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:R.S., c. 30 (2nd Supp.), s. 23; 2000, c. 12, ss. 48(2) and (3)

• 30 (1) Subsections 55.2(5) to (7) of the Act are replaced by the following:

  • Marginal note:Division of base unadjusted pensionable earnings

    (5) If there is a division under section 55.1, the base unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to base contributions made under this Act, determined in the same manner as the total pensionable earnings of a contributor attributable to base contributions made under this Act are determined in section 78, are to be added and then divided equally, and the base unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Division of first additional unadjusted pensionable earnings

    (5.1) If there is a division of first additional unadjusted pensionable earnings under section 55.1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the first additional unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Division of second additional unadjusted pensionable earnings

    (5.2) If there is a division of second additional unadjusted pensionable earnings under section 55.1, those earnings for each person subject to the division for the period of cohabitation are to be added and then divided equally, and the second additional unadjusted pensionable earnings so divided are to be attributed to each person.

  • Marginal note:Effect of division of base unadjusted pensionable earnings

    (6) If there is a division of base unadjusted pensionable earnings under section 55.1 and under a provincial pension plan, for the purposes of benefit calculation and payment under this Act, the total unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their base unadjusted pensionable earnings attributed under subsection (5) and their unadjusted pensionable earnings attributed under a provincial pension plan.

  • Marginal note:Provincial pension plans

    (7) No division of base unadjusted pensionable earnings under section 55.1 is to be made for any month during which the persons subject to the division cohabited and for which either of them contributed to a provincial pension plan (and, for the purposes of this subsection, months during which the persons cohabited are to be determined in the prescribed manner), unless the unadjusted pensionable earnings attributed to the persons under the provincial pension plan are divided for that month in a manner substantially similar to that described in this section and section 55.1.

• Marginal note:2000, c. 12, s. 48(3)

  (2) The portion of subsection 55.2(8) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:No division

    (8) No division of base unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for a year in which the total base unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

• (3) Section 55.2 of the Act is amended by adding the following after subsection (8):

  • Marginal note:No division of first additional unadjusted pensionable earnings

    (8.1) No division of first additional unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for a year in which the total first additional unadjusted pensionable earnings of the persons do not exceed twice the Year’s Basic Exemption;

    • (b) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

    • (c) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

  • Marginal note:No division of second additional unadjusted pensionable earnings

    (8.2) No division of second additional unadjusted pensionable earnings under section 55.1 for a period of cohabitation of the persons subject to the division is to be made

    • (a) for the period before which one of the persons reached 18 years of age or after which one of the persons reached 70 years of age; and

    • (b) for the period in which one of the persons was a beneficiary of a retirement pension under this Act.

Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

• 31 (1) Paragraph 56(1)(b) of the Act is replaced by the following:

  • (b) 75% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

    • (i) the amount calculated as provided in subsection (3),

    • (ii) the amount calculated as provided in subsection (3.1), and

    • (iii) the amount calculated as provided in subsection (3.2).

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (2) Subsection 56(3) of the Act is replaced by the following:

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(i)

    (3) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(i) is equal to 25% of their average monthly pensionable earnings calculated as provided in subsections (4) and (5).

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(ii)

    (3.1) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(ii) is equal to 8.33% of their first additional monthly pensionable earnings calculated as provided in subsection (4.01).

  • Marginal note:Calculation for purpose of subparagraph (1)(b)(iii)

    (3.2) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(iii) is equal to 33.33% of the contributor’s second additional monthly pensionable earnings calculated as provided in subsection (4.02).

• (3) Section 56 of the Act is amended by adding the following after subsection (4):

  • Marginal note:First additional monthly pensionable earnings

    (4.01) For the purpose of subsection (3.1), a contributor’s first additional monthly pensionable earnings are an amount calculated by

    • (a) in the case where their first additional contributory period is less than or equal to 480 months, dividing their total first additional pensionable earnings by 480; or

    • (b) in the case where their first additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest first additional pensionable earnings for a month by 480.

  • Marginal note:Second additional monthly pensionable earnings

    (4.02) For the purpose of subsection (3.2), a contributor’s second additional monthly pensionable earnings are an amount calculated by

    • (a) in the case where their second additional contributory period is less than or equal to 480 months, dividing their total second additional pensionable earnings by 480; or

    • (b) in the case where their second additional contributory period exceeds 480 months, dividing the aggregate of their 480 highest second additional pensionable earnings for a month by 480.

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (4) Paragraph 56(5)(d) of the Act is replaced by the following:

  • (d) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor was a family allowance recipient in a year for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for the year.

• Marginal note:1991, c. 44, s. 10

  (5) The portion of subsection 56(6) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:If division of unadjusted pensionable earnings occurs

    (6) The amount of the portion of the contributor’s retirement pension that is to be used for the purpose of subparagraph (1)(b)(i), in the case of a contributor in respect of whom a division of unadjusted pensionable earnings takes place either before or after the commencement of the disability pension, if the division reduces the disability pension otherwise payable, is to be calculated by dividing

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (6) The portion of subparagraph 56(6)(a)(i) of the Act before clause (A) is replaced by the following:

  • (i) the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) before the division, multiplied by the aggregate of

• Marginal note:R.S., c. 30 (2nd Supp.), s. 24(1)

  (7) Subparagraph 56(6)(a)(ii) of the Act is replaced by the following:

  • (ii) the amount of the portion of the contributor’s retirement pension, which amount is calculated in accordance with subsections (3), (4), (4.1) and (5) following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with subsection (5)