Canada Pension Plan — C-8 46
Amount of retirement pension 46 (1) Subject to this section, a retirement pension payable to a contributor is a basic monthly amount equal to the aggregate of (a) 25% of their average monthly pensionable earnings, (b) 8.33% of their first additional monthly pensionable earnings, and (c) 33.33% of their second additional monthly pensionable earnings. Special case (2) Subject to this section, the portion referred to in paragraph (1)(a) of the basic monthly amount of a retirement pension payable to a former disability pension recipient in respect of whom a division under section 55 or 55.1 is approved either before or after the commencement of the retirement pension, if the division reduces the retirement pension otherwise payable, is calculated by dividing (a) the aggregate of (i) the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(a) that would be payable to the contributor had their base unadjusted pensionable earnings not been subject to the division, multiplied by the number of months that have been excluded from the contributor’s contributory period by reason of disability, and (ii) the portion of the basic monthly amount of the retirement pension calculated in accordance with paragraph (1)(a) that would be payable following the division, multiplied by the number of months in the contributor’s contributory period calculated in accordance with section 49 by (b) the aggregate of (i) the number of months that have been excluded from the contributor’s contributory period by reason of disability, and (ii) the number of months in the contributor’s contributory period calculated in accordance with section 49. Upward or downward adjustment factor — up to 2010 (3) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 1986 and before January 1, 2011 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed by the Minister, on the advice of the Chief Actuary of the Office of the Superintendent of Financial Institutions, to reflect the time interval between the month in which the retirement pension commences and the month in which the contributor reached, or would reach, 65 years of age, but the time interval is deemed never to exceed five years. Upward or downward adjustment factor — after 2010 (3.1) Subject to subsections (4) to (6), a retirement pension that becomes payable after December 31, 2010 commencing with a month other than the month in which the contributor reaches 65 years of age is a basic monthly amount equal to the basic monthly amount calculated in accordance with subsection (1) or (2), as the case may be, adjusted by a factor fixed under subsection (7). Exception if division of unadjusted pensionable earnings increases retirement pension (4) Subject to subsection (5), if, as a result of a division of unadjusted pensionable earnings under section 55 or 55.1, a retirement pension that was payable increases, the adjustment factor applicable after the increase to the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, instead of the adjustment factor referred to in subsection (3) or (3.1), as the case may be, shall be determined by the formula [(F1 × P1) + (F2 × E)] / P2 where F1 is an amount equal to the adjustment factor referred to in subsection (3) or (3.1), as the case may be, at the time the retirement pension first became payable; P1 is the basic monthly amount of the retirement pension calculated in accordance with subsection (1) or (2), as the case may be, before the division; F2 is the lesser of (a) an amount equal to what the adjustment factor referred to in subsection (3) or (3.1), as the case may be, would have been if the retirement pension had commen