Acts and Regulations

P-5.1 - Pension Benefits Act

Section 48
Disposition versions

Full text
Limitation on reduction of pension or pension benefit
48(1)If a pension plan provides that a pension or a deferred pension may be reduced by reason of payments under the Canada Pension Plan, the Quebec Pension Plan, or under the Old Age Security Act (Canada), the reduction shall not exceed the sum of
(a) the amount payable under the Canada Pension Plan or the Quebec Pension Plan calculated at termination of employment, retirement or death, multiplied by the ratio of the number of years, including parts of a year, of employment credited under the pension plan after December 31, 1965 over thirty-five, and
(b) the amount payable under the Old Age Security Act (Canada), calculated at termination of employment, retirement or death, multiplied by the ratio of the number of years, including parts of a year, of employment credited under the pension plan up to the commencement of this section over thirty-five.
48(2)The ratio referred to in paragraphs (1)(a) and (b) shall not exceed one.
48(3)The reduction referred to in subsection (1) shall be applied before any other adjustments required under the pension plan.
48(4)The amount of the reduction referred to in subsection (1) shall not be increased by reason of increases in payments under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) after the date of the member’s termination of employment, retirement, or death.
48(5)The value of a bridging benefit, for receipt of which a member or former member has satisfied all eligibility requirements of the pension plan, shall not be reduced by reason only of the eligibility of the member or former member to receive a payment before reaching sixty-five years of age under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada).
48(6)If a pension plan provides for variation of a pension benefit by reason of a benefit payable under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) without specifically stating the age at which the variation is to occur, the pension shall be deemed to provide that the variation is to occur when the recipient of the pension benefit reaches sixty-five years of age.
48(7)A pension plan shall not permit the reduction of a pension or deferred pension based on a person’s entitlement under the Old Age Security Act (Canada) in respect of a benefit accrued after the commencement of this section.
2002, c.12, s.22
Limitation on reduction of pension or pension benefit
48(1)If a pension plan provides that a pension or a deferred pension may be reduced by reason of payments under the Canada Pension Plan, the Quebec Pension Plan, or under the Old Age Security Act (Canada), the reduction shall not exceed the sum of
(a) the amount payable under the Canada Pension Plan or the Quebec Pension Plan calculated at termination of employment, retirement or death, multiplied by the ratio of the number of years, including parts of a year, of employment credited under the pension plan after December 31, 1965 over thirty-five, and
(b) the amount payable under the Old Age Security Act (Canada), calculated at termination of employment, retirement or death, multiplied by the ratio of the number of years, including parts of a year, of employment credited under the pension plan up to the commencement of this section over thirty-five.
48(2)The ratio referred to in paragraphs (1)(a) and (b) shall not exceed one.
48(3)The reduction referred to in subsection (1) shall be applied before any other adjustments required under the pension plan.
48(4)The amount of the reduction referred to in subsection (1) shall not be increased by reason of increases in payments under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) after the date of the member’s termination of employment, retirement, or death.
48(5)The value of a bridging benefit, for receipt of which a member or former member has satisfied all eligibility requirements of the pension plan, shall not be reduced by reason only of the eligibility of the member or former member to receive a payment before reaching sixty-five years of age under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada).
48(6)If a pension plan provides for variation of a pension benefit by reason of a benefit payable under the Canada Pension Plan, the Quebec Pension Plan or the Old Age Security Act (Canada) without specifically stating the age at which the variation is to occur, the pension shall be deemed to provide that the variation is to occur when the recipient of the pension benefit reaches sixty-five years of age.
48(7)A pension plan shall not permit the reduction of a pension or deferred pension based on a person’s entitlement under the Old Age Security Act (Canada) in respect of a benefit accrued after the commencement of this section.
2002, c.12, s.22