Section 18 — Canada Pension Plan: Amount of Year’s Maximum Pensionable Earnings

The amount of a Year’s Maximum Pensionable Earnings is for 1987, $25,900; subject to subsection (2), for 1988, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for 1987 by the ratio that the average for the twelve month period ending on June 30, 1987 of the Wage Measure for each month in that period bears to the average for the twelve month period ending on June 30, 1986 of the Wage Measure for each month in that period; and subject to subsection (2), for 1989 and each subsequent year, an amount calculated by multiplying the Year’s Maximum Pensionable Earnings for the preceding year, calculated without reference to subsections (2) and (3), by the ratio that the average for the twelve month period ending on June 30 of the preceding year of the Wage Measure for each month in that period bears to the average for the twelve month period ending on June 30 of the year immediately preceding the preceding year of the Wage Measure for each month in that period. Where the amount calculated in accordance with paragraph (1)(b) or (c) for any year is not a multiple of one hundred dollars, the Year’s Maximum Pensionable Earnings for that year is the amount that is the next multiple of one hundred dollars below that amount. Where the amount calculated in accordance with paragraph (1)(b) or (c) in respect of any year is less than the Year’s Maximum Pensionable Earnings for the preceding year, it shall be increased to the amount of the Year’s Maximum Pensionable Earnings for the preceding year. [Repealed, 1991, c. 44, s. 2] The Wage Measure for a month is the average weekly wages and salaries of the Industrial Aggregate in Canada for the month as published by Statistics Canada under the authority of the Statistics Act ; or in the event that the Industrial Aggregate ceases to be published, such other measure as is prescribed by regulation for the month as published by Statistics Canada under the authority of the Statistics Act . For the purpose of calculating the amount of a Year’s Maximum Pensionable Earnings, where Statistics Canada has published any revisions of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for any month, the revision of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) that has been published most recently prior to the calculation in respect of that month shall be used in calculating the amount of the Year’s Maximum Pensionable Earnings. Where, at any time after the coming into force of this section, a new time or content basis is adopted by Statistics Canada in determining the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month and the adoption of that new basis would cause a difference between the average for the twelve month period ending on June 30 of any year of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, as the case may be, and the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the new time or content basis, as the case may be, of more than one per cent of the average for that twelve month period of the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for each month in that period calculated pursuant to this section on the former time or content basis, the average for that twelve month period calculated on the new time or content basis shall be adjusted by the Minister, on the advice of the Chief Statistician of Canada, to reflect the former time or content basis, and any other averages that are calculated in determining the Year’s Maximum Pensionable Earnings for the year following that twelve month period shall be adjusted accordingly. Subsection (7) shall cease to apply when the Industrial Aggregate or the other measure referred to in paragraph (5)(b) for a month has been calculated on the new time or content basis referred to in that subsection for a period of twenty-four consecutive months ending on June 30 of a year.