Canada Pension Plan — C-8 113.1
Review every three years 113.1 (1) Once every three years after 1997, the Minister of Finance and ministers of the Crown from the included provinces shall review the financial state of the Canada Pension Plan and may make recommendations as to whether benefits, contribution rates, first additional contribution rates or second additional contribution rates should be changed. Review of adjustment factors (2) When the Chief Actuary of the Office of the Superintendent of Financial Institutions specifies adjustment factors in his or her report according to subsection 115(1.11), the Minister of Finance and ministers of the Crown from the included provinces shall, as part of their review, also review the adjustment factors fixed under subsection 46(7) and may make recommendations as to whether they should be changed. Completion of review (3) If possible, the review in each three year period must be completed in time to permit the Minister of Finance to make recommendations to the Governor in Council before the end of the second year of the three year period. Factors to be considered (4) In conducting any review required by this section and in making any recommendations, ministers shall consider (a) the most recent report prepared by the Chief Actuary pursuant to section 115 and any changes between that report and earlier reports prepared by the Chief Actuary; (b) any more recent estimates of the Chief Actuary in respect of (i) the outstanding balance of the Canada Pension Plan Account and the Additional Canada Pension Plan Account, (ii) the projected revenues into and payments out of the Canada Pension Plan Account and the Additional Canada Pension Plan Account, (iii) the ratio of the projected assets over the projected expenditures of the base Canada Pension Plan and the additional Canada Pension Plan, and (iv) the changes, if any, to the amounts and ratios projected at the previous review under this section attributable to changing demographic and economic circumstances or to changes to the base Canada Pension Plan or the additional Canada Pension Plan affecting payments or contributions under the Canada Pension Plan; (c) the financing objective, for the base Canada Pension Plan, of having a contribution rate, without taking into account the changes, if any, referred to in paragraph (e) for which the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) exceeds zero, that is no lower than the rate (i) that, beginning with the year 2003, is the lowest constant rate that can be maintained over the foreseeable future, and (ii) that results in the ratio of the projected assets of the base Canada Pension Plan at the end of any given year over the projected expenditures of the base Canada Pension Plan in the following year being generally constant; (d) the financing objective, for the additional Canada Pension Plan, of having additional contribution rates, without taking into account the changes, if any, referred to in paragraph (e) for which the additional contribution rates most recently calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) exceed zero, that are no lower than the rates (i) that, beginning with the year 2024, are the lowest constant rates that can be maintained over the foreseeable future, and (ii) that result in projected contributions and investment income that are sufficient to fully pay the projected expenditures of the additional Canada Pension Plan over the foreseeable future; and (e) that changes to the Act that increase benefits or add new benefits must be accompanied by a permanent increase in the contribution rates under this Act to cover the extra costs of the increased or new benefits and by a temporary increase in the contribution rates under this Act for a number of years that is consistent with common actuarial practice to fully pay any unfunded liability resulting from the increased or new benefits. Recommendations made on completion of review (5) On the completion of a revie