Section 115 — Canada Pension Plan: Report of Chief Actuary

The Chief Actuary of the Office of the Superintendent of Financial Institutions shall, during the first year of each three-year period for which a review is required by subsection 113.1(1), prepare a report setting out, as at a date not earlier than December 31 of the year before the three-year period, the results of an actuarial examination of the operation of this Act based on the state of the Canada Pension Plan Account, the Additional Canada Pension Plan Account and the investments of the Investment Board. The Chief Actuary shall, in the report, state, for each of the 30 years immediately following the date of the examination, the estimated revenues of the Canada Pension Plan Account and the estimated investment income of the Investment Board in respect of the base Canada Pension Plan, and the estimated amount of all payments under subsection 108(3), and the estimated revenues of the Additional Canada Pension Plan Account and the estimated investment income of the Investment Board in respect of the additional Canada Pension Plan, and the estimated amount of all payments under subsection 108.2(3); state, for each fifth year of a period of not less than 75 years from the date of the examination, an estimate of the percentage of total contributory salaries and wages and contributory self-employed earnings that would be required to provide for all payments under subsection 108(3) in that year if there were no balance in the Canada Pension Plan Account at the commencement of that year and the Investment Board had no investments; in respect of the base Canada Pension Plan, specify a contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining a contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the contribution rate most recently calculated under subparagraph (ii) exceeds zero, and a contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) in respect of the base Canada Pension Plan; [Repealed, 2016, c. 14, s. 52] in respect of the additional Canada Pension Plan, specify a first additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining a first additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the first additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and a first additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) that affect the first additional contribution rate; in respect of the additional Canada Pension Plan, specify a second additional contribution rate calculated, in respect of self-employed persons for each year of a period of not less than 75 years after the three-year period in which the report is prepared, by combining a second additional contribution rate, calculated in the prescribed manner, without taking into account the changes, if any, referred to in paragraph 113.1(4)(e) for which the second additional contribution rate most recently calculated under subparagraph (ii) exceeds zero, and a second additional contribution rate calculated in the prescribed manner in respect of the changes, if any, referred to in paragraph 113.1(4)(e) that affect the second additional contribution rate; specify the rates referred to in subparagraphs (c)(i) and (ii), (d)(i) and (ii) and (e)(i) and (ii) and set out the manner in which those rates were calculated. In the first report prepared after 2015 and in every third report that follows, the Chief Actuary shall specify, in reference to the adjustment factors fixed under subsection 46(7), the factors as calculated according to a methodology that he or she considers appropriate; the Chief Actuary may also, if he or she considers it necessary, specify the factors in any report prepared under subsection (1) after 2015. For the purposes of the calculations referred to in paragraphs (1.1)(c) to (e), the rates for employees and employers for a year must be identical; and the rates for self-employed persons for a year must be equal to the sum of the rates for employees and employers for that year. Subsection 114(4) applies, with any modifications that the circumstances require, to the making of the regulations prescribing the manner of the calculation referred to in paragraphs (1.1)(c) to (e) and to the making of any regulation changing that manner of calculation. In addition to any report required under subsection (1) and in accordance with a request of the Minister of Finance, whenever any Bill is introduced in the House of Commons to amend this Act in a manner that would in the opinion of the Chief Actuary materially affect any of the estimates contained in the most recent report made under that subsection, the Chief Actuary shall prepare a report as set out in subsection (3). A report that is prepared under subsection (2) in respect of a Bill shall set out the extent to which the Bill would, if enacted by Parliament, materially affect any of the estimates contained in the most recent report made under subsection (1), using the same actuarial assumptions and basis that were used in that report and using, in addition, other actuarial assumptions and another basis if the Chief Actuary is of the opinion that these other actuarial assumptions and the other basis more accurately reflect a change in demographic or economic circumstances since the most recent report made under subsection (1) was prepared. [Repealed, 1997, c. 40, s. 96] Forthwith on the completion of any report under this section, the Chief Actuary shall transmit the report to the Minister of Finance, who shall cause the report to be laid before the House of Commons forthwith on its receipt if Parliament is then sitting, or if Parliament is not then sitting, on any of the first five days next thereafter that Parliament is sitting, and if at the time any report under this section is received by the Minister of Finance Parliament is then dissolved, the Minister of Finance shall forthwith cause a copy of the report to be published in the Canada Gazette .