Canada Pension Plan (R.S.C., 1985, c. C-8)

Short Title

Marginal note:Short title

1 This Act may be cited as the Canada Pension Plan.

Interpretation

Marginal note:Definitions

• 2 (1) In this Act,

  additional maximum pensionable earnings

  additional maximum pensionable earnings of a person for a year has the meaning assigned by section 17.1; (maximum supplémentaire des gains ouvrant droit à pension)

  applicant

  applicant means, in Part II,

  • (a) a person or an estate that has applied for a benefit,

  • (b) a person who has applied for a division of unadjusted pensionable earnings under section 55 or paragraph 55.1(1)(b) or (c), or

  • (c) a person in respect of whom a division of unadjusted pensionable earnings has been approved under paragraph 55.1(1)(a); (requérant)

  average monthly pensionable earnings

  average monthly pensionable earnings of a person means an amount calculated in accordance with section 47 or 48; (moyenne mensuelle des gains ouvrant droit à pension)

  balance-due day

  balance-due day of a person for a year means

  • (a) where the person died after October in the year and before May in the immediately following year, the day that is 6 months after the day of death, and

  • (b) in any other case, April 30 in the immediately following year; (date d’exigibilité du solde)

  base contribution

  base contribution means a contribution under subsection 8(1), 9(1) or 10(1); (cotisation de base)

  base unadjusted pensionable earnings

  base unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53; (gains non ajustés de base ouvrant droit à pension)

  basic exemption

  basic exemption of a person for a year means an amount calculated in accordance with section 19; (exemption de base)

  beneficiary

  beneficiary means a person, estate or other body to whom a benefit has become payable; (bénéficiaire)

  benefit

  benefit means a benefit payable under this Act and includes a pension; (prestation)

  business

  business includes a profession, calling, trade, manufacture or undertaking of any kind whatever, and includes an adventure or concern in the nature of trade but does not include an office or employment; (entreprise)

  common-law partner

  common-law partner, in relation to a contributor, means a person who is cohabiting with the contributor in a conjugal relationship at the relevant time, having so cohabited with the contributor for a continuous period of at least one year. For greater certainty, in the case of a contributor’s death, the relevant time means the time of the contributor’s death; (conjoint de fait)

  Consumer Price Index

  Consumer Price Index means the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act; (indice des prix à la consommation)

  contribution

  contribution means a contribution under this Act; (cotisation)

  contribution rate

  contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.1; (taux de cotisation)

  contributor

  contributor means a person who has made an employee’s contribution or a contribution in respect of the person’s self-employed earnings, and includes a person the amount of whose earnings on which a contribution has been made for a year under this Act calculated as provided in subparagraph 53(1)(b)(i) exceeds zero and a person to whom unadjusted pensionable earnings have been attributed under section 55, 55.1 or 55.2; (cotisant)

  contributory period

  contributory period of a contributor has, subject to paragraph 44(2)(b) and subsections 44(5) and 56(5), the meaning assigned by section 49; (période cotisable)

  contributory salary and wages

  contributory salary and wages of a person for a year means an amount calculated in accordance with section 12; (traitement et salaire cotisables)

  contributory self-employed earnings

  contributory self-employed earnings of a person for a year means an amount calculated in accordance with section 13; (gains cotisables provenant du travail qu’une personne exécute pour son propre compte)

  deduct

  deduct includes withhold; (déduire)

  disabled

  disabled has the meaning assigned by section 42; (invalide)

  employee

  employee includes an officer; (employé)

  employer

  employer means a person liable to pay salary, wages or other remuneration in relation to employment, and, in relation to an officer, includes the person from whom the officer receives their remuneration; (employeur)

  employment

  employment means the state of being employed under an express or implied contract of service or apprenticeship, and includes the tenure of an office; (emploi)

  excepted employment

  excepted employment means employment specified in subsection 6(2); (emploi excepté)

  first additional contribution

  first additional contribution means a contribution under subsection 8(1.1), 9(1.1) or 10(1.1); (première cotisation supplémentaire)

  first additional contribution rate

  first additional contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the first additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.2; (premier taux de cotisation supplémentaire)

  first additional contributory period

  first additional contributory period of a contributor has the meaning assigned by section 49.1; (première période cotisable supplémentaire)

  first additional monthly pensionable earnings

  first additional monthly pensionable earnings of a person means an amount calculated in accordance with section 48.1; (premiers gains mensuels supplémentaires ouvrant droit à pension)

  first additional unadjusted pensionable earnings

  first additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53.1; (premiers gains non ajustés supplémentaires ouvrant droit à pension)

  maximum contributory earnings

  maximum contributory earnings of a person for a year has the meaning assigned by section 16; (maximum des gains cotisables)

  maximum pensionable earnings

  maximum pensionable earnings of a person for a year has the meaning assigned by section 17; (maximum des gains ouvrant droit à pension)

  office

  office means the position of an individual entitling him to a fixed or ascertainable stipend or remuneration and includes a judicial office, the office of a minister of the Crown, the office of a lieutenant governor, the office of a member of the Senate or House of Commons, a member of a legislative assembly or a member of a legislative or executive council and any other office the incumbent of which is elected by popular vote or is elected or appointed in a representative capacity, and also includes the position of a corporation director, and officer means a person holding such an office; (fonction ou charge et fonctionnaire)

  pension

  pension means a pension payable under this Act; (pension)

  Pension Appeals Board

  Pension Appeals Board[Repealed, 2012, c. 19, s. 225]

  Pension Index

  Pension Index has the meaning assigned by section 43; (indice de pension)

  pensionable employment

  pensionable employment means employment specified in subsection 6(1); (emploi ouvrant droit à pension)

  prescribed

  prescribed means

  • (a) in the case of a form or the information to be given on a form, authorized by the Minister having the control and direction of the administration of the Part of this Act to which the context extends, and

  • (b) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation; (prescrit)

  Record of Earnings

  Record of Earnings means the Record of Earnings established under section 95; (registre des gains)

  representative

  representative means, in respect of any person, a guardian, curator, committee, executor, liquidator of a succession, administrator or other legal representative of that person; (représentant)

  Review Committee

  Review Committee[Repealed, R.S., 1985, c. 30 (2nd Supp.), s. 1]

  Review Tribunal

  Review Tribunal[Repealed, 2012, c. 19, s. 225]

  salary and wages on which a base contribution has been made

  salary and wages on which a base contribution has been made for a year means an amount calculated in accordance with section 15; (traitement et salaire sur lesquels a été versée une cotisation de base)

  salary and wages on which a first additional contribution has been made

  salary and wages on which a first additional contribution has been made for a year means an amount calculated in accordance with section 15.1; (traitement et salaire sur lesquels a été versée une première cotisation supplémentaire)

  salary and wages on which a second additional contribution has been made

  salary and wages on which a second additional contribution has been made for a year means an amount calculated in accordance with section 15.2; (traitement et salaire sur lesquels a été versée une deuxième cotisation supplémentaire)

  second additional contribution

  second additional contribution means a contribution under subsection 8(1.2), 9(1.2) or 10(1.2); (deuxième cotisation supplémentaire)

  second additional contribution rate

  second additional contribution rate, in respect of an employee, an employer and a self-employed person for a year, means the second additional contribution rate for that employee, employer and self-employed person for the year determined in accordance with section 11.2; (deuxième taux de cotisation supplémentaire)

  second additional contributory period

  second additional contributory period of a contributor has the meaning assigned by section 49.2; (deuxième période cotisable supplémentaire)

  second additional monthly pensionable earnings

  second additional monthly pensionable earnings of a person means an amount calculated in accordance with section 48.2; (deuxièmes gains mensuels supplémentaires ouvrant droit à pension)

  second additional unadjusted pensionable earnings

  second additional unadjusted pensionable earnings of a contributor for a year means an amount calculated in accordance with section 53.2; (deuxièmes gains non ajustés supplémentaires ouvrant droit à pension)

  self-employed earnings

  self-employed earnings of a person for a year means an amount calculated in accordance with section 14; (gains provenant du travail qu’une personne exécute pour son propre compte)

  Social Insurance Number

  Social Insurance Number means a Social Insurance Number assigned to an individual under the authority of any Act of Parliament, and Social Insurance Number Card means a Social Insurance Number Card issued to an individual under that authority; (numéro d’assurance sociale et carte matricule d’assurance sociale)

  spouse

  spouse[Repealed, 2000, c. 12, s. 42]

  total first additional pensionable earnings

  total first additional pensionable earnings of a contributor means an amount calculated in accordance with section 50.1; (total des premiers gains supplémentaires ouvrant droit à pension)

  total pensionable earnings

  total pensionable earnings of a contributor means an amount calculated in accordance with section 50; (total des gains ouvrant droit à pension)

  total pensionable earnings of a contributor attributable to base contributions made under this Act

  total pensionable earnings of a contributor attributable to base contributions made under this Act[Repealed, 2018, c. 12, s. 361]

  total second additional pensionable earnings

  total second additional pensionable earnings of a contributor means an amount calculated in accordance with section 50.2; (total des deuxièmes gains supplémentaires ouvrant droit à pension)

  unadjusted pensionable earnings

  unadjusted pensionable earnings means base unadjusted pensionable earnings, first additional unadjusted pensionable earnings and second additional unadjusted pensionable earnings; (gains non ajustés ouvrant droit à pension)

  year

  year means a calendar year; (année)

  Year’s Additional Maximum Pensionable Earnings

  Year’s Additional Maximum Pensionable Earnings has the meaning assigned by section 18.1; (maximum supplémentaire des gains annuels ouvrant droit à pension)

  Year’s Basic Exemption

  Year’s Basic Exemption has the meaning assigned by section 20; (exemption de base de l’année)

  Year’s Maximum Pensionable Earnings

  Year’s Maximum Pensionable Earnings has the meaning assigned by section 18. (maximum des gains annuels ouvrant droit à pension)

• Marginal note:When specified age deemed to be reached

  (2) For the purposes of any provision of this Act in which reference is made to the reaching by a person of a specified age — other than a reference in paragraph 13(1)(c) or (e) or (1.2)(c), 17(c), 17.1(c), 19(c) or (d) or 44(3)(a), section 70 or subparagraph 72(a)(iii) — the person is deemed to have reached the specified age at the beginning of the month following the month in which the person actually reached that age, and in computing

  • (a) any period of months ending with the time when he reached a specified age, the month in which he actually reached that age shall be included; and

  • (b) any period of months commencing with the time when he reached a specified age, the month in which he actually reached that age shall not be included.

Application and Operation of Act

Marginal note:Definitions

• 3 (1) In this Act,

  province providing a comprehensive pension plan

  province providing a comprehensive pension plan means a province prescribed by a regulation made on the recommendation of the Minister of Employment and Social Development for the purposes of this Act as a province

  • (a) the government of which has, on or before May 3, 1965, signified the intention of that province to provide for the establishment and operation in that province, in lieu of the operation therein of this Act, of a plan of old age pensions and supplementary benefits providing for the making of contributions thereunder commencing with the year 1966 and providing for the payment of benefits thereunder comparable to those provided by this Act, or

  • (b) the government of which has, at any time after May 3, 1965, given notice in writing to the Minister of Employment and Social Development of the intention of that province to provide

    • (i) for the establishment and operation in that province, in lieu of the operation therein of this Act, of a plan of old age pensions and supplementary benefits providing for the making of contributions thereunder commencing with the third year following the year in which the notice was given and providing for the payment of benefits thereunder comparable to those then provided by this Act or by any provincial pension plan other than that plan, and

    • (ii) for the assumption under that plan of all obligations and liabilities accrued or accruing to the first day of that third year with respect to the payment of benefits under this Act attributable to contributions made under this Act in respect of employment in that province or in respect of self-employed earnings of persons resident in that province; (province instituant un régime général de pensions)

  provincial pension plan

  provincial pension plan means a plan of old age pensions and supplementary benefits for the establishment and operation of which provision has been made as described in paragraph (a) or (b) of the definition province providing a comprehensive pension plan under a law of a province providing a comprehensive pension plan. (régime provincial de pensions)

• Marginal note:Prescription of province after notice given

  (2) Notwithstanding anything in subsection (1), where, not later than twelve months before the first day of the third year following the year in which notice in writing as described in paragraph (b) of the definition province providing a comprehensive pension plan in subsection (1) was given to the Minister of Employment and Social Development by the government of a province, the legislature of the province has provided by law for the establishment and operation in that province of a plan of old age pensions and supplementary benefits as described in that paragraph and for the assumption under that plan of all obligations and liabilities accrued or accruing as described in that paragraph, the Governor in Council shall, by regulation made on the recommendation of the Minister of Employment and Social Development for the purposes of this Act, prescribe that province as a province described in that paragraph.

• Marginal note:Effective date of prescription

  (3) Any regulation made pursuant to subsection (2) becomes effective on the first day of the third year following the year in which the notice referred to in that subsection was given to the Minister of Employment and Social Development.

Marginal note:Application in respect of province providing comprehensive pension plan

• 4 (1) Notwithstanding anything in this Act, except as provided in subsection (2),

  • (a) the provisions of this Act with respect to the making of contributions by employees and employers in respect of pensionable employment and the provisions of Part III with respect to employees in pensionable employment do not apply in relation to employment in a province providing a comprehensive pension plan; and

  • (b) the provisions of this Act with respect to the making of contributions by persons for any year in respect of self-employed earnings do not apply in relation to persons who on the last day of that year were resident in a province providing a comprehensive pension plan.

• Marginal note:Exception

  (2) Subject to subsection (3), all of the provisions of this Act apply to

  • (a) employment by Her Majesty in right of Canada or by an agent of Her Majesty in right of Canada in a province providing a comprehensive pension plan, and

  • (b) any employment in a province providing a comprehensive pension plan if and to the extent that the establishment and operation of the plan referred to in paragraph (a) or (b) of the definition province providing a comprehensive pension plan in subsection 3(1), as the case may be, in relation to persons employed in that employment is outside the legislative authority of the legislature of that province,

  as though that employment were employment in a province other than a province providing a comprehensive pension plan.

• Marginal note:Agreement with government of province providing comprehensive pension plan

  (3) The Minister of Employment and Social Development, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement with the government of a province providing a comprehensive pension plan whereby, in accordance with such terms and conditions as may be set out in the agreement, any persons employed in employment described in subsection (2), and any employers of any persons employed in such employment, with respect to any persons so employed, shall be subject to the provisions of the provincial pension plan of that province in all respects as though the establishment and operation of that plan in relation to any persons so employed were within the legislative authority of the legislature of that province, and with respect to any period while the agreement continues in force, the agreement has the force of law according to the provisions thereof.

• Marginal note:Province in which person deemed employed

  (4) For the purposes of this Act, a person shall be deemed to be employed in the province in which the establishment of his employer to which he reports for work is situated, and where the employee is not required to report for work at any establishment of his employer, he shall be deemed to be employed in the province in which the establishment of his employer from which his remuneration is paid is situated.

• Marginal note:Reference to last day of year

  (5) A reference in paragraph (1)(b) to the last day of a year shall, in the case of a person who resided in Canada at any time in that year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in that year on which he resided in Canada.

Electronic Alternatives

Marginal note:Minister’s power

4.1 The Minister of National Revenue may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act.

PART IContributions

Marginal note:Definition of Minister

• 5 (1) In this Part, Minister means the Minister of National Revenue.

• Marginal note:Delegation

  (2) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister under this Part.

DIVISION AContributions Payable

Pensionable Employment

Marginal note:Pensionable employment

• 6 (1) Pensionable employment is

  • (a) employment in Canada that is not excepted employment;

  • (b) employment in Canada under Her Majesty in right of Canada that is not excepted employment; or

  • (c) employment included in pensionable employment by a regulation made under section 7.

• Marginal note:Excepted employment

  (2) Excepted employment is

  • (a) employment in agriculture or an agricultural enterprise, horticulture, fishing, hunting, trapping, forestry, logging or lumbering by an employer who either pays the employee less than two hundred and fifty dollars in cash remuneration in a year or employs the employee, on terms providing for payment of cash remuneration, for a period of less than twenty-five working days in a year;

  • (b) employment of a casual nature otherwise than for the purpose of the employer’s trade or business;

  • (c) employment as a teacher on exchange from a country other than Canada;

  • (d) employment of a person by the person’s spouse or common-law partner, unless the remuneration paid to the person may be deducted under the Income Tax Act in computing the income of the spouse or common-law partner;

  • (e) employment of a member of a religious order who has taken a vow of perpetual poverty and whose remuneration is paid either directly or by the member to the order;

  • (f) employment for which no cash remuneration is paid where the person employed is the child of, or is maintained by, the employer;

  • (g) employment as a member of the Canadian Forces or the Royal Canadian Mounted Police, except as provided by any other Act of Parliament;

  • (h) employment in Canada by an employer who employs persons in Canada but under the terms of a reciprocal agreement between the Government of Canada and the government of another country is exempt from liability to make the contributions imposed on an employer by this Act;

  • (i) employment by Her Majesty in right of a province or by an agent of Her Majesty in right of a province;

  • (j) employment in Canada by the government of a country other than Canada or by an international organization;

  • (j.1) employment of an Indian, as defined in the Indian Act, in respect of which the earnings are not included in computing income for purposes of the Income Tax Act; or

  • (k) employment excepted from pensionable employment by a regulation made under section 7.

Marginal note:Regulations respecting employment to be included in pensionable employment

• 7 (1) The Governor in Council may make regulations for including in pensionable employment

  • (a) any employment outside Canada or partly outside Canada, being employment that would be pensionable employment if it were in Canada;

  • (b) the entire employment under one employer of a person who is engaged by the employer partly in pensionable employment and partly in other employment;

  • (c) any employment if it appears to the Governor in Council that the nature of the work performed is similar to the work performed by persons employed in pensionable employment;

  • (d) the performance of services for remuneration if it appears to the Governor in Council that the terms or conditions on which the services are performed and the remuneration is paid are analogous to a contract of service, whether or not they constitute a contract of service;

  • (e) pursuant to an agreement with the government of a province, employment in Canada by Her Majesty in right of the province or by an agent of Her Majesty in right of the province;

  • (f) pursuant to an agreement with the employing government or organization, employment in Canada by the government of a country other than Canada or by an international organization; and

  • (g) any excepted employment other than employment described in paragraph 6(2)(g) or (i).

• Marginal note:Regulations respecting employment to be excepted from pensionable employment

  (2) The Governor in Council may make regulations for excepting from pensionable employment

  • (a) any employment if it appears to the Governor in Council by reason of the laws of any country other than Canada that a duplication of contributions or benefits will result;

  • (b) any employment of a person by an employer resident outside Canada unless arrangements satisfactory to the Minister have been made for the payment of the contributions required by this Act to be made in respect of that employment;

  • (c) the entire employment under one employer of a person who is engaged by the employer partly in pensionable employment and partly in other employment;

  • (d) any employment if it appears to the Governor in Council that the nature of the work performed by persons employed in that employment is similar to the nature of the work performed by persons employed in employment that is not pensionable employment;

  • (e) any employment if it appears to the Governor in Council that the services are performed and the remuneration is paid in a manner analogous to the earning of income from the carrying on of a business; and

  • (f) any employment in which persons are ordinarily employed to an inconsiderable extent.

• Marginal note:Extent of authority to make regulations

  (3) A regulation made under subsection (1) or (2) may be conditional or unconditional, qualified or unqualified, and may be general or restricted to a specific area, a person or a group or class of persons, and the authority conferred by subsection (1) to make regulations to include in pensionable employment any employment described in that subsection includes authority to make such other regulations to provide for the manner in which the provisions of this Act shall apply with respect thereto, and to adapt the provisions of this Act with respect thereto, as appear to the Governor in Council to be necessary to give effect to the regulations made under that subsection.

• Marginal note:Limitation

  (4) No regulation under this section shall require the payment of an employer’s contribution by the government of a country other than Canada or by an international organization unless the regulation is made pursuant to an agreement referred to in paragraph (1)(f).

Contributions by Employees and Employers in respect of Pensionable Employment

Marginal note:Employee’s base contribution

• 8 (1) Every employee who is employed by an employer in pensionable employment shall, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s base contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

  • (a) the employee’s contributory salary and wages for the year paid by the employer, minus such amount as or on account of the basic exemption for the year as is prescribed, and

  • (b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a base contribution has been made for the year by the employee under a provincial pension plan.

• Marginal note:Employee’s first additional contribution

  (1.1) For 2019 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s first additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employees for the year is multiplied by the lesser of

  • (a) the employee’s contributory salary and wages for the year paid by the employer, minus the amount as or on account of the basic exemption for the year that is prescribed, and

  • (b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a first additional contribution has been made for the year by the employee under a provincial pension plan.

• Marginal note:Employee’s second additional contribution

  (1.2) For 2024 and each subsequent year, an employee referred to in subsection (1) shall also, by deduction as provided in this Act from the remuneration in respect of the pensionable employment paid to the employee by the employer, make an employee’s second additional contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employees for the year is multiplied by the amount equal to

  • (a) the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year,

  minus

  • (b) the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages paid by the employer on which a second additional contribution has been made for the year by the employee under a provincial pension plan.

• (1.3) [Repealed, 2016, c. 14, s. 3]

• Marginal note:Excess amount

  (2) An excess amount has been paid if the aggregate of all amounts deducted as required from the remuneration of an employee for a year, whether by one or more employers, on account of the employee’s contributions for the year under this Act or under a provincial pension plan exceeds the sum obtained by adding the following amounts:

  • (a) the product obtained when the contribution rate for employees for the year under this Act is multiplied by the lesser of

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (4), and

    • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (5);

  • (a.1) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year under this Act is multiplied by the lesser of

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (4), and

    • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (5);

  • (a.2) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year under this Act is multiplied by the amount by which

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, plus the employee’s contributory self-employed earnings for the year in the case of an individual who is described in section 10 and to whom the provisions of this Act relating to the making of contributions apply — not exceeding the prorated portion of the employee’s additional maximum pensionable earnings for the year calculated under subsection (8),

    exceeds

    • (ii) the prorated portion of the employee’s maximum pensionable earnings for the year calculated under subsection (9);

  • (b) the product obtained when the base contribution rate for employees for the year under a provincial pension plan is multiplied by the lesser of

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of a provincial pension plan apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (6), and

    • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (7);

  • (c) for 2019 and each subsequent year, the product obtained when the first additional contribution rate for employees for the year under a provincial pension plan is multiplied by the lesser of

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of the provincial pension plan apply, minus the prorated portion of the employee’s basic exemption for the year calculated under subsection (6), and

    • (ii) the prorated portion of the employee’s maximum contributory earnings for the year calculated under subsection (7); and

  • (d) for 2024 and each subsequent year, the product obtained when the second additional contribution rate for employees for the year under a provincial pension plan is multiplied by the amount by which

    • (i) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of the provincial pension plan apply — not exceeding the prorated portion of the employee’s additional maximum pensionable earnings for the year calculated under subsection (10),

    exceeds

    • (ii) the prorated portion of the employee’s maximum pensionable earnings for the year calculated under subsection (11).

• Marginal note:Overpayment

  (3) The overpayment made by the employee on account of the employee’s contributions for the year under this Act is the lesser of

  • (a) the aggregate of all amounts deducted as required from the remuneration of that employee on account of the employee’s contributions under this Act for the year, minus the sum of the amounts determined under paragraphs (2)(a) to (a.2), and

  • (b) the excess amount calculated in accordance with subsection (2).

• Marginal note:Prorated portion of employee’s basic exemption

  (4) For the purposes of subparagraphs (2)(a)(i) and (a.1)(i), the prorated portion of the employee’s basic exemption for the year is the product obtained when the employee’s basic exemption is multiplied by the ratio that

  • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to

    • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

    • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment,

  bears to

  • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to

    • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

    • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment.

• Marginal note:Prorated portion of employee’s maximum contributory earnings

  (5) For the purposes of subparagraphs (2)(a)(ii) and (a.1)(ii), the prorated portion of the employee’s maximum contributory earnings for the year is the product obtained when the employee’s maximum contributory earnings is multiplied by the ratio that

  • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to

    • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

    • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment,

  bears to

  • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to

    • (i) for each year before 2024, the maximum pensionable earnings in respect of each pensionable employment, and

    • (ii) for 2024 and each subsequent year, the additional maximum pensionable earnings in respect of each pensionable employment.

• Marginal note:Prorated portion of employee’s basic exemption

  (6) For the purposes of subparagraphs (2)(b)(i) and (c)(i), the prorated portion of the employee’s basic exemption for the year is the difference between the employee’s basic exemption, determined without taking into account paragraphs 19(b) and (c), and the prorated portion calculated under subsection (4).

• Marginal note:Prorated portion of employee’s maximum contributory earnings

  (7) For the purposes of subparagraphs (2)(b)(ii) and (c)(ii), the prorated portion of the employee’s maximum contributory earnings for the year is the difference between the employee’s maximum contributory earnings, determined without taking into account paragraphs 17(b) and (c) and 19(b) and (c), and the prorated portion calculated under subsection (5).

• Marginal note:Prorated portions of employee’s additional maximum pensionable earnings

  (8) For the purposes of subparagraph (2)(a.2)(i), the prorated portion of the employee’s additional maximum pensionable earnings for the year is the product obtained when the employee’s additional maximum pensionable earnings is multiplied by the ratio that

  • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment,

  bears to

  • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment.

• Marginal note:Prorated portion of employee’s maximum pensionable earnings

  (9) For the purposes of subparagraph (2)(a.2)(ii), the prorated portion of the employee’s maximum pensionable earnings for the year is the product obtained when the employee’s maximum pensionable earnings for the year is multiplied by the ratio that

  • (a) the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment,

  bears to

  • (b) the aggregate of the employee’s contributory salary and wages for the year in respect of pensionable employment to which the provisions of this Act relating to the making of contributions apply or to which the provisions of a provincial pension plan apply, subject to the additional maximum pensionable earnings in respect of each pensionable employment.

