Contents
Whereas, pursuant to subsections 113.1(11.145) and 115(1.3) of the Canada Pension Plan, the lieutenant governor in council of each of at least two thirds of the included provinces, having in total not less than two thirds of the population of all the included provinces, has signified the consent of that province to the annexed Additional Canada Pension Plan Sustainability Regulations;notenotenoteTherefore, His Excellency the Administrator of the Government of Canada in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 101(1)(d.1) and subsection 113.1(11.144) of the Canada Pension Plan, makes the annexed Additional Canada Pension Plan Sustainability Regulations.notenote
Interpretation
1Definitions#
The following definitions apply in these Regulations.
Act means the Canada Pension Plan. (Loi)
additional contribution rate ratio means the ratio — rounded to the nearest whole number or, if equidistant from two whole numbers, to the higher whole number — of the percentage specified in paragraph 46(1)(c) of the Act to the percentage specified in paragraph 46(1)(b) of the Act. (rapport du taux de cotisation supplémentaire)
legislated means
review period means any three-year period for which the Chief Actuary prepares a report for the purpose of subsection 115(1) of the Act. (période d’examen)
Application of Subsections 113.1(11.141) and (11.142) of Act
2Range — paragraph 113.1(11.141)(a)#
(1)For the purpose of paragraph 113.1(11.141)(a) of the Act, the range consists of
(a)for each year starting with 2024 and ending with 2038, every percentage point that is
(i)greater than or equal to 0.41, or
(ii)less than or equal to -0.31; and
(b)for each year starting with 2039, every percentage point that is
(i)greater than or equal to 0.31, or
(ii)less than or equal to -0.21.
(2)For the purpose of paragraph 113.1(11.141)(b) of the Act, the range consists of
(a)for each year starting with 2024 and ending with 2038, every percentage point that is
(i)greater than 0.30 and less than 0.41, or
(ii)greater than -0.31 and less than -0.20; and
(b)for each year starting with 2039, every percentage point that is
(i)greater than 0.20 and less than 0.31, or
(ii)greater than -0.21 and less than -0.10.
(3)For the purpose of paragraph 113.1(11.141)(c) of the Act, the range consists of
(a)for each year starting with 2024 and ending with 2038, every percentage point that is
(i)greater than or equal to 0.41 multiplied by the additional contribution rate ratio, or
(ii)less than or equal to -0.31 multiplied by the additional contribution rate ratio; and
(b)for each year starting with 2039, every percentage point that is
(i)greater than or equal to 0.31 multiplied by the additional contribution rate ratio, or
(ii)less than or equal to -0.21 multiplied by the additional contribution rate ratio.
(4)For the purpose of paragraph 113.1(11.141)(d) of the Act, the range consists of
(a)for each year starting with 2024 and ending with 2038, every percentage point that is
(i)greater than 0.30 multiplied by the additional contribution rate ratio and less than 0.41 multiplied by the additional contribution rate ratio, or
(ii)greater than -0.31 multiplied by the additional contribution rate ratio and less than -0.20 multiplied by the additional contribution rate ratio; and
(b)for each year starting with 2039, every percentage point that is
(i)greater than 0.20 multiplied by the additional contribution rate ratio and less than 0.31 multiplied by the additional contribution rate ratio, or
(ii)greater than -0.21 multiplied by the additional contribution rate ratio and less than -0.10 multiplied by the additional contribution rate ratio.
Changes to Contribution Rates and Benefits
3Applicable provisions — surplus position#
(1)If the applicable differences referred to in subsection 113.1(11.141) of the Act fall within a range described in subparagraph 2(1)(a)(i) or (b)(i), 2(2)(a)(i) or (b)(i), 2(3)(a)(i) or (b)(i) or 2(4)(a)(i) or (b)(i),
(a)the first additional contribution rates and second additional contribution rates are to be changed, for the purpose of subsection 113.1(11.141) of the Act, in accordance with paragraph 6(a) or 7(1)(a) or subsection 7(2), if applicable; and
(2)If the applicable differences referred to in subsection 113.1(11.141) of the Act fall within a range described in subparagraph 2(1)(a)(ii) or (b)(ii), 2(2)(a)(ii) or (b)(ii), 2(3)(a)(ii) or (b)(ii) or 2(4)(a)(ii) or (b)(ii),
(a)the first additional contribution rates and second additional contribution rates are to be changed, for the purpose of subsection 113.1(11.141) of the Act, in accordance with subsection 11(2) or (3) or 12(4) or (5), if applicable; and
(3)If the first additional contribution rates and second additional contribution rates specified in the most recent report prepared for the purpose of subsection 115(1) of the Act include temporary increases in the rates calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) of the Act, respectively, and the applicable differences referred to in subsection 113.1(11.141) of the Act would not fall within a range referred to in subsection (2) if those temporary increases were excluded,
(a)paragraphs (2)(a) and (b) do not apply; and
(b)for each year for which the first additional contribution rate specified in the most recent report prepared for the purpose of subsection 115(1) of the Act includes a temporary increase and for which the sum of that increase and the legislated first additional contribution rate for self-employed persons exceeds the corresponding first additional contribution rate,
(i)the first additional contribution rate for self-employed persons is deemed, for the purpose of subsection 113.1(11.141) of the Act, to equal that sum,
(ii)the first additional contribution rate for employees and employers is deemed, for the purpose of subsection 113.1(11.141) of the Act, to equal the rate referred to in subparagraph (i), divided by two, and
(iii)the second additional contribution rates are deemed, for the purpose of subsection 113.1(11.141) of the Act, to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.
