Canada Pension Plan

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.