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Bill C-39

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51-52 ELIZABETH II

CHAPTER 16

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

[Assented to 19th June, 2003]

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

R.S., c. M-5

MEMBERS OF PARLIAMENT RETIRING ALLOWANCES ACT

2001, c. 20, s. 16(2)

1. Paragraph 9(2)(a) of the Members of Parliament Retiring Allowances Act is replaced by the following:

    (a) not to contribute under this subsection and has also elected not to contribute under subsection 31(4) or (5); or

2001, c. 20, s. 18(1)

2. (1) Paragraph 12(1)(b) of the Act is replaced by the following:

    (b) subject to subsection (2), in respect of any amount payable to the member by way of sessional indemnity, after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member's credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75; or

2001, c. 20, s. 18(2)

(2) Subsection 12(2) of the Act is replaced by the following:

Exception for 1%

(2) Commencing on January 1, 2001, a member shall, by reservation from the sessional indemnity payable to the member, continue to contribute under this Part 1% of that portion of the sessional indemnity that does not exceed the member's earnings limit for the calendar year, after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member's credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75.

2001, c. 20, s. 19

3. Subsection 17(4.1) of the Act is replaced by the following:

Exception

(4.1) Subsection (4), as it read immediately before July 12, 2001, applies in respect of a period of pensionable service to a member's credit pursuant to an election referred to in subsection 36(10).

2001, c. 20, s. 21

4. (1) The portion of subsection 31(4) of the Act before paragraph (a) is replaced by the following:

Additional contribution - members under 69 who reach maximum accrual

(4) A member to whom paragraph 12(1)(b) applies, who has not reached 69 years of age and who is in receipt of a salary or annual allowance shall, commencing on January 1, 2001 - unless the member elects not to contribute under this subsection and has also elected not to contribute under subsection 9(2) - by reservation from that salary or annual allowance, contribute to the Compensation Arrangements Account an amount equal to

(2) Section 31 of the Act is amended by adding the following after subsection (4):

Additional contribution - members 69 or over who reach maximum accrual

(5) A member to whom paragraph 12(1)(b) applies, who has reached 69 years of age and who is in receipt of a salary or annual allowance shall, commencing on January 1, 2001 - unless the member elects not to contribute under this subsection - by reservation from that salary or annual allowance, contribute to the Compensation Arrangements Account an amount equal to 7% of that salary or annual allowance.

5. (1) Subsection 33(1) of the Act is amended by adding the following after paragraph (a.1):

    (a.2) in the case of a member who, on or after January 1, 2001, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons and whose sessional indemnity in respect of the session exceeds his or her earnings limit for the calendar year,

      (i) if the member has not reached 69 years of age at the time of the election,

        (A) a contribution equal to the total of 4% of that portion of the sessional indemnity that exceeds the earnings limit and 3% of the sessional indemnity, and

        (B) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts, and

      (ii) if the member has reached 69 years of age at the time of the election,

        (A) a contribution equal to 7% of the sessional indemnity, and

        (B) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts;

    (a.3) in the case of a member who, on or after January 1, 2001, makes an election under subsection 32(1) in respect of amounts paid as a member of the House of Commons and whose sessional indemnity in respect of the session does not exceed his or her earnings limit for the calendar year,

      (i) if the member has not reached 69 years of age at the time of the election, a contribution equal to 3% of the sessional indemnity, or 7% if he or she has reached that age, and

      (ii) if the member received any salary or annual allowance in respect of the session and elected to contribute in respect of those amounts,

        (A) if the member has not reached 69 years of age at the time of the election, a contribution equal to

          (I) 3% of the portion of the salary or annual allowance that, in combination with the sessional indemnity, does not exceed the earnings limit, and

          (II) 7% of the portion of the salary or annual allowance that, in combination with the sessional indemnity, exceeds the earnings limit, and

        (B) if the member has reached 69 years of age at the time of the election, a contribution equal to 7% of his or her salary or annual allowance;

