CANADA PENSION PLANAdditional Canada Pension Plan Sustainability RegulationsP.C.2021-2320211

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Whereas, pursuant to subsections 113.1(11.145)a and 115(1.3)b of the Canada Pension Planc, 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 the included provinces, has signified the consent of that province to the annexed Additional Canada Pension Plan Sustainability Regulations;S.C. 2016, c. 14, s. 50(7)S.C. 2016, c. 14, s. 52(4)R.S., c. C-8Therefore, His Excellency the Administrator of the Government of Canada in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 101(1)(d.1)d and subsection 113.1(11.144)e of the Canada Pension Planc, makes the annexed Additional Canada Pension Plan Sustainability Regulations.R.S., c. 30 (2nd Supp.), s. 52S.C. 2018, c. 12, s. 401(2)InterpretationDefinitionsThe following definitions apply in these Regulations.Act means the Canada Pension Plan. (Loi)additional contribution rate ratio means the ratio — rounded to the nearest whole number or, if equidistant from two whole numbers, to the higher whole number — of the percentage specified in paragraph 46(1)(c) of the Act to the percentage specified in paragraph 46(1)(b) of the Act. (rapport du taux de cotisation supplémentaire)benefits means the portions of benefits under the Act in respect of the additional Canada Pension Plan. (prestations)legislated meansin respect of benefits, as determined without regard to subsection 113.1(11.142) of the Act; andin respect of a first additional contribution rate or second additional contribution rate, as set out in Schedule 2 to the Act, without regard to any deemed amendment under subsection 113.1(11.141) of the Act. (législatif)review period means any three-year period for which the Chief Actuary prepares a report for the purpose of subsection 115(1) of the Act. (période d’examen)Application of Subsections 113.1(11.141) and (11.142) of ActRange — paragraph 113.1(11.141)(a)For the purpose of paragraph 113.1(11.141)(a) of the Act, the range consists offor each year starting with 2024 and ending with 2038, every percentage point that isgreater than or equal to 0.41, orless than or equal to -0.31; andfor each year starting with 2039, every percentage point that isgreater than or equal to 0.31, orless than or equal to -0.21.Range — paragraph 113.1(11.141)(b)For the purpose of paragraph 113.1(11.141)(b) of the Act, the range consists offor each year starting with 2024 and ending with 2038, every percentage point that isgreater than 0.30 and less than 0.41, orgreater than -0.31 and less than -0.20; andfor each year starting with 2039, every percentage point that isgreater than 0.20 and less than 0.31, orgreater than -0.21 and less than -0.10.Range — paragraph 113.1(11.141)(c)For the purpose of paragraph 113.1(11.141)(c) of the Act, the range consists offor each year starting with 2024 and ending with 2038, every percentage point that isgreater than or equal to 0.41 multiplied by the additional contribution rate ratio, orless than or equal to -0.31 multiplied by the additional contribution rate ratio; andfor each year starting with 2039, every percentage point that isgreater than or equal to 0.31 multiplied by the additional contribution rate ratio, orless than or equal to -0.21 multiplied by the additional contribution rate ratio.Range — paragraph 113.1(11.141)(d)For the purpose of paragraph 113.1(11.141)(d) of the Act, the range consists offor each year starting with 2024 and ending with 2038, every percentage point that isgreater than 0.30 multiplied by the additional contribution rate ratio and less than 0.41 multiplied by the additional contribution rate ratio, orgreater than -0.31 multiplied by the additional contribution rate ratio and less than -0.20 multiplied by the additional contribution rate ratio; andfor each year starting with 2039, every percentage point that isgreater than 0.20 multiplied by the additional contribution rate ratio and less than 0.31 multiplied by the additional contribution rate ratio, orgreater than -0.21 multiplied by the additional contribution rate ratio and less than -0.10 multiplied by the additional contribution rate ratio.Changes to Contribution Rates and BenefitsApplicable provisions — surplus positionIf the applicable differences referred to in subsection 113.1(11.141) of the Act fall within a range described in subparagraph 2(1)(a)(i) or (b)(i), 2(2)(a)(i) or (b)(i), 2(3)(a)(i) or (b)(i) or 2(4)(a)(i) or (b)(i),the first additional contribution rates and second additional contribution rates are to be changed, for the purpose of subsection 113.1(11.141) of the Act, in accordance with paragraph 6(a) or 7(1)(a) or subsection 7(2), if applicable; andbenefits are to be determined, for the purpose of subsection 113.1(11.142) of the Act, in accordance with sections 9 and 10, if applicable.Applicable provisions — deficit positionIf the applicable differences referred to in subsection 113.1(11.141) of the Act fall within a range described in subparagraph 2(1)(a)(ii) or (b)(ii), 2(2)(a)(ii) or (b)(ii), 2(3)(a)(ii) or (b)(ii) or 2(4)(a)(ii) or (b)(ii),the first additional contribution rates and second additional contribution rates are to be changed, for the purpose of subsection 113.1(11.141) of the Act, in accordance with subsection 11(2) or (3) or 12(4) or (5), if applicable; andbenefits are to be determined, for the purpose of