Additional Canada Pension Plan Sustainability Regulations — 12
Previous increase in benefits 12 (1) If benefits are greater than the legislated benefits, a value for S3 and the period to which S3 is to apply are to be determined, for the purposes of sections 13 to 15 , 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 rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations: (a) benefits accompanied by temporary increases in the first additional contribution rates and second additional contribution rates calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) of the Act, respectively, are to be excluded; (b) S3 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; (c) benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14 , using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; and (d) for each year of the period to which S3 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 + S3) × (PI t / PI t–1 ) – S3 where S3 is a multiple of 0.01 between -1 and 0 that would result in the benefit multiplier for the last year of the period to which S3 applies being greater than or equal to 1 and less than the benefit multiplier for the last year of the review period, 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. Decrease in benefits (2) If the rates calculated under subsection (1) exceed the corresponding first additional contribution rates for self-employed persons by more than 0.0001, a value for S4 is to be determined, for the purposes of sections 13 to 15 , 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 rates calculated would be as close as possible to the corresponding first additional contribution rates for self-employed persons, excluding any past temporary increases in those rates resulting from the operation of these Regulations: (a) benefits accompanied by temporary increases in the first additional contribution rates and second additional contribution rates calculated under subparagraphs 115(1.1)(d)(ii) and (e)(ii) of the Act, respectively, are to be excluded; (b) S4 is to apply to a period of six years, starting with the year after the review period; (c) benefits that become payable after the review period are to be decreased for the year in which they become payable in accordance with section 14 , using the assumptions set out in the most recent report prepared for the purpose of section 115 of the Act; and (d) for each year of the period to which S3 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 + S3 + S4) × (PI t / PI t–1 ) – (S3 + S4) where S3 is the value for S3 determined under subsection (1), S4 is a multiple of 0.01 between -0.4 and 0, if applicable to that year, PI t is the Pension Index for that year, based on the assumption of