Additional Canada Pension Plan Sustainability Regulations — 7
Previous reduction in benefits 7 (1) If benefits are lower than the legislated benefits, (a) the first additional contribution rates and second additional contribution rates are deemed to be decreased, if necessary, to reverse any past temporary increases in those rates resulting from the operation of these Regulations; and (b) a value for S1 and the period to which S1 is to apply are to be determined, for the purposes of sections 8 to 10 , such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the first additional contribution rate for self-employed persons for that year, as adjusted in accordance with paragraph (a), if applicable: (i) S1 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period, (ii) benefits that become payable after the review period are to be increased for the year in which they become payable in accordance with section 9 , using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act, and (iii) for each year of the period to which S1 applies, benefits that became payable before that year are to be adjusted by multiplying them not by the ratio referred to in paragraph 45(2)(b) and subparagraphs 56(2)(c)(ii), 58(1.1)(b)(ii) and 59(c)(ii) of the Act, but by the value determined by the formula (1 + S1) × (PI t / PI t–1 ) – S1 where S1 is a multiple of 0.01 between 0 and 1 that would result in the benefit multiplier for the last year of the period to which S1 applies being greater than the benefit multiplier for the last year of the review period and less than or equal to 1, PI t is the Pension Index for that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act, and PI t–1 is the Pension Index for the year before that year, based on the assumption of future inflation set out in the most recent report prepared for the purpose of section 115 of the Act. Previous rate increase (2) If the rates calculated under paragraph (1)(b) are less than the corresponding first additional contribution rates for self-employed persons, as adjusted in accordance with paragraph (a), if applicable, minus 0.0001, and the latter rates are greater than the corresponding legislated first additional contribution rates, (a) the first additional contribution rates for self-employed persons are deemed to equal the higher of the corresponding legislated first additional contribution rates and the corresponding rates calculated under paragraph (1)(b); (b) the first additional contribution rates for employees and employers are deemed to equal the corresponding rates determined under paragraph (a), divided by two; and (c) the second additional contribution rates are deemed to equal the new corresponding first additional contribution rates multiplied by the additional contribution rate ratio. Increase in benefits (3) If the rates calculated under paragraph (1)(b) are less than the corresponding legislated first additional contribution rates for self-employed persons minus 0.1, a value for S2 and the period to which S2 is to apply are to be determined, for the purposes of sections 8 to 10 , such that if the Chief Actuary were to calculate the first additional contribution rates under paragraph 115(1.1)(d) of the Act assuming the following, the rate calculated for the first year after the review period would be as close as possible to and no greater than the legislated first additional contribution rate for self-employed persons for that year minus 0.1: (a) S2 is to apply to the shortest period that is a multiple of three years and no fewer than six years, starting with the year after the review period; (b) benefits that becom