4Benefit multiplier#
(1)Subject to subsection (2), in these Regulations, benefit multiplier means the value determined under subsection 9(2) or (3) or 14(2) or (3).
(2)If benefits have not been determined in accordance with these Regulations for a given year, the benefit multiplier for that year is equal to 1.
Actions When Rates in Surplus Position
5No previous rate increase or reduction in benefits#
If the first additional contribution rates and second additional contribution rates are equal to the corresponding legislated first additional contribution rates and second additional contribution rates and benefits are equal to or greater than the corresponding legislated benefits, a value for S2 and the period to which S2 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the legislated first additional contribution rate for self-employed persons for that year minus 0.1:
(a)S2 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period;
(b)benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; and
(c)for each year of the period to which S2 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula
6Previous rate increase#
If the first additional contribution rates and second additional contribution rates are greater than the corresponding legislated first additional contribution rates and second additional contribution rates and benefits are equal to the legislated benefits,
(a)the first additional contribution rates are deemed to equal the corresponding legislated first additional contribution rates and the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio; and
(b)a value for S2 and the period to which S2 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the legislated first additional contribution rate for self-employed persons for that year minus 0.1:
(i)S2 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period,
(ii)benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act, and
(iii)for each year of the period to which S2 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula
7Previous reduction in benefits#
(1)If benefits are lower than the legislated benefits,
(a)the first additional contribution rates and second additional contribution rates are deemed to be decreased, if necessary, to reverse any past temporary increases in those rates resulting from the operation of these Regulations; and
(b)a value for S1 and the period to which S1 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the first additional contribution rate for self-employed persons for that year, as adjusted in accordance with paragraph (a), if applicable:
(i)S1 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period,
(ii)benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act, and
(iii)for each year of the period to which S1 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula
(2)If the rates calculated under paragraph (1)(b) are less than the corresponding first additional contribution rates for self-employed persons, as adjusted in accordance with paragraph (a), if applicable, minus 0.0001, and the latter rates are greater than the corresponding legislated first additional contribution rates,
(a)the first additional contribution rates for self-employed persons are deemed to equal the higher of the corresponding legislated first additional contribution rates and the corresponding rates calculated under paragraph (1)(b);
(b)the first additional contribution rates for employees and employers are deemed to equal the corresponding rates determined under paragraph (a), divided by two; and
(c)the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.
(3)If the rates calculated under paragraph (1)(b) are less than the corresponding legislated first additional contribution rates for self-employed persons minus 0.1, a value for S2 and the period to which S2 is to apply are to be determined, for the purposes of sections 8 to 10, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the legislated first additional contribution rate for self-employed persons for that year minus 0.1:
(a)S2 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period;
(b)benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; and
(c)for each year of the period to which S1 or S2 applies, whichever is longer, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula
8Target benefit multipliers#
For the purposes of sections 9 and 10, the interim target benefit multiplier is the value determined by the following formula for the last year of whichever of the applicable periods determined under section 5, paragraph 6(b) or subsection 7(1) or (3) is the shortest and the final target benefit multiplier is the value determined by that formula for the last year of whichever of those periods is the longest:
9Determination of new benefits#
(1)Benefits that become payable in a year are to be determined by multiplying the corresponding legislated benefits by the benefit multiplier for that year.
(2)If the interim and final target benefit multipliers are equal, the benefit multiplier is equal to
(a)the value determined by the following formula, for each year for which that value is less than the interim and final target benefit multipliers:
(b)for each subsequent year, the interim and final target benefit multipliers.
(3)If the interim target benefit multiplier is less than the final target benefit multiplier, the benefit multiplier is equal to
(a)the value determined by the following formula, for each year for which that value is less than or equal to the interim target benefit multiplier:
(b)the value determined by the following formula, for each year to which paragraph (a) does not apply and for which that value is less than the final target benefit multiplier:
(c)for each subsequent year, the final target benefit multiplier.
10Determination of other benefits#
Benefits, other than those that become payable in a year, are to be determined, for each year to which paragraph 9(2)(a) or (3)(a) or (b) applies and for the first year to which paragraph 9(2)(b) or (3)(c) applies, by multiplying the previous year’s benefits not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the following formula, as the case may be:
(a)for each year to which paragraph 9(2)(a) or (3)(a) applies,
(b)for each year to which paragraph 9(3)(b) applies,
(c)for the first year to which paragraph 9(2)(b) or (3)(c) applies,
Actions When Rates in Deficit Position
11No previous increase in benefits#
(1)If benefits are less than or equal to the corresponding legislated benefits, a value for S4 is to be determined, for the purposes of sections 13 to 15, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations:
(b)S4 is to apply to a period of six years, starting with the year after the review period;
(c)benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; and
(d)for each year of the period to which S4 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula
(2)If the rates calculated under subsection (1) exceed the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations, by more than 0.0001,
(a)the first additional contribution rates for self-employed persons are deemed to equal the corresponding rates calculated under subsection (1);
(b)the first additional contribution rates for employees and employers are deemed to equal the corresponding rates referred to in paragraph (a), divided by two; and
(c)the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.