• Marginal note:Prorated portion of employee’s additional maximum pensionable earnings

  (10) For the purposes of subparagraph (2)(d)(i), the prorated portion of the employee’s additional maximum pensionable earnings for the year is the difference between the employee’s additional maximum pensionable earnings, determined without taking into account paragraphs 17.1(b) and (c), and the prorated portion calculated under subsection (8).

• Marginal note:Prorated portion of employee’s maximum pensionable earnings

  (11) For the purposes of subparagraph (2)(d)(ii), the prorated portion of the employee’s maximum pensionable earnings for the year is the difference between the employee’s maximum pensionable earnings, determined without taking into account paragraphs 17(b) and (c), and the prorated portion calculated under subsection (9).

Marginal note:Employer’s base contribution

• 9 (1) Every employer shall, in respect of each employee employed by the employer in pensionable employment, make an employer’s base contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the contribution rate for employers for the year is multiplied by the lesser of

  • (a) the contributory salary and wages of the employee for the year paid by the employer, minus such amount as or on account of the employee’s basic exemption for the year as is prescribed, and

  • (b) the maximum contributory earnings of the employee for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a base contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

• Marginal note:Employer’s first additional contribution

  (1.1) For 2019 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s first additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the first additional contribution rate for employers for the year is multiplied by the lesser of

  • (a) the employee’s contributory salary and wages for the year paid by the employer, minus the amount as or on account of the employee’s basic exemption for the year that is prescribed, and

  • (b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a first additional contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

• Marginal note:Employer’s second additional contribution

  (1.2) For 2024 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s second additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employers for the year is multiplied by the amount equal to

  • (a) the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year,

  minus

  • (b) the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a second additional contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

• Marginal note:Succession of employers

  (2) If one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1), (1.1) and (1.2) and 8(1), (1.1) and (1.2) and section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer’s contributions, the employer shall also take them into account with respect to the employee’s contributions.

• Marginal note:Self-employment succeeded by employment

  (3) For the application of subsections (1), (1.1) and (1.2) and 8(1), (1.1) and (1.2) and section 21, if a person, in a year, is self-employed, ceases to be self-employed and becomes an employee of a corporation that is controlled by the person, the corporation may

  • (a) take into account the amount of contributory self-employed earnings of the person in the year as contributory salary and wages paid by the corporation to the employee in that year; and

  • (b) take into account one half of the contributions by the person in respect of self-employed earnings in the year as an amount deducted, remitted or contributed in relation to employee’s contributions for that year, and one half of that amount as an amount remitted or contributed in relation to employer’s contributions for that year.

Contributions by Persons in respect of Self-Employed Earnings

Marginal note:Base contribution in respect of self-employed earnings

• 10 (1) Every individual who is resident in Canada for the purposes of the Income Tax Act during a year and who has contributory self-employed earnings for the year shall make a base contribution for the year of an amount equal to the product obtained when the contribution rate for self-employed persons for the year is multiplied by the lesser of

  • (a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of

    • (i) all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers pursuant to section 8, and

    • (ii) all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year whether by one or more employers pursuant to that plan, and

  • (b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a base contribution has been made for the year by the individual under a provincial pension plan.

• Marginal note:First additional contribution in respect of self-employed earnings

  (1.1) For 2019 and each subsequent year, an individual referred to in subsection (1) shall also make a first additional contribution for the year of an amount equal to the product obtained when the first additional contribution rate for self-employed persons for the year is multiplied by the lesser of

  • (a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of

    • (i) all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers under section 8, and

    • (ii) all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year whether by one or more employers under that plan, and

  • (b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a first additional contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a first additional contribution has been made for the year by the individual under a provincial pension plan.

• Marginal note:Second additional contribution in respect of self-employed earnings

  (1.2) For 2024 and each subsequent year, an individual referred to in subsection (1) shall also make a second additional contribution for the year of an amount equal to the product obtained when the second additional contribution rate for self-employed persons for the year is multiplied by

  • (a) the amount by which the individual’s contributory self-employed earnings for the year — not exceeding the individual’s additional maximum pensionable earnings for the year — exceeds the individual’s maximum pensionable earnings for the year,

  minus

  • (b) the individual’s salary and wages, if any, on which a second additional contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a second additional contribution has been made for the year by the individual under a provincial pension plan.

• Marginal note:Employment succeeded by self-employment

  (2) For the application of subsections (1), (1.1) and (1.2), if a person, in a year, is an employee of a corporation that is controlled by the person, ceases to be employed by that corporation and becomes self-employed, the person may

  • (a) take into account the amount of contributory salary and wages paid by the corporation to the employee in the year as contributory self-employed earnings of the person in the year; and

  • (b) take into account the amounts deducted, remitted or contributed by the corporation in relation to the employee’s contributions and the employer’s contributions in respect of the person for the year as contributions by the person in respect of self-employment earnings in that year.

Marginal note:Election not to contribute in respect of self-employed earnings

• 11 (1) Subject to subsections (2) and (5), section 10 does not apply with respect to any year in respect of any individual who, being a member of a religious sect or a division of a religious sect certified by the Minister pursuant to subsection (6), elects not to make a contribution with respect to that year.

• Marginal note:Idem

  (2) An election referred to in subsection (1) shall

  • (a) be made in such manner and form as may be prescribed;

  • (b) commence to have effect, if approved by the Minister, on and from January 1 of the year in which the election is filed with the Minister; and

  • (c) cease to have effect on January 1 of the year next following the day on which a revocation of the election made in prescribed manner is received by the Minister.

• Marginal note:Minister to be satisfied

  (3) The Minister shall approve an election referred to in subsection (1) where he is satisfied that

  • (a) the person making the election

    • (i) is a member of a religious sect or a division of a religious sect that has been certified pursuant to subsection (6), and

    • (ii) has been certified as such a member by a spokesman for that sect or division; and

  • (b) the spokesman

    • (i) has been authorized by the sect or division to certify persons as being members of the sect or division, and

    • (ii) has certified that the sect or division maintains tenets, teachings and practices of kinds referred to in subparagraphs (6)(a)(i) and (ii).

• Marginal note:Return of contribution

  (4) Any contribution made by a contributor with respect to a year for which he elects under this section not to make a contribution shall, on application, be returned to him.

• Marginal note:Only one election permitted

  (5) Where an individual who has elected not to make a contribution with respect to any year revokes the election, he may not make an election under this section with respect to any subsequent year.

• Marginal note:Certification of religious sect or division

  (6) The Minister shall certify a religious sect or a division of a religious sect for the purposes of this section where

  • (a) he is satisfied that the religious sect

    • (i) is a religious organization that has established tenets and teachings that oppose the acceptance of benefits from any private or public insurance that provides for payments in the event of death, disability, old age or retirement,

    • (ii) does, as a practice, make provisions for the support of dependent members that are reasonable in view of their general level of living, and

    • (iii) was in existence in Canada on January 1, 1966 and has been maintaining the tenets, teachings and practices referred to in subparagraphs (i) and (ii) since that date; and

  • (b) the religious sect or division thereof has applied to him in prescribed form for certification.

DIVISION BCalculation of Contributions

Contribution Rate

Marginal note:Contribution rate — 1966 to 1986

• 11.1 (1) The contribution rate for the years 1966 to 1986 is:

  • (a) for employees, 1.8% of contributory wages and salaries;

  • (b) for employers, 1.8% of contributory wages and salaries; and

  • (c) for self-employed persons, 3.6% of contributory self-employed earnings.

• Marginal note:Contribution rates after 1986

  (2) The contribution rate for employees, employers and self-employed persons for 1987 and subsequent years is as set out in Schedule 1, as amended from time to time under section 113.1.

First Additional Contribution Rate and Second Additional Contribution Rate

Marginal note:First and second additional contribution rates

11.2 The first additional contribution rate and the second additional contribution rate for employees, employers and self-employed persons for 2019 and subsequent years is as set out in Schedule 2, as amended from time to time under section 113.1.

Contributory Salary and Wages

Marginal note:Amount of contributory salary and wages

• 12 (1) The amount of the contributory salary and wages of a person for a year is the person’s income for the year from pensionable employment, computed in accordance with the Income Tax Act, plus any deductions for the year made in computing that income otherwise than under paragraph 8(1)(c) of that Act, but does not include any such income received by the person

  • (a) before he reaches eighteen years of age;

  • (b) during any month that is excluded from that person’s contributory period under this Act or under a provincial pension plan by reason of disability;

  • (c) after they reach sixty-five years of age if

    • (i) a retirement pension is payable to them under this Act or under a provincial pension plan, and

    • (ii) subject to subsection (1.1), they make an election to exclude the income; or

  • (d) after they reach seventy years of age.

• Marginal note:Election

  (1.1) An election referred to in subparagraph (1)(c)(ii)

  • (a) shall be made or revoked in the prescribed form and manner;

  • (b) shall commence to have effect on the first day of the month following the month in which it is made;

  • (c) shall cease to have effect on the first day of the month following the month in which it is revoked;

  • (d) may be made only once in a year;

  • (e) may not be revoked in the year in which it is made;

  • (f) may not be made in a year in which an election is revoked; and

  • (g) is deemed to be an election in respect of the person’s income from all pensionable employment and in respect of their self-employed earnings.

• Marginal note:Calculation of contributory salary and wages

  (1.2) If a person does not revoke — in respect of an employer — an election in the prescribed form and manner, the contributory salary and wages referred to in paragraphs 8(1)(a) and (1.1)(a), subsection 8(1.2), paragraphs 9(1)(a) and (1.1)(a) and subsection 9(1.2) do not, for the purposes of those provisions, include income from that employment. However, the person may — in respect of that income — make an election under subsection 13(3) and pay the contributions required under section 10 within one year after the person’s balance-due day.

• Marginal note:Idem

  (2) In the case of a person who is a contributor under the Public Service Superannuation Act, there shall be included in computing the amount of that person’s contributory salary and wages for a year the amount of his salary, as defined in that Act, that is not otherwise included in computing income for the purposes of the Income Tax Act.

• Marginal note:Idem

  (2.1) In the case of an Indian, as defined in the Indian Act, to the extent provided by regulations pursuant to subsection 7(1) and subject to any conditions prescribed by those regulations, there shall be included in computing the amount of that person’s contributory salary and wages for a year the amount of his income from employment that would otherwise be excepted pursuant to paragraph 6(2)(j.1).

• Marginal note:Remuneration paid in respect of employment in province

  (3) A reference in this Act to the contributory salary and wages of a person for a year shall, in relation to any remuneration paid to him in respect of pensionable employment in a province providing a comprehensive pension plan, be construed as a reference to his income for the year from that employment as that income is required to be computed under the provincial pension plan of that province.

Contributory Self-Employed Earnings

Marginal note:Amount of contributory self-employed earnings

• 13 (1) The amount of the contributory self-employed earnings of a person for a year is the amount of the self-employed earnings except that,

  • (a) for a year in which the person reaches eighteen or seventy years of age, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year

    • (i) after

      • (A) they reach eighteen years of age, or

      • (B) the disability pension ceases to be payable, or

    • (ii) before

      • (A) they reach seventy years of age, or

      • (B) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

    is of 12;

  • (b) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they make an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is deemed to be made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12;

  • (c) despite paragraph (a), for a year in which a retirement pension is payable to them under this Act or under a provincial pension plan and for which they revoke an election to exclude self-employed earnings, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is deemed to be revoked — minus the number of months after they reach seventy years of age — is of 12;

  • (d) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year before the election is made — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

  • (e) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked, the amount of the contributory self-employed earnings is equal to that proportion of the amount of the self-employed earnings that the number of months in the year after the election is revoked — minus the number of months after they reach seventy years of age — is of 12.

• Marginal note:Election

  (1.1) An election referred to in paragraph (1)(b) or (c)

  • (a) shall be made or revoked in the prescribed form and manner;

  • (b) may be made only once for a year;

  • (c) may not be revoked for the year for which it is deemed to be made;

  • (d) may not be made for a year for which an election is revoked;

  • (e) is deemed to be made or revoked on the first day of the month referred to in the election or revocation, as the case may be; and

  • (f) may not be made for a year for which the person has income from pensionable employment.

• Marginal note:Condition

  (1.2) For the purposes of paragraph (1.1)(e), the month may not be

  • (a) before the one in which the person reaches sixty-five years of age;

  • (b) before the one in which the retirement pension becomes payable; or

  • (c) after the one in which they reach seventy years of age.

• Marginal note:Excluded earnings

  (2) Subject to subsection (1), the contributory self-employed earnings of a person do not include earnings for

  • (a) any period described in paragraph 12(1)(a), (b), (c) or (d); or

  • (b) any year that

    • (i) follows a year for which the person makes an election to exclude self-employed earnings, and

    • (ii) is not a year for which they revoke the election.

• Marginal note:Election to include certain earnings — base contribution

  (3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of subsection 10(1) shall, if the person or their representative makes an election in the prescribed form and manner within one year from June 15 in the following year — or, in the case of an employee to whom the Minister refunds an amount under section 38, from the day on which the Minister refunds the amount — include any amount by which

  • (a) the lesser of

    • (i) his contributory salary and wages for the year, and

    • (ii) his maximum pensionable earnings for the year,

  exceeds

  • (b) the aggregate of

    • (i) the person’s salary and wages on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a base contribution has been made for the year by the person under a provincial pension plan, and

    • (ii) the lesser of

      • (A) the aggregate of all amounts deducted as prescribed on account of his basic exemption for the year by one or more employers pursuant to section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers pursuant to such a plan, and

      • (B) his basic exemption for the year.

• Marginal note:Earnings — first additional contribution

  (3.1) For 2019 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.1) shall include any amount by which

  • (a) the lesser of

    • (i) the person’s contributory salary and wages for the year, and

    • (ii) the person’s maximum pensionable earnings for the year,

  exceeds

  • (b) the aggregate of

    • (i) the person’s salary and wages on which a first additional contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a first additional contribution has been made for the year by the person under a provincial pension plan, and

    • (ii) the lesser of

      • (A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers under that plan, and

      • (B) the person’s basic exemption for the year.

• Marginal note:Earnings — second additional contribution

  (3.2) For 2024 and each subsequent year, if a person or their representative makes an election under subsection (3), the amount of the contributory self-employed earnings of the person for a year for the purposes of subsection 10(1.2) shall include any amount by which

  • (a) the lesser of

    • (i) the person’s contributory salary and wages for the year, and

    • (ii) the person’s additional maximum pensionable earnings for the year,

  exceeds

  • (b) the aggregate of

    • (i) the person’s salary and wages on which a first additional contribution has been made for the year and the person’s salary and wages on which a second additional contribution has been made for the year,

    • (i.1) the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a first additional contribution has been made for the year by the person under a provincial pension plan and the person’s salary and wages on which a second additional contribution has been made for the year by the person under a provincial pension plan,

    • (ii) the lesser of

      • (A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers under that plan, and

      • (B) the person’s basic exemption for the year, and

    • (iii) the amount calculated under subsection (3) or (3.1), if any.

• Marginal note:Self-employed earnings where resident in province

  (4) A reference in this Act to the contributory self-employed earnings of a person for a year shall, in relation to any self-employed earnings of a person who was resident on the last day of the year in a province providing a comprehensive pension plan, be construed as a reference to his self-employed earnings for the year as such earnings are required to be computed under the provincial pension plan of that province.

Marginal note:Amount of self-employed earnings for a year

14 The amount of the self-employed earnings of a person for a year is the aggregate of

• (a) an amount equal to

  • (i) his income for the year from all businesses, other than a business more than fifty per cent of the gross revenue of which consisted of rent from land or buildings, carried on by him,

  minus

  • (ii) all losses sustained by him in the year in carrying on those businesses,

  as such income and losses are computed under the Income Tax Act, except any such income or losses from the performance of services described in paragraph 7(1)(d) that has been included in pensionable employment by a regulation made under subsection 7(1) or by a regulation made under a provincial pension plan,

• (b) his income for the year from employment described in paragraph 7(2)(e) that has been excepted from pensionable employment by a regulation made under subsection 7(2) or by a regulation made under a provincial pension plan, as that income is computed under the Income Tax Act, and

• (c) in the case of an Indian, as defined in the Indian Act, to the extent provided by regulations and subject to any conditions prescribed by those regulations, his income for the year from self-employment on a reserve, as defined in the Indian Act, that is not otherwise included in computing income for the purposes of the Income Tax Act.

Marginal note:Idem

14.1 For the purposes of paragraph 14(a), where a member of a family in a congregation is specified in an election under subsection 143(2) of the Income Tax Act for a year, such part of the total of all amounts allocated to the family under that subsection for the year as may reasonably be regarded as having been derived from a business carried on by the congregation shall be deemed to be the member’s income (as computed under that Act) from such a business carried on by the member.

Salary and Wages on which Contribution made

Marginal note:Amount of salary and wages on which base contribution made

• 15 (1) The amount of a person’s salary and wages on which a base contribution has been made for a year is the greater of the following amounts, divided by the contribution rate for employees for the year:

  • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year under this Act, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a), and

  • (b) an amount equal to

    • (i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year under this Act or under a provincial pension plan,

    minus

    • (ii) the sum of

      • (A) the amount determined under paragraph 8(2)(b), and

      • (B) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year under this Act or under a provincial pension plan, minus the sum of the amounts determined under paragraphs 8(2)(a) and (b).

• Marginal note:Employer’s failure to deduct amount

  (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s base contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year.

• Marginal note:Effect of payment by employer of amount not deducted as required

  (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s base contribution for a year is paid by the employer on account of the employee’s base contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Marginal note:Amount of salary and wages on which first additional contribution made

• 15.1 (1) The amount of a person’s salary and wages on which a first additional contribution has been made for a year is the greater of the following amounts, divided by the first additional contribution rate for employees for the year:

  • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a.1), and

  • (b) an amount equal to

    • (i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act or under a provincial pension plan,

    minus

    • (ii) the sum of

      • (A) the amount determined under paragraph 8(2)(c), and

      • (B) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act or under a provincial pension plan, minus the sum of the amounts determined under paragraphs 8(2)(a.1) and (c).

• Marginal note:Employer’s failure to deduct amount

  (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s first additional contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year.

• Marginal note:Effect of payment by employer of amount not deducted as required

  (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s first additional contribution for a year is paid by the employer on account of the employee’s first additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Marginal note:Amount of salary and wages on which second additional contribution made

• 15.2 (1) The amount of a person’s salary and wages on which a second additional contribution has been made for a year is an amount equal to the product obtained when the ratio referred to in subsection 8(8) is multiplied by the following amount, divided by the second additional contribution rate for employees for the year:

  • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year under this Act or under a provincial pension plan and the amounts determined under clauses 15(1)(b)(ii)(B) and 15.1(1)(b)(ii)(B),

  minus

  • (b) the amount determined under subsection 8(2).

• Marginal note:Employer’s failure to deduct amount

  (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s second additional contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year.

• Marginal note:Effect of payment by employer of amount not deducted as required

  (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s second additional contribution for a year is paid by the employer on account of the employee’s second additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

Marginal note:Special rule applicable in prescribed circumstances

15.3 If an employer has filed a return in accordance with this Part showing an amount as the salary and wages on which contributions have been made by an employee for a year under this Act, the amount so shown, multiplied by the contribution rate, the first additional contribution rate or the second additional contribution rate, as the case may be, for employees for the year, may, in prescribed circumstances, be substituted for the amount shown in the return as the aggregate of the amounts deducted by that employer on account of the employee’s contributions for the year under this Act, in calculating the amount to be determined under subsection 15(1), 15.1(1) or 15.2(1).

Maximum Contributory Earnings

Marginal note:Amount of maximum contributory earnings for a year

16 The amount of the maximum contributory earnings of a person for a year is the amount of his maximum pensionable earnings for the year, minus the amount of his basic exemption for the year.

Maximum Pensionable Earnings

Marginal note:Amount of maximum pensionable earnings

17 The amount of the maximum pensionable earnings of a person for a year is the amount of the Year’s Maximum Pensionable Earnings except that,

• (a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the 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

  • (i) after

    • (A) they reach eighteen years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach seventy years of age,

    • (B) they die, or

    • (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

  including, if they die, the month in which they die, is of 12;

• (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the 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 before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

• (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the 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 after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12.

Additional Maximum Pensionable Earnings

Marginal note:Amount of additional maximum pensionable earnings

17.1 The amount of the additional maximum pensionable earnings of a person for a year is the amount of the Year’s Additional Maximum Pensionable Earnings except that,

• (a) for a year in which the person reaches 18 or 70 years of age or dies, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the 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

  • (i) after

    • (A) they reach 18 years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach 70 years of age,

    • (B) they die, or

    • (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

  including, if they die, the month in which they die, is of 12;

• (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the 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 before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12; and

• (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the 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 after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach 70 years of age or die, whichever is earlier — is of 12.

Year’s Maximum Pensionable Earnings

Marginal note:Amount of Year’s Maximum Pensionable Earnings

• 18 (1) The amount of a Year’s Maximum Pensionable Earnings is

  • (a) for 1987, $25,900;

  • (b) subject to subsection (2), for 1988, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1987 by the ratio that

    • (i) the average for the twelve month period ending on June 30, 1987 of the Wage Measure for each month in that period

    bears to

    • (ii) the average for the twelve month period ending on June 30, 1986 of the Wage Measure for each month in that period; and

  • (c) subject to subsection (2), for 1989 and each subsequent year, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for the preceding year, calculated without reference to subsections (2) and (3), by the ratio that

    • (i) the average for the twelve month period ending on June 30 of the preceding year of the Wage Measure for each month in that period

    bears to

    • (ii) the average for the twelve month period ending on June 30 of the year immediately preceding the preceding year of the Wage Measure for each month in that period.

• Marginal note:Rounding off

  (2) Where the amount calculated in accordance with paragraph (1)(b) or (c) for any year is not a multiple of one hundred dollars, the Year’s Maximum Pensionable Earnings for that year is the amount that is the next multiple of one hundred dollars below that amount.

• Marginal note:Minimum amount of Year’s Maximum Pensionable Earnings

  (3) Where the amount calculated in accordance with paragraph (1)(b) or (c) in respect of any year is less than the Year’s Maximum Pensionable Earnings for the preceding year, it shall be increased to the amount of the Year’s Maximum Pensionable Earnings for the preceding year.

• (4) [Repealed, 1991, c. 44, s. 2]

• Marginal note:Wage Measure

  (5) The Wage Measure for a month is the average weekly wages and salaries of

  • (a) the Industrial Aggregate in Canada for the month as published by Statistics Canada under the authority of the Statistics Act; or

  • (b) in the event that the Industrial Aggregate ceases to be published, such other measure as is prescribed by regulation for the month as published by Statistics Canada under the authority of the Statistics Act.

• Marginal note:Idem

  (6) For the purpose of calculating the amount of a Year’s Maximum Pensionable Earnings, where Statistics Canada has published any revisions of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for any month, the revision of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) that has been published most recently prior to the calculation in respect of that month shall be used in calculating the amount of the Year’s Maximum Pensionable Earnings.

• Marginal note:Adjustment of Industrial Aggregate

  (7) Where, at any time after the coming into force of this section, a new time or content basis is adopted by Statistics Canada in determining the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month and the adoption of that new basis would cause a difference between

  • (a) the average for the twelve month period ending on June 30 of any year of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, as the case may be, and

  • (b) the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the new time or content basis, as the case may be,

  of more than one per cent of the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, the average for that twelve month period calculated on the new time or content basis shall be adjusted by the Minister, on the advice of the Chief Statistician of Canada, to reflect the former time or content basis, and any other averages that are calculated in determining the Year’s Maximum Pensionable Earnings for the year following that twelve month period shall be adjusted accordingly.

• Marginal note:Limitation on adjustment

  (8) Subsection (7) shall cease to apply when the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month has been calculated on the new time or content basis referred to in that subsection for a period of twenty-four consecutive months ending on June 30 of a year.

Year’s Additional Maximum Pensionable Earnings

Marginal note:Amount of Year’s Additional Maximum Pensionable Earnings

• 18.1 (1) The amount of a Year’s Additional Maximum Pensionable Earnings is

  • (a) for 2024, 1.07 multiplied by the Year’s Maximum Pensionable Earnings for that year; and

  • (b) for 2025 and each subsequent year, 1.14 multiplied by the Year’s Maximum Pensionable Earnings for that year.

• Marginal note:Rounding

  (2) If the amount calculated in accordance with subsection (1) for any year is not a multiple of $100, the Year’s Additional Maximum Pensionable Earnings for that year is the amount that is the next multiple of $100 below that amount.

Basic Exemption

Marginal note:Amount of basic exemption

19 The amount of the basic exemption of a person for a year is the amount of the Year’s Basic Exemption except that,

• (a) for a year in which the person reaches eighteen or seventy years of age or die, in which their contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year

  • (i) after

    • (A) they reach eighteen years of age, or

    • (B) the disability pension ceases to be payable, or

  • (ii) before

    • (A) they reach seventy years of age,

    • (B) they die, or

    • (C) the month following the month in which their contributory period ends under this Act or under a provincial pension plan by reason of disability,

  including, if they die, the month in which they die, is of 12;

• (b) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is made or one referred to in paragraph 13(1)(b) is deemed to be made, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the election is made or deemed to be made, as the case may be — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12;

• (c) despite paragraph (a), for a year in which an election referred to in subparagraph 12(1)(c)(ii) is revoked or one referred to in paragraph 13(1)(c) is deemed to be revoked, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year after the election is revoked or deemed to be revoked, as the case may be — minus the number of months after they reach seventy years of age or die, whichever is earlier — is of 12;

• (d) despite paragraphs (a) to (c), for a year in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the amount of the basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year before the retirement pension becomes payable — minus the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability — is of 12 unless the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the amount, adjusted by that proportion, of the Year’s Maximum Pensionable Earnings, in which case, the amount of the basic exemption is increased by the lesser of

  • (i) the product obtained by multiplying

    • (A) the Year’s Basic Exemption

    by

    • (B) one-twelfth of the amount by which the number of months in the year for which a retirement pension is payable exceeds the greater of

      • (I) the number of months for which an election referred to in subparagraph 12(1)(c)(ii) or paragraph 13(1)(b) has effect, and

      • (II) the number of months after they reach seventy years of age or die, whichever is earlier, and

  • (ii) the amount by which the aggregate of the contributory salary and wages and the contributory self-employed earnings exceeds the product obtained by multiplying

    • (A) the Year’s Maximum Pensionable Earnings

    by

    • (B) one-twelfth of the amount by which the number of months in the year before the retirement pension becomes payable exceeds the number of months that are excluded from the contributory period under this Act or under a provincial pension plan by reason of disability.

