Calculation of immediate pension
(a)
“average salary” means the average annual salary received or deemed to have been received by the contributor during the period of five successive years of pensionable service during which his or her salary was highest;
(b)
“average maximum salary” means the average of the year’s maximum pensionable earnings as defined in the Canada Pension Plan for the year in which the contributor becomes entitled to a benefit under subsection (2) and the year’s maximum pensionable earnings for each of the two preceding years except that for any such year prior to 1966, the year’s maximum pensionable earnings for that year is deemed to be five thousand dollars.
7(2)The amount of any immediate pension to which a contributor may become entitled under this Act is an amount equal to the sum of
(a)
in respect of each year or part thereof of pensionable service to the credit of the contributor occurring prior to September 1, 1966, two per cent of the average salary, and
(b)
in respect of each year or part thereof of pensionable service to the credit of the contributor occurring after August 31, 1966,
(i)
one and three-tenths per cent of the average salary or the average maximum salary, whichever is the lesser, and
(ii)
two per cent of the portion of the average salary, if any, that is greater than the average maximum salary.
7(3)Notwithstanding subsection (2), where a contributor is entitled to an immediate pension under this Act but is not eligible for an unadjusted retirement pension under the Canada Pension plan solely because he or she has not attained the age at which such a benefit becomes payable, his or her pension under this Act is to be calculated in accordance with paragraph (2)(a) for all years of service both before and after the coming into force of this Act until such time as he or she attains the age at which he or she would have been eligible for an unadjusted retirement pension under the Canada Pension plan at which time all provisions of subsection (2) apply.
7(3.01)Notwithstanding subsection (3), the total amount of any pension calculated under subsection (3) shall not exceed the amount permitted under paragraph 8503(2)(b) of the
Income Tax Regulations under the
Income Tax Act (Canada).
7(3.1)Notwithstanding subsection (2), the total amount of the immediate pension payable in any year to a contributor out of the Superannuation Account, in respect of pensionable service after December 31, 1991, shall not exceed, in respect of each year or part of a year of that pensionable service to the credit of the contributor, an amount equal to $1,722.22 as established by the
Income Tax Act (Canada) and the regulations under that Act, or such other amount that is established in its stead as the defined benefit limit under that Act and the regulations under that Act for the calendar year in which the immediate pension commences.
7(3.2)Notwithstanding any other provision of this Act, the total amount of the immediate pension payable in any year to a contributor out of the Superannuation Account in respect of any period of non-contributory service before January 1, 1990 that is described under subparagraph 4(1)(b)(ii) and that the contributor becomes, on or after January 1, 1992, authorized to count as pensionable service in accordance with that subparagraph, shall not exceed, in respect of each year or part of a year of that period of pensionable service to the credit of the contributor, an amount equal to $1,150 as established by the
Income Tax Act (Canada) and the regulations under that Act, or two-thirds of such other amount that is established in its stead as the defined benefit limit under that Act and the regulations under that Act for the calendar year in which the immediate pension commences.
7(3.3)Notwithstanding subsections (3.1) and (3.2), any amount payable under subsection (2) in excess of the amount permitted under subsections (3.1) and (3.2) shall be paid out of the Consolidated Fund.
7(4)Repealed: 1994, c.89, s.5
7(5)Repealed: 1994, c.89, s.5
7(6)Repealed: 1983, c.71, s.4 1966, c.23, s.8; 1975, c.49, s.4; 1976, c.50, s.3; 1983, c.71, s.4; 1987, c.47, s.3; 1991, c.45, s.5; 1994, c.89, s.5; 2008, c.16, s.4; 2008, c.45, s.31