5. (1) In this Part, “Minister” means the Minister of National Revenue.

(2) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister under this Part.

R.S., 1985, c. C-8, s. 5; 1998, c. 19, s. 251.

6. (1) Pensionable employment is

(a) employment in Canada that is not excepted employment;

(b) employment in Canada under Her Majesty in right of Canada that is not excepted employment; or

(c) employment included in pensionable employment by a regulation made under section 7.

(2) Excepted employment is

(a) employment in agriculture or an agricultural enterprise, horticulture, fishing, hunting, trapping, forestry, logging or lumbering by an employer who either pays the employee less than two hundred and fifty dollars in cash remuneration in a year or employs the employee, on terms providing for payment of cash remuneration, for a period of less than twenty-five working days in a year;

(b) employment of a casual nature otherwise than for the purpose of the employer’s trade or business;

(c) employment as a teacher on exchange from a country other than Canada;

(d) employment of a person by the person’s spouse or common-law partner, unless the remuneration paid to the person may be deducted under the Income Tax Act in computing the income of the spouse or common-law partner;

(e) employment of a member of a religious order who has taken a vow of perpetual poverty and whose remuneration is paid either directly or by the member to the order;

(f) employment for which no cash remuneration is paid where the person employed is the child of, or is maintained by, the employer;

(g) employment as a member of the Canadian Forces or the Royal Canadian Mounted Police, except as provided by any other Act of Parliament;

(h) employment in Canada by an employer who employs persons in Canada but under the terms of a reciprocal agreement between the Government of Canada and the government of another country is exempt from liability to make the contribution imposed on an employer by this Act;

(i) employment by Her Majesty in right of a province or by an agent of Her Majesty in right of a province;

(j) employment in Canada by the government of a country other than Canada or by an international organization;

(j.1) employment of an Indian, as defined in the Indian Act, in respect of which the earnings are not included in computing income for purposes of the Income Tax Act; or

(k) employment excepted from pensionable employment by a regulation made under section 7.

R.S., 1985, c. C-8, s. 6; R.S., 1985, c. 30 (2nd Supp.), s. 2; 2000, c. 12, s. 43.

7. (1) The Governor in Council may make regulations for including in pensionable employment

(a) any employment outside Canada or partly outside Canada, being employment that would be pensionable employment if it were in Canada;

(b) the entire employment under one employer of a person who is engaged by the employer partly in pensionable employment and partly in other employment;

(c) any employment if it appears to the Governor in Council that the nature of the work performed is similar to the work performed by persons employed in pensionable employment;

(d) the performance of services for remuneration if it appears to the Governor in Council that the terms or conditions on which the services are performed and the remuneration is paid are analogous to a contract of service, whether or not they constitute a contract of service;

(e) pursuant to an agreement with the government of a province, employment in Canada by Her Majesty in right of the province or by an agent of Her Majesty in right of the province;

(f) pursuant to an agreement with the employing government or organization, employment in Canada by the government of a country other than Canada or by an international organization; and

(g) any excepted employment other than employment described in paragraph 6(2)(g) or (i).

(2) The Governor in Council may make regulations for excepting from pensionable employment

(a) any employment if it appears to the Governor in Council by reason of the laws of any country other than Canada that a duplication of contributions or benefits will result;

(b) any employment of a person by an employer resident outside Canada unless arrangements satisfactory to the Minister have been made for the payment of the contributions required by this Act to be made in respect of that employment;

(c) the entire employment under one employer of a person who is engaged by the employer partly in pensionable employment and partly in other employment;

(d) any employment if it appears to the Governor in Council that the nature of the work performed by persons employed in that employment is similar to the nature of the work performed by persons employed in employment that is not pensionable employment;

(e) any employment if it appears to the Governor in Council that the services are performed and the remuneration is paid in a manner analogous to the earning of income from the carrying on of a business; and

(f) any employment in which persons are ordinarily employed to an inconsiderable extent.

