Members of Parliament Retiring Allowances Act (R.S.C., 1985, c. M-5)

Marginal note:Application of Act to members not making election who become members again

• 2.4 (1) This Act recommences to apply to a member referred to in subsection 2.3(1) who ceases to be a member and subsequently becomes a member in the thirty-sixth or any subsequent Parliament.

• (2) [Repealed, 1998, c. 23, s. 9]

Marginal note:Application of Act to members not making election who were vested

• 2.5 (1) Section 11, subsection 12(3), sections 13, 16, 17, 19 to 26, 33, 35 to 37, 39 to 46 and 48 to 55, subsection 56(2) and sections 57 to 63 of this Act and section 23 of the former Act continue to apply, with such modifications as the circumstances require, to a member referred to in subsection 2.3(1) who was a member for six or more years before October 25, 1993.

• Marginal note:Presumption

  (2) For the purposes of applying the provisions referred to in subsection (1), the member is deemed to have received no sessional indemnity for any period after October 24, 1993.

Marginal note:Election to come under Act

• 2.6 (1) A member of the House of Commons who was entitled to make an election under section 2.1 and who did not do so may, within 90 days after the day this section comes into force, elect in accordance with subsection 56(2) to have this Act recommence to apply to the member.

• Marginal note:Application

  (2) Subsection (1) applies only in respect of members of the House of Commons who serve continuously in that capacity from the day this section comes into force until the day they make their election.

• Marginal note:Irrevocable

  (3) An election under subsection (1) is irrevocable.

• Marginal note:Application of Act deemed to be continuous

  (4) This Act is deemed to apply to a member of the House of Commons who makes an election under subsection (1) as if it had always applied to the member.

• Marginal note:Repayment of withdrawal allowance and payment of contributions

  (5) A member of the House of Commons who makes an election under subsection (1) shall, within 90 days after making the election, pay into the Consolidated Revenue Fund, in a lump sum, an amount equal to

  • (a) the withdrawal allowance paid to the member under subsection 2.3(2);

  • (b) any interest on the withdrawal allowance paid to the member under subsection 2.3(4); and

  • (c) the contributions that the member would have made had the Act not ceased to apply to the member.

• Marginal note:Crediting to accounts

  (6) The amount paid under subsection (5) shall be credited to the Retiring Allowances Account and the Compensation Arrangements Account in the appropriate amounts.

• Marginal note:Deemed contributions

  (7) The portion of the amount paid under subsection (5) in respect of the withdrawal allowance mentioned in paragraph (5)(a) and the contributions mentioned in paragraph (5)(c) are for all purposes deemed to be contributions made by the member.

• Marginal note:Non-payment cancels election

  (8) An election under subsection (1) is deemed not to have been made if the amount required to be paid under subsection (5) is not paid in the time provided, but subsection 57(2) applies if the member who made the election dies before the time expires.

Contribution Rates

Marginal note:Obligation to fix rates

• 2.7 (1) The Chief Actuary shall fix contribution rates for the purpose of the provisions of this Act that require contributions to be made at the applicable contribution rate.

• Marginal note:No distinguishing based on House membership

  (2) The Chief Actuary shall not distinguish between members of the Senate and members of the House of Commons when fixing contribution rates for the purpose of any provision of this Act.

• (3) [Repealed, 2015, c. 36, s. 94]

• Marginal note:Contribution rate for purpose of paragraph 31.1(1)(a) — 2013 to 2015

  (4) Despite subsection (1), but subject to subsection (9), the applicable contribution rate for the purpose of paragraph 31.1(1)(a) for the calendar years 2013 to 2015 is 4%.

• Marginal note:Contribution rates for purpose of paragraph 31.1(1)(b) — 2013 to 2015

  (5) Despite subsection (1), the applicable contribution rates for the purpose of paragraph 31.1(1)(b) for the calendar years 2013 to 2015 are

  • (a) for 2013, 4%;

  • (b) for 2014, 5%; and

  • (c) for 2015, 6%.

• Marginal note:Contribution rates for purpose of paragraphs 31.1(1)(c) and (2)(a) and (b) — 2013 to 2015

  (6) Despite subsection (1), but subject to subsections (7) to (9), the applicable contribution rates for the purpose of paragraphs 31.1(1)(c) and (2)(a) and (b) for the calendar years 2013 to 2015 are

  • (a) for 2013, 8%;

  • (b) for 2014, 9%; and

  • (c) for 2015, 10%.