Year’s Basic Exemption

Marginal note:Amount of Year’s Basic Exemption

• 20 (1) Subject to subsection (2), the amount of a Year’s Basic Exemption is the highest multiple of $100 that is less than or equal to 10% of the Year’s Maximum Pensionable Earnings for the year.

• Marginal note:Limitation

  (2) For each year after 1997 the amount of a Year’s Basic Exemption is $3,500.

DIVISION CCollection of Contributions

Employees and Employers

Marginal note:Amount to be deducted and remitted by employer

• 21 (1) Every employer paying remuneration to an employee employed by the employer at any time in pensionable employment shall deduct from that remuneration as or on account of the employee’s contributions for the year in which the remuneration in respect of the pensionable employment is paid to the employee any amount that is determined in accordance with prescribed rules and shall remit that amount, together with any amount that is prescribed with respect to the contributions required to be made by the employer under this Act, to the Receiver General at any time that is prescribed and, if at that prescribed time the employer is a prescribed person, the remittance shall be made to the account of the Receiver General at a financial institution (within the meaning that would be assigned by the definition financial institution in subsection 190(1) of the Income Tax Act if that definition were read without reference to its paragraphs (d) and (e)).

• Marginal note:Exception — remittance to financial institution

  (1.1) For the purpose of subsection (1), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at a financial institution referred to in that subsection if the prescribed person has remitted the amount to the Receiver General at least one day before the day on which the amount is due.

• Marginal note:Liability for failure to deduct and remit

  (2) Subject to subsection (3), every employer who fails to deduct and remit an amount from the remuneration of an employee as and when required under subsection (1) is liable to pay to Her Majesty the whole amount that should have been deducted and remitted from the time it should have been deducted.

• Marginal note:Subsequent decision — limit on liability

  (3) An employer is not liable for any amount that the employer fails to deduct as required by this Act from the remuneration of an employee, or for any interest or penalties for that failure, if

  • (a) the employer is informed in writing in a ruling under section 26.1 that the employer is not required to make the deduction;

  • (b) the ruling is not based on information provided by the employer to the Minister that was incorrect in a material particular; and

  • (c) it is subsequently decided under subsection 27.2(3) or section 28 that the deduction should have been made.

• Marginal note:Payment and deemed notification

  (3.1) Once the decision under subsection 27.2(3) or section 28 is communicated to the employer, the employer is liable without interest or penalties under this Act to pay any contribution required to be paid by the employer with respect to the employee. On payment by the employer of any amount as or on account of that contribution, the employee is deemed to have notified the Minister as required by subsection 15(1.1), 15.1(1.1) or 15.2(1.1) of the employer’s failure to deduct the amount of that contribution from the remuneration of the employee.

• Marginal note:Deduction from subsequent payment of remuneration

  (4) Any employer who fails to deduct an amount that is required by subsection (1) to be deducted from a payment of remuneration to an employee may deduct an amount equal to the amount from any subsequent payment of remuneration made to the employee within 12 months after the making of the payment from which the amount was required to be deducted, but no employer may deduct from a payment of remuneration made to an employee, in addition to the amount required by subsection (1) to be deducted therefrom, any amount with respect to more than one such amount that the employer previously failed to deduct.

• Marginal note:Amount deducted deemed received by employee

  (5) Where an amount has been deducted under subsection (1), it shall be deemed for all purposes to have been received at that time by the employee to whom the remuneration was payable.

• Marginal note:Interest on amounts not remitted

  (6) Where an employer has failed to remit to the Receiver General an amount that the employer was required to remit at the time when he was required to do so, the employer shall pay to the Receiver General interest on that amount at the prescribed rate computed from the day on which the employer was so required to remit the amount to the day of remittance of the amount to the Receiver General.

• Marginal note:Penalty for failure to remit

  (7) Every employer who in a calendar year fails to remit to the Receiver General an amount that the employer is required to remit at the time when he is required to do so is liable to a penalty of

  • (a) subject to paragraph (b), if

    • (i) the Receiver General receives that amount on or before the day it was due, but that amount is not paid in the manner required, three per cent of that amount,

    • (ii) the Receiver General receives that amount

      • (A) no more than three days after it was due, three per cent of that amount,

      • (B) more than three days and no more than five days after it was due, five per cent of that amount, or

      • (C) more than five days and no more than seven days after it was due, seven per cent of that amount, or

    • (iii) that amount is not paid or remitted on or before the seventh day after it was due, ten per cent of that amount; or

  • (b) where at the time of the failure a penalty under this subsection was payable by the employer in respect of an amount that the employer was required to remit during the year and the failure was made knowingly or under circumstances amounting to gross negligence, twenty per cent of the amount.

Marginal note:Excess payment — amount deemed not deducted

• 21.01 (1) Subject to subsection (2), an amount deducted by an employer under subsection 21(1) for a year after 2015 in respect of an excess payment that was paid — as a result of a clerical, administrative or system error — as remuneration to an employee in respect of pensionable employment is deemed not to have been deducted for the purposes of this Act if

  • (a) before the end of the third year after the calendar year in which the amount was deducted,

    • (i) the employer elects to have this section apply in respect of the amount, and

    • (ii) the employee has repaid, or made an arrangement to repay, the employer;

  • (b) the employer has not filed an information return correcting for the excess payment before making the election referred to in subparagraph (a)(i); and

  • (c) any additional conditions specified by the Minister are met.

• Marginal note:Determination of amount

  (2) For the purposes of subsection (1), the amount that is deemed not to have been deducted is the amount that was deducted by the employer or, if the amount determined by the following formula is less than the amount that was deducted by the employer, the amount determined by the formula

  A − B

  where

  A

  is the aggregate of all amounts that were deducted by the employer as the employee’s contributions for the year in question; and

  B

  is the aggregate of all amounts that would have been deducted by the employer as the employee’s contributions for that year had the employer not made the excess payment referred to in subsection (1).

Marginal note:Liability

• 21.1 (1) If an employer who fails to deduct or remit an amount as and when required under subsection 21(1) is a corporation, the persons who were the directors of the corporation at the time when the failure occurred are jointly and severally or solidarily liable, together with the corporation, to pay to Her Majesty that amount and any interest or penalties relating to it.

• Marginal note:Application of Income Tax Act provisions

  (2) Subsections 227.1(2) to (7) of the Income Tax Act apply, with such modifications as the circumstances require, in respect of a director of a corporation referred to in subsection (1).

• Marginal note:Assessment provisions applicable to directors

  (3) The provisions of this Act respecting the assessment of an employer for an amount payable by the employer under this Act and respecting the rights and obligations of an employer so assessed apply in respect of a director of a corporation in respect of an amount payable by the director under subsection (1) in the same manner and to the same extent as if the director were the employer referred to in those provisions.

Marginal note:Minister may assess amount payable

• 22 (1) The Minister may assess an employer for an amount payable by him under this Act, or may re-assess the employer or make additional assessments as the circumstances require, and the expression assessment when used in this Act with reference to any action so taken by the Minister under this section includes any such re-assessment or additional assessment.

• Marginal note:Notice of assessment and liability of employer

  (2) After assessing an employer for an amount payable by him under this Act, the Minister shall send the employer a notice of assessment, and on that notice being sent to the employer, the assessment shall be deemed to be valid and binding, subject to being varied or vacated on appeal under this Act, and the employer is liable to pay to Her Majesty the amount thereof forthwith.

• Marginal note:Limitation on assessments

  (3) Notwithstanding subsection (1) or (2), no assessment, re-assessment or additional assessment of an amount payable by an employer under this Act may be made by the Minister under this section after four years have elapsed from the earliest of the days on or before which any contribution in relation to which that amount is payable should have been paid, unless the employer has made any misrepresentation or committed any fraud in filing any return or in supplying any information pursuant to this Part in relation thereto.

Marginal note:Recovery of contributions, etc., as debt due to Her Majesty

• 23 (1) All contributions, interest, penalties and other amounts payable by a person under this Act are debts due to Her Majesty and recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided for by this Act.

• Marginal note:Application of Income Tax Act provisions

  (2) Section 160, subsections 161(11) and 220(3.1), (4) and (5), sections 221.1 and 223 to 224.3, subsections 227(9.1) and (10), sections 229, 236 and 244 (except subsections 244(1) and (4)) and subsections 248(7) and (11) of the Income Tax Act apply, with such modifications as the circumstances require, in relation to all contributions, interest, penalties and other amounts payable by a person under this Act, and for the purposes of this subsection,

  • (a) the reference in subsection 224(1.2) of that Act to “subsection 227(10.1) or a similar provision” shall be read as a reference to “section 22 of the Canada Pension Plan”; and

  • (b) subsection 224(1.2) of the Income Tax Act shall apply to employer’s contributions, employee’s contributions, and related interest, penalties or other amounts, subject to subsections 69(1) and 69.1(1) of the Bankruptcy and Insolvency Act and section 11.09 of the Companies’ Creditors Arrangement Act.

• Marginal note:Where amount deducted not remitted

  (3) Where an employer has deducted an amount from the remuneration of an employee as or on account of any contribution required to be made by the employee but has not remitted the amount to the Receiver General, the employer is deemed, notwithstanding any security interest (as defined in subsection 224(1.3) of the Income Tax Act) in the amount so deducted, to hold the amount separate and apart from the property of the employer and from property held by any secured creditor (as defined in subsection 224(1.3) of the Income Tax Act) of that employer that but for the security interest would be property of the employer, in trust for Her Majesty and for payment to Her Majesty in the manner and at the time provided under this Act.

• Marginal note:Extension of trust

  (4) Notwithstanding the Bankruptcy and Insolvency Act (except sections 81.1 and 81.2 of that Act), any other enactment of Canada, any enactment of a province or any other law, where at any time an amount deemed by subsection (3) to be held by an employer in trust for Her Majesty is not paid to Her Majesty in the manner and at the time provided under this Act, property of the employer and property held by any secured creditor (as defined in subsection 224(1.3) of the Income Tax Act) of that employer that but for a security interest (as defined in subsection 224(1.3) of the Income Tax Act) would be property of the employer, equal in value to the amount so deemed to be held in trust is deemed

  • (a) to be held, from the time the amount was deducted by the employer, separate and apart from the property of the employer, in trust for Her Majesty whether or not the property is subject to such a security interest, and

  • (b) to form no part of the estate or property of the employer from the time the amount was so deducted, whether or not the property has in fact been kept separate and apart from the estate or property of the employer and whether or not the property is subject to such a security interest

  and is property beneficially owned by Her Majesty notwithstanding any security interest in such property or in the proceeds thereof, and the proceeds of such property shall be paid to the Receiver General in priority to all such security interests.

• Marginal note:Meaning of security interest

  (4.1) For the purposes of subsections (3) and (4), a security interest does not include a prescribed security interest.

• Marginal note:Certificate before distribution

  (5) Every person, other than a trustee in bankruptcy, who is an assignee, liquidator, receiver, receiver-manager, administrator, executor, liquidator of a succession or any other like person, in this section referred to as the “responsible representative” , administering, winding-up, controlling or otherwise dealing with a property, business or estate of another person, before distributing to one or more persons any property over which he or she has control in his or her capacity as the responsible representative, shall obtain a certificate from the Minister certifying that all amounts

  • (a) for which any employer is liable under this Act up to and including the date of distribution, and

  • (b) for the payment of which the responsible representative is or can reasonably be expected to become liable in his capacity as the responsible representative

  have been paid or that security for the payment thereof has been accepted by the Minister.

• Marginal note:Personal liability

  (5.1) Where a responsible representative distributes to one or more persons property over which he has control in his capacity as the responsible representative, without obtaining a certificate under subsection (5) in respect of the amounts referred to in that subsection, the responsible representative is personally liable for the payment of those amounts to the extent of the value of the property distributed and the Minister may assess the responsible representative therefor in the same manner and with the same effect as an assessment made under section 22.

• Marginal note:Trustee in bankruptcy

  (6) Where an employer has become a bankrupt, the trustee in bankruptcy shall be deemed to be the agent of the bankrupt for all purposes of this Act.

• (7) to (13) [Repealed, 1993, c. 24, s. 154]

Marginal note:Books and records

• 24 (1) Every employer paying remuneration to an employee employed by him in pensionable employment shall keep records and books of account at his place of business or residence in Canada, or at such other place as may be designated by the Minister, in such form and containing such information as will enable any contributions payable under this Act or any contributions or other amounts that should have been deducted or paid to be determined, and where any such employer has failed to keep adequate records and books of account, the Minister may require him to keep such records and books of account as he may specify, and the employer shall thereafter keep records and books of account as so required.

• Marginal note:Keeping of records and books of account

  (2) Every employer required by this section to keep records and books of account shall retain those records and books of account and every account and voucher necessary to verify the information contained therein until the expiration of six years from the end of the year in respect of which those records and books of account are kept or until written permission for their prior disposal is given by the Minister.

• Marginal note:Electronic records

  (2.1) Every employer required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (2).

• Marginal note:Exemption

  (2.2) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt an employer or a class of employers from the requirement in subsection (2.1).

• Marginal note:Retention for ruling or appeal

  (3) If the employer or an employee of the employer is subject to a ruling under section 26.1 or has made an appeal to the Minister under section 27 or 27.1, the employer shall retain every record, book of account, account and voucher necessary for dealing with the ruling or the appeal until the ruling is made or the appeal is disposed of and any further appeal is disposed of or the time for filing a further appeal has expired.

Marginal note:Interpretation

• 25 (1) In this section,

  authorized person

  authorized person means a person authorized by the Minister for the purposes of this section; (personne autorisée)

  documents

  documents includes money, securities and any of the following, whether computerized or not: books, records, letters, telegrams, vouchers, invoices, accounts and statements (financial or otherwise); (documents)

  dwelling-house

  dwelling-house means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence and includes

  • (a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway, and

  • (b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence; (maison d’habitation)

  judge

  judge means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court. (juge)

• Marginal note:Inspections

  (2) An authorized person may, at any reasonable time, for any purpose relating to the administration or enforcement of this Act, inspect, audit or examine any document that relates or may relate to the information that is or should be contained in the records or books of account or to the amount of any contribution payable under this Act and, for those purposes, the authorized person may

  • (a) subject to subsection (3), enter any premises or place where any records or books of account are or should be kept; and

  • (b) require the owner, occupant or person in charge of the premises or place to give to the authorized person all reasonable assistance and to answer all proper questions relating to the administration or enforcement of this Act and, for that purpose, require the owner, occupant or person in charge of the premises or place to attend at such premises or place with the authorized person.

• Marginal note:Warrant required to enter dwelling-house

  (3) Where a premises or place referred to in subsection (2) is a dwelling-house, an authorized person may not enter that dwelling-house without the consent of the occupant except under the authority of a warrant issued under subsection (4).

• Marginal note:Warrant or order

  (4) Where, on ex parte application by the Minister, a judge is satisfied by information on oath

  • (a) that there are reasonable grounds to believe that a dwelling-house is a premises or place referred to in subsection (2),

  • (b) that entry into the dwelling-house is necessary for any purpose relating to the administration or enforcement of this Act, and

  • (c) that entry into the dwelling-house has been refused or that there are reasonable grounds for believing that entry thereto will be refused,

  the judge shall issue a warrant authorizing an authorized person to enter that dwelling-house subject to such conditions as may be specified in the warrant but, where the judge is not satisfied that entry into that dwelling-house is necessary for any purpose relating to the administration or enforcement of this Act, the judge shall

  • (d) order the occupant of the dwelling-house to provide an authorized person with reasonable access to any document that is or should be kept therein, and

  • (e) make such other order as is appropriate in the circumstances to carry out the purposes of this Act

  to the extent that access has been or may be expected to be refused and that the document is or may be expected to be kept in the dwelling-house.

• Marginal note:Requirement to provide documents or information

  (5) Notwithstanding any other provision of this Act, the Minister may, subject to subsection (6), for any purpose related to the administration or enforcement of this Act, by notice served personally or by registered or certified mail, require that any person provide, within such reasonable time as is stipulated in the notice,

  • (a) any information or additional information, including a return of income or a supplementary return; or

  • (b) any document.

• Marginal note:Unnamed persons

  (6) The Minister shall not impose on any person, in this section referred to as a “third party”, a requirement under subsection (5) to provide information or any document relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (7).

• Marginal note:Judicial authorization

  (7) On ex parte application by the Minister, a judge may, subject to such conditions as the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (5) relating to an unnamed person or more than one unnamed person, in this section referred to as the “group”, where the judge is satisfied by information on oath that

  • (a) the person or group is ascertainable; and

  • (b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Act.

  • (c) and (d) [Repealed, 1998, c. 19, s. 254]

• Marginal note:Service of authorization

  (8) Where an authorization is granted under subsection (7), the authorization shall be served together with the notice referred to in subsection (5).

• Marginal note:Review of authorization

  (9) Where an authorization is granted under subsection (7), a third party on whom a notice is served under subsection (5) may, within 15 days after the service of the notice, apply to the judge who granted the authorization or, where the judge is unable to act, to another judge of the same court for a review of the authorization.

• Marginal note:Powers on review

  (10) On hearing an application under subsection (9), a judge may cancel the authorization previously granted if the judge is not then satisfied that the conditions in paragraphs (7)(a) and (b) have been met and the judge may confirm or vary the authorization if satisfied that those conditions have been met.

• Marginal note:Additional remedy

  (11) Where a person is found guilty of an offence under subsection 41(2) for failing to comply with a requirement under subsection (5), the court may make such order as it deems proper in order to enforce compliance with the requirement.

• Marginal note:Copies as evidence

  (12) Where any document is inspected, audited, examined or provided under this section, the person by whom it is inspected, audited or examined or to whom it is provided or any officer of the Canada Revenue Agency may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made pursuant to this subsection is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.

• Marginal note:Compliance

  (13) No person shall hinder, molest or interfere with any person doing anything that he is authorized to do by or pursuant to this section or prevent or attempt to prevent any person from doing any such thing and, notwithstanding any other Act or law, every person shall, unless he is unable to do so, do everything he is required to do by or pursuant to this section.

Marginal note:No action against person deducting

• 26 (1) No action lies against any person for deducting any sum of money in compliance or intended compliance with this Act.

• Marginal note:Receipt of Minister sufficient discharge

  (2) The receipt of the Minister for an amount deducted by any person as required by or under this Act is a good and sufficient discharge of the liability of any debtor to his creditor with respect thereto to the extent of the amount referred to in the receipt.

Rulings and Appeals

Marginal note:Request for ruling

• 26.1 (1) The Minister of Employment and Social Development, an employer, an employee or a person claiming to be an employer or an employee may request an officer of the Canada Revenue Agency authorized by the Minister of National Revenue to make a ruling on any of the following questions:

  • (a) whether an employment is pensionable;

  • (b) how long an employment lasts, including the dates on which it begins and ends;

  • (c) what is the amount of any earnings from pensionable employment;

  • (d) whether a contribution is payable;

  • (e) what is the amount of a contribution that is payable; and

  • (f) who is the employer of a person in pensionable employment.

• Marginal note:Time limit

  (2) The Minister of Employment and Social Development may request a ruling at any time, but a request by any other person must be made before June 30 of the year after the year in respect of which the question relates.

• Marginal note:Ruling

  (3) The authorized officer shall make the ruling within a reasonable time after receiving the request.

• Marginal note:Presumption

  (4) Unless a ruling has been requested with respect to a person in pensionable employment,

  • (a) an amount deducted from the remuneration of the person or paid by an employer as a contribution for the person is deemed to have been deducted or paid in accordance with this Act; or

  • (b) an amount that has not been so deducted or paid is deemed not to have been required to be deducted or paid in accordance with this Act.

Marginal note:Appeal of rulings

27 An appeal to the Minister from a ruling may be made by the Minister of Employment and Social Development at any time, and by any other person concerned within 90 days after the person is notified of the ruling.

Marginal note:Appeal of assessments

27.1 An employer who has been assessed under section 22 may appeal to the Minister for a reconsideration of the assessment, either as to whether an amount should be assessed as payable or as to the amount assessed, within 90 days after being notified of the assessment.

Marginal note:Notification of appeal

• 27.2 (1) Where an appeal is made to the Minister under section 27 or 27.1, the Minister shall

  • (a) notify any person who may be affected by the appeal that the Minister intends to decide the appeal, including the Minister of Employment and Social Development in the case of an appeal of a ruling; and

  • (b) give the person an opportunity to provide information and to make representations to protect the person’s interests, as the circumstances require.

• Marginal note:Where appeal to be sent

  (2) An appeal shall be addressed to the Assistant Director of Appeals in a Tax Services Office of the Canada Revenue Agency and delivered or mailed to that office.

• Marginal note:Decision

  (3) The Minister shall decide the appeal within a reasonable time after receiving it and shall notify the affected persons of the decision in any manner that the Minister considers adequate.

Marginal note:Minister’s authority not restricted

27.3 Nothing in sections 26.1 to 27.2 restricts the authority of the Minister to make a decision under this Part on the Minister’s own initiative or to make an assessment after the date mentioned in subsection 26.1(2).

Marginal note:Appeal to Tax Court of Canada

• 28 (1) A person affected by a decision on an appeal to the Minister under section 27 or 27.1, or the person’s representative, may, within 90 days after the decision is communicated to the person, or within any longer time that the Tax Court of Canada on application made to it within 90 days after the expiration of those 90 days allows, appeal from the decision to that Court in accordance with the Tax Court of Canada Act and the applicable rules of court made thereunder.

• Marginal note:Communication of decision

  (1.1) The determination of the time at which a decision on an appeal to the Minister under section 27 or 27.1 is communicated to a person shall be made in accordance with the rule, if any, made under paragraph 20(1.1)(h.1) of the Tax Court of Canada Act.

• Marginal note:Extension of time to appeal

  (1.2) Section 167, except paragraph 167(5)(a), of the Income Tax Act applies, with such modifications as the circumstances require, in respect of applications made under subsection (1).

• Marginal note:Decision of Court

  (2) On an appeal under this section, the Tax Court of Canada may vacate, confirm or vary a decision on an appeal under section 27 or an assessment that is the subject of an appeal under section 27.1 or, in the case of an appeal under section 27.1, may refer the matter back to the Minister for reconsideration and reassessment, and shall without delay

  • (a) notify the parties to the appeal in writing of its decision; and

  • (b) give reasons for its decision, but, except where the Court deems it advisable in a particular case to give reasons in writing, the reasons given by it need not be in writing.

Marginal note:Authority to decide questions

• 29 (1) The authority of the Minister or the Tax Court of Canada to decide an appeal under section 27, 27.1 or 28 includes the authority to decide any question of fact or law necessary to be decided in the course of the appeal and to decide whether a person is or may be affected by the decision of the appeal.

• Marginal note:Decisions and rulings final

  (2) Except as otherwise provided in this Act, the decision of the Minister or the Tax Court of Canada of an appeal under section 27, 27.1 or 28 and a ruling of an authorized officer under section 26.1 is final and binding for all purposes of this Act.

• Marginal note:Allowance for attending appeal

  (3) If, on an appeal to the Tax Court of Canada from a decision of the Minister, a person affected by the decision is requested by the Court to attend before it on the consideration of the appeal and so attends, the person shall be paid such travel and other allowances, including compensation for loss of remunerative time, as are approved by the Treasury Board.

DIVISION DCollection of Contributions in Respect of Self-Employed Earnings

Marginal note:Return to be filed

• 30 (1) Where a person is required to make a contribution for a year in respect of self-employed earnings, a return of the person’s self-employed earnings for the year shall, without notice or demand for it, be filed with the Minister in the prescribed form and manner and containing the prescribed information, by that person (or, if the person is unable for any reason to file the return, by their representative) on or before the day on or before which the person’s return of income under Part I of the Income Tax Act is required by that Part to be filed or would be required by that Part to be filed if tax under that Part were payable for the year.

• Marginal note:Demand for return

  (2) Whether or not he is liable to make a contribution for a year in respect of his self-employed earnings and whether or not a return has been filed under subsection (1), every person shall, on demand from the Minister, served personally or by registered letter, file with the Minister in prescribed form and containing prescribed information, within such reasonable time as may be stipulated in the demand, a return of his self-employed earnings for the year designated therein.

• Marginal note:Return by trustee, etc.

  (3) Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return of his self-employed earnings for a year as required by this section shall file with the Minister a return in prescribed form of that person’s self-employed earnings for the year.

• Marginal note:Identification of province of residence

  (4) The prescribed information to be contained in any return of the self-employed earnings of a person for a year required by this section to be filed with the Minister shall identify the province in which that person was resident on the last day of that year.

• Marginal note:Where no return filed within four years

  (5) The amount of any contribution required by this Act to be made by a person for a year in respect of their self-employed earnings for the year is deemed to be zero where

  • (a) the return of those earnings required by this section to be filed with the Minister is not filed with the Minister before the day that is four years after the day on or before which the return is required by subsection (1) to be filed; and

  • (b) the Minister does not assess the contribution before the end of those four years.

