Economic Recovery Act (stimulus) (S.C. 2009, c. 31)
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Assented to 2009-12-15
R.S., c. C-8Canada Pension Plan
Amendments to the Act
Marginal note:1991, c. 44, s. 1
25. The portion of subsection 2(2) of the Canada Pension Plan before paragraph (a) is replaced by the following:
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), 19(c) or (d) or 44(3)(a), section 70 or paragraph 72(1)(c) — 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
26. (1) Subsection 12(1) of the Act is amended by striking out “or” at the end of paragraph (b) and by replacing paragraph (c) with the following:
(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.
(2) Section 12 of the Act is amended by adding the following after subsection (1):
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:Consequence of not revoking election in prescribed form and manner
(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 9(1)(a) do not, for the purposes of those paragraphs, include income from that employment. However, they may — in respect of that income — make an election under subsection 13(3) and pay the contribution required under section 10 within one year after their balance-due day.
Marginal note:R.S., c. 30 (2nd Supp.), s. 6
27. (1) Subsections 13(1) and (2) of the Act are replaced by the following:
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:1997, c. 40, s. 60
(2) The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Election to include certain earnings
(3) Despite subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of section 10 shall, if the person or their representative makes an election in the prescribed 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
Marginal note:R.S., c. 30 (2nd Supp.), s. 9
28. Section 17 of the Act is replaced by the following:
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.
Marginal note:R.S., c. 30 (2nd Supp.), s. 11
29. Section 19 of the Act is replaced by the following:
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.
30. (1) Subsection 38(1) of the Act is replaced by the following:
Marginal note:Refund of overpayment
38. (1) If an overpayment has been made by an employee on account of the employee’s contribution under this Act for a year, the Minister shall, 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 is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year, refund to the employee the amount of the overpayment.
Marginal note:2004, c. 22, s. 18(1)
(2) Subsection 38(3) of the Act is replaced by the following:
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 contribution for the year required of the employee under subsection 8(1), 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 is notified after the coming into force of this subsection of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.
(3) Paragraph 38(4)(b) of the Act is replaced by the following:
(b) shall make such a refund after mailing 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 is notified after the coming into force of this paragraph of a decision under subsection 60(7), 81(2), 82(11) or 83(11) in respect of a disability pension, ten years — after the end of the year.
Marginal note:1992, c. 1, s. 23
31. Paragraph 42(2)(b) of the Act is replaced by the following:
(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.
32. (1) Subsection 44(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and’’ at the end of paragraph (f) and by adding the following after paragraph (f):
(g) a post-retirement benefit shall be paid to a beneficiary of a retirement pension under this Act or under a provincial pension plan.
(2) Section 44 of the Act is amended by adding the following after subsection (2):
Marginal note:Proration — late applications for disability pensions
(2.1) For the purposes 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 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:R.S., c. 30 (2nd Supp.), s. 15; R.S., c. 18 (3rd Supp.), s. 29; 1991, c. 44, s. 5
33. Subsections 46(3) to (6) of the Act are replaced by the following:
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).
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