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
32 (1) Subparagraph 58(1)(a)(ii) of the Act is replaced by the following:
Marginal note:R.S., c. 30 (2nd Supp.), s. 26(2); 2000, c. 12, par. 64(b)
(2) Paragraph 58(1)(b) of the Act is replaced by the following:
(b) in the case of a survivor who has reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, a basic monthly amount equal to 60% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of
Marginal note:1997, c. 40, s. 76(1); 2000, c. 12, par. 64(c)
(3) Subparagraphs 58(2)(a)(i) and (ii) of the Act are replaced by the following:
(i) the aggregate of
(A) a flat rate benefit, calculated as provided in subsection (1.1), and
(B) the lesser of
(I) the amount determined by the formula
C – D
where
- C
- is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and
- D
- is the lesser of
(II) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,
(ii) the amount determined by the formula
C – D
where
- C
- is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and
- D
- is the lesser of
(iii) the amount determined by the formula
C – D
where
- C
- is 37.5% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4), and
- D
- is the lesser of
Marginal note:1997, c. 40, s. 76(1); 2000, c. 12, par. 64(c)
(4) Paragraphs 58(2)(c) and (d) of the Act are replaced by the following:
(c) in the case of a survivor who has reached 65 years of age and who was born after December 31, 1932 and whose retirement pension commences to be payable after December 31, 1997, the aggregate of
(i) the lesser of
(A) the amount determined by the formula
A – B
where
- A
- is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and
- B
- is the lesser of
(B) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,
(ii) the amount determined by the formula
A – B
where
- A
- is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and
- B
- is the lesser of
(iii) the amount determined by the formula
A – B
where
- A
- is 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4), and
- B
- is the lesser of
or
(d) in any other case, the aggregate of
(i) the lesser of
(A) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3), and
(B) an amount that, when added to the amount of the portion of the survivor’s retirement pension that is calculated as provided in paragraph 46(1)(a), without regard to subsections 46(3) to (6), and adjusted in accordance with subsection 45(2), is equal to the amount of a benefit of 25% of 1/12 of the average of the Year’s Maximum Pensionable Earnings for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable, and for each of the two preceding years, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s retirement pension commenced to be payable,
(ii) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.1), and
(iii) 60% of the amount of the portion of the contributor’s retirement pension, which amount is calculated as provided in subsection (3.4).
Marginal note:1991, c. 44, s. 12(3)
(5) The portion of subsection 58(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Calculation of portion of contributor’s retirement pension
(3) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in paragraph 57(2)(a), (b) or (c), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which
(6) Section 58 of the Act is amended by adding the following after subsection (3):
Marginal note:Calculation of portion of contributor’s retirement pension
(3.1) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.2), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(a) to (e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.
Marginal note:Calculation for purpose of subsection (3.1)
(3.2) The amount to be calculated for the purpose of subsection (3.1) is equal to
(a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 8.33% of their first additional monthly pensionable earnings, or
(b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying
(i) an amount equal to 8.33% of their first additional monthly pensionable earnings,
by
(ii) the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.
Marginal note:Calculation of first additional monthly pensionable earnings
(3.3) For the purpose of subsection (3.2), the first additional monthly pensionable earnings of a contributor are an amount calculated as provided in section 48.1, and
(a) in the case of a contributor to whom a retirement pension was payable for the month in which they died, section 51 applies; or
(b) in the case of a contributor to whom no retirement pension was payable for the month in which they died, section 51 applies but the reference in that section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.
Marginal note:Calculation of portion of contributor’s retirement pension
(3.4) The amount of the portion of the contributor’s retirement pension that is to be used for the purposes of subsections (1) and (2) is an amount calculated as provided in subsection (3.5), multiplied, for the purpose of calculating the monthly amount of the survivor’s pension for months commencing with the month in which one of the events described in paragraphs 3(a) to (e) has occurred, by the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the contributor died.
Marginal note:Calculation for purpose of subsection (3.4)
(3.5) The amount that is to be calculated for the purpose of subsection (3.4) is equal to
(a) if a retirement pension was not payable for the month in which the contributor died, an amount equal to 33.33% of their second additional monthly pensionable earnings, or
(b) if a retirement pension was payable for the month in which the contributor died, an amount equal to the product obtained by multiplying
(i) an amount equal to 33.33% of their second additional monthly pensionable earnings,
by
(ii) the ratio that the Pension Index for the year that includes that month bears to the Pension Index for the year in which the retirement pension first became payable.
Marginal note:Calculation of second additional monthly pensionable earnings
(3.6) For the purpose of subsection (3.5), the second additional monthly pensionable earnings of a contributor are an amount calculated as provided in section 48.2, and
(a) in the case of a contributor to whom a retirement pension was payable for the month in which they died, section 51 applies; or
(b) in the case of a contributor to whom no retirement pension was payable for the month in which they died, section 51 applies but the reference in that section to the year in which a benefit becomes payable to the contributor is to be read as a reference to the year in which the contributor died.
Marginal note:1997, c. 40, s. 76(2); 2000, c. 12, par. 64(d)
(7) Paragraphs 58(6)(a) and (b) of the Act are replaced by the following:
(a) the aggregate of
(i) the greater of
(ii) the lesser of
(A) the aggregate of
(I) the greater of
1 the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(B) and (C) had not been included in the calculation made under that subparagraph, and
2 the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(ii) and (iii) had not been included in the calculation made under that paragraph, and
(II) 60% of the lesser of the amount described in sub-subclause (I)(1) and the amount described in sub-subclause (I)(2), and
(B) 75% of the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable,
(b) the aggregate of
(i) the greater of
(A) the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (C) had not been included in the calculation made under that subparagraph, and
(B) the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(i) and (iii) had not been included in the calculation made under that paragraph, and
(ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B), and
(c) the aggregate of
(i) the greater of
(A) the amount that would have been payable under subparagraph (1)(a)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (B) had not been included in the calculation made under that subparagraph, and
(B) the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(i) and (ii) had not been included in the calculation made under that paragraph, and
(ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B).
(8) Subsection 58(8) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):
- Date modified: