Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)
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Assented to 2018-06-21
PART 6Various Measures (continued)
DIVISION 19R.S., c. C-8Canada Pension Plan (continued)
Amendments to the Act (continued)
382 (1) Subsections 57(1) and (1.1) of the Act are replaced by the following:
Marginal note:Amount of death benefit
57 (1) A death benefit payable to the estate or succession of a contributor is a lump sum amount equal to
(a) if the contributor’s death occurs before January 1, 2019, the lesser of
(i) six times the amount of the contributor’s retirement pension, calculated as provided in subsection (2), and
(ii) ten per cent of the Year’s Maximum Pensionable Earnings for the year in which the contributor died; or
(b) if the contributor’s death occurs after December 31, 2018, $2,500.
Marginal note:Maximum in cases of death after December 31, 1997
(1.1) Despite paragraph 57(1)(a), when the contributor’s death occurs after December 31, 1997, the lump sum referred to in that paragraph shall not exceed $2,500.
(2) The portion of subsection 57(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Calculation of contributor’s retirement pension
(2) The amount of the contributor’s retirement pension to be used for the purposes of paragraph (1)(a) is
383 (1) The portion of paragraph 58(1)(a) of the Act before subparagraph (i) is replaced by the following:
(a) in the case of a survivor who has not reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, for any month before January 2019, a basic monthly amount consisting of
(2) Subsection 58(1) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after paragraph (a):
(a.1) in the case of a survivor who has not reached 65 years of age and to whom no retirement pension is payable under this Act or a provincial pension plan, for any month after December 2018, a basic monthly amount consisting of
(i) a flat rate benefit, calculated as provided in subsection (1.1), and
(ii) 37.5% of the amount of the contributor’s retirement pension, which amount is calculated as the aggregate of
(A) the amount calculated as provided in subsection (3),
(B) the amount calculated as provided in subsection (3.1), and
(C) the amount calculated as provided in subsection (3.4); and
(3) The portion of subsection 58(1.1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Amount of flat rate benefit
(1.1) The amount of the flat rate benefit referred to in subparagraphs (1)(a)(i) and (a.1)(i) is
(4) Clause 58(2)(a)(i)(A) of the Act is replaced by the following:
(A) a flat rate benefit, calculated as provided in subsection (1.1), or, if a post-retirement disability benefit is payable to the survivor, the greater of
(I) the flat rate benefit, and
(II) the post-retirement disability benefit, and
(5) Clause 58(6)(a)(i)(A) of the Act is replaced by the following:
(A) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and
(6) Clause 58(6)(a)(ii)(A) of the Act is replaced by the following:
(A) the aggregate of
(I) the greater of
1 the amount that would have been payable under subparagraph (1)(a)(ii) or (a.1)(ii) if the amounts referred to in clauses (1)(a)(ii)(B) and (C) or (a.1)(ii)(B) and (C) had not been included in the calculation made under that subparagraph, and
2 the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(ii) and (iii) had not been included in the calculation made under that paragraph, and
(II) 60% of the lesser of the amount described in sub-subclause (I)(1) and the amount described in sub-subclause (I)(2), and
(7) Paragraphs 58(6)(b) and (c) of the Act are replaced by the following:
(b) the aggregate of
(i) the greater of
(A) the amount that would have been payable under subparagraph (1)(a)(ii) or (a.1)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (C) or (a.1)(ii)(A) and (C) had not been included in the calculation made under that subparagraph, and
(B) the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(i) and (iii) had not been included in the calculation made under that paragraph, and
(ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B), and
(c) the aggregate of
(i) the greater of
(A) the amount that would have been payable under subparagraph (1)(a)(ii) or (a.1)(ii) if the amounts referred to in clauses (1)(a)(ii)(A) and (B) or (a.1)(ii)(A) and (B) had not been included in the calculation made under that subparagraph, and
(B) the amount that would have been payable under paragraph 56(1)(b) if the amounts referred to in subparagraphs 56(1)(b)(i) and (ii) had not been included in the calculation made under that paragraph, and
(ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B).
(8) Subparagraph 58(6.2)(a)(i) of the Act is replaced by the following:
(i) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and
(9) Subparagraph 58(6.2)(b)(i) of the Act is replaced by the following:
(i) the aggregate of the amounts payable under subparagraph (1)(a)(ii) or (a.1)(ii) and paragraph 56(1)(b), and
(10) Paragraphs 58(8)(a) to (c) of the Act are replaced by the following:
(a) the aggregate of
(i) the greater of
(A) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and
(B) the flat rate benefit payable under the provincial pension plan in respect of disability, and
(ii) the lesser of
(A) the aggregate of
(I) the greater of
1 the amount that would have been payable under subparagraph (1)(a)(ii) or (a.1)(ii), as the case may be, if the amounts referred to in clauses (1)(a)(ii)(B) and (C) or (a.1)(ii)(B) and (C), as the case may be, had not been included in the calculation made under that subparagraph, and
2 the base portion of the contributor’s retirement pension payable to the survivor under the provincial pension plan in respect of disability, and
(II) 60% of the lesser of the amount described in subclause (I)(1) and the amount described in subclause (I)(2), and
(B) 75% of the amount of a benefit of 25% of 1/12 of the survivor’s Maximum Pensionable Earnings Average for the later of the year in which the survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable, 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 survivor first became qualified to receive the survivor’s pension and the year in which the survivor’s disability pension commenced to be payable,
(b) the aggregate of
(i) the greater of
(A) the amount that would have been payable under subparagraph (1)(a)(ii) or (a.1)(ii), as the case may be, if the amounts referred to in clauses (1)(a)(ii)(A) and (C) or (a.1)(ii)(A) and (C), as the case may be, had not been included in the calculation made under that subparagraph, and
(B) the first additional portion of the contributor’s retirement pension payable to the survivor under the provincial pension plan in respect of disability, and
(ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B), and
(c) the aggregate of
(i) the greater of
(A) the amount that would have been payable under subparagraph (1)(a)(ii) or (a.1)(ii), as the case may be, if the amounts referred to in clauses (1)(a)(ii)(A) and (B) or (a.1)(ii)(A) and (B), as the case may be, had not been included in the calculation made under that subparagraph, and
(B) the second additional portion of the contributor’s retirement pension payable to the survivor under the provincial pension plan in respect of disability, and
(ii) 60% of the lesser of the amount described in subclause (A) and the amount described in subclause (B).
(11) Subparagraph 58(8.1)(a)(i) of the Act is replaced by the following:
(i) the flat rate benefit payable under subparagraph (1)(a)(i) or (a.1)(i), and
(12) Clause 58(8.1)(b)(i)(A) of the Act is replaced by the following:
(A) the amounts payable under subparagraph (1)(a)(ii) or (a.1)(ii), and
384 (1) The formula in subsection 59.1(3) of the Act is replaced by the following:
[(A × F/B) × C × D × E]/12
(2) Subsection 59.1(3) of the Act is amended by striking out “and” at the end of the description of D, by adding “and” at the end of the description of E and by adding the following after the description of E:
- F
- is the amount determined by the formula
G/H
where
- G
- is the amount of the earnings referred to in subparagraph 53.1(1)(b)(i), and
- H
- is the aggregate of the earnings referred to in subparagraph 53.1(1)(b)(i) and those referred to in subparagraph 53.1(1)(b)(ii).
(3) The formula in subsection 59.1(5) of the Act is replaced by the following:
[(A × F/B) × C × D × E]/12
(4) Subsection 59.1(5) of the Act is amended by striking out “and” at the end of the description of D, by adding “and” at the end of the description of E and by adding the following after the description of E:
- F
- is the amount determined by the formula
G/H
where
- G
- is the amount of the earnings referred to in subparagraph 53.2(1)(b)(i), and
- H
- is the aggregate of the earnings referred to in subparagraph 53.2(1)(b)(i) and those referred to in subparagraph 53.2(1)(b)(ii).
385 The Act is amended by adding the following after section 59.1:
Post-retirement Disability Benefit
Marginal note:Amount of benefit
59.2 A post-retirement disability benefit payable to a contributor is a basic monthly amount that is
(a) in the case of a benefit payable for a month in the year 2019, an amount calculated by multiplying
(i) $485.20
by
(ii) the ratio that the Pension Index for 2019 bears to the Pension Index for 2018; and
(b) in the case of a benefit payable for a month in the year 2020 or any subsequent year, an amount calculated by multiplying
(i) the amount of the benefit that would have been payable for a month in the year preceding that year
by
(ii) the ratio that the Pension Index for the year in which the benefit is payable bears to the Pension Index for the year preceding that year.
386 Subsection 60(2.1) of the Act is replaced by the following:
Marginal note:Certain applications may not be approved
(2.1) An application referred to in subsection (2) is not to be approved if it is made in respect of a post-retirement disability benefit or, if the application is received after December 31, 1997, a disability pension.