Marginal note:Estimate to be made

31 Every person who is required by section 30 to file a return of the person’s self-employed earnings shall in the return estimate the amount of the contributions to be made by the person in respect of those earnings.

Marginal note:Examination of return and notice of assessment

32 The Minister shall, with all due dispatch, examine each return of self-employed earnings and assess the contributions for the year in respect of those earnings and the interest and penalties, if any, payable, and, after the examination, shall send a notice of assessment to the person by whom the return was filed.

Marginal note:Payment of contributions

• 33 (1) If the amount of the contributions required to be made by a person for a year in respect of the person’s self-employed earnings is $40 or less, or a person who is required by this Act to make contributions for a year in respect of the person’s self-employed earnings is not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of the person’s income tax, the person shall, on or before the person’s balance-due day for the year, pay to the Receiver General the whole amount of the contributions.

• Marginal note:Farmers and fishers

  (2) Every person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of

  • (a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or

  • (b) the contributions required in respect of the person’s self-employed earnings for the preceding year.

• Marginal note:Other persons

  (3) Every person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year

  • (a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of

    • (i) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

    • (ii) the contributions required in respect of the person’s self-employed earnings for the preceding year; or

  • (b) on or before

    • (i) March 15 and June 15 in the year, an amount equal to one quarter of the contributions required in respect of the person’s self-employed earnings for the second preceding year, and

    • (ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which

      • (A) the contributions required in respect of the person’s self-employed earnings for the preceding year

      exceeds

      • (B) one half of the contributions required in respect of the person’s self-employed earnings for the second preceding year.

• Marginal note:Payment of remainder of estimated contributions

  (4) A person referred to in subsection (2) or (3) shall also pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the contributions as estimated under section 31. However, paragraphs (2)(a) and (b) and (3)(a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the person’s death.

Marginal note:Interest on unpaid contributions

• 34 (1) If the amount paid by a person on or before the person’s balance-due day for a year on account of contributions required to be made by the person for the year in respect of the person’s self-employed earnings is less than the amount of the contributions required to be made by the person, interest at a prescribed rate per annum is payable by the person on the difference between those amounts from the balance-due day for the year to the day of payment.

• Marginal note:Interest on instalments

  (2) In addition to any interest payable under subsection (1), if a person, being required by section 33 to pay a part or instalment of the contributions required to be made by the person, has failed to pay all or any part of the contributions as required, the person shall, on payment of the amount that the person failed to pay, pay interest on the amount at a prescribed rate per annum from the day on or before which the person was required to make the payment to the day of payment or the beginning of the period in respect of which the person is liable to pay interest on the amount under subsection (1), whichever is the earlier.

• Marginal note:Limitation for farmers and fishers

  (3) For the purposes of subsection (2), if a person is required by subsection 33(2) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before the day referred to in subsection 33(2) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least amount required to be paid by the person on or before that day:

  • (a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

  • (b) the contributions required in respect of the person’s self-employed earnings for the preceding year;

  • (c) the amount stated to be the amount of the instalment payable by the person for the year in the notice, if any, sent to the person by the Minister.

• Marginal note:Limitation for other persons

  (4) For the purposes of subsection (2), if a person is required by subsection 33(3) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before each day referred to in subsection 33(3) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least total amount of those parts or instalments required to be paid by the person by that day:

  • (a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

  • (b) the contributions required in respect of the person’s self-employed earnings for the preceding year;

  • (c) the amounts determined under paragraph 33(3)(b) in respect of the person for the year;

  • (d) the amounts stated to be the amounts of instalment payable by the person for the year in the notices, if any, sent to the person by the Minister.

Marginal note:Failure to file a return

• 35 (1) Every person who fails to file a return of the person’s self-employed earnings for a year as and when required by section 30 is liable to a penalty of 5% of the part of the amount of the contributions required to be made by the person for the year in respect of the contributions that remained unpaid at the expiration of the time the return was required to be filed, except that, if that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister may reduce the penalty to which the person is liable under this section or may remit the penalty in whole or in part.

• Marginal note:Idem

  (2) Every person who fails to file a return as required by subsection 30(3) is liable to a penalty of five dollars for each day of default, but not exceeding in all fifty dollars.

Marginal note:Application of Income Tax Act provisions

36 Subject to this Part and except as otherwise provided by regulation, the provisions of Divisions I and J of Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of Part XV (except section 221) and subsections 248(7) and (11) of that Act apply, with any modifications that the circumstances require, in relation to any amount paid or payable as or on account of the contributions for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act.

Marginal note:Priority in which payment to be applied

37 If any payment is made by a person to the Minister on account of taxes specified in section 228 of the Income Tax Act and of contributions under this Act in respect of self-employed earnings, despite any direction made by the person making the payment with respect to its application, the part of the payment that would be applied under that section in payment of tax under the Income Tax Act shall be applied in payment of the contributions under this Act and is deemed to be a payment on account of those contributions, and to the extent of the amount so applied shall not discharge liability for tax under the Income Tax Act, and any amount then remaining shall be applied in payment of tax under the Income Tax Act and shall discharge the liability of the person making the payment for that tax to the extent of that amount.

DIVISION EGeneral

Refunds of Overpayments

Marginal note:Refund of overpayment

• 38 (1) If an overpayment has been made by an employee on account of the employee’s contributions under this Act for a year, the Minister must, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year, refund to the employee the amount of the overpayment.

• Marginal note:Refund after decision on appeal

  (2) If an amount on account of contributions is deducted from the remuneration of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under section 27, 27.1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.

• Marginal note:Refund of excess — employee

  (3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contributions for the year required of the employee under section 8, the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year.

• Marginal note:Refund of amount remitted in excess — employer

  (3.1) Subject to subsection (3.2) but despite any other provision of this Part, if an employer applies to the Minister and satisfies the Minister that, for any year, the amount remitted by the employer as the employer’s contributions with respect to an employee exceeds the contributions for the year required of the employer under section 9 with respect to the employee, the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.

• Marginal note:No refund of employers’ contributions

  (3.2) No refund may be made of any contribution required to be made as an employer’s contribution under section 9.

• Marginal note:Refund — section 21.01 amounts

  (3.3) If an amount remitted by an employer is deemed under section 21.01 not to have been deducted, the Minister may refund that amount to the employer if the employer applies to the Minister for the refund within four years after the end of the year for which the amount was remitted.

• Marginal note:Refund of excess — self-employed person

  (4) If a person has paid, on account of the contributions required to be made by the person for a year in respect of the person’s self-employed earnings, an amount in excess of the contributions, the Minister

  • (a) may refund that part of the amount so paid in excess of the contributions on sending the notice of assessment of the contributions, without any application having been made for the refund; and

  • (b) must make such a refund after sending the notice of assessment, if application is made in writing by the contributor not later than four years — or, in the case of a contributor who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year.

• Marginal note:Refund after correction of record of earnings

  (4.1) Where an amount on account of a contribution is paid by a person in respect of self-employed earnings or is deducted from the remuneration of an employee and the Minister determines, taking into consideration an amendment made under section 97 to the Record of Earnings, that the amount paid or deducted is in excess of the amount required by this Act to be paid or deducted, the Minister may refund the excess.

• Marginal note:Recovery of amount refunded or credited on liability

  (5) If an application under this section has been made to the Minister for a refund of any amount deducted on account of an employee’s contributions for a year and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has refunded an amount to the employee, or applied an amount to a liability of the employee to Her Majesty in right of Canada, in excess of the amount that should have been refunded or applied, the amount of the excess may be recovered at any time from the employee as a debt due to Her Majesty.

• Marginal note:Application of refund to other debts

  (6) Instead of making a refund that might otherwise be made under this section, the Minister may, where the person to whom the refund is payable is liable or about to become liable to make any payment to Her Majesty in right of Canada, apply the amount of the refund to that liability and notify the person of that action.

• Marginal note:Interest on overpayments

  (7) If an amount in respect of an overpayment is refunded or applied under this Act to any other liability, interest shall be paid or applied on the amount at a prescribed rate per annum under the circumstances and for the period or periods determined as prescribed, except that

  • (a) no interest shall be paid or applied if the amount of the interest is less than one dollar; and

  • (b) no interest shall be paid or applied on an amount that is refundable under subsection (4.1).

• Marginal note:Non-application — subsection (7)

  (8) Subsection (7) does not apply in respect of an amount referred to in subsection (3.3) that is refunded or applied under this Act to any other liability.

Marginal note:Refund of overpayment in accordance with agreement

• 39 (1) Despite anything in this Act, if an overpayment has been made by an employee on account of the employee’s contributions for a year under this Act, the Minister may, in accordance with any agreement that may be entered into by the Minister with the approval of the Governor in Council with the appropriate authority of a province having the administration of the provincial pension plan referred to in subsection 8(2), if application in writing is made to the Minister by the employee not later than four years after the end of the year, refund to the employee the whole amount of the excess referred to in that subsection, in which case the whole of that amount is deemed to be an overpayment made by the employee on account of the employee’s contributions for that year under this Act.

• Marginal note:Saving

  (2) If, in accordance with any agreement entered into under subsection (1), the appropriate authority of a province has refunded to an employee the whole amount of the excess referred to in subsection 8(2) with respect to that employee, the whole of that amount is deemed to be an overpayment made by the employee on account of the employee’s contributions for that year under the provincial pension plan referred to in that subsection.

• Marginal note:Provision for making of financial adjustments

  (3) Any agreement entered into under subsection (1) may provide for the making of any financial adjustments required to be made by reason of any payments made to employees in accordance with that agreement and for the crediting or charging of the amount of those adjustments to the Canada Pension Plan Account or the Additional Canada Pension Plan Account, as the case may be.

Regulations

Marginal note:Regulations

• 40 (1) The Governor in Council may make regulations

  • (a) prescribing or providing anything that, by this Part, is to be prescribed or is to be provided by regulations;

  • (b) requiring any class of persons to file information returns respecting any class of information required in connection with contributions under this Act, including information respecting contributions of employees of any such persons identified by the province in which the employees were employed;

  • (c) requiring a person who is, by a regulation made under paragraph (b), required to file an information return to supply a copy of the return or a prescribed portion thereof to the person or persons in respect of whose contributions the return or portion thereof relates;

  • (d) prescribing a penalty not exceeding ten dollars a day for each day of default and not exceeding in all two hundred and fifty dollars to which a person who fails to comply with a regulation made under paragraph (b) or (c) shall be liable;

  • (e) defining the expressions agriculture, agricultural enterprise, employment of a casual nature, forestry, horticulture, fishing, hunting, international organization, logging, lumbering, trapping or working days for the purposes of this Act;

  • (f) respecting the manner in which any provision of this Act that applies or extends to an employer of an employee shall apply or extend to any person by whom the remuneration of an employee in respect of pensionable employment is paid either wholly or in part, and to the employer of any such employee;

  • (f.1) providing for the right of a person to whom a provision of this Act applies or extends by virtue of a regulation made under paragraph (f) to recover from the employer any amounts that the person becomes liable to pay by virtue of that regulation;

  • (g) specifying the circumstances in which and the conditions on which a person shall be deemed to be or have been, or not to be or have been, a member of the Canadian Forces or the Royal Canadian Mounted Police for the purposes of paragraph 6(2)(g);

  • (h) authorizing the Minister on behalf of the Government of Canada to enter into any agreement for giving effect to the provisions of paragraph 6(2)(h) or paragraph 7(1)(e) or (f);

  • (i) regulating the procedure to be followed in the determination by the Minister of questions under this Part;

  • (j) respecting the terms and conditions governing the making of refunds in accordance with any agreement under subsection 39(1) that may be entered into by the Minister on behalf of the Government of Canada; and

  • (k) generally for carrying out the purposes and provisions of this Part.

• (2) [Repealed, 1998, c. 19, s. 256]

• Marginal note:Effective date of regulations

  (3) A regulation made under paragraph (1)(a) prescribing rules referred to in subsection 21(1) shall have effect from the day it is published in the Canada Gazette or from such earlier or later day as may be specified in the regulation.

• Marginal note:Effective date of certain agreements

  (4) Any agreement for giving effect to the provisions of paragraph 6(2)(h) or 7(1)(f) that is entered into by the Minister pursuant to regulations made under paragraph (1)(h) has effect with reference to a period before it was entered into if the agreement provides for that effect.

Offences

Marginal note:Offence and punishment

• 41 (1) Every employer who fails to comply with subsection 21(1) or 23(3) is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to

  • (a) a fine not exceeding five thousand dollars; or

  • (b) both the fine described in paragraph (a) and imprisonment for a term not exceeding six months.

• Marginal note:Idem

  (2) Every person who fails to comply with or contravenes section 24 or 25 is guilty of an offence punishable on summary conviction.

• Marginal note:Idem

  (3) Every person who fails to comply with or contravenes section 30 or a regulation made under paragraph 40(1)(b) or (c) is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than twenty-five dollars a day for each day of default, but not exceeding in all one thousand dollars.

• Marginal note:Idem

  (4) Every person who

  • (a) makes, or participates in, assents to or acquiesces in the making of, false or deceptive statements in a return, certificate, statement or answer filed or made as required by or under this Part or a regulation,

  • (b) to evade payment of a contribution imposed by this Act, destroys, alters, mutilates, secretes or otherwise disposes of the records or books of account of an employer,

  • (c) makes, or assents to or acquiesces in the making of, false or deceptive entries, or omits, or assents to or acquiesces in the omission, to enter a material particular, in records or books of account of an employer,

  • (d) wilfully, in any manner, evades or attempts to evade, compliance with this Act or payment of contributions imposed by this Act, or

  • (e) conspires with any person to commit an offence described in any of paragraphs (a) to (d),

  is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to

  • (f) a fine of not less than twenty-five dollars and not more than five thousand dollars plus, in an appropriate case, an amount not exceeding double the amount of the contribution that should have been shown to be payable or that was sought to be evaded, or

  • (g) both the fine described in paragraph (f) and imprisonment for a term not exceeding six months.

• Marginal note:Saving provision

  (5) Where a person has been convicted under this section of failing to comply with subsection 21(1) or a regulation made under paragraph 40(1)(b) or (c), he is not liable to pay any penalty imposed under section 21 or under any regulation made under section 40 for the same failure unless he was assessed for that penalty or that penalty was demanded from him before the information or complaint giving rise to the conviction was laid or made.

• Marginal note:Information or complaint

  (6) An information or complaint under this section may be laid or made by any officer of the Canada Revenue Agency, a member of the Royal Canadian Mounted Police or any person thereunto authorized by the Minister and, where an information or complaint purports to have been laid or made under this section, it shall be deemed to have been laid or made by a person thereunto authorized by the Minister and shall not be called in question for lack of authority of the informant or complainant except by the Minister or a person acting for him or Her Majesty.

PART IIPensions and Supplementary Benefits

Interpretation

Marginal note:Definitions

• 42 (1) In this Part,

  basic number of contributory months

  basic number of contributory months, in the case of any contributor, means one hundred and twenty minus the number of months that were excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability; (nombre de base des mois cotisables)

  child

  child of a contributor means a child of the contributor, whether born before or after the contributor’s death, and includes

  • (a) an individual adopted legally or in fact by the contributor while the individual was under twenty-one years of age, and

  • (b) an individual in respect of whom, either legally or in fact, the contributor had, or immediately before the individual reached 21 years of age did have, parenting time or decision-making responsibility,

  but does not include a child of the contributor who is adopted legally or in fact by someone other than the contributor or the contributor’s spouse or common-law partner prior to the death or disability of the contributor, unless the contributor was maintaining the child, as defined by regulation; (enfant)

  decision-making responsibility

  decision-making responsibility has the same meaning as in subsection 2(1) of the Divorce Act; (responsabilités décisionnelles)

  dependent child

  dependent child of a contributor means a child of the contributor who

  • (a) is less than eighteen years of age,

  • (b) is eighteen or more years of age but less than twenty-five years of age and is in full-time attendance at a school or university as defined by regulation, or

  • (c) is a child other than a child described in paragraph (b), is eighteen or more years of age and is disabled, having been disabled without interruption since the time he reached eighteen years of age or the contributor died, whichever occurred later; (enfant à charge)

  disabled contributor’s child

  disabled contributor’s child or any form of that expression of like import means a dependent child of a contributor who is disabled, but does not include a dependent child described in paragraph (c) of the definition dependent child in this section; (enfant d’un cotisant invalide)

  family allowance recipient

  family allowance recipient means a person who received or is in receipt of an allowance or a family allowance pursuant to the Family Allowances Act, chapter F-1 of the Revised Statutes of Canada, 1970, as it read immediately before being repealed or the Family Allowances Act for that period prior to a child reaching seven years of age, and such other persons as may be prescribed by regulation; (bénéficiaire d’une allocation familiale)

  Maximum Pensionable Earnings Average

  Maximum Pensionable Earnings Average, in respect of a contributor for a year, means the average of the Year’s Maximum Pensionable Earnings for that year and

  • (a) where the year is before 1998 or the date of birth of the contributor is before January 1, 1933, the two previous years, or

  • (b) in any other case,

    • (i) where the year is 1998, the three previous years, and

    • (ii) where the year is after 1998, the four previous years; (maximum moyen des gains ouvrant droit à pension)

  Minister

  Minister means the Minister of Employment and Social Development; (ministre)

  orphan

  orphan of a contributor means a dependent child of a contributor who has died but does not include a dependent child described in paragraph (c) of the definition dependent child; (orphelin)

  parenting time

  parenting time means the time that a child spends in the care of a person who is a parent of the child, who stands in the place of a parent or who intends to stand in the place of a parent, whether or not the child is physically with that person during that entire time; (temps parental)

  substantially gainful

  substantially gainful, in respect of an occupation, has the meaning that may be prescribed; (véritablement rémunératrice)

  surviving spouse with dependent children

  surviving spouse with dependent children[Repealed, 2000, c. 12, s. 44]

  survivor

  survivor, in relation to a deceased contributor, means

  • (a) if there is no person described in paragraph (b), a person who was married to the contributor at the time of the contributor’s death, or

  • (b) a person who was the common-law partner of the contributor at the time of the contributor’s death; (survivant)

  survivor with dependent children

  survivor with dependent children means a survivor of a contributor who wholly or substantially maintains one or more dependent children of the contributor; (survivant avec enfant à charge)

  wholly or substantially

  wholly or substantially has such meaning as may be prescribed. (entièrement ou dans une large mesure)

• Marginal note:When person deemed disabled

  (2) For the purposes of this Act,

  • (a) a person shall be considered to be disabled only if he is determined in prescribed manner to have a severe and prolonged mental or physical disability, and for the purposes of this paragraph,

    • (i) a disability is severe only if by reason thereof the person in respect of whom the determination is made is incapable regularly of pursuing any substantially gainful occupation, and

    • (ii) a disability is prolonged only if it is determined in prescribed manner that the disability is likely to be long continued and of indefinite duration or is likely to result in death; and

  • (b) a person is deemed to have become or to have ceased to be disabled at the time that is determined in the prescribed manner to be the time when the person became or ceased to be, as the case may be, disabled, but in no case shall a person — including a contributor referred to in subparagraph 44(1)(b)(ii) — be deemed to have become disabled earlier than fifteen months before the time of the making of any application in respect of which the determination is made.

Pension Index

Marginal note:Pension Index for subsequent years

• 43 (1) Subject to subsection (2), the Pension Index for each year shall be calculated, in prescribed manner, as the average for the twelve month period ending October 31 in the preceding year of the Consumer Price Index for each month in that twelve month period.

• Marginal note:Exception

  (2) For any year for which the calculation required by subsection (1) yields a Pension Index that is less than the Pension Index for the preceding year, the Pension Index shall be taken to be the Pension Index for the preceding year.

• Marginal note:Where basis of Consumer Price Index is changed

  (3) Where at any time the Consumer Price Index is adjusted to reflect a new time basis or a new content basis with a resulting percentage adjustment being made in the figures for that Index, a corresponding percentage adjustment shall, at the time of the next calculation of the Pension Index, be made in all values then existing of the Pension Index.

DIVISION ABenefits Payable

Marginal note:Benefits payable

• 44 (1) Subject to this Part,

  • (a) a retirement pension shall be paid to a contributor who has reached sixty years of age;

  • (b) a disability pension shall be paid to a contributor who has not reached sixty-five years of age, to whom no retirement pension is payable, who is disabled and who

    • (i) has made base contributions for not less than the minimum qualifying period,

    • (ii) is a contributor to whom a disability pension would have been payable at the time the contributor is deemed to have become disabled if an application for a disability pension had been received before the contributor’s application for a disability pension was actually received, or

    • (iii) is a contributor to whom a disability pension would have been payable at the time the contributor is deemed to have become disabled if a division of unadjusted pensionable earnings that was made under section 55 or 55.1 had not been made;

    • (iv) [Repealed, 1997, c. 40, s. 69]

  • (c) a death benefit shall be paid to the estate or succession of a deceased contributor who has made base contributions for not less than the minimum qualifying period;

  • (d) a survivor’s pension shall be paid

    • (i) before 2019, to the survivor of a deceased contributor who has made base contributions for not less than the minimum qualifying period, if the survivor

      • (A) has reached 65 years of age, or

      • (B) in the case of a survivor who has not reached 65 years of age,

        • (I) had at the time of the death of the contributor reached 35 years of age,

        • (II) was at the time of the death of the contributor a survivor with dependent children, or

        • (III) is disabled, and

    • (ii) after 2018, to the survivor of a deceased contributor who has made base contributions for not less than the minimum qualifying period;

  • (e) a disabled contributor’s child’s benefit shall be paid to each child of a disabled contributor who

    • (i) has made base contributions for not less than the minimum qualifying period,

    • (ii) is a contributor to whom a disability pension or a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if an application for a disability pension or a post-retirement disability benefit had been received before the application was actually received, or

    • (iii) is a contributor to whom a disability pension or a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if a division of unadjusted pensionable earnings that was made under section 55 or 55.1, had not been made;

    • (iv) [Repealed, 1997, c. 40, s. 69]

  • (f) an orphan’s benefit shall be paid to each orphan of a deceased contributor who has made base contributions for not less than the minimum qualifying period;

  • (g) a post-retirement benefit shall be paid to a beneficiary of a retirement pension under this Act or under a provincial pension plan who has made a contribution in respect of the post-retirement benefit; and

  • (h) a post-retirement disability benefit shall be paid to a beneficiary of a retirement pension who has not reached 65 years of age and is disabled if

    • (i) the beneficiary has made base contributions for not less than the minimum qualifying period and that period ends after 2018,

    • (ii) the beneficiary is a contributor to whom a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if an application for a post-retirement disability benefit had been received before the application was actually received, or

    • (iii) the beneficiary is a contributor to whom a post-retirement disability benefit would have been payable at the time the contributor is deemed to have become disabled if a division of unadjusted pensionable earnings that was made under section 55 or 55.1 had not been made.

• (1.1) [Repealed, 2018, c. 12, s. 372]

• Marginal note:Calculation of minimum qualifying period in case of disability pension and disabled contributor’s child’s benefit

  (2) For the purposes of paragraph (1)(b) and, if a disability pension is payable to a contributor, paragraph (1)(e),

  • (a) a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during the contributor’s contributory period on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),

    • (i) for at least four of the last six calendar years included either wholly or partly in the contributor’s contributory period or, where there are fewer than six calendar years included either wholly or partly in the contributor’s contributory period, for at least four years,

    • (i.1) for at least 25 calendar years included either wholly or partly in the contributor’s contributory period, of which at least three are in the last six calendar years included either wholly or partly in the contributor’s contributory period, or

    • (ii) for each year after the month of cessation of the contributor’s previous disability benefit; and

  • (b) the contributory period of a contributor shall be the period

    • (i) commencing January 1, 1966 or when he reaches eighteen years of age, whichever is the later, and

    • (ii) ending with the month in which he is determined to have become disabled for the purpose of paragraph (1)(b),

    but excluding

    • (iii) any month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, and

    • (iv) 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 are less than the basic exemption of the contributor for the year, calculated without regard to subsection 20(2).

• Marginal note:Proration — late applications for disability pensions

  (2.1) For the purpose of determining the minimum qualifying period of a contributor referred to in subparagraph (1)(b)(ii), the basic exemption for the year in which they would have been considered to have become disabled, and in which the base unadjusted pensionable earnings are less than the relevant Year’s Basic Exemption for that year, is an amount equal to that proportion of the amount of that Year’s Basic Exemption that the number of months that would not have been excluded from the contributory period by reason of disability is of 12.

• Marginal note:Family allowance — late applications for disability pensions

  (2.2) A contributor referred to in subparagraph (1)(b)(ii) is deemed to have made base contributions for not less than the minimum qualifying period for the purpose of subparagraph (1)(b)(i) if

  • (a) they became disabled in a month in which they were a family allowance recipient;

  • (b) in the year in which they became disabled

    • (i) the child in respect of which they were a family allowance recipient reached seven years of age, and

    • (ii) their base unadjusted pensionable earnings were less than their basic exemption, calculated without regard to subsection 20(2); and

  • (c) in the absence of this subsection, a disability pension would not be payable to them, but had they become disabled in the year immediately before the year in which they became disabled, a disability pension would have been payable to them under subparagraph (1)(b)(ii).

• Marginal note:Calculation for other supplementary benefits

  (3) For the purposes of paragraphs (1)(c), (d) and (f), a contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during their contributory period

  • (a) for at least one third of the total number of years included either wholly or partly within their contributory period, excluding from the calculation of that contributory period any month in a year after the year in which the contributor reaches 65 years of age and for which the contributor’s base unadjusted pensionable earnings were equal to or less than the contributor’s basic exemption for that year, but in no case for less than three years; or

  • (b) for at least ten years.