(3) A regulation made under subsection (1) or (2) may be conditional or unconditional, qualified or unqualified, and may be general or restricted to a specific area, a person or a group or class of persons, and the authority conferred by subsection (1) to make regulations to include in pensionable employment any employment described in that subsection includes authority to make such other regulations to provide for the manner in which the provisions of this Act shall apply with respect thereto, and to adapt the provisions of this Act with respect thereto, as appear to the Governor in Council to be necessary to give effect to the regulations made under that subsection.

(4) No regulation under this section shall require the payment of an employer’s contribution by the government of a country other than Canada or by an international organization unless the regulation is made pursuant to an agreement referred to in paragraph (1)(f).

R.S., c. C-5, s. 7; 1974-75-76, c. 4, s. 3.

8. (1) Every employee who is employed by an employer in pensionable employment shall, by deduction as provided in this Act from the remuneration for the pensionable employment paid to the employee by the employer, make an employee’s contribution for the year in which the remuneration is paid to the employee of an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

(a) the employee’s contributory salary and wages for the year paid by the employer, minus such amount as or on account of the basic exemption for the year as is prescribed, and

(b) the employee’s maximum contributory earnings for the year, minus such amount, if any, as is determined in prescribed manner to be the employee’s salary and wages paid by the employer on which a contribution has been made for the year by the employee under a provincial pension plan.

(1.1) Notwithstanding subsection (1), for 1997 the contribution required by that subsection, in this subsection referred to as the “basic contribution”, shall be calculated as though the contribution rate for employees were 2.925% and every employee who is required to make a contribution under that subsection shall make an additional contribution of an amount equal to 1/39 of the basic contribution.

(1.2) Where the amount paid by an employee on or before the employee’s balance-due day for a year on account of the additional contribution required to be made under subsection (1.1) is less than the amount of the additional contribution required to be made, interest at a prescribed rate per annum is payable by the employee on the difference between those amounts from the balance-due day for the year to the day of payment.

(1.3) Subsection 30(1) and sections 32, 36 and 37 apply in respect of the additional contribution required to be made under subsection (1.1) as though it were a contribution required to be made under this Act in respect of self-employed earnings.

(2) Where the aggregate of all amounts deducted as required from the remuneration of an employee for a year whether by one or more employers on account of the employee’s contribution for the year under this Act or under a provincial pension plan exceeds an amount equal to the product obtained when the contribution rate for employees for the year is multiplied by the lesser of

(a) the employee’s contributory salary and wages for the year, plus the employee’s contributory self-employed earnings for the year in the case of an individual described in section 10, minus the employee’s basic exemption for the year, and

(b) the employee’s maximum contributory earnings for the year,

that proportion of the amount of the excess that the aggregate of all amounts so deducted on account of the employee’s contribution for the year under this Act is of the aggregate of all amounts so deducted on account of the employee’s contribution for the year under this Act or under a provincial pension plan shall be deemed to be an overpayment made by the employee on account of the employee’s contribution for that year under this Act.

R.S., 1985, c. C-8, s. 8; R.S., 1985, c. 30 (2nd Supp.), s. 3; 1997, c. 40, s. 58.

9. (1) Every employer shall, in respect of each employee employed by the employer in pensionable employment, make an employer’s contribution for the year in which remuneration for the pensionable employment is paid to the employee of an amount equal to the product obtained when the contribution rate for employers for the year is multiplied by the lesser of

( a) the contributory salary and wages of the employee for the year paid by the employer, minus such amount as or on account of the employee’s basic exemption for the year as is prescribed, and

( b) the maximum contributory earnings of the employee for the year, minus such amount, if any, as is determined in prescribed manner to be the salary and wages of the employee on which a contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

(2) If, in a year after 2003, one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1) and 8(1) and section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer's contributions, the employer shall also take them into account with respect to the employee's contributions.

(3) For the application of subsections (1) and 8(1) and section 21, if a person, in a year after 2003, is self-employed, ceases to be self-employed and becomes an employee of a corporation controlled by the person, the corporation may

(a) take into account the amount of contributory self-employed earnings of the person in the year as contributory salary and wages paid by the corporation to the employee in that year; and

(b) take into account one half of the contributions by the person in respect of self-employed earnings in the year as an amount deducted, remitted or contributed in relation to employee's contributions for that year, and one half of that amount as an amount remitted or contributed in relation to employer's contributions for that year.

R.S., 1985, c. C-8, s. 9; R.S., 1985, c. 30 (2nd Supp.), s. 3; 2004, c. 22, s. 15.

10. (1) Every individual who is resident in Canada for the purposes of the Income Tax Act during a year and who has contributory self-employed earnings for the year shall make a contribution for the year of an amount equal to the product obtained when the contribution rate for self-employed persons for the year is multiplied by the lesser of

(a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of

(i) all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers pursuant to section 8, and

(ii) all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year whether by one or more employers pursuant to that plan, and

(b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a contribution has been made for the year and such amount, if any, as is determined in prescribed manner to be the individual’s salary and wages on which a contribution has been made for the year by the individual under a provincial pension plan.

(2) For the purpose of subsection (1), if a person, in a year after 2003, is an employee of a corporation controlled by the person, ceases to be employed by that corporation and becomes self-employed, the person may

(a) take into account the amount of contributory salary and wages paid by the corporation to the employee in the year as contributory self-employed earnings of the person in the year; and

(b) take into account the amounts deducted, remitted or contributed by the corporation in relation to the employee's contributions and the employer's contributions in respect of the person for the year as contributions by the person in respect of self-employment earnings in that year.

R.S., 1985, c. C-8, s. 10; R.S., 1985, c. 30 (2nd Supp.), s. 3; 2004, c. 22, s. 16.

11. (1) Subject to subsections (2) and (5), section 10 does not apply with respect to any year in respect of any individual who, being a member of a religious sect or a division of a religious sect certified by the Minister pursuant to subsection (6), elects not to make a contribution with respect to that year.

(2) An election referred to in subsection (1) shall

(a) be made in such manner and form as may be prescribed;

(b) commence to have effect, if approved by the Minister, on and from January 1 of the year in which the election is filed with the Minister; and

(c) cease to have effect on January 1 of the year next following the day on which a revocation of the election made in prescribed manner is received by the Minister.

(3) The Minister shall approve an election referred to in subsection (1) where he is satisfied that

(a) the person making the election

(i) is a member of a religious sect or a division of a religious sect that has been certified pursuant to subsection (6), and

(ii) has been certified as such a member by a spokesman for that sect or division; and

(b) the spokesman

(i) has been authorized by the sect or division to certify persons as being members of the sect or division, and

(ii) has certified that the sect or division maintains tenets, teachings and practices of kinds referred to in subparagraphs (6)(a)(i) and (ii).

(4) Any contribution made by a contributor with respect to a year for which he elects under this section not to make a contribution shall, on application, be returned to him.

(5) Where an individual who has elected not to make a contribution with respect to any year revokes the election, he may not make an election under this section with respect to any subsequent year.

(6) The Minister shall certify a religious sect or a division of a religious sect for the purposes of this section where

(a) he is satisfied that the religious sect

(i) is a religious organization that has established tenets and teachings that oppose the acceptance of benefits from any private or public insurance that provides for payments in the event of death, disability, old age or retirement,

(ii) does, as a practice, make provisions for the support of dependent members that are reasonable in view of their general level of living, and

(iii) was in existence in Canada on January 1, 1966 and has been maintaining the tenets, teachings and practices referred to in subparagraphs (i) and (ii) since that date; and

(b) the religious sect or division thereof has applied to him in prescribed form for certification.

1974-75-76, c. 4, s. 7.

11.1 (1) The contribution rate for the years 1966 to 1986 is:

(a) for employees, 1.8% of contributory wages and salaries;

(b) for employers, 1.8% of contributory wages and salaries; and

(c) for self-employed persons, 3.6% of contributory self-employed earnings.

(2) The contribution rate for employees, employers and self-employed persons for 1987 and subsequent years is as set out in the schedule, as amended from time to time pursuant to section 113.1.

R.S., 1985, c. 30 (2nd Supp.), s. 4; 1997, c. 40, s. 59.

12. (1) The amount of the contributory salary and wages of a person for a year is the person's income for the year from pensionable employment, computed in accordance with the Income Tax Act (read without reference to subsection 7(8) of that Act), plus any deductions for the year made in computing that income otherwise than under paragraph 8(1)( c) of that Act, but does not include any such income received by the person

(a) before he reaches eighteen years of age;

( b) during any month that is excluded from that person’s contributory period under this Act or under a provincial pension plan by reason of disability; or

( c) after he reaches seventy years of age or after a retirement pension becomes payable to him under this Act or under a provincial pension plan.

(2) In the case of a person who is a contributor under the Public Service Superannuation Act, there shall be included in computing the amount of that person’s contributory salary and wages for a year the amount of his salary, as defined in that Act, that is not otherwise included in computing income for the purposes of the Income Tax Act.

(2.1) In the case of an Indian, as defined in the Indian Act, to the extent provided by regulations pursuant to subsection 7(1) and subject to any conditions prescribed by those regulations, there shall be included in computing the amount of that person’s contributory salary and wages for a year the amount of his income from employment that would otherwise be excepted pursuant to paragraph 6(2)(j.1).

(3) A reference in this Act to the contributory salary and wages of a person for a year shall, in relation to any remuneration paid to him in respect of pensionable employment in a province providing a comprehensive pension plan, be construed as a reference to his income for the year from that employment as that income is required to be computed under the provincial pension plan of that province.

R.S., 1985, c. C-8, s. 12; R.S., 1985, c. 30 (2nd Supp.), s. 5; 2001, c. 17, s. 254; 2004, c. 22, s. 17(E).

13. (1) The amount of the contributory self-employed earnings of a person for a year is the amount of his self-employed earnings for the year except that, for a year in which he reaches eighteen or seventy years of age, in which a retirement pension becomes payable to him under this Act or under a provincial pension plan, in which his contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to him under this Act or under a provincial pension plan, the amount of his contributory self-employed earnings is an amount equal to that proportion of the amount of his self-employed earnings for the year that the number of months in the year

(a) after

(i) he reaches eighteen years of age, or

(ii) the disability pension ceases to be payable, or

(b) before

(i) he reaches seventy years of age,

(ii) the retirement pension becomes payable, or

(iii) the month following the month in which his contributory period ends under this Act or under a provincial pension plan by reason of disability,

is of twelve.

(2) Subject to subsection (1), the contributory self-employed earnings of a person do not include earnings with respect to any period described in paragraph 12(1)(a), (b) or (c).

(3) Notwithstanding subsection (1), the amount of the contributory self-employed earnings of a person for a year for the purposes of section 10 shall, if the person or their representative so elects in the prescribed manner within one year from June 15 in the following year, include any amount by which

(a) the lesser of

(i) his contributory salary and wages for the year, and

(ii) his maximum pensionable earnings for the year,

exceeds

(b) the aggregate of

(i) his salary and wages on which a contribution has been made for the year and such amount, if any, as is determined in prescribed manner to be his salary and wages on which a contribution has been made for the year by him under a provincial pension plan, and

(ii) the lesser of

(A) the aggregate of all amounts deducted as prescribed on account of his basic exemption for the year by one or more employers pursuant to section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers pursuant to such a plan, and

(B) his basic exemption for the year.

(4) A reference in this Act to the contributory self-employed earnings of a person for a year shall, in relation to any self-employed earnings of a person who was resident on the last day of the year in a province providing a comprehensive pension plan, be construed as a reference to his self-employed earnings for the year as such earnings are required to be computed under the provincial pension plan of that province.

R.S., 1985, c. C-8, s. 13; R.S., 1985, c. 30 (2nd Supp.), s. 6; 1997, c. 40, s. 60.