(2) Paragraph 33(1)(b) of the Act is amended by striking out the word ``and'' at the end of subparagraphs (ii) and (iii) and by adding the following after subparagraph (iii):

      (iv) if the election was made on or after January 1, 2001 and the sessional indemnity paid in respect of the session exceeds his or her earnings limit for the calendar year,

        (A) if the member makes the election before reaching 69 years of age,

          (I) a contribution equal to the total of 4% of the portion of the sessional indemnity that exceeds the earnings limit and 3% of the sessional indemnity, and

          (II) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts, and

        (B) if the member has reached 69 years of age at the time of the election,

          (I) a contribution equal to 7% of the sessional indemnity, and

          (II) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts, and

      (v) if the election was made on or after January 1, 2001 and the sessional indemnity paid in respect of the session does not exceed his or her earnings limit for the calendar year,

        (A) if the member makes the election before reaching 69 years of age,

          (I) a contribution equal to 3% of the sessional indemnity, and

          (II) if the member elects to contribute in respect of any salary or annual allowance, a contribution equal to 3% of the portion of salary or annual allowance that, in combination with the sessional indemnity, does not exceed the earnings limit and a contribution equal to 7% of the portion that, in combination with the sessional indemnity, exceeds the earnings limit, and

        (B) if the member makes the election after reaching 69 years of age,

          (I) a contribution equal to 7% of the sessional indemnity, and

          (II) a contribution equal to 7% of the total of his or her salary and annual allowance, if the member elects to contribute in respect of those amounts; and

2001, c. 20, s. 23(6)

(3) Subsection 33(4) of the Act is replaced by the following:

Earnings limit for part of year

(4) For the purpose of subsection (1), if the person was not a member during the whole of a calendar year, the earnings limit for that calendar year is determined by multiplying the member's earnings limit for the calendar year by the ratio that the part of the calendar year during which the person was a member is to the whole calendar year.

2001, c. 20, s. 24(1)

6. (1) Paragraph 34(1)(b) of the Act is replaced by the following:

    (b) subject to subsections (2) and (2.1), in respect of any amount payable to the member by way of sessional indemnity after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member's credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75.

2001, c. 20, s. 24(2)

(2) Subsection 34(2) of the Act is replaced by the following:

Exception - 69 years old

(2) Commencing on January 1, 2001, a member who has reached 69 years of age shall, by reservation from the sessional indemnity payable to that member, continue to contribute under this Part 1% of the amount payable to the member by way of sessional indemnity after the aggregate of the products obtained by multiplying the number of years of pensionable service to the member's credit by the multipliers set out in subsection 16(1) and, as applicable, subsection 36(2) or (6) equals 0.75.

1992, c. 46, s. 81; 1995, c. 30, s. 9; 2001, c. 20, s. 25

7. Section 36 of the Act is replaced by the following:

Compensation allowance

36. (1) Subject to sections 58 and 59, a compensation allowance determined in accordance with this section shall be paid to a person during his or her lifetime in respect of contributions made under this Part, other than those made in respect of salary or annual allowance and those made under subsection 34(2) or (2.1), if the person

    (a) ceases to be a member on or after January 1, 1992; and

    (b) contributed or elected to contribute under this Part, or Part I or III of the former Act, for at least six years.

Amount payable to former members of House of Commons

(2) The compensation allowance payable under this section in respect of contributions made as a member of the House of Commons is an amount equal to the aggregate of

    (a) the person's average annual sessional indemnity multiplied by, subject to subsection (3), the number of years or portions of years of pensionable service calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6), multiplied by

      (i) if the person has not reached 60 years of age,

        (A) 0.05 for the years or portions of years of pensionable service calculated by reference to contributions made, or in respect of which an election was made, on or after January 1, 1992 and before July 13, 1995,

        (B) 0.04 for the years or portions of years of pensionable service calculated by reference to contributions made - or in respect of which an election was made - on or after July 13, 1995 and before January 1, 2001, other than those made pursuant to an election referred to in clause (A), and

