Bill C-299

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First Reading

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	1nd Session, 35th Parliament, 42-43 Elizabeth II, 1994
	The House of Commons of Canada
	BILL C-299
	An Act to amend the Canada Pension Plan (increased contributions and pensions)
R.S., c. C-8; R.S., cc. 6, 41 (1st Supp.), cc. 5, 13, 27, 30 (2nd Supp.) cc. 18, 38 (3rd Supp.), cc. 1, 46, 51 (4th Supp.); 1990, c. 8; 1991, cc. 14, 44, 49; 1992, cc. 1, 2, 27, 48; 1993, cc. 24, 27, 28; 1994, c. 21	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. Section 18 of the Canada Pension Plan* is amended**
	(a) by replacing paragraph (1)(a) by the following:
	(a) fifty-two times the average for the twelve month period ending on June 30 in the preceding year of the Industrial Aggregate multiplied by the percentage applicable to the year as provided for in subsection (1.1);
	(b) by adding the following after subsection (1):
Percentage applicable	(1.1) The percentage applicable to the year mentioned in paragraph (1)(a) shall be
	(a) one hundred percent for the twelve month period ending June 30, 1996;
	(b) one hundred and ten percent for the twelve month period ending June 30, 1997;
	(c) one hundred and twenty percent for the twelve month period ending June 30, 1998;
	(d) one hundred and thirty percent for the twelve month period ending June 30, 1999;
	(e) one hundred and forty percent for the twelve month period ending June 30, 2000; and
	(f) one hundred and fifty percent for the twelve month periods ending June 30, 2001 and subsequent years.
	2. The Act is amended by adding the following after section 30:
Election to contribute while not employed	30.1. A person who, for any period exceeding three months, is not employed and does not have self-employed earnings may elect in the prescribed form to pay the employee's and employer's contribution in respect of that period in respect of any amount up to the Year's Maximum Pensionable Earnings provided by section 18.
	3. The Act is amended by adding the following after section 39:
Thirty-five years' contributions	39.1 Notwithstanding any other provision of this Act, where a person has made contributions in respect of thirty-five years,
	(a) the person shall not make any further contribution under this Act;
	(b) the person is deemed for every purpose of this Act to have reached the age of sixty-five years; and
	(c) any other person who is entitled to a benefit or right under this Act consequent upon the person having reached the age of sixty-five years is deemed to be entitled to that benefit or right.
	4. Section 46 of the Act is replaced by the following:
Amount of retirement pension	46. (1) A retirement pension payable to a contributor is a basic monthly amount equal to the qualifying percentage of his average monthly pensionable earnings provided for in subsection (3) .
Poverty level	(2) In respect of 1998 or any subsequent calendar year, the retirement pension shall not be less than the amount set by Statistics Canada as the poverty level for the year taking into account the pensioner's marital status.
Qualifying percentage	(3) The qualifying percentage mentioned in subsection (1) is
	(a) in the case of a person who attains the age of sixty-five years before July 1, 1997, twenty-five percent;
	(b) in the case of a person who attains the age of sixty-five years between July 1, 1997 and June 30, 2008, the percentage set for each year commencing July 1 by order of the Governor in Council on the recommendation of the Minister;
	(c) in the case of a person who attains the age of sixty-five years after July 1, 2009, sixty percent.
Consultation with Management Board	(4) The percentage to be recommended by the Minister each year for the purposes of paragraph (3)(b) shall follow consultation with and a recommendation from the Management Board and shall be
	(a) not less than thirty percent and not more than sixty percent;
	(b) at least two percent higher than the percentage set for the previous year; and
	(c) the highest percentage that may be set in the opinion of the Minister, taking into account the most recent actuarial evaluation of the Plan made pursuant to subsection (5), without jeopardizing the ability of the Plan to make the payments required under this Act.
Actuarial evaluation	(5) The Minister shall cause an actuarial evaluation of the Plan to be carried out at least every two years during the period July 1, 1995 to June 30, 2008, which shall include a recommendation on what percentage may prudently be recommended by the Minister for the purposes of paragraph (3)(b), and shall provide a copy of the evaluation to the Management Board immediately it is received.
Report to Parliament	(6) No later than April 1 in every year the Minister shall lay before the House of Commons a statement of the amount the Minister proposes to recommend for the purposes of paragraph (3)(b) together with a summary of the actuarial report considered by the Minister.
	5. Subsection 56(3) of the Act is replaced by the following:
Calculation of contributor's retirement pension	(3) The amount of the contributor's retirement pension to be used for the purpose of paragraph (1)(b) is the qualifying percentage of his average monthly pensionable earnings calculated as provided in sections 46 to 53.