• Marginal note:Calculation of minimum qualifying period — post-retirement disability benefit

  (4) For the purposes of paragraph (1)(h) and, if a post-retirement disability benefit is payable to a contributor, paragraph (1)(e), the contributor is deemed to have made base contributions for not less than the minimum qualifying period only if the contributor has made base contributions during their contributory period on earnings that are not less than the contributor’s basic exemption, calculated without regard to subsection 20(2),

  • (a) for at least four of the last six calendar years included either wholly or partly in the contributor’s contributory period;

  • (b) for at least 25 calendar years included either wholly or partly in the contributor’s contributory period, of which at least three are in the last six calendar years included either wholly or partly in the contributor’s contributory period; or

  • (c) for each year after the month of cessation of the contributor’s previous disability pension or post-retirement disability benefit.

• Marginal note:Contributory period — post-retirement disability benefit

  (5) For the purposes of subsection (4), the contributory period of a contributor is the period

  • (a) commencing when they reach 18 years of age, and

  • (b) ending with the month in which they are determined to have become disabled for the purpose of paragraph (1)(h),

  but excluding

  • (c) any month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, and

  • (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 are less than the contributor’s basic exemption for the year, calculated without regard to subsection 20(2).

Marginal note:Survivor’s pension, death benefit or orphan’s benefit not payable

• 44.1 (1) Despite section 44, a survivor’s pension, death benefit or orphan’s benefit is not payable to an individual in the following circumstances:

  • (a) in the case of the survivor’s pension, the individual who otherwise would have been entitled to receive the survivor’s pension as a result of the death of the contributor is not so entitled if the Minister is informed and satisfied that the individual has been convicted of first or second degree murder or manslaughter of the contributor;

  • (b) in the case of the death benefit, the individual who otherwise would have been entitled to receive the death benefit under section 71 as a result of the death of the contributor is not so entitled if the Minister is informed and satisfied that the individual has been convicted of first or second degree murder or manslaughter of the contributor; and

  • (c) in the case of the orphan’s benefit, the individual who otherwise would have been entitled to receive the orphan’s benefit as a result of the death of the contributor is not so entitled if the Minister is informed and satisfied that the individual

    • (i) has been convicted of first or second degree murder or manslaughter of the contributor,

    • (ii) has received an adult sentence for that murder or manslaughter, and

    • (iii) is 18 years of age or older.

• Marginal note:Conviction reversed

  (2) If the Minister is informed and satisfied that an individual’s conviction for first or second degree murder or manslaughter of the contributor has been reversed, the charges have been withdrawn or the proceedings were stayed and not recommenced within the required time period and that all rights of appeal have been exhausted, the individual’s entitlement to the pension or benefit to which they would otherwise have been entitled under this Act shall be reinstated and any amount recovered from the individual shall be repaid.

• Marginal note:Conviction outside Canada

  (3) If an individual has been convicted by a court outside Canada in respect of an offence that, if it had been committed in Canada, would have constituted first or second degree murder or manslaughter, the Minister may deem that conviction to be a conviction of first or second degree murder or manslaughter for the purposes of this section.

• Marginal note:Recovery of pension or benefits

  (4) An individual who has received a pension or benefit referred to in this section and in respect of whom the Minister is subsequently informed and satisfied that the individual has been convicted of first or second degree murder or manslaughter of the contributor shall be deemed not to have been entitled to receive such pension or benefit, which shall constitute a debt due to Her Majesty under section 66 and the Minister shall recover those amounts, including any amounts paid before the date of the individual’s conviction.

• Marginal note:Conviction prior to coming into force

  (5) For greater certainty, this section applies in respect of any first or second degree murder or manslaughter conviction of which the Minister is informed before, on or after the coming into force of this section.

• Marginal note:Definition of first or second degree murder

  (6) For the purpose of this section, first or second degree murder means murder within the meaning of section 231 of the Criminal Code.

• Marginal note:Definition of manslaughter

  (7) For the purpose of this section, manslaughter means manslaughter within the meaning of the Criminal Code.

• Marginal note:Exception — probation order

  (8) This section does not apply to an individual who is convicted of manslaughter if the individual is released on the conditions prescribed in a probation order under paragraph 731(1)(a) of the Criminal Code.

DIVISION BCalculation of Benefits

Basic Amount and Annual Adjustment

Marginal note:Basic amount of benefit

• 45 (1) A reference in this Part to the basic amount of any benefit shall be construed as a reference to the amount thereof calculated as provided in this Part without regard to subsection (2).

• Marginal note:Annual adjustments

  (2) Where any benefit has become payable commencing with a month in any year, the basic monthly amount of the benefit shall be adjusted annually, in prescribed manner, so that the amount payable for a month in any following year is an amount equal to the product obtained by multiplying

  • (a) the amount that would have been payable for that month if no adjustment had been made under this section with respect to that following year,

  by

  • (b) the ratio that the Pension Index for that following year bears to the Pension Index for the year preceding that following year.

Retirement Pension

Marginal note:Amount of retirement pension

• 46 (1) Subject to this section, a retirement pension payable to a contributor is a basic monthly amount equal to the aggregate of

  • (a) 25% of their average monthly pensionable earnings,

  • (b) 8.33% of their first additional monthly pensionable earnings, and

  • (c) 33.33% of their second additional monthly pensionable earnings.

• Marginal note:Special case

  (2) Subject to this section, the portion referred to in paragraph (1)(a) of the basic monthly amount of a retirement pension payable to a former disability pension recipient in respect of whom a division under section 55 or 55.1 is approved either before or after the commencement of the retirement pension, if the division reduces the retirement pension otherwise payable, is calculated by dividing

  • (a) the aggregate of

    • (i) the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(a) that would be payable to the contributor had their base unadjusted pensionable earnings not been subject to the division, multiplied by the number of months that have been excluded from the contributor’s contributory period by reason of disability, and

    • (ii) the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(a) that would be payable following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with section 49

  by

  • (b) the aggregate of

    • (i) the number of months that have been excluded from the contributor’s contributory period by reason of disability, and

    • (ii) the number of months in the contributor’s contributory period calculated in accordance with section 49.

• Marginal note:Upward or downward adjustment factor — up to 2010

  (3) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 1986 and before January 1, 2011 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed by the Minister, on the advice of the Chief Actuary of the Office of the Superintendent of Financial Institutions, to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years.

• Marginal note:Upward or downward adjustment factor — after 2010

  (3.1) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 2010 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed under subsection (7).

• Marginal note:Exception if division of unadjusted pensionable earnings increases retirement pension

  (4) Subject to subsection (5), if, as a result of a division of unadjusted pensionable earnings under section 55 or 55.1, a retirement pension that was payable increases, the adjustment factor applicable after the increase to the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, instead of the adjustment factor referred to in subsection (3) or (3.1), as the case may be, shall be determined by the formula

  [(F1 × P1) + (F2 × E)] / P2

  where

  F1

  is an amount equal to the adjustment factor referred to in subsection (3) or (3.1), as the case may be, at the time the retirement pension first became payable;

  P1

  is the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, before the division;

  F2

  is the lesser of

  • (a) an amount equal to what the adjustment factor referred to in subsection (3) or (3.1), as the case may be, would have been if the retirement pension had commenced in the month in which the increase commences to be payable, and

  • (b) 1;

  E

  is equal to the excess of P2 over P1; and

  P2

  is the basic monthly amount of the retirement pension immediately following the division.

• Marginal note:Exception if survivor’s pension reduced

  (5) Unless otherwise provided by an agreement under section 80, if a person receives a retirement pension under this Act and a survivor’s pension under this Act and the survivor’s pension is at any time reduced from its full amount under subsection 58(2), any downward adjustment factor resulting from the application of subsection (3), (3.1) or (4) at that time shall not be applied to the whole of the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, but only to the amount remaining when that basic monthly amount is reduced by the product obtained by multiplying

  • (a) the amount by which the survivor’s pension has been reduced

  by

  • (b) the ratio that the Pension Index for the year in which the retirement pension first commenced to be payable bears to the Pension Index for the year in which the survivor’s pension is reduced.

• Marginal note:Exception if division after age 65 precedes commencement of retirement pension

  (6) If, after a person has reached 65 years of age but before the person commences to receive a retirement pension, a division of unadjusted pensionable earnings takes place under section 55 or 55.1 in respect of that person, the upward adjustment factor referred to in subsection (3) or (3.1), as the case may be, to be applied to any increase in the retirement pension that is attributable to the division shall be based on the time interval between the taking place of the division and the commencement of the retirement pension, and shall not take into account the time interval between the month in which the person reaches 65 years of age and the month in which the division takes place.

• Marginal note:Regulations

  (7) For the purposes of subsection (3.1), the Governor in Council may make regulations fixing one or more adjustment factors or the methods of calculating them — including factors or methods that may apply on specified dates — to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years.

• Marginal note:Condition

  (8) The Governor in Council may only make regulations under subsection (7) or repeal them on the recommendation of the Minister of Finance and only if the lieutenant governor in council of each of at least two thirds of the included provinces, as defined in subsection 114(1), having in total not less than two thirds of the population of all of the included provinces, has signified the consent of that province to the making or repeal of the regulations.

• Marginal note:Amendment

  (9) Regulations made under subsection (7) may only be amended in accordance with subsection 113.1(14).

Marginal note:Amount of average monthly pensionable earnings

47 Where a retirement pension becomes payable to a contributor commencing with any month before January, 1976, his average monthly pensionable earnings are an amount calculated by dividing his total pensionable earnings by the basic number of contributory months.

Marginal note:Average monthly pensionable earnings in case of pension commencing after December, 1975

• 48 (1) Subject to subsections (2), (3) and (4), where a retirement pension becomes payable to a contributor commencing with any month after December, 1975, his average monthly pensionable earnings are an amount calculated by dividing his total pensionable earnings by the total number of months in his contributory period or by the basic number of contributory months, whichever is the greater.

• Marginal note:Deductions in calculating average monthly pensionable earnings of certain months during child raising years

  (2) In calculating the average monthly pensionable earnings of a contributor in accordance with subsection (1) for the purpose of calculating or recalculating benefits payable for a month commencing on or after January 1, 1978, there may be deducted

  • (a) from the total number of months in a contributor’s contributory period, those months during which he was a family allowance recipient and during which his pensionable earnings were less than his average monthly pensionable earnings calculated without regard to subsections (3) and (4), but no such deduction shall reduce the number of months in his contributory period to less than the basic number of contributory months, except

    • (i) for the purpose of calculating a disability benefit in respect of a contributor who is deemed to have become disabled for the purposes of this Act after December 31, 1997, in which case the words “the basic number of contributory months” shall be read as “48 months”,

    • (i.1) for the purpose of calculating a disability benefit in respect of a contributor who is deemed to have become disabled for the purposes of this Act in 1997, in which case the words “the basic number of contributory months” shall be read as “24 months”, and

    • (ii) for the purpose of calculating a death benefit and a survivor’s pension, in which case the words “the basic number of contributory months” shall be read as “thirty-six months”; and

  • (b) from his total pensionable earnings, the aggregate of his pensionable earnings attributable to the months deducted pursuant to paragraph (a).

• Marginal note:Deductions allowed where contributory period ends after age 65

  (3) Where a contributor’s contributory period ends after the month preceding the month in which he reaches sixty-five years of age and the total number of months in his contributory period remaining after the deduction under paragraph (2)(a) exceeds the basic number of contributory months, in calculating his average monthly pensionable earnings in accordance with subsection (1) there shall be deducted

  • (a) from the total number of months remaining in his contributory period, the number of months therein after he reached sixty-five years of age or by which the total exceeds the basic number of contributory months, whichever is the lesser; and

  • (b) from the contributor’s total pensionable earnings remaining after the deduction under paragraph (2)(b), the aggregate of the contributor’s pensionable earnings for a number of months equal to the number of months deducted under paragraph (a), for which months that aggregate is less than — or, if not less than, then equal to — the aggregate of the contributor’s pensionable earnings for any other like number of months in the contributor’s contributory period other than for months for which a deduction has already been made under subsection (2).

• Marginal note:Deductions allowed where number of months remaining exceeds 120

  (4) Where the number of months remaining after making any deduction under subsection (2) or (3) from the total number of months in the contributory period of a contributor exceeds one hundred and twenty, in calculating his average monthly pensionable earnings in accordance with subsection (1) there shall be deducted

  • (a) from the number of months remaining, a number of months equal to the lesser of

    • (i) subject to subsection (5), if the retirement pension or other benefit becomes payable commencing with a month before January 2012, fifteen per cent of the number remaining — and sixteen per cent commencing with a month after December 2011 and before January 2014 and seventeen per cent commencing with a month after December 2013 — and, if that per cent includes a fraction of a month, the fraction shall be taken to be a complete month, and

    • (ii) the number of months by which the number remaining exceeds one hundred and twenty; and

  • (b) from the contributor’s total pensionable earnings remaining after making any deduction under subsection (2) or (3), the aggregate of the contributor’s pensionable earnings for a number of months equal to the number of months deducted under paragraph (a), for which months that aggregate is less than — or, if not less than, then equal to — the contributor’s aggregate pensionable earnings for any like number of months in the contributor’s contributory period other than for months for which a deduction has already been made under subsection (2) or (3).

• Marginal note:Exception — same percentage

  (5) The percentage used in a calculation of the amount of average monthly pensionable earnings under subsection (4) is to be used in the calculation of other benefits based on that amount.

Marginal note:First additional monthly pensionable earnings

48.1 The first additional monthly pensionable earnings of a contributor 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

48.2 The second additional monthly pensionable earnings of a contributor 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:Contributory period

49 The contributory period of a contributor is the period commencing January 1, 1966 or when he reaches eighteen years of age, whichever is the later, and ending

• (a) where a benefit other than a disability pension commences before the end of 1986, when he reaches sixty-five years of age, or if he makes a contribution for earnings after he reaches sixty-five years of age, with the month for which he last made such a contribution, and in any case not later than the month in which he dies, or

• (b) where a benefit other than a disability pension or a post-retirement disability benefit commences after the end of 1986, with the earliest of

  • (i) the month preceding the month in which he reaches seventy years of age,

  • (ii) the month in which he dies, or

  • (iii) the month preceding the month in which the retirement pension commences,

but excluding

• (c) any month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, and

• (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:First additional contributory period

49.1 The first additional contributory period of a contributor is the period commencing January 1, 2019 or when they reach 18 years of age, whichever is the later, and ending with the earliest of

• (a) the month preceding the month in which they reach 70 years of age,

• (b) the month in which they die, and

• (c) the month preceding the month in which the retirement pension commences.

Marginal note:Second additional contributory period

49.2 The second additional contributory period of a contributor is the period commencing January 1, 2024 or when they reach 18 years of age, whichever is the later, and ending with the earliest of

• (a) the month preceding the month in which they reach 70 years of age,

• (b) the month in which they die, and

• (c) the month preceding the month in which the retirement pension commences.

Marginal note:Total pensionable earnings

50 The total pensionable earnings of a contributor are the total for all months in his contributory period of his pensionable earnings for each month calculated as provided in section 51.

Marginal note:Total first additional pensionable earnings

50.1 The total first additional pensionable earnings of a contributor are the total for all months in their first additional contributory period of their first additional pensionable earnings for each month calculated as provided in section 51.

Marginal note:Total second additional pensionable earnings

50.2 The total second additional pensionable earnings of a contributor are the total for all months in their second additional contributory period of their second additional pensionable earnings for each month calculated as provided in section 51.

Marginal note:Pensionable earnings, or first or second additional pensionable earnings, for month

• 51 (1) The pensionable earnings, first additional pensionable earnings or second additional pensionable earnings, as the case may be, of a contributor for a month (in this subsection referred to as the “particular month”) are an amount determined by the formula

  A × B

  where

  A

  is

  • (a) in the case of pensionable earnings, earnings for which the contributor is deemed by section 52 to have made a base contribution for the particular month;

  • (b) in the case of first additional pensionable earnings, earnings for which the contributor is deemed by section 52.1 to have made a first additional contribution for the particular month, except in the case where the contributor is considered to be disabled for the purposes of this Act or a provincial pension plan during the particular month, for the calculation of a pension or benefit other than a disability pension, the greatest of the following amounts:

    • (i) the value determined in accordance with section 51.1 multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12,

    • (ii) the highest of any value determined in accordance with section 51.1 for any of the 72 months before the month in which the contributor was deemed to have become disabled, multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12, and

    • (iii) the earnings for which the contributor is deemed by section 52.1 to have made a first additional contribution for the particular month; or

  • (c) in the case of second additional pensionable earnings, earnings for which the contributor is deemed by section 52.2 to have made a second additional contribution for the particular month except in the case where the contributor is considered to be disabled for the purposes of this Act or a provincial pension plan during the particular month, for the calculation of a pension or benefit other than a disability pension, the greatest of the following amounts:

    • (i) the value determined in accordance with section 51.2 multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12,

    • (ii) the highest of any value determined in accordance with section 51.2 for any of the 72 months before the month in which the contributor was deemed to have become disabled, multiplied by the Year’s Maximum Pensionable Earnings for the year that includes the particular month, divided by 12, and

    • (iii) the earnings for which the contributor is deemed by section 52.2 to have made a second additional contribution for the particular month; and

  B

  is

  • (a) where the contributor was born after December 31, 1932 and the contributor’s retirement pension did not commence before January 1, 1998 and, after the contributor’s 60th birthday, a month was excluded from the contributor’s contributory period by reason of disability, the product determined by the formula

    (C/D) × (E/F)

    where

    C

    is the contributor’s Maximum Pensionable Earnings Average for the year in which a benefit first became payable to the contributor under this Act or a provincial pension plan that caused a month after the contributor’s 60th birthday to be excluded from the contributor’s contributory period by reason of disability,

    D

    is the Year’s Maximum Pensionable Earnings for the year that includes the particular month,

    E

    is the Pension Index for the year in which a benefit becomes payable to the contributor under this Act or a provincial pension plan, and

    F

    is the Pension Index for the year referred to in the description of C, and

  • (b) in any other case, the ratio

    G/D

    where

    G

    is the Maximum Pensionable Earnings Average in respect of the contributor for the year in which a benefit becomes payable to the contributor under this Act or under a provincial pension plan, and

    D

    is as described in paragraph (a).

• Marginal note:First additional pensionable earnings — 2019 to 2022

  (1.1) Despite subsection (1), the first additional pensionable earnings of a contributor for a month are an amount calculated as provided in subsection (1) multiplied

  • (a) for 2019, by 0.15;

  • (b) for 2020, by 0.3;

  • (c) for 2021, by 0.5; and

  • (d) for 2022, by 0.75.

• Marginal note:Exception

  (2) For the purposes of subsection (1), in the case of pensionable earnings, if the year referred to in the description of C is 1987 or earlier, the Maximum Pensionable Earnings Average for the year is calculated as if the Year’s Maximum Pensionable Earnings for a particular year before 1986 were calculated as the greatest multiple of $100 that is equal to or less than an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1986, which are $25,800, by the ratio

  A/B

  where

  A

  is the average for the twelve month period ending on June 30 of the year preceding that particular year of the average weekly wages and salaries of the Industrial Composite in Canada as published by Statistics Canada for each month in that period, and

  B

  is the average for the twelve month period ending on June 30, 1985 of the average weekly wages and salaries of the Industrial Composite in Canada as published by Statistics Canada for each month in that period.

• Marginal note:Pension Index before 1974

  (3) For the purposes of subsection (1), in the case of pensionable earnings, if the beginning of a period that is excluded from the contributor’s contributory period by reason of disability is in a year before 1974, in calculating the Pension Index for the year in which that period begins, paragraph 43.1(2)(a) of the Canada Pension Plan, R.S.C. 1970, c. C-5, as amended by section 24 of chapter 4 of the Statutes of Canada, 1974-75-76, is to be read without reference to the words “or 1.02 times the Pension Index for the preceding year, whichever is the lesser”.

Marginal note:Value determined — disabled contributor’s first additional contributory period

• 51.1 (1) For each month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, a value shall be determined by the formula

  [[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F) + (M7 × G)]/R] × 0.7

  where

  A

  is, in respect of the sixth year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the first additional unadjusted pensionable earnings of the contributor for that sixth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that sixth year;

  B

  is, in respect of the fifth year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the first additional unadjusted pensionable earnings of the contributor for that fifth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that fifth year;

  C

  is, in respect of the fourth year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the first additional unadjusted pensionable earnings of the contributor for that fourth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that fourth year;

  D

  is, in respect of the third year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the first additional unadjusted pensionable earnings of the contributor for that third year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that third year;

  E

  is, in respect of the second year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the first additional unadjusted pensionable earnings of the contributor for that second year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that second year;

  F

  is, in respect of the year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the first additional unadjusted pensionable earnings of the contributor for that prior year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that prior year;

  G

  is, in respect of the year in which they were deemed to have become disabled, the greater of

  • (a) the lesser of 1 and the number determined by the formula

    H/[I × (M7/12)]

    where

    H

    is the first additional unadjusted pensionable earnings for that year, and

    I

    is the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that year;

  M1

  is the lesser of

  • (a) the number of months in the contributor’s first additional contributory period in the sixth year before the year in which they were deemed to have become disabled, and

  • (b) the number of months determined by the formula

    12 − M7

  M2

  is the number of months in the contributor’s first additional contributory period in the fifth year before the year in which they were deemed to have become disabled;

  M3

  is the number of months in the contributor’s first additional contributory period in the fourth year before the year in which they were deemed to have become disabled;

  M4

  is the number of months in the contributor’s first additional contributory period in the third year before the year in which they were deemed to have become disabled;

  M5

  is the number of months in the contributor’s first additional contributory period in the second year before the year in which they were deemed to have become disabled;

  M6

  is the number of months in the contributor’s first additional contributory period in the year before the year in which they were deemed to have become disabled;

  M7

  is the number of months in the contributor’s first additional contributory period in the year in which they were deemed to have become disabled that are before the month following the month in which they were deemed to have become disabled; and

  R

  is the greater of 1 and the number of months determined by the formula

  M1 + M2 + M3 + M4 + M5 + M6 + M7

• Marginal note:Year in which first additional contributory period begins

  (2) For the purposes of the descriptions of A to F in subsection (1), if the contributor’s first additional contributory period begins in the six years before the year in which they were deemed to have become disabled, the Year’s Maximum Pensionable Earnings for the year in which their first additional contributory period begins is replaced by the prorated portion determined by the formula

  A × (M ÷ 12)

  where

  A

  is the Year’s Maximum Pensionable Earnings for the year in which the contributor’s first additional contributory period begins; and

  M

  is the number of months in that year that are included in the contributor’s first additional contributory period.

Marginal note:Value determined — disabled contributor’s second additional contributory period

• 51.2 (1) For each month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, a value shall be determined by the formula

  [[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F) + (M7 × G)]/R] × 0.7

  where

  A

  is, in respect of the sixth year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that sixth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that sixth year;

  B

  is, in respect of the fifth year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that fifth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that fifth year;

  C

  is, in respect of the fourth year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that fourth year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that fourth year;

  D

  is, in respect of the third year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that third year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that third year;

  E

  is, in respect of the second year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that second year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that second year;

  F

  is, in respect of the year before the year in which they were deemed to have become disabled, the greater of

  • (a) a ratio calculated by dividing the second additional unadjusted pensionable earnings of the contributor for that prior year by the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that prior year;

  G

  is, in respect of the year in which they were deemed to have become disabled, the greater of

  • (a) the lesser of 1 and the number determined by the formula

    H/[I × (M7/12)]

    where

    H

    is the second additional unadjusted pensionable earnings for that year, and

    I

    is the Year’s Maximum Pensionable Earnings for that year, and

  • (b) any value that was determined in accordance with this section for a month in that year;

  M1

  is the lesser of

  • (a) the number of months in the contributor’s second additional contributory period in the sixth year before the year in which they were deemed to have become disabled, and

  • (b) the number of months determined by the formula

    12 − M7

  M2

  is the number of months in the contributor’s second additional contributory period in the fifth year before the year in which they were deemed to have become disabled;

  M3

  is the number of months in the contributor’s second additional contributory period in the fourth year before the year in which they were deemed to have become disabled;

  M4

  is the number of months in the contributor’s second additional contributory period in the third year before the year in which they were deemed to have become disabled;

  M5

  is the number of months in the contributor’s second additional contributory period in the second year before the year in which they were deemed to have become disabled;

  M6

  is the number of months in the contributor’s second additional contributory period in the year before the year in which they were deemed to have become disabled;

  M7

  is the number of months in the contributor’s second additional contributory period in the year in which they were deemed to have become disabled that are before the month following the month in which they were deemed to have become disabled; and

  R

  is the greater of 1 and the number of months determined by the formula

  M1 + M2 + M3 + M4 + M5 + M6 + M7

• Marginal note:Year in which second additional contributory period begins

  (2) For the purposes of the descriptions of A to F in subsection (1), if the contributor’s second additional contributory period begins in the six years before the year in which they were deemed to have become disabled, the Year’s Maximum Pensionable Earnings for the year in which their second additional contributory period begins is replaced by the prorated portion determined by the formula

  A × (M ÷ 12)

  where

  A

  is the Year’s Maximum Pensionable Earnings for the year in which the contributor’s second additional contributory period begins; and

  M

  is the number of months in that year that are included in the contributor’s second additional contributory period.

Marginal note:Time when contributor deemed disabled

51.3 For the purposes of sections 51.1 and 51.2 and despite paragraph 42(2)(b), a contributor is deemed to have become disabled at the time that is determined in the prescribed manner to be the time when the contributor became disabled, without regard to the time when their application was made.