subsection 113.1(11.142) of the Act, in accordance with sections 14 and 15, if applicable.ExceptionIf the first additional contribution rates and second additional contribution rates specified in the most recent report prepared for the purpose of subsection 115(1) of the Act include temporary increases in the rates calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) of the Act, respectively, and the applicable differences referred to in subsection 113.1(11.141) of the Act would not fall within a range referred to in subsection (2) if those temporary increases were excluded,paragraphs (2)(a) and (b) do not apply; andfor each year for which the first additional contribution rate specified in the most recent report prepared for the purpose of subsection 115(1) of the Act includes a temporary increase and for which the sum of that increase and the legislated first additional contribution rate for self-employed persons exceeds the corresponding first additional contribution rate,the first additional contribution rate for self-employed persons is deemed, for the purpose of subsection 113.1(11.141) of the Act, to equal that sum,the first additional contribution rate for employees and employers is deemed, for the purpose of subsection 113.1(11.141) of the Act, to equal the rate referred to in subparagraph (i), divided by two, andthe second additional contribution rates are deemed, for the purpose of subsection 113.1(11.141) of the Act, to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.Benefit multiplierSubject to subsection (2), in these Regulations, benefit multiplier means the value determined under subsection 9(2) or (3) or 14(2) or (3).DefaultIf benefits have not been determined in accordance with these Regulations for a given year, the benefit multiplier for that year is equal to 1.Actions When Rates in Surplus PositionNo previous rate increase or reduction in benefitsIf the first additional contribution rates and second additional contribution rates are equal to the corresponding legislated first additional contribution rates and second additional contribution rates and benefits are equal to or greater than the corresponding legislated benefits, a value for S2 and the period to which S2 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the legislated first additional contribution rate for self-employed persons for that year minus 0.1:S2 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period;benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; andfor each year of the period to which S2 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula(1 + S2) × (PI_{t} / PI_{t–1}) – S2whereS2is a multiple of 0.01 between 0 and 1,PI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, andPI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Previous rate increaseIf the first additional contribution rates and second additional contribution rates are greater than the corresponding legislated first additional contribution rates and second additional contribution rates and benefits are equal to the legislated benefits,the first additional contribution rates are deemed to equal the corresponding legislated first additional contribution rates and the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio; anda value for S2 and the period to which S2 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the legislated first additional contribution rate for self-employed persons for that year minus 0.1:S2 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period,benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act, andfor each year of the period to which S2 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula(1 + S2) × (PI_{t} / PI_{t–1}) – S2whereS2is a multiple of 0.01 between 0 and 1,PI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, andPI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Previous reduction in benefitsIf benefits are lower than the legislated benefits,the first additional contribution rates and second additional contribution rates are deemed to be decreased, if necessary, to reverse any past temporary increases in those rates resulting from the operation of these Regulations; anda value for S1 and the period to which S1 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the first additional contribution rate for self-employed persons for that year, as adjusted in accordance with paragraph (a), if applicable:S1 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period,benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act, andfor each year of the period to which S1 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula(1 + S1) × (PI_{t} / PI_{t–1}) – S1whereS1is a multiple of 0.01 between 0 and 1 that would result in the benefit multiplier for the last year of the period to which S1 applies being greater than the benefit multiplier for the last year of the review period and less than or equal to 1,PI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, andPI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Previous rate increaseIf the rates calculated under paragraph (1)(b) are less than the corresponding first additional contribution rates for self-employed persons, as adjusted in accordance with paragraph (a), if applicable, minus 0.0001, and the latter rates are greater than the corresponding legislated first additional contribution rates,the first additional contribution