14. The amount of the self-employed earnings of a person for a year is the aggregate of

(a) an amount equal to

(i) his income for the year from all businesses, other than a business more than fifty per cent of the gross revenue of which consisted of rent from land or buildings, carried on by him,

minus

(ii) all losses sustained by him in the year in carrying on those businesses,

as such income and losses are computed under the Income Tax Act, except any such income or losses from the performance of services described in paragraph 7(1)(d) that has been included in pensionable employment by a regulation made under subsection 7(1) or by a regulation made under a provincial pension plan,

(b) his income for the year from employment described in paragraph 7(2)(e) that has been excepted from pensionable employment by a regulation made under subsection 7(2) or by a regulation made under a provincial pension plan, as that income is computed under the Income Tax Act, and

(c) in the case of an Indian, as defined in the Indian Act, to the extent provided by regulations and subject to any conditions prescribed by those regulations, his income for the year from self-employment on a reserve, as defined in the Indian Act, that is not otherwise included in computing income for the purposes of the Income Tax Act.

R.S., 1985, c. C-8, s. 14; R.S., 1985, c. 30 (2nd Supp.), s. 7.

14.1 For the purposes of paragraph 14(a), where a member of a family in a congregation is specified in an election under subsection 143(2) of the Income Tax Act for a year, such part of the total of all amounts allocated to the family under that subsection for the year as may reasonably be regarded as having been derived from a business carried on by the congregation shall be deemed to be the member’s income (as computed under that Act) from such a business carried on by the member.

1991, c. 49, s. 204.

15. (1) The amount of the salary and wages of a person on which a contribution has been made for a year is an amount equal to

(a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s contribution for the year under this Act, minus the amount of any refund made to him under section 38 in respect of any amounts so deducted on account thereof, or such part of the amount of any refund in respect thereof made to him as described in section 39 as might have been made to him under subsection 38(1) if no agreement had been entered into under subsection 39(1), and

(b) where an employer has failed to deduct an amount as required from the remuneration of that person on account of the employee’s contribution for the year under this Act and that person has notified the Minister of the employer’s failure so to deduct that amount on or before April 30 in the following year, an amount equal to the amount that should have been so deducted by the employer on account thereof,

divided by the contribution rate for employees for the year.

(2) For the purposes of subsection 8(2) and this section, where an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s contribution for a year under this Act is paid by the employer on account of the employee’s contribution for that year under this Act, the amount so paid shall be deemed to have been deducted by the employer on account of that contribution.

(3) Where an employer has filed a return pursuant to this Part showing an amount as the salary and wages on which a contribution has been made by an employee for a year under this Act, the amount so shown, multiplied by the contribution rate for employees for the year, may, in prescribed circumstances, be substituted for the amount shown therein as the aggregate of the amounts deducted by that employer on account of the employee’s contribution for the year under this Act, in calculating the amount to be determined under subsection (1).

R.S., 1985, c. C-8, s. 15; R.S., 1985, c. 30 (2nd Supp.), s. 8.

16. The amount of the maximum contributory earnings of a person for a year is the amount of his maximum pensionable earnings for the year, minus the amount of his basic exemption for the year.

R.S., c. C-5, s. 15.

17. The amount of the maximum pensionable earnings of a person for a year is the amount of the Year’s Maximum Pensionable Earnings except that, for a year in which he reaches eighteen or seventy years of age or dies, in which a retirement pension becomes payable to him under this Act or under a provincial pension plan, in which his contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to him under this Act or under a provincial pension plan, the amount of his maximum pensionable earnings is an amount equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year

(a) after

(i) he reaches eighteen years of age, or

(ii) the disability pension ceases to be payable, or

(b) before

(i) he reaches seventy years of age,

(ii) the retirement pension becomes payable,

(iii) he dies, or

(iv) the month following the month in which his contributory period ends under this Act or under a provincial pension plan by reason of disability,

including, where he dies, the month in which he dies, is of twelve.

R.S., 1985, c. C-8, s. 17; R.S., 1985, c. 30 (2nd Supp.), s. 9.

