Section 45 — Canada Pension Plan: Basic amount of benefit

A reference in this Part to the basic amount of any benefit shall be construed as a reference to the amount thereof calculated as provided in this Part without regard to subsection (2). Where any benefit has become payable commencing with a month in any year, the basic monthly amount of the benefit shall be adjusted annually, in prescribed manner, so that the amount payable for a month in any following year is an amount equal to the product obtained by multiplying the amount that would have been payable for that month if no adjustment had been made under this section with respect to that following year, by the ratio that the Pension Index for that following year bears to the Pension Index for the year preceding that following year.