rates for self-employed persons are deemed to equal the higher of the corresponding legislated first additional contribution rates and the corresponding rates calculated under paragraph (1)(b);the first additional contribution rates for employees and employers are deemed to equal the corresponding rates determined under paragraph (a), divided by two; andthe second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.Increase in benefitsIf the rates calculated under paragraph (1)(b) are less than the corresponding legislated first additional contribution rates for self-employed persons minus 0.1, a value for S2 and the period to which S2 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the legislated first additional contribution rate for self-employed persons for that year minus 0.1:S2 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period;benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; andfor each year of the period to which S1 or S2 applies, whichever is longer, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula(1 + S1 + S2) × (PI_{t} / PI_{t–1}) – (S1 + S2)whereS1is the value for S1 determined under subsection (1), if applicable to that year,S2is a multiple of 0.01 between 0 and 1, if applicable to that year,PI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, andPI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Target benefit multipliersFor the purposes of sections 9 and 10, the interim target benefit multiplier is the value determined by the following formula for the last year of whichever of the applicable periods determined under section 5, paragraph 6(b) or subsection 7(1) or (3) is the shortest and the final target benefit multiplier is the value determined by that formula for the last year of whichever of those periods is the longest:BM_{t–1} × [(1 + S1 + S2) – (S1 + S2) × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year;S1is the value for S1 determined under subsection 7(1), if applicable to that year;S2is the value for S2 determined under section 5, paragraph 6(b) or subsection 7(3), if applicable to that year;PI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act; andPI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Determination of new benefitsBenefits that become payable in a year are to be determined by multiplying the corresponding legislated benefits by the benefit multiplier for that year.Benefit multiplier — no interim adjustmentIf the interim and final target benefit multipliers are equal, the benefit multiplier is equal tothe value determined by the following formula, for each year for which that value is less than the interim and final target benefit multipliers:BM_{t–1} × [(1 + S1 + S2) – (S1 + S2) × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year,S1is the value for S1, if any, determined under subsection 7(1),S2is the value for S2, if any, determined under section 5, paragraph 6(b) or subsection 7(3),PI_{t–1}is the Pension Index for the year before that year, andPI_{t}is the Pension Index for that year; orfor each subsequent year, the interim and final target benefit multipliers.Benefit multiplier — interim adjustmentIf the interim target benefit multiplier is less than the final target benefit multiplier, the benefit multiplier is equal tothe value determined by the following formula, for each year for which that value is less than or equal to the interim target benefit multiplier:BM_{t–1} × [(1 + S1 + S2) – (S1 + S2) × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year,S1is the value for S1 determined under subsection 7(1),S2is the value for S2 determined under subsection 7(3),PI_{t–1}is the Pension Index for the year before that year, andPI_{t}is the Pension Index for that year;the value determined by the following formula, for each year to which paragraph (a) does not apply and for which that value is less than the final target benefit multiplier:BM_{t–1} × [(1 + S) – S × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year,Sis the value for S1 determined under subsection 7(1) or, if the period determined under subsection 7(3) is longer than the period determined under subsection 7(1), the value for S2 determined under subsection 7(3),PI_{t–1}is the Pension Index for the year before that year, andPI_{t}is the Pension Index for that year; orfor each subsequent year, the final target benefit multiplier.Determination of other benefitsBenefits, other than those that become payable in a year, are to be determined, for each year to which paragraph 9(2)(a) or (3)(a) or (b) applies and for the first year to which paragraph 9(2)(b) or (3)(c) applies, by multiplying the previous year’s benefits not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the following formula, as the case may be:for each year to which paragraph 9(2)(a) or (3)(a) applies,(1 + S1 + S2) × (PI_{t} / PI_{t–1}) – (S1+ S2)whereS1, S2, PI_{t} and PI_{t–1}have the same values as in the applicable paragraph;for each year to which paragraph 9(3)(b) applies,(1 + S) × (PI_{t} / PI_{t–1}) – SwhereS, PI_{t} and PI_{t–1}have the same values as in that paragraph; orfor the first year to which paragraph 9(2)(b) or (3)(c) applies,(FTBM / BM_{t–1}) × (PI_{t} / PI_{t–1})whereFTBMis the final target benefit multiplier,BM_{t–1}is the benefit multiplier for the year before that year,PI_{t}is the Pension Index for that year, andPI_{t–1}is the Pension Index for the year before that year.Actions