387 Subsection 65(3) of the Act is replaced by the following:
Marginal note:Exception
(3) Despite subsections (1) and (1.1), if an administrator of a disability income program who is approved by the Minister makes a payment under that program to a person for a month or any portion of a month that would not have been made if a benefit under paragraph 44(1)(b) or (h) had been paid to that person for that period and subsequently a benefit becomes payable or payment of a benefit may be made under this Act to that person for that period, the Minister may, in accordance with any terms and conditions that may be prescribed, deduct from that benefit and pay to the administrator an amount not exceeding the amount of the payment made under that program.
388 The heading before section 69 of the Act is replaced by the following:
Disability Pension and Post-retirement Disability Benefit
389 The Act is amended by adding the following after section 70:
Marginal note:Commencement of benefit
70.01 Subject to section 62, if payment of a post-retirement disability benefit is approved, the benefit is payable for each month commencing with the fourth month following the month after December 2018 in which the applicant became disabled, except that if the applicant was, at any time during the five-year period next before the month in which the applicant became disabled as a result of which the payment is approved, in receipt of a disability pension payable under this Act or under a provincial pension plan or a post-retirement disability benefit,
(a) the benefit is payable for each month commencing with the month next following the month after December 2018 in which the applicant became disabled as a result of which the payment is approved; and
(b) the reference to “fifteen months” in paragraph 42(2)(b) shall be read as a reference to “twelve months”.
Marginal note:When benefit ceases to be payable
70.02 A post-retirement disability benefit ceases to be payable with the payment
(a) for the month in which the beneficiary ceases to be disabled;
(b) for the month in which the beneficiary reaches 65 years of age; or
(c) for the month in which the beneficiary dies.
390 (1) Subsections 70.1(1) and (2) of the Act are replaced by the following:
Marginal note:Reinstatement of disability pension or post-retirement disability benefit
70.1 (1) Subject to this section, a person who has ceased to receive a disability pension or a post-retirement disability benefit because they have returned to work is entitled to have that pension or benefit reinstated if, within two years after the month in which they ceased to receive it, they become incapable again of working.
Marginal note:Request for reinstatement
(2) A request by a person for reinstatement of a disability pension or a post-retirement disability benefit shall be made to the Minister in accordance with the regulations. Subsections 60(2), (4), (5) and (8) to (12) apply to the request, with any modifications that the circumstances require.
(2) Paragraphs 70.1(3)(a) to (c) of the Act are replaced by the following:
(a) the person has a severe and prolonged mental or physical disability that is the same as, or is related to, the disability that entitled the person to receive the disability pension or post-retirement disability benefit that is the subject of the request;
(b) not more than two years have elapsed from the month in which the person ceased to receive the disability pension or post-retirement disability benefit to the month when they became incapable again of working; and
(c) the person had not reached 65 years of age and, if the request is for reinstatement of a disability pension, was not receiving a retirement pension in the month in which they became incapable again of working.
(3) Subsections 70.1(4) to (8) of the Act are replaced by the following:
Marginal note:Reinstatement of disabled contributor’s child benefit
(4) On reinstatement of a pension or benefit under subsection (3), the Minister shall approve the reinstatement of a disabled contributor’s child benefit that had been payable to the child of the person whose pension or benefit is reinstated if the Minister is satisfied that the child meets the requirements under this Act for payment of a disabled contributor’s child benefit.
Marginal note:Notification of decision — disability pension or post-retirement disability benefit
(5) The Minister shall in writing inform a person who makes the request for reinstatement of a pension or benefit of the Minister’s decision whether or not to approve the request.
Marginal note:Notification of decision — disabled contributor’s child benefit
(6) The Minister shall in writing inform the person who has made the request for reinstatement of a pension or benefit, a child of that person or, in relation to that child, a person or agency referred to in section 75 of the Minister’s decision whether or not to approve a disabled contributor’s child benefit.
Marginal note:Application of provisions — reinstated pension or benefit
(7) The provisions of this Act that apply to a disability pension or a post-retirement disability benefit, as the case may be, except paragraphs 42(2)(b), 44(1)(b) and (h) and (2)(a) and subsection 44(4) and sections 69 and 70.01, apply to a pension or benefit that is reinstated under this section, with any modifications that the circumstances require.
Marginal note:Application of provisions — disabled contributor’s child benefit
(8) The provisions of this Act that apply to a disabled contributor’s child benefit, except paragraphs 44(1)(e) and 44(2)(a) and subsections 44(4) and 74(2), apply to a disabled contributor’s child benefit that is reinstated under this section, with such modifications as the circumstances require.
(4) Subsection 70.1(10) of the Act is replaced by the following:
Marginal note:Commencement of payments
(10) A disability pension, post-retirement disability benefit or disabled contributor’s child benefit that is reinstated pursuant to a request under this section is payable commencing with the month following the month in which the person who made the request under this section became incapable again of working.
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