(3)For each year for which the first additional contribution rate calculated under subparagraph 115(1.1)(d)(ii) of the Act would include a temporary increase if benefits were determined in accordance with sections 14 and 15 and subsection 5(4) of the Calculation of Contribution Rates Regulations, 2021 did not apply,
(a)the first additional contribution rate for self-employed persons is deemed to equal the sum of the first additional contribution rate for self-employed persons for that year, as adjusted in accordance with subsection (2), if applicable, and the amount of any temporary increase, rounded to the nearest multiple of 0.01, that would apply to that year;
(b)the first additional contribution rate for employees and employers is deemed to equal the rate calculated under paragraph (a), divided by two; and
(c)the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.
12Previous increase in benefits#
(1)If benefits are greater than the legislated benefits, a value for S3 and the period to which S3 is to apply are to be determined, for the purposes of sections 13 to 15, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations:
(b)S3 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period;
(c)benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; and
(d)for each year of the period to which S3 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula
(2)If the rates calculated under subsection (1) exceed the corresponding first additional contribution rates for self-employed persons by more than 0.0001, a value for S4 is to be determined, for the purposes of sections 13 to 15, such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations:
(b)S4 is to apply to a period of six years, starting with the year after the review period;
(c)benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14, using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; and
(d)for each year of the period to which S3 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula
(3)If the sum of the values for S3 and S4 that are determined, respectively, under subsections (1) and (2) is less than -1, the application of those subsections is to be repeated, with the shortest period referred to in paragraph (1)(b) being lengthened by three years for each repetition, until the sum of those values is greater than or equal to -1. All references in these Regulations to the value for S3 determined under subsection (1), the value for S4 determined under subsection (2), the period determined under subsection (1) or the rate calculated under subsection (1) or (2) are to be read as that value, period or rate following the final application of those subsections.
(4)If the rates calculated under subsection (2) exceed the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations, by more than 0.0001,
(a)the first additional contribution rates for self-employed persons are deemed to equal the corresponding rates calculated under subsection (2);
(b)the first additional contribution rates for employees and employers are deemed to equal the corresponding rates referred to in paragraph (a), divided by two; and
(c)the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.
(5)For each year for which the first additional contribution rate calculated under subparagraph 115(1.1)(d)(ii) of the Act would include a temporary increase if benefits were determined in accordance with sections 14 and 15 and subsection 5(4) of the Calculation of Contribution Rates Regulations, 2021 did not apply,
(a)the first additional contribution rate for self-employed persons is deemed to equal the sum of the first additional contribution rate for self-employed persons for that year, as adjusted in accordance with subsection (4), if applicable, and the amount of any temporary increase, rounded to the nearest multiple of 0.01, that is applicable to that year;
(b)the first additional contribution rate for employees and employers is deemed to equal the rate calculated under paragraph (a), divided by two; and
(c)the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio.
13Target benefit multipliers#
For the purposes of sections 14 and 15, the interim target benefit multiplier is the value determined by the following formula for the last year of whichever of the applicable periods referred to in paragraph 11(1)(a) or 12(2)(a) or determined under subsection 12(1) is the shortest and the final target benefit multiplier is the value determined by that formula for the last year of the applicable period referred to in paragraph 11(1)(a) or determined under subsection 12(1):
14Determination of new benefits#
(1)Benefits that become payable in a year are to be determined by multiplying the corresponding legislated benefits by the benefit multiplier for that year.
(2)If the interim and final target benefit multipliers are equal, the benefit multiplier is equal to
(a)the value determined by the following formula, for each year for which that value is greater than the interim and final target benefit multipliers:
(b)for each subsequent year, the interim and final target benefit multipliers.
(3)If the interim target benefit multiplier is greater than the final target benefit multiplier, the benefit multiplier is equal to
(a)the value determined by the following formula, for each year for which that value is greater than or equal to the interim target benefit multiplier:
(b)the value determined by the following formula, for each year to which paragraph (a) does not apply and for which that value is greater than the final target benefit multiplier:
(c)for each subsequent year, the final target benefit multiplier.
15Determination of other benefits#
Benefits, other than those that become payable in a year, are to be determined, for each year to which paragraph 14(2)(a) or (3)(a) or (b) applies and for the first year to which paragraph 14(2)(b) or (3)(c) applies, by multiplying the previous year’s benefits not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the following formula, as the case may be:
(a)for each year to which paragraph 14(2)(a) or (3)(a) applies,
(b)for each year to which paragraph 14(3)(b) applies,
(c)for the first year to which paragraph 14(2)(b) or (3)(c) applies,
Coming into Force
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.