When Rates in Deficit PositionNo previous increase in benefitsIf benefits are less than or equal to the corresponding legislated benefits, a value for S4 is to be determined, for the purposes of sections 13 to 15, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations:benefits accompanied by temporary increases in the first additional contribution rates and second additional contribution rates calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) of the Act, respectively, are to be excluded;S4 is to apply to a period of six years, starting with the year after the review period;benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; andfor each year of the period to which S4 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula(1 + S4) × (PI_{t} / PI_{t–1}) – S4whereS4is a multiple of 0.01 between -0.4 and 0,PI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, andPI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Deemed change to contribution ratesIf the rates calculated under subsection (1) exceed the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations, by more than 0.0001,the first additional contribution rates for self-employed persons are deemed to equal the corresponding rates calculated under subsection (1);the first additional contribution rates for employees and employers are deemed to equal the corresponding rates referred to in paragraph (a), divided by two; andthe second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.Deemed temporary change to contribution ratesFor each year for which the first additional contribution rate calculated under subparagraph 115(1.1)(d)(ii) of the Act would include a temporary increase if benefits were determined in accordance with sections 14 and 15 and subsection 5(4) of the Calculation of Contribution Rates Regulations, 2021 did not apply,the first additional contribution rate for self-employed persons is deemed to equal the sum of the first additional contribution rate for self-employed persons for that year, as adjusted in accordance with subsection (2), if applicable, and the amount of any temporary increase, rounded to the nearest multiple of 0.01, that would apply to that year;the first additional contribution rate for employees and employers is deemed to equal the rate calculated under paragraph (a), divided by two; andthe second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.Previous increase in benefitsIf benefits are greater than the legislated benefits, a value for S3 and the period to which S3 is to apply are to be determined, for the purposes of sections 13 to 15, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations:benefits accompanied by temporary increases in the first additional contribution rates and second additional contribution rates calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) of the Act, respectively, are to be excluded;S3 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period;benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; andfor each year of the period to which S3 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula(1 + S3) × (PI_{t} / PI_{t–1}) – S3whereS3is a multiple of 0.01 between -1 and 0 that would result in the benefit multiplier for the last year of the period to which S3 applies being greater than or equal to 1 and less than the benefit multiplier for the last year of the review period,PI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, andPI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Decrease in benefitsIf the rates calculated under subsection (1) exceed the corresponding first additional contribution rates for self-employed persons by more than 0.0001, a value for S4 is to be determined, for the purposes of sections 13 to 15, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations:benefits accompanied by temporary increases in the first additional contribution rates and second additional contribution rates calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) of the Act, respectively, are to be excluded;S4 is to apply to a period of six years, starting with the year after the review period;benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; andfor each year of the period to which S3 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula(1 + S3 + S4) × (PI_{t} / PI_{t–1}) – (S3 + S4)whereS3is the value for S3 determined under subsection (1),S4is a multiple of 0.01 between -0.4 and 0, if applicable to that year,PI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, andPI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.RepetitionIf the sum of the values for S3 and S4 that are determined, respectively, under subsections (1) and (2) is less than -1, the application of those subsections is to be repeated, with the shortest period referred to in paragraph (1)(b) being lengthened by three years for each repetition, until the sum of those values is greater than or equal to -1. All references in these Regulations to the value for S3 determined under subsection (1), the value for S4 determined under subsection (2), the period determined under subsection (1) or the rate calculated under subsection (1) or (2) are to be read as that value, period or rate following the final application of those subsections.Deemed change to contribution ratesIf the rates calculated under subsection (2) exceed the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations, by