum pensionable earnings.
Marginal note:Year in which retirement pension becomes payable
(2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,
(a) the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12; and
(b) the contributor’s 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 that are before the retirement pension becomes payable is of 12.
Marginal note:Base unadjusted pensionable earnings for years of division
54 The amount of the base unadjusted pensionable earnings of a contributor for a year determined under section 53 is to be adjusted for each year in which there is a division of unadjusted pensionable earnings under section 55 or 55.1 and under a provincial pension plan.
Marginal note:First additional unadjusted pensionable earnings for years of division
54.1 The amount of the first additional unadjusted pensionable earnings of a contributor for a year determined under section 53.1 is to be adjusted for each year in which there is a division of those earnings under section 55.1.
Marginal note:Second additional unadjusted pensionable earnings for years of division
54.2 The amount of the second additional unadjusted pensionable earnings of a contributor for a year determined under section 53.2 is to be adjusted for each year in which there is a division of those earnings under section 55.1.
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