• Marginal note:Contribution rate for certain members — 2013 to 2015

  (7) Despite subsection (1), the applicable contribution rate for the purpose of paragraph 31.1(1)(c) for the calendar years 2013 to 2015 for members who are required to contribute under subsection 12(2) is 4% in respect of the portion of salary or annual allowance that is payable to them that exceeds their earnings limit for the calendar year.

• Marginal note:Contribution rates for certain members — 2013 to 2015

  (8) Despite subsection (1), the applicable contribution rates for the purpose of paragraph 31.1(1)(c) for the calendar years 2013 to 2015, in respect of salary or annual allowance, for members who are required to contribute under subsection 12(2) are

  • (a) for 2013, 4%;

  • (b) for 2014, 5%; and

  • (c) for 2015, 6%.

• Marginal note:Contribution rate for certain members — 2013 to 2015

  (9) Despite subsection (1), the applicable contribution rate for the purpose of paragraphs 31.1(1)(a) and (2)(a) for the calendar years 2013 to 2015 for members who are required to contribute under subsection 12(2) and members who would be required to contribute under subsection 12(2) if they were under 71 years of age is 1%.

• Marginal note:Publication of rates

  (10) The Minister shall cause to be published in the Canada Gazette the contribution rates fixed under subsection (1) as soon as feasible after they are fixed.

Marginal note:Objective

2.8 In fixing contribution rates, the Chief Actuary’s objective is to ensure that, as of January 1, 2017, the total amount of contributions to be paid by members under Parts I and II will meet 50% of the current service cost in respect of the benefits payable under Parts I, II and IV.

Suspended Member

Marginal note:Exclusion — pensionable service

2.9 If a member is suspended from the Senate or House of Commons, as the case may be, by a majority vote of that House, the member’s pensionable service is not to include the period that begins on the day on which the suspension starts and ends on the day fixed by a majority vote of that House for the reinstatement of the member’s entitlement to accrue pensionable service.

Marginal note:Effect of suspension

2.91 Despite any provision of Part I, Part II or Part V, no contribution shall be paid by a member under those Parts in respect of any period referred to in section 2.9.

Marginal note:No election while suspended

• 2.92 (1) No election shall be made under Part I or Part II by a member during any period that begins on the day on which the suspension referred to in section 2.9 starts and ends on the later of the day on which a majority vote is passed by the Senate or House of Commons, as the case may be, which reinstates the member’s entitlement to accrue pensionable service and the day fixed by that vote for that reinstatement.

• Marginal note:Subsections 10(1) and 32(1)

  (2) The period referred to in subsection (1) is not to be included in the determination of the time limit for making an election under subsection 10(1) or 32(1).

• Marginal note:No election — period of suspension

  (3) No election shall be made under this Act in respect of any period referred to in section 2.9.

Account Continued

Marginal note:Members of Parliament Retiring Allowances Account continued

• 3 (1) The Members of Parliament Retiring Allowances Account, established in the accounts of Canada by section 4 of the former Act, is hereby continued.

• Marginal note:Prime Minister’s contributions transferred to Compensation Arrangements Account

  (2) On January 1, 1992 there shall be charged to the Retiring Allowances Account and credited to the Compensation Arrangements Account such portion of the balance to the credit of the Retiring Allowances Account on that day as may reasonably be estimated to be attributable to the aggregate of

  • (a) the contributions credited to the Retiring Allowances Account pursuant to paragraph 4(1)(a) of the former Act on account of contributions paid pursuant to section 18 of that Act,

  • (b) the amounts equal to those contributions credited to the Retiring Allowances Account pursuant to paragraph 5(a) of the former Act, and

  • (c) the interest credited pursuant to paragraph 5(c) of the former Act on such portion of the balance to the credit of the Retiring Allowances Account as may reasonably be estimated to be attributable to the amounts referred to in paragraphs (a) and (b).

PART IMembers of Parliament Retiring Allowances

Interpretation

Marginal note:Credits to Account

• 4 (1) There shall be credited to the Retiring Allowances Account

  • (a) the contributions paid under sections 9, 9.1, 11 and 11.1 on or after January 1, 1992 and contributions made under subsections 21(7) and 22(3) of the former Act that are paid on or after that date;

  • (b) the interest paid under sections 11 and 11.1; and

  • (c) the amounts referred to in section 5.