Marginal note:Earnings for which base contribution deemed to have been made for month

• 52 (1) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which they have made a base contribution, the base contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their base unadjusted pensionable earnings for the year by 12, except that

  • (a) for a year in which the contributor reaches 18 years of age or in which a disability pension ceases to be payable to them under this Act or under a provincial pension plan, the base contribution is deemed to have been made for earnings for the months in the year after they reached that age or after the pension ceased to be payable, as the case may be, and

  • (b) for a year in which the contributor reaches 70 years of age or dies, in which a retirement pension becomes payable to them under this Act or under a provincial pension plan or in which any month is excluded from their contributory period under this Act or under a provincial pension plan by reason of disability, the base contribution is deemed to have been made for earnings for the months in the year before the contributor reached 70 years of age or died, before the retirement pension became payable or that were not so excluded, as the case may be.

  If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a base contribution for each such month are an amount calculated by dividing the contributor’s base unadjusted pensionable earnings for that year by the number of those months.

• Marginal note:If no base contribution made

  (2) For the purpose of calculating the pensionable earnings of a contributor for a month in any year for which the contributor made no base contribution, the amount of the earnings for which a base contribution is deemed to have been made for any month in the year is deemed to be zero.

• Marginal note:When base contribution deemed to have been made

  (3) For the purposes of this Part,

  • (a) a contributor is deemed to have made a base contribution for any year for which their base unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no base contribution for any year for which their base unadjusted pensionable earnings do not exceed their basic exemption for the year; and

  • (b) a contributor is deemed to have made a base contribution for earnings for any month for which a base contribution is deemed by subsection (1) to have been made by them.

Marginal note:Earnings for which first additional contribution deemed for month

• 52.1 (1) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which they have made a first additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their first additional unadjusted pensionable earnings for the year by 12, except that

  • (a) for a year in which the contributor reaches 18 years of age, the first additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and

  • (b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the first additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.

  If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a first additional contribution for each such month are an amount calculated by dividing their first additional unadjusted pensionable earnings for that year by the number of those months.

• Marginal note:If no first additional contribution made

  (2) For the purpose of calculating the first additional pensionable earnings of a contributor for a month in any year for which the contributor made no first additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.

• Marginal note:When first additional contribution deemed to have been made

  (3) For the purposes of this Part,

  • (a) a contributor is deemed to have made a first additional contribution for any year for which their first additional unadjusted pensionable earnings exceed their basic exemption for the year, and is deemed to have made no first additional contribution for any year for which their first additional unadjusted pensionable earnings do not exceed their basic exemption for the year; and

  • (b) a contributor is deemed to have made a first additional contribution for earnings for any month for which a first additional contribution is deemed by subsection (1) to have been made by them.

Marginal note:Earnings for which second additional contribution deemed for month

• 52.2 (1) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which they have made a second additional contribution, that contribution is deemed to have been made for all months in the year, and the earnings for which the contributor is deemed to have made that contribution for each month in the year are an amount calculated by dividing their second additional unadjusted pensionable earnings for the year by 12, except that

  • (a) for a year in which the contributor reaches 18 years of age, the second additional contribution is deemed to have been made for earnings for the months in the year after they reached that age; and

  • (b) for a year in which the contributor reaches 70 years of age or dies or in which a retirement pension becomes payable to them under this Act or under a provincial pension plan, the second additional contribution is deemed to have been made for earnings for the months in the year before they reached 70 years of age or died or before the retirement pension became payable, as the case may be.

  If paragraph (a) or (b) applies, the earnings for which the contributor is deemed to have made a second additional contribution for each such month are an amount calculated by dividing their second additional unadjusted pensionable earnings for that year by the number of those months.

• Marginal note:If no second additional contribution made

  (2) For the purpose of calculating the second additional pensionable earnings of a contributor for a month in any year for which the contributor made no second additional contribution, the amount of the earnings for which that contribution is deemed to have been made for any month in the year is deemed to be zero.

• Marginal note:When second additional contribution deemed to have been made

  (3) For the purposes of this Part, a contributor is deemed to have made a second additional contribution for earnings for any month for which a second additional contribution is deemed by subsection (1) to have been made by them.

Marginal note:Base unadjusted pensionable earnings for a year

• 53 (1) Subject to section 54, the base unadjusted pensionable earnings of a contributor for a year are an amount equal to

  • (a) the aggregate of

    • (i) his contributory salary and wages for the year, and

    • (ii) his contributory self-employed earnings for the year in the case of an individual described in section 10,

  • (b) the aggregate of

    • (i) the contributor’s earnings on which a base contribution has been made for the year under this Act, calculated as the aggregate of

      • (A) the contributor’s salary and wages on which a base contribution has been made for the year, and

      • (B) the amount of any base contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the contribution rate for self-employed persons for the year,

    • (ii) the contributor’s earnings on which a base 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 the contributor’s salary and wages on which a base contribution has been made for the year by the contributor under a provincial pension plan, and

      • (B) the amount of any base 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 contribution rate for self-employed persons for the year, and

    • (iii) his basic exemption for the year, or

  • (c) his maximum pensionable earnings for the year,

  whichever is the least, except that if the amount calculated as provided in paragraph (a) is equal to or less than the amount of the contributor’s basic exemption for the year, the contributor’s base unadjusted pensionable earnings for that year are deemed to be zero.

• Marginal note:Year in which retirement pension commences

  (2) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act,

  • (a) the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12; and

  • (b) 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 not excluded from the contributory period — and are before the retirement pension becomes payable — is of 12.

Marginal note:First additional unadjusted pensionable earnings for a year

• 53.1 (1) Subject to sections 53.5 and 54.1, for 2019 and each subsequent year, the first additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of

  • (a) the aggregate of

    • (i) their contributory salary and wages for the year, and

    • (ii) their contributory self-employed earnings for the year in the case of an individual described in section 10,

  • (b) the aggregate of

    • (i) their earnings on which a first additional contribution has been made for the year calculated as the aggregate of

      • (A) their salary and wages on which a first additional contribution has been made for the year, and

      • (B) the amount of any first additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the first additional contribution rate for self-employed persons for the year,

    • (ii) their earnings on which a first 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 first additional contribution has been made for the year by them under a provincial pension plan, and

      • (B) the amount of any first 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 first additional contribution rate for self-employed persons for the year, and

    • (iii) their basic exemption for the year, and

  • (c) their maximum pensionable earnings for the year.

  However, if the amount calculated as provided in paragraph (a) is equal to or less than the amount of their basic exemption for the year, their first additional unadjusted pensionable earnings for that year are deemed to be zero.

• 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 basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are before the retirement pension becomes payable is of 12; and

  • (b) 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.

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.

Marginal note:Attribution of amount for first additional contributory period — one child

• 53.3 (1) An amount, determined by the following formula, shall be attributed to a contributor for a year during which they were a family allowance recipient with respect to one child, if that amount is greater than their first additional unadjusted pensionable earnings for that year and is greater than their basic exemption for the year:

  [[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F) + Q]/R] × T

  where

  A

  is the first additional unadjusted pensionable earnings of the contributor for the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that fifth year;

  B

  is the first additional unadjusted pensionable earnings of the contributor for the fourth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that fourth year;

  C

  is the first additional unadjusted pensionable earnings of the contributor for the third year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that third year;

  D

  is the first additional unadjusted pensionable earnings of the contributor for the second year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that second year;

  E

  is the first additional unadjusted pensionable earnings of the contributor for the year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the Year’s Maximum Pensionable Earnings for that prior year;

  F

  is,

  • (a) in the case where an amount has been previously attributed by this section for the year in which the contributor became a family allowance recipient with respect to the child, that amount, or

  • (b) in any other case,

    • (i) if the contributor became a family allowance recipient with respect to the child in January, zero, or

    • (ii) in any other case, the lesser of 1 and the number determined by the formula

      G/[H × (M6/12)]

      where

      G

      is the first additional unadjusted pensionable earnings of the contributor for the year in which the contributor became a family allowance recipient with respect to the child, and

      H

      is the Year’s Maximum Pensionable Earnings for the year in which the contributor became a family allowance recipient with respect to the child;

  M1

  is the lesser of

  • (a) the number of months in the contributor’s first additional contributory period in the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, and

  • (b) the number determined by the formula

    12 − M6

  M2

  is the number of months in the contributor’s first additional contributory period in the fourth year before the year in which the contributor became a family allowance recipient with respect to the child;

  M3

  is the number of months in the contributor’s first additional contributory period in the third year before the year in which the contributor became a family allowance recipient with respect to the child;

  M4

  is the number of months in the contributor’s first additional contributory period in the second year before the year in which the contributor became a family allowance recipient with respect to the child;

  M5

  is the number of months in the contributor’s first additional contributory period in the year before the year in which the contributor became a family allowance recipient with respect to the child;

  M6

  is the number of months in the contributor’s first additional contributory period in the year in which the contributor became a family allowance recipient with respect to the child that are before the month in which they became a family allowance recipient with respect to that child;

  Q

  is, as the case may be,

  • (a) if the sum of M1, M2, M3, M4, M5 and M6 is less than 36, the number determined by the formula

    [36 − (M1 + M2 + M3 + M4 + M5 + M6)] × 0.4

  • (b) in any other case, zero;

  R

  is the greater of 36 and the sum of M1, M2, M3, M4, M5 and M6; and

  T

  is the Year’s Maximum Pensionable Earnings for the year for which the amount is to be attributed.

• Marginal note:Attribution of amount for first additional contributory period — more than one child

  (2) If the contributor is a family allowance recipient with respect to more than one child in a year, an amount shall be attributed to the contributor for that year that is the greater of each amount determined under subsection (1), calculated with respect to each child without regard to the other children.

• Marginal note:Year in which retirement pension becomes payable

  (3) For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act, the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are before the retirement pension becomes payable is of 12.

• Marginal note:Year in which first additional contributory period begins or ends

  (4) For the purposes of subsection (1), for a year in which the contributor’s first additional contributory period begins or ends, the amount to be attributed to the contributor is equal to that proportion of the amount determined in accordance with subsection (1) that the number of months that are included in the contributor’s first additional contributory period in that year is of 12.

• Marginal note:Year in which first additional contributory period begins

  (5) For the purposes of the descriptions of A to E in subsection (1), if the contributor’s first additional contributory period begins in the five years before the year in which they became a family allowance recipient, the Year’s Maximum Pensionable Earnings for the year in which their first additional contributory period begins is replaced by the prorated portion determined by the formula

  A × (M ÷ 12)

  where

  A

  is the Year’s Maximum Pensionable Earnings for the year in which the contributor’s first additional contributory period begins; and

  M

  is the number of months in that year that are included in the contributor’s first additional contributory period.

Marginal note:Attribution of amount for second additional contributory period — one child

• 53.4 (1) An amount, determined by the following formula, shall be attributed to a contributor for a year during which they were a family allowance recipient with respect to one child, if that amount is greater than their second additional unadjusted pensionable earnings for that year:

  [[(M1 × A) + (M2 × B) + (M3 × C) + (M4 × D) + (M5 × E) + (M6 × F)]/R] × T

  where

  A

  is the second additional unadjusted pensionable earnings of the contributor for the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings, for that fifth year;

  B

  is the second additional unadjusted pensionable earnings of the contributor for the fourth year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that fourth year;

  C

  is the second additional unadjusted pensionable earnings of the contributor for the third year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that third year;

  D

  is the second additional unadjusted pensionable earnings of the contributor for the second year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that second year;

  E

  is the second additional unadjusted pensionable earnings of the contributor for the year before the year in which the contributor became a family allowance recipient with respect to the child, divided by the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for that prior year;

  F

  is,

  • (a) in the case where an amount has been previously attributed by this section for the year in which the contributor became a family allowance recipient with respect to the child, that amount, or

  • (b) in any other case

    • (i) if the contributor became a family allowance recipient with respect to the child in January, zero, or

    • (ii) in any other case, the lesser of 1 and the number determined by the formula

      G/[H × (M6/12)]

      where

      G

      is the second additional unadjusted pensionable earnings of the contributor for the year in which the contributor became a family allowance recipient with respect to the child, and

      H

      is the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for the year in which the contributor became a family allowance recipient with respect to the child;

  M1

  is the lesser of

  • (a) the number of months in the contributor’s second additional contributory period in the fifth year before the year in which the contributor became a family allowance recipient with respect to the child, and

  • (b) the number determined by the formula

    12 − M6

  M2

  is the number of months in the contributor’s second additional contributory period in the fourth year before the year in which the contributor became a family allowance recipient with respect to the child;

  M3

  is the number of months in the contributor’s second additional contributory period in the third year before the year in which the contributor became a family allowance recipient with respect to the child;

  M4

  is the number of months in the contributor’s second additional contributory period in the second year before the year in which the contributor became a family allowance recipient with respect to the child;

  M5

  is the number of months in the contributor’s second additional contributory period in the year before the year in which the contributor became a family allowance recipient with respect to the child;

  M6

  is the number of months in the contributor’s second additional contributory period in the year in which the contributor became a family allowance recipient with respect to the child that are before the month in which they became a family allowance recipient with respect to that child;

  R

  is the greater of 36 and the sum of M1, M2, M3, M4, M5 and M6; and

  T

  is the difference between the Year’s Additional Maximum Pensionable Earnings and the Year’s Maximum Pensionable Earnings for the year for which the amount is to be attributed.

• Marginal note:Attribution of amount for second additional contributory period — more than one child

  (2) If the contributor is a family allowance recipient with respect to more than one child in a year, an amount shall be attributed to the contributor for that year that is the greater of each amount determined under subsection (1), calculated with respect to each child without regard to the other children.

• Marginal note:Year in which second additional contributory period begins or ends

  (3) For the purposes of subsection (1), for a year in which the contributor’s second additional contributory period begins or ends, the amount to be attributed to the contributor is equal to that proportion of the amount determined in accordance with subsection (1) that the number of months that are included in the contributor’s second additional contributory period in that year is of 12.

• Marginal note:Year in which second additional contributory period begins

  (4) For the purposes of the descriptions of A to E in subsection (1), if the contributor’s second additional contributory period begins in the five years before the year in which they became a family allowance recipient,

  • (a) the Year’s Maximum Pensionable Earnings for the year in which their second additional contributory period begins is replaced by the prorated portion determined by the formula

    A × (M ÷ 12)

    where

    A

    is the Year’s Maximum Pensionable Earnings for the year in which the contributor’s second additional contributory period begins, and

    M

    is the number of months in that year that are included in the contributor’s second additional contributory period; and

  • (b) the Year’s Additional Maximum Pensionable Earnings for the year in which their second additional contributory period begins is replaced by the prorated portion determined by the formula

    A × (M ÷ 12)

    where

    A

    is the Year’s Additional Maximum Pensionable Earnings for the year in which the contributor’s second additional contributory period begins, and

    M

    is the number of months in that year that are included in the contributor’s second additional contributory period.

Marginal note:First additional unadjusted pensionable earnings for years of attribution

53.5 For each year in which there is an attribution of an amount under section 53.3, the amount of the first additional unadjusted pensionable earnings of a contributor for the year determined under section 53.1 is to be replaced by that amount and that amount is considered to be the contributor’s first additional unadjusted pensionable earnings for that year.

Marginal note:Second additional unadjusted pensionable earnings for years of attribution

53.6 For each year in which there is an attribution of an amount under section 53.4, the amount of the second additional unadjusted pensionable earnings of a contributor for the year determined under section 53.2 is to be replaced by that amount and that amount is considered to be the contributor’s second additional unadjusted pensionable earnings for that year.

Marginal note:Base unadjusted pensionable earnings for years of division

54 The amount of the base unadjusted pensionable earnings of a contributor for a year determined under section 53 is to be adjusted for each year in which there is a division of base unadjusted pensionable earnings under section 55 or 55.1 and under a provincial pension plan.

Marginal note:First additional unadjusted pensionable earnings for years of division

54.1 The amount of the first additional unadjusted pensionable earnings of a contributor for a year determined under section 53.1 is to be adjusted for each year in which there is a division of those earnings under section 55.1 and under a provincial pension plan.

Marginal note:Second additional unadjusted pensionable earnings for years of division

54.2 The amount of the second additional unadjusted pensionable earnings of a contributor for a year determined under section 53.2 is to be adjusted for each year in which there is a division of those earnings under section 55.1 and under a provincial pension plan.

Division of Unadjusted Pensionable Earnings for Divorces and Annulments before the Coming into Force of section 55.1

Marginal note:Application for division

• 55 (1) Subject to this section, subsections 55.2(2), (3) and (4) and section 55.3, an application for a division of the unadjusted pensionable earnings of former spouses may be made in writing to the Minister by or on behalf of either former spouse, by the estate or succession of either former spouse or by any person that may be prescribed, within 36 months or, if both former spouses agree in writing, at any time after the date of a judgment granting a divorce or of a judgment of nullity of the marriage, rendered on or after January 1, 1978 and before January 1, 1987.

• Marginal note:Idem

  (2) For the purposes of this section,

  • (a) notwithstanding paragraphs (b) and (c), the former spouses must have cohabited for at least thirty-six consecutive months during the marriage before an application made under subsection (1) may be approved by the Minister;

  • (b) the marriage is deemed to have been solemnized or nullified or a divorce is deemed to have been made final on the last day of the year preceding the registered date of the marriage or the judgment of nullity or the effective date of the judgment granting a divorce; and

  • (c) the former spouses shall be deemed to have cohabited throughout the year in which the marriage was solemnized, and shall be deemed not to have cohabited at any time during the year of divorce or of annulment of the marriage.

• Marginal note:Period of cohabitation

  (3) In determining the period for which the unadjusted pensionable earnings of the former spouses shall be divided, only those months during which the former spouses cohabited during the marriage shall be considered and, for the purposes of this section, months during which former spouses cohabited shall be determined in the prescribed manner.

• Marginal note:Division of unadjusted pensionable earnings

  (4) On approval by the Minister of an application referred to in subsection (1), the unadjusted pensionable earnings for each former spouse for the period of cohabitation attributable to contributions made under this Act, determined in the same manner as the total pensionable earnings attributable to contributions made under this Act are determined in section 78, shall be added and then divided equally and the unadjusted pensionable earnings so divided shall be attributed to each former spouse.

• Marginal note:On division unadjusted pensionable earnings under this Act

  (5) Where there is a division under subsection (4) 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 shall be the aggregate of his unadjusted pensionable earnings attributed under subsection (4) and his unadjusted pensionable earnings attributed under a provincial pension plan.

• Marginal note:No division

  (6) No division of unadjusted pensionable earnings for a period of cohabitation shall be made

  • (a) where the total unadjusted pensionable earnings of the former spouses in a year does not exceed twice the Year’s Basic Exemption;

  • (b) for the period before which one of the former spouses reached eighteen years of age or after which a former spouse reached seventy years of age;

  • (c) for the period in which one of the former spouses was a beneficiary of a retirement pension under this Act or under a provincial pension plan; and

  • (d) for any month that is excluded from the contributory period of one of the former spouses under this Act or a provincial pension plan by reason of disability.

• Marginal note:Benefits in pay

  (7) Where an application referred to in subsection (1) has been approved and a benefit is payable under this Act to or in respect of either of the former spouses for any month commencing on or before the day of receipt of an application under subsection (1), the basic amount of the benefit shall be calculated and adjusted in accordance with section 45 but subject to the division of unadjusted pensionable earnings made under this section and the adjusted benefit shall be paid effective the month following the month the application referred to in subsection (1) is received.

• Marginal note:Notification of division

  (8) On approval by the Minister of an application for division of unadjusted pensionable earnings, an applicant and the former spouse or the former spouse’s estate shall be notified in a manner prescribed by regulation and, where the applicant or the former spouse or the former spouse’s estate is dissatisfied with the division or the result thereof, the right of appeal as set out in this Part applies.

• Marginal note:Regulations

  (9) The Governor in Council may make regulations prescribing the time, manner and form of making applications for division of unadjusted pensionable earnings or withdrawal of applications for that division, the procedures to be followed in dealing with and approving those applications and the information and evidence to be furnished in connection therewith.

Division of Unadjusted Pensionable Earnings

Marginal note:When mandatory division to take place

• 55.1 (1) Subject to this section and sections 55.2 and 55.3, a division of unadjusted pensionable earnings shall take place in the following circumstances:

  • (a) in the case of spouses, following a judgment granting a divorce or a judgment of nullity of the marriage, on the Minister’s being informed of the judgment and receiving the prescribed information;

  • (b) in the case of spouses, following the approval by the Minister of an application made by or on behalf of either spouse, by the estate or succession of either spouse or by any person that may be prescribed, if

    • (i) the spouses have been living separate and apart for a period of one year or more, and

    • (ii) in the event of the death of one of the spouses after they have been living separate and apart for a period of one year or more, the application is made within three years after the death; and

  • (c) in the case of common-law partners, following the approval by the Minister of an application made by or on behalf of either former common-law partner, by the estate or succession of one of those former common-law partners or by any person that may be prescribed, if

    • (i) the former common-law partners have been living separate and apart for a period of one year or more, or one of the former common-law partners has died during that period, and

    • (ii) the application is made within four years after the day on which the former common-law partners commenced to live separate and apart or, if both former common-law partners agree in writing, at any time after the end of that four-year period.

• Marginal note:Calculation of period of separation

  (2) For the purposes of this section,

  • (a) persons subject to a division of unadjusted pensionable earnings shall be deemed to have lived separate and apart for any period during which they lived apart and either of them had the intention to live separate and apart from the other; and

  • (b) a period during which persons subject to such a division have lived separate and apart shall not be considered to have been interrupted or terminated

    • (i) by reason only that either person has become incapable of forming or having an intention to continue to live separate and apart or of continuing to live separate and apart of the person’s own volition, if it appears to the Minister that the separation would probably have continued if the person had not become so incapable, or

    • (ii) by reason only that the two persons have resumed cohabitation during a period of, or periods totalling, not more than ninety days with reconciliation as its primary purpose.

• Marginal note:Period of cohabitation

  (3) For the purposes of this section, persons subject to a division of unadjusted pensionable earnings must have cohabited for a continuous period of at least one year in order for the division to take place, and, for the purposes of this subsection, a continuous period of at least one year shall be determined in a manner prescribed by regulation.

• Marginal note:Period for purposes of division

  (4) In determining the period for which the unadjusted pensionable earnings of the persons subject to a division shall be divided, only those months during which the two persons cohabited shall be considered, and, for the purposes of this subsection, months during which the two persons cohabited shall be determined in the prescribed manner.

• Marginal note:Minister’s discretion

  (5) Before a division of unadjusted pensionable earnings is made under this section, or within the prescribed period after such a division is made, the Minister may refuse to make the division or may cancel the division, as the case may be, if the Minister is satisfied that

  • (a) benefits are payable to or in respect of both persons subject to the division; and

  • (b) the amount of both benefits decreased at the time the division was made or would decrease at the time the division was proposed to be made.

Marginal note:Application of section 55.1

Footnote ^*55.11 Section 55.1 applies

• (a) in respect of judgments granting a divorce and judgments of nullity of a marriage, rendered on or after January 1, 1987;

• (b) in respect of spouses and former spouses who commence to live separate and apart on or after January 1, 1987 but before the coming into force of this section (spouse having in this paragraph the meaning that it had immediately before that coming into force); and

• (c) in respect of spouses and former common-law partners who commence to live separate and apart after the coming into force of this section.

  • Return to footnote ^*[Note: Section 55.11 in force July 31, 2000, see SI/2000-76.]

• 55.2 (1) [Repealed, 2000, c. 12, s. 48]

• Marginal note:Agreement or court order not binding on Minister

  (2) Except as provided in subsection (3), where, on or after June 4, 1986, a written agreement between persons subject to a division under section 55 or 55.1 was entered into, or a court order was made, the provisions of that agreement or court order are not binding on the Minister for the purposes of a division of unadjusted pensionable earnings under section 55 or 55.1.

• Marginal note:Agreement binding on Minister

  (3) Where

  • (a) a written agreement between persons subject to a division under section 55 or 55.1 entered into on or after June 4, 1986 contains a provision that expressly mentions this Act and indicates the intention of the persons that there be no division of unadjusted pensionable earnings under section 55 or 55.1,

  • (b) that provision of the agreement is expressly permitted under the provincial law that governs such agreements,

  • (c) the agreement was entered into

    • (i) in the case of a division under section 55 or paragraph 55.1(1)(b) or (c), before the day of the application for the division, or

    • (ii) in the case of a division under paragraph 55.1(1)(a), before the rendering of the judgment granting a divorce or the judgment of nullity of the marriage, as the case may be, and

  • (d) that provision of the agreement has not been invalidated by a court order,

  that provision of the agreement is binding on the Minister and, consequently, the Minister shall not make a division under section 55 or 55.1.

• Marginal note:Minister to notify parties

  (4) The Minister shall, without delay after being informed of a judgment granting a divorce or a judgment of nullity of a marriage or after receiving an application under section 55 or paragraph 55.1(1)(b) or (c), notify each of the persons subject to the division, in the prescribed manner, of the periods of unadjusted pensionable earnings to be divided, and of any other information that the Minister considers necessary.

• 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 under section 55.1, the first additional unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to first additional contributions made under this Act, determined in the same manner as the total first additional pensionable earnings of a contributor attributable to first additional contributions made under this Act are determined in section 78.1, 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 under section 55.1, the second additional unadjusted pensionable earnings for each person subject to the division for the period of cohabitation attributable to second additional contributions made under this Act, determined in the same manner as the total second additional pensionable earnings of a contributor attributable to second additional contributions made under this Act are determined in section 78.2, 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 base 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 base unadjusted pensionable earnings attributed under a provincial pension plan.

• Marginal note:Effect of division of first additional unadjusted pensionable earnings

  (6.1) If there is a division of first additional 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 first additional unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their first additional unadjusted pensionable earnings attributed under subsection (5.1) and their first additional unadjusted pensionable earnings attributed under a provincial pension plan.

• Marginal note:Effect of division of second additional unadjusted pensionable earnings

  (6.2) If there is a division of second additional 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 second additional unadjusted pensionable earnings of a contributor for a year of division are the aggregate of their second additional unadjusted pensionable earnings attributed under subsection (5.2) and their second additional unadjusted pensionable earnings attributed under a provincial pension plan.

