Canada Pension Plan

Marginal note:Second additional unadjusted pensionable earnings for year

• 53.2 (1) Subject to sections 53.6 and 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,

    • (ii) their earnings on which a second additional contribution has been made for the year under a provincial pension plan, calculated as the aggregate of

      • (A) the amount that is determined in the prescribed manner to be their salary and wages on which a second additional contribution has been made for the year by them under a provincial pension plan, and

      • (B) the amount of any second additional contribution required to be made by the contributor for the year under a provincial pension plan in respect of the contributor’s self-employed earnings divided by the second additional contribution rate for self-employed persons for the year, and

    • (iii) 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.