• Marginal note:Allowances paid out of C.R.F. and charged to Retiring Allowances Account

  (2) All allowances and other benefits payable under this Part and all supplementary benefits payable in respect of those allowances or benefits under Part IV shall be paid out of the Consolidated Revenue Fund and charged to the Retiring Allowances Account.

Marginal note:Amounts credited to Account

• 5 (1) The following amounts are required, pursuant to paragraph 4(1)(c), to be credited to the Retiring Allowances Account in each fiscal year:

  • (a) in respect of every month, an amount equal to the total amount estimated by the Minister to be required to provide for the costs of all allowances, supplementary benefits and other benefits that have accrued in respect of that month and that will become chargeable against the Retiring Allowances Account; and

  • (b) an amount representing interest on the balance from time to time to the credit of the Retiring Allowances Account, calculated and credited in accordance with subsection (2).

• Marginal note:Determination of amount

  (2) The amount referred to in paragraph (1)(b) is to be credited to the Retiring Allowances Account in respect of each quarter in each fiscal year on the last day of the quarter and is to be determined by multiplying an amount equal to the balance to the credit of the Account on the last day of the preceding quarter by the rate referred to in subsection (3).

• Marginal note:Rate

  (3) The rate for the purpose of subsection (2) is the effective quarterly rate derived from the valuation interest rate for the fiscal year that is set out in the most recent valuation report for this Act that is laid before the Senate and the House of Commons under section 9 of the Public Pensions Reporting Act.

6 [Repealed, 2012, c. 22, s. 6]

Marginal note:Deficits for service before January 1, 1992 to be estimated

• 7 (1) The Minister shall estimate the total cost of all allowances and other benefits payable under this Part as of January 1, 1992.

• Marginal note:Deficits for pensionable service before January 1, 1992 to be amortized

  (2) There shall be credited to the Retiring Allowances Account, at the time and in the manner determined by the Minister, such amounts as in the opinion of the Minister will, at the end of the prescribed period, together with the amount estimated by the Minister to be to the credit of that Account at that time, meet the total cost estimated pursuant to subsection (1).

Marginal note:Amounts to be credited to meet total cost

8 There shall be credited to the Retiring Allowances Account, at the time and in the manner determined by the Minister, an amount that, in the Minister’s opinion, based on actuarial advice, together with the amount estimated by the Minister to be to the credit of that Account at that time, is necessary to meet the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits.

Marginal note:Amounts to be debited

8.1 If the Minister is of the opinion, based on actuarial advice, that the amount estimated by the Minister to be to the credit of the Retiring Allowances Account exceeds the total cost of all allowances and other benefits payable under this Part and all supplementary benefits payable under Part IV in respect of those allowances or benefits, there may be debited from that Account, at the time and in the manner determined by the Minister, an amount specified by the Minister.

Contributions

Marginal note:Contributions — January 1, 2001 to December 31, 2015

• 9 (1) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member shall with respect to each calendar year, by reservation from his or her sessional indemnity, contribute to the Retiring Allowances Account 4% of that portion of that sessional indemnity that does not exceed his or her earnings limit for the calendar year.

• Marginal note:Non-application

  (1.01) Subsection (1) does not apply to a member who is required to make a contribution under subsection 12(2).

• Marginal note:Contributions

  (1.1) Despite subsection 2.3(1), beginning on September 21, 2000 and ending on December 31, 2000, a member who was entitled to elect under sections 2.1 and 2.6 and who did not make an election shall, by reservation from the sessional indemnity of the member, contribute to the Retiring Allowances Account four per cent of the amount payable to the member by way of that sessional indemnity.

• Marginal note:Application of Act deemed to be continuous

  (1.2) This Act recommences to apply to a member referred to in subsection (1.1) as of the day on which this subsection comes into force and is deemed to apply to the member as if it had always applied to the member.

• Marginal note:Additional contributions

  (2) During the period that begins on January 1, 2001 and ends on December 31, 2015, a member to whom subsection 12(2) applies who is in receipt of a salary or an annual allowance shall with respect to each calendar year, by reservation from that salary or allowance, contribute to the Retiring Allowances Account an amount equal to 4% of that portion of that salary or allowance that does not exceed his or her earnings limit for the calendar year, unless he or she elects in respect of that salary or allowance

  • (a) not to contribute under this subsection and has also elected before December 31, 2015 not to contribute under subsection 31(4) or (5) or paragraph 31.1(1)(c) or (2)(b); or

  • (b) to contribute at a lesser rate than that specified in this subsection.

• (3) and (4) [Repealed, 2001, c. 20, s. 16]