Bill C-396
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2nd Session, 40th Parliament,
57-58 Elizabeth II, 2009
house of commons of canada
BILL C-396
An Act to amend the Canada Pension Plan (deductions — disabled child)
R.S., c. C-8
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. (1) Subsection 48(1) of the Canada Pension Plan is replaced by the following:
Average monthly pensionable earnings in case of pension commencing after December, 1975
48. (1) Subject to subsections (2), (2.1), (3) and (4), where a retirement pension becomes payable to a contributor commencing with any month after December, 1975, their average monthly pensionable earnings are an amount calculated by dividing their total pensionable earnings by the total number of months in their contributory period or by the basic number of contributory months, whichever is the greater.
(2) Section 48 of the Act is amended by adding the following after subsection (2):
Deductions in calculating average monthly pensionable earnings — disabled child
(2.1) In calculating the average monthly pensionable earnings of a contributor in accord- ance 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 the contributor remained at home to care for a child and was eligible for the child disability benefit or a credit for mental or physical impairment for a child under the Income Tax Act, and during which their pensionable earnings were less than their average monthly pensionable earnings calculated without regard to subsections (2), (3) and (4), but no such deduction shall reduce the number of months in their 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”,
(ii) 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
(iii) 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 their total pensionable earnings, the aggregate of their pensionable earnings attributable to the months deducted pursuant to paragraph (a).
(3) The portion of subsection 48(3) of the Act before paragraph (a) is replaced by the following:
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 the contributor reaches sixty-five years of age and the total number of months in their contributory period remaining after the deduction under paragraph (2)(a) or (2.1)(a) exceeds the basic number of contributory months, in calculating their average monthly pensionable earnings in accordance with subsection (1) there shall be deducted
(4) Paragraph 48(3)(b) of the Act is replaced by the following:
(b) from the total pensionable earnings of the contributor remaining after the deduction under paragraph (2)(b) or (2.1)(b), the aggregate of their 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 the aggregate of their pensionable earnings for any other like number of months in their contributory period other than for months for which a deduction has already been made under subsection (2) or (2.1).
2. Section 49 of the Act is amended by adding the following after paragraph (d):
(e) in relation to any benefits payable under this Act for any month after December, 1977, any month for which the contributor remained at home to care for a child and was eligible for the child disability benefit or a credit for mental or physical impairment for a child under the Income Tax Act in a year for which their unadjusted pensionable earnings were equal to or less than their basic exemption for the year.
3. (1) The portion of subsection 56(4) of the Act before paragraph (a) is replaced by the following:
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), (2.1) and (4), the amount obtained by dividing
(2) The portion of subsection 56(4.1) of the Act before paragraph (a) is replaced by the following:
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), (2.1) and (4), the amount obtained by dividing
4. (1) Subparagraph 57(2)(b)(ii) of the Act is replaced by the following:
(ii) subsection 48(1) shall be read as follows:
“48. (1) Subject to subsections (2), (2.1), (3) and (4), the average monthly pensionable earnings of a contributor are an amount calculated by dividing their total pensionable earnings by the total number of months in their contributory period.”, and
(2) The portion of subsection 57(3) of the Act before paragraph (a) is replaced by the following:
Calculation of average monthly pensionable earnings
(3) Subject to subsections 48(2), (2.1), (3) and (4), the average monthly pensionable earnings of a contributor is an amount calculated by dividing their total pensionable earnings by the total number of months in their contributory period or by thirty-six, whichever is greater, and
Published under authority of the Speaker of the House of Commons
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