more than 0.0001,the first additional contribution rates for self-employed persons are deemed to equal the corresponding rates calculated under subsection (2);the first additional contribution rates for employees and employers are deemed to equal the corresponding rates referred to in paragraph (a), divided by two; andthe second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.Deemed temporary change to contribution ratesFor each year for which the first additional contribution rate calculated under subparagraph 115(1.1)(d)(ii) of the Act would include a temporary increase if benefits were determined in accordance with sections 14 and 15 and subsection 5(4) of the Calculation of Contribution Rates Regulations, 2021 did not apply,the first additional contribution rate for self-employed persons is deemed to equal the sum of the first additional contribution rate for self-employed persons for that year, as adjusted in accordance with subsection (4), if applicable, and the amount of any temporary increase, rounded to the nearest multiple of 0.01, that is applicable to that year;the first additional contribution rate for employees and employers is deemed to equal the rate calculated under paragraph (a), divided by two; andthe second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.Target benefit multipliersFor the purposes of sections 14 and 15, the interim target benefit multiplier is the value determined by the following formula for the last year of whichever of the applicable periods referred to in paragraph 11(1)(a) or 12(2)(a) or determined under subsection 12(1) is the shortest and the final target benefit multiplier is the value determined by that formula for the last year of the applicable period referred to in paragraph 11(1)(a) or determined under subsection 12(1):BM_{t–1} × [(1 + S3 + S4) – (S3 + S4) × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year;S3is the value for S3 determined under subsection 12(1), if applicable to that year;S4is the value for S4 determined under subsection 11(1) or 12(2), if applicable to that year;PI_{t–1}is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act; andPI_{t}is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act.Determination of new benefitsBenefits that become payable in a year are to be determined by multiplying the corresponding legislated benefits by the benefit multiplier for that year.Benefit multiplier — no interim adjustmentIf the interim and final target benefit multipliers are equal, the benefit multiplier is equal tothe value determined by the following formula, for each year for which that value is greater than the interim and final target benefit multipliers:BM_{t–1} × [(1 + S3 + S4) – (S3 + S4) × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year,S3is the value for S3, if any, determined under subsection 12(1),S4is the value for S4, if any, determined under subsection 11(1) or 12(2),PI_{t–1}is the Pension Index for the year before that year, andPI_{t}is the Pension Index for that year; orfor each subsequent year, the interim and final target benefit multipliers.Benefit multiplier — interim adjustmentIf the interim target benefit multiplier is greater than the final target benefit multiplier, the benefit multiplier is equal tothe value determined by the following formula, for each year for which that value is greater than or equal to the interim target benefit multiplier:BM_{t–1} × [(1 + S3 + S4) – (S3 + S4) × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year,S3is the value for S3 determined under subsection 12(1),S4is the value for S4 determined under subsection 12(2),PI_{t–1}is the Pension Index for the year before that year, andPI_{t}is the Pension Index for that year;the value determined by the following formula, for each year to which paragraph (a) does not apply and for which that value is greater than the final target benefit multiplier:BM_{t–1} × [(1 + S3) – S3 × (PI_{t–1} / PI_{t})]whereBM_{t–1}is the value of the benefit multiplier for the year before that year,S3is the value for S3 determined under subsection 12(1),PI_{t–1}is the Pension Index for the year before that year, andPI_{t}is the Pension Index for that year; orfor each subsequent year, the final target benefit multiplier.Determination of other benefitsBenefits, other than those that become payable in a year, are to be determined, for each year to which paragraph 14(2)(a) or (3)(a) or (b) applies and for the first year to which paragraph 14(2)(b) or (3)(c) applies, by multiplying the previous year’s benefits not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the following formula, as the case may be:for each year to which paragraph 14(2)(a) or (3)(a) applies,(1 + S3 + S4) × (PI_{t} / PI_{t–1}) – (S3+ S4)whereS3, S4, PI_{t} and PI_{t–1}have the same values as in the applicable paragraph;for each year to which paragraph 14(3)(b) applies,(1 + S3) × (PI_{t} / PI_{t–1}) – S3whereS3, PI_{t} and PI_{t–1}have the same values as in that paragraph; orfor the first year to which paragraph 14(2)(b) or (3)(c) applies,(FTBM / BM_{t–1}) × (PI_{t} / PI_{t–1})whereFTBMis the final target benefit multiplier,BM_{t–1}is the benefit multiplier for the year before that year,PI_{t}is the Pension Index for that year, andPI_{t–1}is the Pension Index for the year before that year.Coming into ForceRegistrationThese Regulations come into force on the day on which they are registered.