        (C) 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made - or in respect of which an election was made - on or after January 1, 2001, other than those made pursuant to an election referred to in clause (A) or (B),

      (ii) subject to subparagraphs (iii) and (iv), if the person has reached 60 years of age,

        (A) 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made, or in respect of which an election was made, on or after January 1, 1992 and before July 13, 1995,

        (B) 0.02 for the years or portions of years of pensionable service calculated by reference to contributions made - or in respect of which an election was made - on or after July 13, 1995 and before January 1, 2001, other than those made pursuant to an election referred to in clause (A), and

        (C) 0.01 for the years or portions of years of pensionable service calculated by reference to contributions made - or in respect of which an election was made - on or after January 1, 2001, other than those made pursuant to an election referred to in clause (A) or (B),

      (iii) if the person contributed after he or she reached 71 years of age,

        (A) 0.05 for the years or portions of years of pensionable service calculated by reference to contributions made - or in respect of which an election was made - during the period commencing on the later of the 71st birthday and January 1, 1992 and ending on July 12, 1995, and

        (B) 0.04 for the years or portions of years of pensionable service calculated by reference to contributions made - or in respect of which an election was made - during the period commencing on the later of the 71st birthday and July 13, 1995 and ending on December 31, 2000, other than those made pursuant to an election referred to in clause (A), and

      (iv) if the person contributed after he or she reached 69 years of age, 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made - or in respect of which an election was made - on or after the later of the 69th birthday and January 1, 2001, other than those made pursuant to an election referred to in subparagraph (iii), and

    (b) the person's average annual sessional indemnity multiplied by the number of years of pensionable service calculated in accordance with subsection (4), multiplied by 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made on or after January 1, 2001, other than those made pursuant to an election made before that date.

Years of service - subparagraph (2)(a)(iii)

(3) For the purpose of subparagraph (2)(a)(iii), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for

    (a) each amount, equal to 11% of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has - during that calendar year and before July 13, 1995 - contributed or elected to contribute under section 31 or 33, as those sections read immediately before that date, other than amounts contributed in respect of salary or annual allowance or as interest; and

    (b) each amount, equal to 9% of the sessional indemnity payable to a member of the House of Commons during any calendar year, that the person has - during that calendar year and on or after July 13, 1995 and before January 1, 2001 - contributed or elected to contribute under section 31 or 33, as those sections read immediately before January 1, 2001, other than amounts contributed in respect of salary or annual allowance or as interest.

Years of service - paragraph (2)(b) or (6)(b)

(4) For the purpose of paragraph (2)(b) or (6)(b), a person, on ceasing to be a member, is deemed to have one year of pensionable service to his or her credit for each amount - equal to 7% of the sessional indemnity payable to a member of the Senate or House of Commons, as the case may be, during a calendar year - that, on or after January 1, 2001, he or she contributed or elected to contribute under subsection 31(1) or 33(1) in respect of sessional indemnity that exceeded his or her earnings limit for the calendar year.

Application of subsections (3), (4) and (7)

(5) In the application of subsections (3), (4) and (7), the deeming provision of subsection 16(6) in relation to a portion of a year's pensionable service shall apply, with any modifications that the circumstances require.

Amount payable to former members of Senate

(6) The compensation allowance payable under this section in respect of contributions made as a member of the Senate is an amount equal to the aggregate of

    (a) the person's average annual sessional indemnity multiplied by, subject to subsection (7), the number of years or portions of years of pensionable service calculated for the purpose of paragraph 16(1)(b) in accordance with subsections 16(5) and (6), multiplied by

      (i) if the person has not reached 60 years of age, 0.03,

      (ii) subject to subparagraph (iii), if the person has reached 60 years of age, 0.01, and

      (iii) if the person contributed after he or she reached 69 years of age, 0.03 for the years or portions of years of pensionable service calculated by reference to contributions made on or after the 69th birthday - or in respect of which an election was made on or after that date - other than those made pursuant to an election made before that birthday, and