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Bill C-37

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48-49 ELIZABETH II

CHAPTER 27

An Act to amend the Parliament of Canada Act and the Members of Parliament Retiring Allowances Act

[Assented to 21st September, 2000]

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

R.S., c. P-1

PARLIAMENT OF CANADA ACT

1998, c. 23, s. 6(1)

1. (1) Subsection 70(4) of the Parliament of Canada Act is replaced by the following:

Amount

(4) Subject to subsections (4.1) and (5), the severance allowance to be paid to or in respect of a person under subsection (1) or (2) shall be a lump sum amount equal to fifty per cent of the aggregate of

    (a) the sessional allowance under section 55, and

    (b) any salary or allowance under section 60, 61 or 62 of this Act or section 4 or 5 of the Salaries Act

to which the person was entitled immediately before ceasing to be a member of Parliament.

Amount

(4.1) Subject to subsection (5), the severance allowance to be paid to or in respect of a person under subsection (1) or (2) who is under fifty-five years of age on the day on which the person ceases to be a member and to whom an allowance would be immediately payable under the Members of Parliament Retiring Allowances Act shall be the amount that would be the severance allowance determined under subsection (4) but for this subsection less an amount equal to the annual allowance immediately payable under that Act to the person.

1998, c. 23, s. 6(2)

(2) Subsections 70(6) and (7) of the Act are replaced by the following:

Supplemen-
tary severance allowance

(6) Subject to subsection (8), a person who was entitled to elect under subsection 10(1.1) and 32(1.1) of the Members of Parliament Retiring Allowances Act and who did not elect shall be paid a supplementary severance allowance in the form of a lump sum equal to

    (a) in the case of a person to whom an allowance would not be payable under the Members of Parliament Retiring Allowances Act, one twelfth of the sessional allowance under section 55 and any salary or allowance under section 60, 61 or 62 of this Act or section 4 or 5 of the Salaries Act to which the person was entitled immediately before ceasing to be a member, for every year the member was a member, to a maximum of twelve years; and

    (b) in the case of a person to whom an allowance would be payable under the Members of Parliament Retiring Allowances Act, one twelfth of the sessional allowance under section 55 and any salary or allowance under section 60, 61 or 62 of this Act or section 4 or 5 of the Salaries Act to which the person was entitled immediately before ceasing to be a member, for every year the member was a member in the period referred to in subsections 10(1.1) and 32(1.1) of the Members of Parliament Retiring Allowances Act.

1998, c. 23, s. 6(2)

(3) Subsection 70(10) of the Act is replaced by the following:

Member for a year

(10) For the purposes of subsections (6) and (8), a member is deemed to have been a member for a year if the member was a member for six months or more in any twelve month period.

1998, c. 23, s. 7

2. Section 71 of the Act is replaced by the following:

Restriction

71. A severance allowance shall not be paid under subsection 70(1) or (2) to or in respect of any person to or in respect of whom an allowance is immediately payable under the Members of Parliament Retiring Allowances Act, except in the case referred to in subsection 70(4.1).

R.S., c. M-5

MEMBERS OF PARLIAMENT RETIRING ALLOWANCES ACT

3. Section 9 of the Members of Parliament Retiring Allowances Act is amended by adding the following after subsection (1):

Contributions

(1.1) Despite subsection 2.3(1), beginning on the date this subsection comes into force, a member who was entitled to elect under sections 2.1 and 2.6 and who did not elect shall, by reservation from the sessional indemnity of the member, contribute to the Retiring Allowances Account four per cent of the amount payable to the member by way of that sessional indemnity.

Application of Act deemed to be continuous

(1.2) This Act recommences to apply to a member referred to in subsection (1.1) as of the day on which this subsection comes into force and is deemed to apply to the member as if it had always applied to the member.

4. (1) Section 10 of the Act is amended by adding the following after subsection (1):

Election to contribute in respect of previous period

(1.1) A member who is required to make contributions under subsection 9(1.1) may, within one year after the day on which this subsection comes into force, elect in accordance with subsection 56(2) to contribute under this Part to the Retiring Allowances 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).

(2) Section 10 of the Act is amended by adding the following after subsection (2):

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 II to the Compensation Arrangements Account.

1998, c. 23, s. 11

(3) Subsection 10(3) of the Act is amended by striking out the word ``or'' at the end of paragraph (b) and by replacing paragraph (c) with the following:

    (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).

5. (1) Section 11 of the Act is amended by adding the following after subsection (1):

Contributions in respect of previous period

(1.1) If a member elects under subsection 10(1.1) to contribute to the Retiring Allowances 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 four per cent of the aggregate of the 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.

1992, c. 46, s. 81

(2) Subsection 11(2) of the Act is replaced by the following:

Maximum contribution

(2) Notwithstanding clause (1)(a)(i)(B) or subparagraph (1.1)(a)(ii), where the aggregate of amounts paid to a person as a member in respect of one or more previous sessions, or 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 previous session or particular period, contribute under that clause or subparagraph on the excess amount.

6. Section 31 of the Act is amended by adding the following after subsection (1):

Contributions

(1.1) Despite subsection 2.3(1), beginning on the date this subsection comes into force, a member who was entitled to elect under sections 2.1 and 2.6 and who did not elect shall, by reservation from the sessional indemnity of the member, contribute to the Compensation Arrangements Account five per cent of the amount payable to the member by way of sessional indemnity if the member has not reached seventy-one years of age or nine per cent of that amount if the member has reached seventy-one years of age.

7. (1) Section 32 of the Act is amended by adding the following after subsection (1):

Election to contribute in respect of previous period

(1.1) A member who is required to make contributions under subsection 31(1.1) may, within one year after the day on which this subsection comes into force, elect in accordance with subsection 56(2) 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).

(2) Section 32 of the Act is amended by adding the following after subsection (2):

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.

1998, c. 23, s. 13

(3) Subsection 32(3) of the Act is amended by striking out the word ``or'' at the end of paragraph (b) and by replacing paragraph (c) with the following:

    (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).

8. (1) Section 33 of the Act is amended by adding the following after subsection (1):

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.

(2) Section 33 of the Act is amended by adding the following after subsection (2):

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.