18. (1) The amount of a Year’s Maximum Pensionable Earnings is

(a) for 1987, $25,900;

(b) subject to subsection (2), for 1988, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1987 by the ratio that

(i) the average for the twelve month period ending on June 30, 1987 of the Wage Measure for each month in that period

bears to

(ii) the average for the twelve month period ending on June 30, 1986 of the Wage Measure for each month in that period; and

(c) subject to subsection (2), for 1989 and each subsequent year, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for the preceding year, calculated without reference to subsections (2) and (3), by the ratio that

(i) the average for the twelve month period ending on June 30 of the preceding year of the Wage Measure for each month in that period

bears to

(ii) the average for the twelve month period ending on June 30 of the year immediately preceding the preceding year of the Wage Measure for each month in that period.

(2) Where the amount calculated in accordance with paragraph (1)(b) or (c) for any year is not a multiple of one hundred dollars, the Year’s Maximum Pensionable Earnings for that year is the amount that is the next multiple of one hundred dollars below that amount.

(3) Where the amount calculated in accordance with paragraph (1)(b) or (c) in respect of any year is less than the Year’s Maximum Pensionable Earnings for the preceding year, it shall be increased to the amount of the Year’s Maximum Pensionable Earnings for the preceding year.

(4) [Repealed, 1991, c. 44, s. 2]

(5) The Wage Measure for a month is the average weekly wages and salaries of

(a) the Industrial Aggregate in Canada for the month as published by Statistics Canada under the authority of the Statistics Act; or

(b) in the event that the Industrial Aggregate ceases to be published, such other measure as is prescribed by regulation for the month as published by Statistics Canada under the authority of the Statistics Act.

(6) For the purpose of calculating the amount of a Year’s Maximum Pensionable Earnings, where Statistics Canada has published any revisions of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for any month, the revision of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) that has been published most recently prior to the calculation in respect of that month shall be used in calculating the amount of the Year’s Maximum Pensionable Earnings.

(7) Where, at any time after the coming into force of this section, a new time or content basis is adopted by Statistics Canada in determining the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month and the adoption of that new basis would cause a difference between

(a) the average for the twelve month period ending on June 30 of any year of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, as the case may be, and

(b) the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the new time or content basis, as the case may be,

of more than one per cent of the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, the average for that twelve month period calculated on the new time or content basis shall be adjusted by the Minister, on the advice of the Chief Statistician of Canada, to reflect the former time or content basis, and any other averages that are calculated in determining the Year’s Maximum Pensionable Earnings for the year following that twelve month period shall be adjusted accordingly.

(8) Subsection (7) shall cease to apply when the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month has been calculated on the new time or content basis referred to in that subsection for a period of twenty-four consecutive months ending on June 30 of a year.

R.S., 1985, c. C-8, s. 18; R.S., 1985, c. 30 (2nd Supp.), s. 10; 1991, c. 44, s. 2.

19. The amount of the basic exemption of a person for a year is the amount of the Year’s Basic Exemption except that, for a year in which he reaches eighteen or seventy years of age or dies, in which a retirement pension becomes payable to him under this Act or under a provincial pension plan, in which his contributory period ends under this Act or under a provincial pension plan by reason of disability or in which a disability pension ceases to be payable to him under this Act or under a provincial pension plan, the amount of his basic exemption is an amount equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year

(a) after

(i) he reaches eighteen years of age, or

(ii) the disability pension ceases to be payable, or

(b) before

(i) he reaches seventy years of age,

(ii) the retirement pension becomes payable,

(iii) he dies, or

(iv) the month following the month in which his contributory period ends under this Act or under a provincial pension plan by reason of disability,

including, where he dies, the month in which he dies, is of twelve.

R.S., 1985, c. C-8, s. 19; R.S., 1985, c. 30 (2nd Supp.), s. 11.

20. (1) Subject to subsection (2), the amount of a Year’s Basic Exemption is the highest multiple of $100 that is less than or equal to 10% of the Year’s Maximum Pensionable Earnings for the year.

(2) For each year after 1997 the amount of a Year’s Basic Exemption is $3,500.

R.S., 1985, c. C-8, s. 20; 1997, c. 40, s. 61.