	6. The part of paragraph 57(2)(b) of the Act that precedes subparagraph (i) thereof is replaced by the following:
	(b) in the case of any other contributor an amount equal to the qualifying percentage determined in accordance with subsection 46(3), as if the contributor had attained the age of sixty-five at the moment of death.
	7. Subparagraph 58(2)(b)(ii) of the Act is replaced by
	(ii) an amount that, when added to the surviving spouse's retirement pension, (calculated without regard to subsections 46(3) to (6) but in accordance with subsection 45(2)) is equal to the amount of a benefit of the qualifying percentage determined in accordance with subsection 46(3) of one twelfth of the average of the Year's Maximum Pensionable Earnings for the later of the year in which the surviving spouse first became qualified to receive the survivor's pension and the year in which the surviving spouse's retirement pension commenced to be payable, and for each of the two preceding years, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the surviving spouse first became qualified to receive the survivor's pension and the year in which the surviving spouse's retirement pension commenced to be payable.
	8. Subparagraph 58(6)(b)(ii) of the Act is replaced by:
	(ii) the amount of a benefit of the qualifying percentage determined in accordance with subsection 46(3) of one twelfth of the average of the Year's Maximum Pensionable Earnings for the later of the year in which the surviving spouse first became qualified to receive the survivor's pension and the year in which the surviving spouse's disability pension commenced to be payable, and for each of the two preceding years, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the surviving spouse first became qualified to receive the survivor's pension and the year in which the surviving spouse's disability pension commenced to be payable.
	9. Subparagraph 58(8)(b)(ii) of the Act is replaced by:
	(ii) the amount of a benefit of the qualifying percentage determined in accordance with subsection 46(3) of one twelfth of the average of the Year's Maximum Pensionable Earnings for the later of the year in which the surviving spouse first became qualified to receive the survivor's pension and the year in which the surviving spouse's disability pension commenced to be payable, and for each of the two preceding years, adjusted in accordance with subsection 45(2) as if the benefit had commenced to be payable in the later of the year in which the surviving spouse first became qualified to receive the survivor's pension and the year in which the surviving spouse's disability pension commenced to be payable.
	10. Subsections 113.1(1) and (2) of the Act are replaced by the following:
Review of contribution rates	113.1 (1) At intervals determined in accordance with subsection (2), the Minister of Finance and ministers of the Crown from the included provinces shall review the contribution rates set out in the schedule and make recommendations as to whether those rates should be changed and as to whether the schedule should be amended to include contribution rates for an additional number of years .
Frequency of reviews	(2) The first review required by this section shall take place prior to January 1, 1996 and subsequent reviews shall take place every second year thereafter.
	11. Subsection 116(1) of the Act and the heading preceding it are replaced by the following:
	Management Board
Management Board established	116. (1) There is hereby established a board, to be known as the Canada Pension Plan Management Board , consisting of not more than sixteen members representative of employees, employers, self-employed persons and the public and including persons with expertise in investment, pension management and actuarial analysis, each of whom shall be appointed by the Governor in Council for such term, not exceeding five years, as will ensure as far as possible the expiration in any one year of the terms of appointment of fewer than one-half of the members.
	12. Subsection 116(4) of the Act is replaced by the following:
Meetings	(4) The Management Board shall meet at least four times a year in the city of Ottawa, and at such other times and places as it deems necessary in order to carry out its duties under this Act.
	13. Subsection 116(7) of the Act is replaced by the following:
Functions of Management Board	(7) The Management Board shall review on a regular basis the operation of this Act, the state of the Canada Pension Plan Investment Fund and the adequacy of coverage and benefits under this Act and shall advise the Minister of the results of the review.
Recommendat ion	(7.1) The Management Board shall consult with and make a recommendation to the Minister on the qualifying percentage to be set pursuant to subsection 46(3).
Idem	(7.2) The Management Board may submit a recommendation to the Minister respecting any regulation made or to be made by the Governor in Council pursuant to this Act.
	14. Subsections 116(2), (3), (5) and (6) are amended by striking out ``Advisory Board'' and substituting ``Management Board'' wherever it occurs.
	15. This Act comes into force on July 1, 1995.

Bill C-299

BILL C-299

Management Board