• Marginal note:Provincial pension plans

  (7) No division of 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: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;

  • (b) for the period before which one of the persons reached eighteen years of age or after which one of the persons reached seventy years of age;

  • (c) for the period in which one of the persons was a beneficiary of a retirement pension under this Act or under a provincial pension plan; and

  • (d) for any month that is excluded from the contributory period of one of the persons under this Act or a provincial pension plan by reason of disability.

• 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 or under a provincial pension plan.

• 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 or under a provincial pension plan.

• Marginal note:Payment of benefit

  (9) Where there is a division under section 55.1 and a benefit is or becomes payable under this Act to or in respect of either of the persons subject to the division for a month not later than the month following the month in which the division takes place, the basic amount of the benefit shall be calculated and adjusted in accordance with section 46 and adjusted in accordance with subsection 45(2) but subject to the division, and the adjusted benefit shall be paid effective the month following the month in which the division takes place but in no case shall a benefit that was not payable in the absence of the division be paid in respect of the month in which the division takes place or any prior month.

• Marginal note:Notification of division

  (10) Where there is a division under section 55.1, both persons subject to the division, or their respective estates, shall be notified in the prescribed manner.

• Marginal note:Regulations

  (11) The Governor in Council may make regulations prescribing

  • (a) the time, manner and form of making applications for a division of unadjusted pensionable earnings or withdrawal of applications for such division;

  • (b) the procedures to be followed in dealing with and approving such applications and the information and evidence to be furnished in connection therewith; and

  • (c) the effective dates of the approval or taking place of a division and of the attribution of pensionable earnings following a division.

Marginal note:Incapacity

• 55.3 (1) Where an application for a division of unadjusted pensionable earnings is made under subsection 55(1) or paragraph 55.1(1)(b) or (c) or the Minister receives the prescribed information referred to in paragraph 55.1(1)(a) and the Minister is satisfied, on the basis of evidence provided by or on behalf of a person subject to the division, that the person had been incapable of forming or expressing an intention to make an application or to provide the information to the Minister on the day on which the application was actually made or the information was actually received, the Minister may deem the application to have been made or the information to have been received in the first month in which a division could have taken place or in the month that the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

• Marginal note:Incapacity

  (2) Where an application for a division of unadjusted pensionable earnings is made under subsection 55(1) or paragraph 55.1(1)(b) or (c) or the Minister receives the prescribed information referred to in paragraph 55.1(1)(a) and the Minister is satisfied, on the basis of evidence provided by or on behalf of a person subject to the division, that

  • (a) the person had been incapable of forming or expressing an intention to make an application or to provide the information to the Minister before the day on which the application was actually made or the information was actually received by the Minister,

  • (b) the person had ceased to be so incapable before that day, and

  • (c) the application was actually made or the information was actually received by the Minister

    • (i) within the period that begins on the day on which the person had ceased to be so incapable and that comprises the same number of days, not exceeding twelve months, as in the period of incapacity, or

    • (ii) where the period referred to in subparagraph (i) comprises fewer than thirty days, not more than one month after the month in which the person had ceased to be so incapable,

  the Minister may deem the application to have been made or the information to have been received in the first month in which a division could have taken place or in the month in which the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

• Marginal note:Period of incapacity

  (3) For the purposes of subsections (1) and (2), a period of incapacity must be a continuous period except as otherwise prescribed.

• Marginal note:Application

  (4) This section applies only to individuals who were incapacitated on or after January 1, 1991.

Disability Pension

Marginal note:Amount of disability pension

• 56 (1) A disability pension payable to a contributor is a basic monthly amount consisting of

  • (a) a flat rate benefit, calculated as provided in subsection (2); and

  • (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:Calculation of flat rate benefit

  (2) The amount of the flat rate benefit mentioned in paragraph (1)(a) is

  • (a) in the case of a flat rate benefit commencing to be payable for a month in the year 1986, ninety-one dollars and six cents;

  • (b) in the case of a flat rate benefit payable for a month in the year 1987, an amount calculated by multiplying

    • (i) two hundred and thirty-three dollars and thirty-eight cents

    by

    • (ii) the ratio that the Pension Index for 1987 bears to the Pension Index for 1986; and

  • (c) in the case of a flat rate benefit commencing to be payable for a month in the year 1988 or any subsequent year, an amount calculated by multiplying

    • (i) the amount of the flat rate benefit that would have been payable for a month in the year preceding that year

    by

    • (ii) the ratio that the Pension Index for the year in which the benefit commences to be payable bears to the Pension Index for the year preceding that year.

• 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).

• Marginal note:Average monthly pensionable earnings

  (4) For the purposes of subsection (3), the average monthly pensionable earnings of a contributor who is deemed to have become disabled for the purposes of this Act after December 31, 1997 is, subject to subsections 48(2) and (4), the amount obtained by dividing

  • (a) the contributor’s total pensionable earnings

  by

  • (b) the total number of months in the contributor’s contributory period or 48, whichever is greater.

• 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:Average monthly pensionable earnings

  (4.1) For the purposes of subsection (3), the average monthly pensionable earnings of a contributor who is deemed to have become disabled for the purposes of this Act in 1997 is, subject to subsections 48(2) and (4), the amount obtained by dividing

  • (a) the contributor’s total pensionable earnings

  by

  • (b) the total number of months in the contributor’s contributory period or 24, whichever is greater.

• Marginal note:Contributory period

  (5) For the purposes of subsection (4), the contributory period of a contributor is the period

  • (a) commencing January 1, 1966 or when he reaches eighteen years of age, whichever is the later, and

  • (b) ending with the month in which he is determined to have become disabled for the purpose of paragraph 44(1)(b),

  but excluding

  • (c) any month that was excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability, and

  • (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: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

  • (a) the aggregate of

    • (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

      • (A) the number of months that have been excluded from the contributor’s contributory period under this Act or a provincial pension plan by reason of disability, and

      • (B) the number of months remaining until the month in which the contributor reaches sixty-five years of age, and

    • (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)

  by

  • (b) the aggregate of

    • (i) the number of months that have been excluded from the contributor’s contributory period under this Act or under a provincial pension plan by reason of disability,

    • (ii) the number of months remaining until the month in which the contributor reaches sixty-five years of age, and

    • (iii) the number of months in the contributor’s contributory period calculated in accordance with subsection (5).

Death Benefit

Marginal note:Amount of death benefit

• 57 (1) A death benefit payable to the estate or succession of a contributor is a lump sum amount equal to

  • (a) if the contributor’s death occurs before January 1, 2019, the lesser of

    • (i) six times the amount of the contributor’s retirement pension, calculated as provided in subsection (2), and

    • (ii) ten per cent of the Year’s Maximum Pensionable Earnings for the year in which the contributor died; or

  • (b) if the contributor’s death occurs after December 31, 2018, $2,500.

• Marginal note:Maximum in cases of death after December 31, 1997

  (1.1) Despite paragraph 57(1)(a), when the contributor’s death occurs after December 31, 1997, the lump sum referred to in that paragraph shall not exceed $2,500.

• Marginal note:Calculation of contributor’s retirement pension

  (2) The amount of the contributor’s retirement pension to be used for the purposes of paragraph (1)(a) is

  • (a) in the case of a contributor who died before January 1, 1987 and to whom a retirement pension was payable for the month in which he died, the amount of such pension for that month, but where that contributor’s contributory period ended before January 1976, the amount is the amount of the retirement pension payable for the month in which he died multiplied by the ratio that the basic number of contributory months bears to the number of months in the contributor’s contributory period;

  • (b) in the case of a contributor who died before January 1, 1987 and to whom no retirement pension was payable for the month in which he died, an amount equal to twenty-five per cent of his average monthly pensionable earnings, calculated as provided in sections 46 to 53 except that, in making that calculation,

    • (i) subsections 46(3) to (6) and section 47 are not applicable,

    • (ii) subsection 48(1) shall be read as follows:

      • “48 (1) Subject to subsections (2), (3) and (4), the average monthly pensionable earnings of a contributor are an amount calculated by dividing his total pensionable earnings by the total number of months in his contributory period.”, and

    • (iii) section 51 shall be read as though for the reference therein to the year in which a benefit becomes payable to the contributor there were substituted a reference to the year in which the contributor died; and

  • (c) in the case of a contributor who died on or after January 1, 1987,

    • (i) where a retirement pension was not payable for the month in which the contributor died, an amount equal to twenty-five per cent of his average monthly pensionable earnings, calculated as provided in subsection (3), or

    • (ii) where a retirement pension was payable for the month in which the contributor died, the product obtained by multiplying

      • (A) an amount equal to twenty-five per cent of his average monthly pensionable earnings, calculated as provided in subsection (3),

      by

      • (B) 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, calculated, where the year in which the retirement pension first became payable was prior to 1974, as if the Pension Index for that year had not been subject to the limitation referred to in paragraph 43.1(2)(a) of the Canada Pension Plan, chapter C-5 of the Revised Statutes of Canada, 1970, of 1.02 times the Pension Index for the preceding year.

• Marginal note:Calculation of average monthly pensionable earnings

  (3) Subject to subsections 48(2), (3) and (4), the average monthly pensionable earnings of a contributor is an amount calculated by dividing his total pensionable earnings by the total number of months in his contributory period or by thirty-six, whichever is greater, and

  • (a) in the case of a contributor to whom a retirement pension was payable for the month in which he died, section 51 applies; or

  • (b) in the case of a contributor to whom no retirement pension was payable for the month in which he died, section 51 applies but the reference therein to the year in which a benefit becomes payable to the contributor shall be read as a reference to the year in which the contributor died.

Survivor’s Pension

Marginal note:Amount of survivor’s pension

• 58 (1) Subject to this section, a survivor’s pension payable to the survivor of a contributor is a basic monthly amount as follows:

  • (a) in the case of a survivor who has not reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, for any month before January 2019, a basic monthly amount consisting of

    • (i) a flat rate benefit, calculated as provided in subsection (1.1), and

    • (ii) 37.5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

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

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

      • (C) the amount calculated as provided in subsection (3.4),

    reduced, unless the survivor was at the time of the death of the contributor a survivor with dependent children or unless he is disabled, by 1/120 for each month by which the age of the survivor at the time of the death of the contributor is less than forty-five years, and reduced, if at any time after the death of the contributor the survivor ceases to be

    • (iii) a survivor with dependent children and is not at that time disabled, or

    • (iv) disabled and is not at that time a survivor with dependent children,

    by 1/120 for each month by which the age of the survivor at that time is less than forty-five years;

  • (a.1) in the case of a survivor who has not reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, for any month after December 2018, a basic monthly amount consisting of

    • (i) a flat rate benefit, calculated as provided in subsection (1.1), and

    • (ii) 37.5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of

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

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

      • (C) the amount calculated as provided in subsection (3.4); and

  • (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

    • (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 (3.4).

• Marginal note:Amount of flat rate benefit

  (1.1) The amount of the flat rate benefit referred to in subparagraphs (1)(a)(i) and (a.1)(i) is

  • (a) in the year 1986, ninety-one dollars and six cents; or

  • (b) in the year 1987 or any subsequent year, an amount calculated by multiplying

    • (i) the amount of the flat rate benefit that would have been payable for a month in the year preceding that year

    by

    • (ii) the ratio that the Pension Index for the year in which the flat rate benefit commences to be payable bears to the Pension Index for the year preceding that year.

• Marginal note:Calculation of survivor’s pension where retirement pension payable

  (2) Where a survivor’s pension under this Act and a retirement pension under this Act or under a provincial pension plan are payable to the survivor of a contributor, the basic monthly amount of the survivor’s pension payable to the survivor is

  • (a) in the case of a survivor who has not reached sixty-five years of age and whose retirement pension commences to be payable after December 31, 1997, the aggregate of

    • (i) the aggregate of

      • (A) a flat rate benefit, calculated as provided in subsection (1.1), or, if a post-retirement disability benefit is payable to the survivor, the greater of

        • (I) the flat rate benefit, and

        • (II) the post-retirement disability benefit, 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

          • (1) 40% of C, and

          • (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount 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), and

        • (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

      • (1) 40% of C, and

      • (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(b), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2), and

    • (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

      • (1) 40% of C, and

      • (2) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(c), without regard to subsections 46(3.1) to (6) and adjusted in accordance with subsection 45(2);

  • (b) in the case of a survivor who has not reached sixty-five years of age and whose retirement pension commences to be payable before January 1, 1998, the aggregate of

    • (i) a flat rate benefit, calculated as provided in subsection (1.1), and

    • (ii) the lesser of

      • (A) 37.5% of the amount of the contributor’s retirement pension, calculated as provided in subsection (3), and

      • (B) an amount that, when added to the survivor’s retirement pension (calculated without regard to subsections 46(3) to (6) but 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; or

  • (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

        • (I) 40% of A, and

        • (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount 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), 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 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

      • (I) 40% of A, and

      • (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(b), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2), and

    • (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

      • (I) 40% of A, and

      • (II) 40% of the amount of the portion of the survivor’s retirement pension, which amount is calculated as provided in paragraph 46(1)(c), without regard to subsections 46(3.1) to (6), and adjusted in accordance with subsection 45(2);

    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: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

  • (a) a survivor’s pension became payable to the survivor by reason of a disability that began after the death of the contributor,

  • (b) the survivor reached sixty-five years of age, not having reached that age at the time of the death of the contributor,

  • (c) the survivor’s pension under this Act or the survivor’s retirement pension under this Act or a provincial pension plan commenced to be payable, whichever is the later,

  • (d) a survivor’s pension became payable to the survivor under this Act in circumstances other than those described in paragraph (a), (b) or (c), or

  • (e) the survivor has had an adjustment to the survivor’s retirement pension pursuant to subsection 55(7) or 55.2(9) following a division of unadjusted pensionable earnings,

  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 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:Pension Index limitation removed

  (4) For the purpose of calculating the monthly amount of a survivor’s pension under subsection (3) in a case where the survivor’s pension commences with a month in a year after 1973 and is in respect of a contributor who died prior to 1974, the ratio referred to in that subsection shall be calculated as if the Pension Index for the year in which the contributor died had not been subject to the limitation referred to in paragraph 43.1(2)(a) of the Canada Pension Plan, chapter C-5 of the Revised Statutes of Canada, 1970, of 1.02 times the Pension Index for the preceding year.

• Marginal note:Calculation of amount of retirement pension to survivor

  (5) For the purposes of subsection (2), the monthly amount of the retirement pension payable to the survivor of a contributor shall be calculated without regard to any provision of the provincial pension plan referred to in that subsection that reduces the pensions of contributors who have reached sixty-five years of age or precludes the payment of pensions to those contributors by reason of their employment earnings.

• Marginal note:Calculation of disability pension where survivor’s pension payable

  (6) Subject to subsection (6.1), where a survivor’s pension under this Act and a disability pension under this Act are payable to the survivor of a contributor and either the date of death of the contributor or the date on which the survivor is deemed to have become disabled for the purposes of this Act is after December 31, 1997, the amount of the disability pension is an amount that, when added to the amount of the survivor’s pension for a month in the year in which the survivor’s pension or the disability pension commenced to be payable, whichever is the later, equals the aggregate of

  • (a) the aggregate of

    • (i) the greater of

      • (A) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and

      • (B) the flat rate benefit payable under paragraph 56(1)(a), and

    • (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) or (a.1)(ii) if the amounts referred to in clauses (1)(a)(ii)(B) and (C) or (a.1)(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) or (a.1)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (C) or (a.1)(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) or (a.1)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (B) or (a.1)(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).

• Marginal note:Saving

  (6.1) Where subsection (6) applies and the aggregate amount of the survivor’s pension and the disability pension are less than the amount of the disability pension that would be payable if the survivor’s pension were not payable, the amount of the disability pension is the amount that results when

  • (a) the amount of the survivor’s pension

  is subtracted from

  • (b) the amount of the disability pension that would be payable if the survivor’s pension were not payable.

• Marginal note:Calculation of disability pension where survivor’s pension payable

  (6.2) Where a survivor’s pension under this Act and a disability pension under this Act are payable to the survivor of a contributor and subsection (6) does not apply, the amount of the disability pension is an amount that, when added to the amount of the survivor’s pension for a month in the year in which the survivor’s pension or the disability pension commenced to be payable, whichever is the later, equals the aggregate of

  • (a) the greater of

    • (i) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and

    • (ii) the flat rate benefit payable under paragraph 56(1)(a), and

  • (b) the lesser of

    • (i) the aggregate of the amounts payable under subparagraph (1)(a)(ii) or (a.1)(ii) and paragraph 56(1)(b), and

    • (ii) 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 disability 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 disability pension commenced to be payable.

• Marginal note:Special case

  (7) Notwithstanding subsection (6), the Minister may, in prescribed circumstances and on the written request of the applicant, if in the Minister’s opinion it would be to the applicant’s advantage, pay the applicant the full amount of the disability pension and calculate the amount of the applicant’s survivor’s pension in a manner similar to that set out in subsection (6) for the calculation of the disability pension, but in no case may the aggregate of the two pensions exceed what it would have been had subsection (6) applied.

• Marginal note:Calculation of survivor’s pension when disability pension payable under provincial pension plan

  (8) Except where otherwise provided by an agreement under section 80, where a survivor’s pension under this Act and a disability pension under a provincial pension plan are payable to the survivor of a contributor and either the date of death of the contributor or the date on which the survivor is deemed to have become disabled for the purposes of a provincial pension plan is after December 31, 1997, the amount of the survivor’s pension is an amount that, when added to the amount of the disability pension for a month in the year in which the survivor’s pension or the disability pension commenced to be payable, whichever is the later, equals the aggregate of

  • (a) the aggregate of

    • (i) the greater of

      • (A) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and

      • (B) the flat rate benefit payable under the provincial pension plan in respect of disability, and

    • (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) or (a.1)(ii), as the case may be, if the amounts referred to in clauses (1)(a)(ii)(B) and (C) or (a.1)(ii)(B) and (C), as the case may be, had not been included in the calculation made under that subparagraph, and

          2 the base portion of the contributor’s retirement pension payable to the survivor under the provincial pension plan in respect of disability, and

        • (II) 60% of the lesser of the amount described in subclause (I)(1) and the amount described in 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) or (a.1)(ii), as the case may be, if the amounts referred to in clauses (1)(a)(ii)(A) and (C) or (a.1)(ii)(A) and (C), as the case may be, had not been included in the calculation made under that subparagraph, and

      • (B) the first additional portion of the contributor’s retirement pension payable to the survivor under the provincial pension plan in respect of disability, 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) or (a.1)(ii), as the case may be, if the amounts referred to in clauses (1)(a)(ii)(A) and (B) or (a.1)(ii)(A) and (B), as the case may be, had not been included in the calculation made under that subparagraph, and

      • (B) the second additional portion of the contributor’s retirement pension payable to the survivor under the provincial pension plan in respect of disability, and

    • (ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B).

• Marginal note:Calculation of survivor’s pension when disability pension payable under provincial pension plan

  (8.1) Except where otherwise provided by an agreement under section 80, where a survivor’s pension under this Act and a disability pension under a provincial pension plan are payable to the survivor of a contributor and subsection (8) does not apply, the amount of the survivor’s pension is an amount that, when added to the amount of the disability pension for a month in the year in which the survivor’s pension or the disability pension commenced to be payable, whichever is the later, equals the aggregate of

  • (a) the greater of

    • (i) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and

    • (ii) the flat rate benefit payable under the provincial pension plan in respect of disability, and

  • (b) the lesser of

    • (i) the aggregate of

      • (A) the amounts payable under subparagraph (1)(a)(ii) or (a.1)(ii), and

      • (B) the portion of the contributor’s retirement pension payable to the survivor under the provincial pension plan in respect of disability, and

    • (ii) 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 disability 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 disability pension commenced to be payable.

• Marginal note:Interpretation

  (9) For the purposes of this section, a survivor first becomes qualified to receive a survivor’s pension in the month following the month in which the survivor first met the criteria of subsection 44(1) in relation to that pension.

Disabled Contributor’s Child’s Benefit and Orphan’s Benefit

Marginal note:Amount of benefit

59 A disabled contributor’s child’s benefit payable to the child of a disabled contributor and an orphan’s benefit payable to the orphan of a contributor is a basic monthly amount consisting of

• (a) in the year 1991, one hundred and thirteen dollars and fourteen cents;

• (b) in the year 1992, the aggregate of

  • (i) one hundred and thirteen dollars and fourteen cents, multiplied by the ratio referred to in subparagraph (c)(ii), and

  • (ii) thirty-five dollars; or

• (c) in the year 1993 or any subsequent year, an amount calculated by multiplying

  • (i) the amount of the benefit that would have been payable for a month in the year preceding that year

  by

  • (ii) the ratio that the Pension Index for the year in which the benefit commences to be payable bears to the Pension Index for the year preceding that year.

Post-retirement Benefit

Marginal note:Amount of post-retirement benefit

• 59.1 (1) A post-retirement benefit payable to a contributor is a basic monthly amount that is equal to the aggregate of the amounts calculated as provided in subsections (1.1), (3) and (5).

• Marginal note:Calculation of portion of post-retirement benefit

  (1.1) Subject to subsections (2) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

  [(A × F/B) × C × D × E]/12

  where

  A

  is the amount determined under subsection 53(1) for the year before the year in which the post-retirement benefit commences to be payable;

  B

  is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

  C

  is 0.00625;

  D

  is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;

  E

  is the adjustment factor referred to in subsection 46(3) or (3.1), as the case may be, based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and

  F

  is the amount determined by the formula

  G/H

  where

  G

  is the amount of the earnings referred to in subparagraph 53(1)(b)(i), and

  H

  is the aggregate of the earnings referred to in subparagraph 53(1)(b)(i) and those referred to in subparagraph 53(1)(b)(ii).

• Marginal note:Base unadjusted pensionable earnings for year retirement pension becomes payable

  (2) For the purpose of the calculation under subsection (1.1), if the contributor’s base unadjusted pensionable earnings are earned in the year in which the contributory period ends under subparagraph 49(b)(iii), the amount determined for A in that subsection is the greater of

  • (a) zero, and

  • (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year — multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12 — from the amount determined under subsection 53(1).

• Marginal note:Calculation of portion of post-retirement benefit

  (3) Subject to subsections (4) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

  [(A × F/B) × C × D × E]/12

  where

  A

  is the amount determined under subsection 53.1(1) for the year before the year in which the post-retirement benefit commences to be payable, except that

  • (a) if the post-retirement benefit commences in 2020, A is the amount for 2019, multiplied by 0.15,

  • (b) if the post-retirement benefit commences in 2021, A is the amount for 2020, multiplied by 0.3,

  • (c) if the post-retirement benefit commences in 2022, A is the amount for 2021, multiplied by 0.5, and

  • (d) if the post-retirement benefit commences in 2023, A is the amount for 2022, multiplied by 0.75;

  B

  is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

  C

  is 0.00208;

  D

  is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;

  E

  is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and

  F

  is the amount determined by the formula

  G/H

  where

  G

  is the amount of the earnings referred to in subparagraph 53.1(1)(b)(i), and

  H

  is the aggregate of the earnings referred to in subparagraph 53.1(1)(b)(i) and those referred to in subparagraph 53.1(1)(b)(ii).

• Marginal note:First additional unadjusted pensionable earnings for year retirement pension becomes payable

  (4) For the purpose of the calculation under subsection (3), if the contributor’s first additional unadjusted pensionable earnings are earned in the year in which the first additional contributory period ends under paragraph 49.1(c), the amount determined for A in that subsection is the greater of

  • (a) zero, and

  • (b) the amount that is calculated by subtracting the Year’s Maximum Pensionable Earnings for that year  —  multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12  —  from the amount determined under subsection 53.1(1).

• Marginal note:Calculation of portion of post-retirement benefit

  (5) Subject to subsections (6) and (7), the amount that is to be used for the purpose of subsection (1) is determined by the formula

  [(A × F/B) × C × D × E]/12

  where

  A

  is the amount determined under section 53.2 for the year before the year in which the post-retirement benefit commences to be payable;

  B

  is the Year’s Maximum Pensionable Earnings for the year before the year in which the post-retirement benefit commences to be payable;

  C

  is 0.00833;

  D

  is the Maximum Pensionable Earnings Average for the year in which the post-retirement benefit commences to be payable;

  E

  is the adjustment factor referred to in subsection 46(3.1), based on the age of the contributor on January 1 of the year in which the post-retirement benefit commences to be payable; and

  F

  is the amount determined by the formula

  G/H

  where

  G

  is the amount of the earnings referred to in subparagraph 53.2(1)(b)(i), and

  H

  is the aggregate of the earnings referred to in subparagraph 53.2(1)(b)(i) and those referred to in subparagraph 53.2(1)(b)(ii).

• Marginal note:Second additional unadjusted pensionable earnings for year retirement pension becomes payable

  (6) For the purpose of the calculation under subsection (5), if the contributor’s second additional unadjusted pensionable earnings are earned in the year in which the second additional contributory period ends under paragraph 49.2(c), the amount determined for A in that subsection is the greater of

  • (a) zero, and

  • (b) the amount that is calculated by subtracting the Year’s Additional Maximum Pensionable Earnings for that year  —  multiplied by the number of months in the year before the retirement pension becomes payable and divided by 12  —  from the amount determined under section 53.2.

• Marginal note:Adjustment factor for contributors  —  70 years of age or older

  (7) For the purposes of the calculations under subsections (1.1), (3) and (5), if the contributor is 70 years of age or older, the adjustment factor referred to in E in each of those subsections is that of a contributor who is 70 years of age.

