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

Act current to 2020-05-17 and last amended on 2015-06-23. Previous Versions

PART IIMembers of Parliament Retirement Compensation Arrangements (continued)

Members’ Contributions (continued)

Marginal note:Contributions — from January 1, 2016 — under 71 years of age

  •  (1) Beginning on January 1, 2016, a member who has not reached 71 years of age shall with respect to each calendar year, by reservation from the member’s pensionable earnings, contribute to the Compensation Arrangements Account

    • (a) at the applicable contribution rate in respect of the portion of his or her pensionable earnings that exceeds his or her earnings limit for the calendar year; and

    • (b) at the applicable contribution rate in respect of his or her pensionable earnings.

  • Marginal note:Contributions — from January 1, 2016 — 71 years of age or older

    (2) Beginning on January 1, 2016, a member who has reached 71 years of age shall, by reservation from his or her pensionable earnings, contribute to the Compensation Arrangements Account, at the applicable contribution rate in respect of the member’s pensionable earnings.

  • Marginal note:Different rates

    (3) The Chief Actuary shall fix rates for the purposes of paragraph (1)(a) that are different for members who are required to contribute under subsection 12(2.1) than those for other members, and rates for the purposes of subsection (2) that are different for members who would be required to contribute under subsection 12(2.1) if they were under 71 years of age than those for other members.

  • 2012, c. 22, s. 24
  • 2015, c. 36, s. 96

Marginal note:Election to contribute in respect of previous sessions

  •  (1) Subject to this section, where a person ceases to be a member and subsequently becomes a member, that person may, within one year after the first day on which Parliament is in session after that person subsequently becomes a member, elect in accordance with subsection 56(2) to contribute under this Part to the Compensation Arrangements Account in respect of any previous session during which that person was a member.

  • Marginal note:Election to contribute in respect of previous period

    (1.1) A member who is required to make contributions under subsection 31(2) may, within one year after September 21, 2000, elect to contribute under this Part to the Compensation Arrangements Account in respect of the period that consists of the period during which that member was a member but was not required to make contributions and the period in respect of which that member was paid a withdrawal allowance under subsection 2.3(2).

  • Marginal note:Election for both plans

    (2) No election shall be made by a person under subsection (1) in respect of any previous session unless the person makes at the same time an election in respect of that session to contribute under Part I to the Retiring Allowances Account.

  • Marginal note:Election for both plans

    (2.1) No election shall be made by a member under subsection (1.1) unless the member makes an election at the same time to contribute in respect of the same period under Part I to the Retiring Allowances Account.

  • Marginal note:Conditions of election

    Footnote *(3) A person may elect under subsection (1) to contribute under this Part in respect of a previous session only if

    • (a) that person previously contributed or elected to contribute in respect of that session under Part I or III of the former Act or under this Part and a withdrawal allowance in respect of that session became payable to that person under section 15 or 32 of the former Act or under section 38 of this Act, as the case may be;

    • (b) that person was, immediately before ceasing to be a member, eligible to make an election to contribute in respect of that session but did not do so;

    • (c) the person was not a member on the day on which this paragraph came into force and was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under section 2.6 to have the Act recommence to apply to the person; or

    • (d) the person was a person to whom a withdrawal allowance under subsection 2.3(2) was paid and who did not subsequently elect under subsection (1.1).

      • Return to footnote *[Note: Paragraph 32(3)(c) in force September 21, 2000, on assent of 2000, c. 27.]

  • R.S., 1985, c. M-5, s. 32
  • 1992, c. 46, s. 81
  • 1998, c. 23, s. 13
  • 2000, c. 27, s. 7
  • 2001, c. 20, s. 22

Marginal note:Contributions in respect of previous sessions

  •  (1) Where a member elects to contribute to the Compensation Arrangements Account in respect of a previous session, the member shall pay into the Consolidated Revenue Fund

    • (a) in the case of a member who, before July 13, 1995, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons, a contribution equal to seven per cent if the member has not reached 71 years of age at the time of the making of the election, or equal to eleven per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member as a member of the House of Commons in respect of that previous session

      • (i) by way of sessional indemnity, and

      • (ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance;

    • (a.1) in the case of a member who, on or after July 13, 1995 and before January 1, 2001, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons, a contribution equal to five per cent if the member has not reached 71 years of age at the time of the making of the election, or equal to nine per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member as a member of the House of Commons in respect of that previous session

      • (i) by way of sessional indemnity, and

      • (ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance;

    • (a.2) in the case of a member who, on or after January 1, 2001, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons and whose sessional indemnity in respect of the session exceeds his or her earnings limit for the calendar year,

      • (i) if the member has not reached 69 years of age at the time of the election,

        • (A) a contribution equal to the total of 4% of that portion of the sessional indemnity that exceeds the earnings limit and 3% of the sessional indemnity, and

        • (B) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts, and

      • (ii) if the member has reached 69 years of age at the time of the election,

        • (A) a contribution equal to 7% of the sessional indemnity, and

        • (B) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts;

    • (a.3) in the case of a member who, on or after January 1, 2001, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons and whose sessional indemnity in respect of the session does not exceed his or her earnings limit for the calendar year,

      • (i) if the member has not reached 69 years of age at the time of the election, a contribution equal to 3% of the sessional indemnity, or 7% if he or she has reached that age, and

      • (ii) if the member received any salary or annual allowance in respect of the session and elected to contribute in respect of those amounts,

        • (A) if the member has not reached 69 years of age at the time of the election, a contribution equal to

          • (I) 3% of the portion of the salary or annual allowance that, in combination with the sessional indemnity, does not exceed the earnings limit, and

          • (II) 7% of the portion of the salary or annual allowance that, in combination with the sessional indemnity, exceeds the earnings limit, and