Post-retirement Disability Benefit

Marginal note:Amount of benefit

59.2 A post-retirement disability benefit payable to a contributor is a basic monthly amount that is

• (a) in the case of a benefit payable for a month in the year 2019, an amount calculated by multiplying

  • (i) $485.20

  by

  • (ii) the ratio that the Pension Index for 2019 bears to the Pension Index for 2018; and

• (b) in the case of a benefit payable for a month in the year 2020 or any subsequent year, an amount calculated by multiplying

  • (i) the amount of the benefit that would have been payable for a month in the year preceding that year

  by

  • (ii) the ratio that the Pension Index for the year in which the benefit is payable bears to the Pension Index for the year preceding that year.

DIVISION CPayment of Benefits: General Provisions

Marginal note:Application for benefit

• 60 (1) No benefit is payable to any person under this Act unless an application therefor has been made by him or on his behalf and payment of the benefit has been approved under this Act.

• Marginal note:Application for post-retirement benefit deemed to be made

  (1.1) An application for a post-retirement benefit under subsection (1) is deemed to be made on January 1 of the year following the year of the unadjusted pensionable earnings referred to in section 76.1 if

  • (a) the person is a beneficiary of a retirement pension on that day; and

  • (b) the Minister has the information necessary to determine whether a post-retirement benefit is payable to them.

• Marginal note:Application for retirement pension waived

  (1.2) The Minister may waive the requirement under subsection (1) for an application for a retirement pension to be made by a person or on their behalf if the Minister is satisfied that

  • (a) the person is a contributor;

  • (b) the person is 70 years old or more; and

  • (c) at least one of the following applies in respect of the person:

    • (i) the person is in receipt of a benefit under this Act, the Old Age Security Act or a provincial pension plan, and

    • (ii) a return of income was filed by the person or on their behalf under the Income Tax Act in respect of the year before the year in which the Minister considers waiving the requirement.

• Marginal note:Effect of waiver

  (1.3) If the requirement for an application for a retirement pension is waived, the application is deemed to have been made and received on the day on which the requirement is waived.

• Marginal note:Application for benefit by estate, etc.

  (2) Notwithstanding anything in this Act, but subject to subsections (2.1) and (2.2), an application for a benefit, other than a death benefit, that would have been payable in respect of a month to a deceased person who, prior to the person’s death, would have been entitled on approval of an application to payment of that benefit under this Act may be approved in respect of that month only if it is made within 12 months after the death of that person by the estate, the representative or heir of that person or by any person that may be prescribed by regulation.

• Marginal note:Certain applications may not be approved

  (2.1) An application referred to in subsection (2) is not to be approved if it is made in respect of a post-retirement disability benefit or, if the application is received after December 31, 1997, a disability pension.

• Marginal note:Restriction — retirement pension

  (2.2) An application referred to in subsection (2) in respect of a retirement pension may only be approved in respect of a month after the deceased contributor had reached age 70.

• Marginal note:Exception

  (3) If a disabled contributor’s child’s benefit would, if the application had been approved, have been payable to a child of a disabled contributor on application made prior to the death of the child or an orphan’s benefit would, if the application had been approved, have been payable to an orphan of a contributor on application made prior to the death of the orphan and the child or orphan dies after December 31, 1977, not having reached 18 years of age, and no application has been made at the time of the death of the child or orphan, an application may be made within one year after the death by the person or agency having decision-making responsibility in respect of the child or orphan at the time of the death or, if there is at that time no such person or agency, by any person or agency that the Minister may direct.

• Marginal note:Benefits payable to estate or other persons

  (4) Where an application is made pursuant to subsection (2) or (3), a benefit that would have been payable to a deceased person referred to in subsection (2) or a deceased child or orphan referred to in subsection (3) shall be paid to the estate or such person as may be prescribed by regulation.

• Marginal note:Application deemed to have been received on date of death

  (5) Any application made pursuant to subsection (2) or (3) is deemed to have been received

  • (a) on the date of the death of a person who, prior to his death, would have been entitled, on approval of an application, to payment of a benefit under this Act; or

  • (b) on the date of the death of a child or an orphan referred to in subsection (3) if the person or agency having decision-making responsibility in respect of the child or orphan did not make an application prior to the death of the child or orphan.

• Marginal note:How application to be made

  (6) An application for a benefit shall be made to the Minister in prescribed manner and at the prescribed location.

• Marginal note:Consideration of application and approval by Minister

  (7) The Minister shall forthwith on receiving an application for a benefit consider it and may approve payment of the benefit and determine the amount thereof payable under this Act or may determine that no benefit is payable, and he shall thereupon in writing notify the applicant of his decision.

• Marginal note:Incapacity

  (8) Where an application for a benefit is made on behalf of a person and the Minister is satisfied, on the basis of evidence provided by or on behalf of that person, that the person had been incapable of forming or expressing an intention to make an application on the person’s own behalf on the day on which the application was actually made, the Minister may deem the application to have been made in the month preceding the first month in which the relevant benefit could have commenced to be paid or in the month that the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

• Marginal note:Idem

  (9) Where an application for a benefit is made by or on behalf of a person and the Minister is satisfied, on the basis of evidence provided by or on behalf of that person, that

  • (a) the person had been incapable of forming or expressing an intention to make an application before the day on which the application was actually made,

  • (b) the person had ceased to be so incapable before that day, and

  • (c) the application was made

    • (i) within the period that begins on the day on which that person had ceased to be so incapable and that comprises the same number of days, not exceeding twelve months, as in the period of incapacity, or

    • (ii) where the period referred to in subparagraph (i) comprises fewer than thirty days, not more than one month after the month in which that person had ceased to be so incapable,

  the Minister may deem the application to have been made in the month preceding the first month in which the relevant benefit could have commenced to be paid or in the month that the Minister considers the person’s last relevant period of incapacity to have commenced, whichever is the later.

• Marginal note:Period of incapacity

  (10) For the purposes of subsections (8) and (9), a period of incapacity must be a continuous period except as otherwise prescribed.

• Marginal note:Application

  (11) Subsections (8) to (10) apply only to individuals who were incapacitated on or after January 1, 1991.

• Marginal note:Disabled contributor’s child’s benefit application

  (11.1) If an application for a disability pension or a post-retirement disability benefit is deemed, under subsection (8) or (9), to have been made in a month that precedes the month in which it was actually made, the Minister may also deem the application for a disabled contributor’s child’s benefit to have been made on behalf of the contributor’s child in that same month.

• Marginal note:Making claim or providing information in person

  (12) The Minister may require an applicant or other person or a group or class of persons to be at a suitable place at a suitable time in order to make an application for benefits in person or to provide additional information about an application.

Marginal note:Approval of interim benefit

• 61 (1) Where application is made for a benefit and payment of the benefit would be approved except that the amount of the benefit cannot be finally calculated at the time the approval would otherwise be given, the Minister may approve payment of an interim benefit in such amount as he may fix and payment of the interim benefit may be made in a like manner as if the benefit had been approved.

• Marginal note:Adjustment to be made when benefit subsequently approved

  (2) Where an interim benefit has been paid under subsection (1) and payment of a benefit is subsequently approved,

  • (a) if the amount of the interim benefit was less than the amount of the benefit subsequently approved, the beneficiary shall be paid the additional amount that he would have been paid if the benefit had been approved at the time the interim benefit was approved; and

  • (b) if the amount of the interim benefit exceeded the amount of the benefit subsequently approved, the amount paid in excess thereof shall be deducted from subsequent payments of the benefit or otherwise recovered in such manner as the Minister may direct.

Marginal note:Where payment approved after month of commencement

• 62 (1) Payment of a benefit for each month shall be made at such time during the month as the Minister directs, except that, where payment of a benefit is approved after the end of the month for which the first payment of the benefit is payable under this Part, monthly payments of the benefit shall be made for months commencing with the month following the month in which payment of the benefit is approved and payments of the benefit for months preceding that month for which the benefit is payable under this Part shall be paid in one sum during that month.

• Marginal note:When benefit deemed to have become payable

  (2) For the purposes of this Act, where a benefit is payable under this Part commencing with any month, the benefit shall be deemed to have become payable at the beginning of that month.

Marginal note:Where spouse remarried before survivor’s pension payable

• 63 (1) Where a person whose spouse has died remarries at a time when no survivor’s pension is payable to him, no survivor’s pension is payable to that person during the period of his remarriage and if following the death of his spouse of that or any subsequent remarriage a survivor’s pension would be payable to him if he applied for such a pension, his deceased spouse for the purposes of this Act shall be deemed to be his spouse named in the application.

• Marginal note:Discontinuance of survivor’s pension

  (2) Where a person to whom a survivor’s pension is being paid remarries, the survivor’s pension shall be discontinued commencing with the month following the month in which that person was married.

• Marginal note:Application for survivor’s pension

  (3) Where the spouse of a person whose survivor’s pension has been discontinued under subsection (2) dies, that person may on application therefor be paid a survivor’s pension equal to the survivor’s pension that was discontinued under subsection (2) or the survivor’s pension that would have been payable by reason of the death of the spouse if no survivor’s pension had been previously payable to that person, whichever is the greater.

• Marginal note:Payment of pension to former spouse

  (4) Where the marriage of a person whose survivor’s pension has been discontinued under subsection (2) is terminated otherwise than by the death of his spouse, the survivor’s pension previously payable to that person shall thereupon become payable to him.

• Marginal note:Calculation of basic amount of survivor’s pension

  (5) Where a survivor’s pension payable to a person has been discontinued under subsection (2) and subsequently a survivor’s pension equal to the pension so discontinued becomes payable to that person or the pension so discontinued again becomes payable to him, the basic monthly amount of the pension thereupon payable to that person shall be calculated as though the pension discontinued under subsection (2) had not been discontinued.

• Marginal note:Only one survivor’s pension payable

  (6) Where, but for this subsection, more than one survivor’s pension would be payable concurrently to a person under this Act, or a survivor’s pension would be payable concurrently to a person under this Act and under a provincial pension plan, only one survivor’s pension shall be payable to that person, the amount of which shall be the greatest or greater of the survivor’s pensions that would, but for this subsection, be payable to that person.

• Marginal note:Death within 1 year of marriage

  (7) Where a contributor dies within one year after his marriage, no survivor’s pension is payable to his survivor if the Minister is not satisfied that the contributor was at the time of his marriage in such a condition of health as to justify him in having an expectation of surviving for at least one year thereafter.

• Marginal note:When subsection (7) does not apply

  (7.1) Subsection (7) does not apply if the aggregate of the following periods is one year or more:

  • (a) the period during which the contributor and the survivor had cohabited during the marriage; and

  • (b) the period during which the contributor and the survivor had cohabited in a conjugal relationship immediately before the marriage.

• Marginal note:Application of subsection (3)

  (8) Subsection (3) applies only to a person who has made an application pursuant to that subsection that is pending on the coming into force of section 63.1.

• Marginal note:Application of subsection (4)

  (9) Subsection (4) applies only to a person whose marriage is terminated as described in that subsection before the coming into force of section 63.1.

• Marginal note:Subsection does not apply

  (10) Subsection (5) does not apply in respect of a survivor’s pension that becomes payable pursuant to section 63.1.

Marginal note:Subsections do not apply

• 63.1 (1) Subsections 63(1) and (2) do not apply to a person who remarries after the coming into force of this section.

• Marginal note:Application for commencement or reinstatement of survivor’s pension

  (2) Where, before the coming into force of subsection (1),

  • (a) a survivor’s pension that, but for the operation of subsection 63(1), would have become payable to a person did not become payable to the person, or

  • (b) the payment of a survivor’s pension to a person was discontinued under subsection 63(2),

  and the person is not being paid a survivor’s pension at the time that this section comes into force, an application in writing to the Minister for the commencement or reinstatement, as the case may be, of the survivor’s pension may be made by the person or on behalf of the person by such other person as may be prescribed.

• Marginal note:Commencement of survivor’s pension

  (3) On approval by the Minister of an application referred to in subsection (2), a survivor’s pension is payable to the applicant for each month commencing with the later of

  • (a) the month in which this section comes into force, and

  • (b) the eleventh month preceding the month in which the application is received by the Minister.

• Marginal note:Basic monthly amount of survivor’s pension

  (4) Where a survivor’s pension becomes payable under this section to a person, the basic monthly amount of the pension shall be calculated in accordance with section 58 as though

  • (a) in the case of a person referred to in paragraph (2)(a), the survivor’s pension that would have become payable to the person but for the operation of subsection 63(1) became payable at the time that it would have become payable but for that subsection; and

  • (b) in the case of a person referred to in paragraph (2)(b), payment of the survivor’s pension to the person had not been discontinued under subsection 63(2).

64 [Repealed, R.S., 1985, c. 30 (2nd Supp.), s. 32]

Marginal note:Benefit not to be assigned, etc.

• 65 (1) A benefit shall not be assigned, charged, attached, anticipated or given as security, and any transaction purporting to assign, charge, attach, anticipate or give as security a benefit is void.

• Marginal note:Benefit not subject to seizure or execution

  (1.1) A benefit is exempt from seizure and execution, either at law or in equity.

• Marginal note:Exception

  (2) Notwithstanding subsections (1) and (1.1), where any provincial authority or municipal authority in a province pays a person any advance or assistance or welfare payment for a month or any portion of a month that would not be paid if a benefit under this Act had been paid for that period and subsequently a benefit becomes payable or payment of a benefit may be made under this Act to that person for that period, the Minister may, in accordance with any terms and conditions that may be prescribed, deduct from that benefit and pay to the provincial authority or municipal authority, as the case may be, an amount not exceeding the amount of the advance or assistance or welfare payment paid.

• Marginal note:Exception

  (3) Despite subsections (1) and (1.1), if an administrator of a disability income program who is approved by the Minister makes a payment under that program to a person for a month or any portion of a month that would not have been made if a benefit under paragraph 44(1)(b) or (h) had been paid to that person for that period and subsequently a benefit becomes payable or payment of a benefit may be made under this Act to that person for that period, the Minister may, in accordance with any terms and conditions that may be prescribed, deduct from that benefit and pay to the administrator an amount not exceeding the amount of the payment made under that program.

Marginal note:Assignment of retirement pension to spouse or common-law partner

• 65.1 (1) Notwithstanding subsection 65(1) but subject to this section, the Minister may approve the assignment of a portion of a contributor’s retirement pension to the contributor’s spouse or common-law partner, on application in prescribed manner and form by the contributor or the spouse or common-law partner, if the circumstances described in either subsection (6) or (7) exist.

• (2) [Repealed, 2000, c. 12, s. 52]

• Marginal note:Agreement or court order not binding on Minister

  (3) Except as provided in subsection (4), where, on or after June 4, 1986, a written agreement between persons subject to an assignment under this section was entered into, or a court order was made, the provisions of that agreement or court order are not binding on the Minister for the purposes of an assignment under this section.

• Marginal note:Agreement binding on Minister

  (4) Where

  • (a) a written agreement between persons subject to an assignment under this section entered into on or after June 4, 1986 contains a provision that expressly mentions this Act and indicates the intention of the persons that there be no assignment under this section,

  • (b) that provision of the agreement is expressly permitted under the provincial law that governs such agreements,

  • (c) the agreement was entered into before the day of the application for the assignment, and

  • (d) that provision of the agreement has not been invalidated by a court order,

  that provision of the agreement is binding on the Minister and, consequently, the Minister shall not approve an assignment under this section.

• Marginal note:Minister to notify parties

  (5) The Minister shall, forthwith after receiving an application from one spouse or from one common-law partner for an assignment under this section, notify the other spouse or common-law partner, in prescribed manner, that such an application has been made, and of such other information as the Minister deems necessary.

• Marginal note:Double assignment

  (6) Where

  • (a) a retirement pension is payable to both spouses or to both common-law partners under this Act, or

  • (b) a retirement pension is payable to one spouse or to one common-law partner under this Act and a retirement pension is payable to the other spouse or common-law partner under a provincial pension plan and an agreement under section 80 provides for an assignment in this circumstance,

  the assignment shall be made in respect of both retirement pensions and, in the case described in paragraph (b), in accordance with the agreement.

• Marginal note:Single assignment

  (7) Where, in respect of spouses or common-law partners,

  • (a) one is a contributor under this Act and the other is not a contributor under either this Act or a provincial pension plan,

  • (b) a retirement pension is payable under this Act to the contributor, and

  • (c) the non-contributor has reached sixty years of age,

  the assignment shall be made only in respect of the retirement pension of the contributor.

• Marginal note:Definitions

  (8) In subsection (9),

  first additional joint contributory period

  first additional joint contributory period means the period commencing on January 1, 2019 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

  • (a) if both spouses or common-law partners are contributors, with the month in which the later of their respective first additional contributory periods ends; or

  • (b) if only one spouse or common-law partner is a contributor, with the later of

    • (i) the month in which the contributor’s first additional contributory period ends, and

    • (ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved; (première période cotisable conjointe supplémentaire)

  joint contributory period

  joint contributory period means the period commencing on January 1, 1966 or with the month in which the elder of the two spouses or of the two common-law partners reaches eighteen years of age, whichever is later, and ending

  • (a) where both spouses or common-law partners are contributors, with the month in which the later of their respective contributory periods ends, or

  • (b) where only one spouse or common-law partner is a contributor, with the later of

    • (i) the month in which the contributor’s contributory period ends, and

    • (ii) the earlier of the month in which the non-contributor reaches seventy years of age and the month in which an application for an assignment of a retirement pension is approved,

  but excluding, where subsection (6) applies, any month that is excluded from the contributory period of both spouses or common-law partners pursuant to paragraph 49(c) or (d); (période cotisable conjointe)

  period of cohabitation

  period of cohabitation has the prescribed meaning, but in all cases shall be deemed to end with the month in which the joint contributory period ends; (période de cohabitation)

  second additional joint contributory period

  second additional joint contributory period means the period commencing on January 1, 2024 or with the month in which the elder of the two spouses or of the two common-law partners reaches 18 years of age, whichever is later, and ending

  • (a) if both spouses or common-law partners are contributors, with the month in which the later of their respective second additional contributory periods ends; or

  • (b) if only one spouse or common-law partner is a contributor, with the later of

    • (i) the month in which the contributor’s second additional contributory period ends, and

    • (ii) the earlier of the month in which the non-contributor reaches 70 years of age and the month in which an application for an assignment of a retirement pension is approved. (deuxième période cotisable conjointe supplémentaire)

• Marginal note:Portion of pension assignable

  (9) The portion of a contributor’s retirement pension to be assigned to the contributor’s spouse or common-law partner under this section is an amount equal to the aggregate of

  • (a) an amount calculated by multiplying

    • (i) the amount of the portion of the contributor’s retirement pension calculated as provided in paragraph 46(1)(a) and adjusted in accordance with section 45, by

    • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the joint contributory period,

  • (b) an amount calculated by multiplying

    • (i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(b) and adjusted in accordance with section 45, by

    • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the first additional joint contributory period, and

  • (c) an amount calculated by multiplying

    • (i) the amount of the portion of the contributor’s retirement pension, calculated as provided in paragraph 46(1)(c) and adjusted in accordance with section 45, by

    • (ii) 50% of the ratio that the number of months in the period of cohabitation bears to the number of months in the second additional joint contributory period.

• Marginal note:When assignment commences

  (10) An assignment under this section commences with the month following the month in which the application for the assignment is approved.

• Marginal note:When assignment ceases

  (11) An assignment under this section ceases with the earliest of

  • (a) the month in which either spouse or either common-law partner dies,

  • (b) the twelfth month following the month in which the spouses or the common-law partners commence to live separate and apart within the meaning of paragraphs 55.1(2)(a) and (b) (and in those paragraphs a reference to “persons subject to a division” shall be read as a reference to “spouses or common-law partners”),

  • (c) where subsection (7) applies, the month in which the non-contributor spouse or the non-contributor common-law partner becomes a contributor,

  • (d) the month in which a decree absolute of divorce, a judgment granting a divorce under the Divorce Act or a judgment of nullity of a marriage is issued, and

  • (e) the month following the month in which the Minister approves a request or requests in writing from both spouses or both common-law partners that the assignment be cancelled.

• Marginal note:Request for reinstatement

  (11.1) Where paragraph (11)(e) applies, either spouse or either common-law partner may make a request in writing to the Minister to have the assignment reinstated.

• Marginal note:When reinstatement effective

  (11.2) An assignment shall be reinstated on the first day of the month following the month in which the Minister approves the request referred to in subsection (11.1).

• Marginal note:Notification of assignment

  (12) On approval by the Minister of an assignment under this section, both spouses or both common-law partners shall be notified in the prescribed manner.

Marginal note:Return of benefit where recipient not entitled

• 66 (1) A person or estate that has received or obtained by cheque or otherwise a benefit payment to which the person or estate is not entitled, or a benefit payment in excess of the amount of the benefit payment to which the person or estate is entitled, shall forthwith return the cheque or the amount of the benefit payment, or the excess amount, as the case may be.

• Marginal note:Recovery of amount of payment

  (2) If a person has received or obtained a benefit payment to which the person is not entitled, or a benefit payment in excess of the amount of the benefit payment to which the person is entitled, the amount of the benefit payment or the excess amount, as the case may be, constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.

• Marginal note:Recovery of amount of interest

  (2.01) Interest payable under this Part constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.

• Marginal note:Recovery of amount of penalty

  (2.02) The amount of a penalty imposed on a person under section 90.1 constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.

• Marginal note:Set-off

  (2.1) Where any amount is or becomes payable to the person or the person’s estate or succession under this Act or any other Act or program administered by the Minister, that indebtedness may, in the prescribed manner, be deducted and retained out of the amount payable.

• Marginal note:Certificates

  (2.2) All or part of the amount of that indebtedness that has not been recovered may be certified by the Minister

  • (a) without delay, if in the Minister’s opinion the person liable to pay the amount is attempting to avoid payment; and

  • (b) in any other case, on the expiration of 30 days after the default.

• Marginal note:Judgment

  (2.3) On production to the Federal Court, the certificate shall be registered in the Court. When it is registered, it has the same force and effect, and all proceedings may be taken, as if the certificate were a judgment obtained in the Court for a debt of the amount specified in the certificate.

• Marginal note:Judgment

  (2.4) A certificate registered under subsection (2.3) may also be registered in the superior court of a province as if it were a document evidencing a judgment of that court.

• Marginal note:Costs

  (2.5) All reasonable costs and charges for the registration of the certificate are recoverable in the same way as if they had been certified and the certificate registered under this section.

• Marginal note:Charge on land

  (2.6) A document issued by the Federal Court or by a superior court of a province evidencing a certificate in respect of a debtor registered under subsection (2.3) or (2.4) may be recorded for the purpose of creating security, or a charge, lien or legal hypothec, on land in a province, or on an interest in land in a province, held or owned by the debtor, in the same manner as a document evidencing a judgment of the superior court of the province against a person for a debt owing by the person may be recorded in accordance with the law of the province to create security, or a charge, lien or legal hypothec, on land, or an interest in land, held or owned by the person.

• Marginal note:Garnishment

  (2.7) If the Minister knows or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment to Her Majesty under this Part, the Minister may, by a notice served personally or by confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability.

• Marginal note:Debt due to the Crown

  (2.8) An amount not paid as required by a notice under subsection (2.7) is a debt due to Her Majesty.

• Marginal note:Proof of personal service

  (2.9) If provision is made by this Act or the regulations for personal service of a request for information or a notice or demand, an affidavit of the person effecting service stating that

  • (a) the person has charge of the appropriate records and has knowledge of the facts in the particular case,

  • (b) such a request, notice or demand was served personally on a named day on the person to whom it was directed, and

  • (c) the person identifies as an exhibit attached to the affidavit a true copy of the request, notice or demand,

  is evidence of the personal service and of the request, notice or demand.

• Marginal note:Remission of amount owing

  (3) Notwithstanding paragraph 61(2)(b) and subsections (1) and (2) of this section, where a person has received or obtained a benefit payment to which he is not entitled, or a benefit payment in excess of the amount of the benefit payment to which he is entitled, and the Minister is satisfied that

  • (a) the amount or excess of the benefit payment cannot be collected within the reasonably foreseeable future,

  • (b) the administrative costs of collecting the amount or excess of the benefit payment are likely to equal or exceed the amount to be collected,

  • (c) repayment of the amount or excess of the benefit payment would cause undue hardship to the debtor, or

  • (d) the amount or excess of the benefit payment is the result of erroneous advice or administrative error on the part of the Minister or an official of the Department of Employment and Social Development acting in an official capacity in the administration of this Act,

  the Minister may, unless that person has been convicted of an offence under any provision of this Act or of the Criminal Code in connection with the obtaining of the benefit payment, remit all or any portion of the amount or excess of the benefit payment.

• Marginal note:Where person denied benefit due to departmental error, etc.

  (4) Where the Minister is satisfied that, as a result of erroneous advice or administrative error in the administration of this Act, any person has been denied

  • (a) a benefit, or portion thereof, to which that person would have been entitled under this Act,

  • (b) a division of unadjusted pensionable earnings under section 55 or 55.1, or

  • (c) an assignment of a retirement pension under section 65.1,

  the Minister shall take such remedial action as the Minister considers appropriate to place the person in the position that the person would be in under this Act had the erroneous advice not been given or the administrative error not been made.

• Marginal note:When person denied division

  (5) Where the Minister is satisfied that a person has been denied a division of unadjusted pensionable earnings under section 55 or 55.1 as a result of the provisions of a written agreement entered into or a court order made before June 4, 1986, the Minister shall take such remedial action as the Minister considers appropriate to place the person in the position that the person would be in under this Act had the division been approved, including attributing to that person the earnings that would have been attributed had the division been approved, if

  • (a) the agreement or order does not indicate that there be no division of unadjusted pensionable earnings under this Act; and

  • (b) all other criteria specified by or under this Act respecting divisions are met.

• Marginal note:Exclusion of Financial Administration Act

  (6) Section 155.1 of the Financial Administration Act does not apply in relation to amounts owing to Her Majesty under this Part.