        • (B) if the member has reached 69 years of age at the time of the election, a contribution equal to 7% of his or her salary or annual allowance;

    • (b) in the case of a member who makes an election under subsection 32(1) in respect of amounts paid as a member of the Senate,

      • (i) where the election was made on or after July 13, 1995 and before January 1, 2001, a contribution equal to three per cent if the member has not reached 71 years of age at the time of the making of the election, or equal to seven per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member as a member of the Senate in respect of that previous session by way of sessional indemnity,

      • (ii) where the election was made before July 13, 1995, a contribution equal to seven per cent if the member has not reached 71 years of age at the time of the making of the election, or equal to eleven per cent if the member has reached that age at that time, of the aggregate of amounts paid to that member as a member of the Senate in respect of that previous session by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance under this subparagraph and, where applicable, subsection (2),

      • (iii) where the election was made on or after July 13, 1995 and before January 1, 2001, a contribution equal to five per cent if the member has not reached 71 years of age at the time of the making of the election, or equal to nine per cent if the member has reached that age at that time, of the aggregate of amounts paid to that member as a member of the Senate in respect of that previous session by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance under this subparagraph and, where applicable, subsection (2),

      • (iv) if the election was made on or after January 1, 2001 and the sessional indemnity paid in respect of the session exceeds his or her earnings limit for the calendar year,

        • (A) if the member makes the election before reaching 69 years of age,

          • (I) a contribution equal to the total of 4% of the portion of the sessional indemnity that exceeds the earnings limit and 3% of the sessional indemnity, and

          • (II) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts, and

        • (B) if the member has reached 69 years of age at the time of the election,

          • (I) a contribution equal to 7% of the sessional indemnity, and

          • (II) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts, and

      • (v) if the election was made on or after January 1, 2001 and the sessional indemnity paid in respect of the session does not exceed his or her earnings limit for the calendar year,

        • (A) if the member makes the election before reaching 69 years of age,

          • (I) a contribution equal to 3% of the sessional indemnity, and

          • (II) if the member elects to contribute in respect of any salary or annual allowance, a contribution equal to 3% of the portion of salary or annual allowance that, in combination with the sessional indemnity, does not exceed the earnings limit and a contribution equal to 7% of the portion that, in combination with the sessional indemnity, exceeds the earnings limit, and

        • (B) if the member makes the election after reaching 69 years of age,

          • (I) a contribution equal to 7% of the sessional indemnity, and

          • (II) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts; and

    • (c) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that session to the day on which the election is made.

  • Marginal note:Contributions in respect of previous period

    (1.1) If a member elects under subsection 32(1.1) to contribute to the Compensation Arrangements Account in respect of the period referred to in that subsection, the member shall pay into the Consolidated Revenue Fund

    • (a) a contribution equal to five per cent if the member has not reached seventy-one years of age at the time of the making of the election, or equal to nine per cent if the member has reached that age at that time, of the aggregate of amounts paid to the member in respect of that period

      • (i) by way of sessional indemnity, and

      • (ii) by way of salary or annual allowance, if the member so elects to contribute in respect of that salary or annual allowance; and

    • (b) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of sessional indemnity, salary or annual allowance, as the case may be, was made to the member in respect of that period to the day on which the election is made.

  • Marginal note:Maximum contribution

    (2) Notwithstanding subparagraphs (1)(a)(ii), (a.1)(ii) and (b)(ii), in the case of a person who has not reached 71 years of age at the time of the making of the election, where the aggregate of amounts paid to the person as a member in respect of one or more previous sessions in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

    • (a) the earnings limit of the member for that calendar year, or

    • (b) where the person was not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

    the member shall not, in respect of that previous session, contribute under that subparagraph on the excess amount, but shall instead pay into the Consolidated Revenue Fund

    • (c) in the case of an election made before July 13, 1995, a contribution equal to eleven per cent of the excess amount and, in the case of an election made on or after that date and before January 1, 2001, a contribution equal to nine per cent of the excess amount, and

    • (d) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of that salary or annual allowance was made to the day on which the election is made.

  • Marginal note:Maximum contribution

    (3) Notwithstanding subparagraph (1.1)(a)(ii), in the case of a person who has not reached seventy-one years of age at the time of the making of the election, where the aggregate of amounts paid to the person as a member in respect of a particular period in a calendar year by way of sessional indemnity, salary or annual allowance exceeds

    • (a) the earnings limit of the member for that calendar year, or

    • (b) where the person was not a member during the whole of that calendar year, that portion of the earnings limit of the member for that calendar year that the part of the calendar year during which the person is a member bears in relation to the whole of the calendar year, determined in accordance with the regulations,

    the member shall not, in respect of that period, contribute under that subparagraph on the excess amount, but shall instead pay into the Consolidated Revenue Fund

    • (c) a contribution equal to nine per cent of the excess amount, and

    • (d) the interest on that contribution calculated at a rate and in the manner prescribed from the day on which the final payment by way of that salary or annual allowance was made to the day on which the election is made.

  • Marginal note:Earnings limit for part of year

    (4) For the purpose of subsection (1), if the person was not a member during the whole of a calendar year, the earnings limit for that calendar year is determined by multiplying the member’s earnings limit for the calendar year by the ratio that the part of the calendar year during which the person was a member is to the whole calendar year.

  • Marginal note:Application

    (5) This section applies only in respect of elections made before January 1, 2013.

  • R.S., 1985, c. M-5, s. 33
  • 1992, c. 46, s. 81
  • 1995, c. 30, s. 8
  • 2000, c. 27, s. 8
  • 2001, c. 20, s. 23
  • 2003, c. 16, s. 5
  • 2012, c. 22, s. 25
 
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