Section 53.1 — Canada Pension Plan: First additional unadjusted pensionable earnings for a year

Subject to sections 53.5 and 54.1, for 2019 and each subsequent year, the first additional unadjusted pensionable earnings of a contributor for a year are an amount equal to the least of the aggregate of their contributory salary and wages for the year, and their contributory self-employed earnings for the year in the case of an individual described in section 10, the aggregate of their earnings on which a first additional contribution has been made for the year calculated as the aggregate of their salary and wages on which a first additional contribution has been made for the year, and the amount of any first additional contribution required to be made by the contributor for the year in respect of the contributor’s self-employed earnings divided by the first additional contribution rate for self-employed persons for the year, their earnings on which a first additional contribution has been made for the year under a provincial pension plan, calculated as the aggregate of the amount that is determined in the prescribed manner to be their salary and wages on which a first additional contribution has been made for the year by them under a provincial pension plan, and the amount of any first additional contribution required to be made by the contributor for the year under a provincial pension plan in respect of the contributor’s self-employed earnings divided by the first additional contribution rate for self-employed persons for the year, and their basic exemption for the year, and their maximum pensionable earnings for the year. However, if the amount calculated as provided in paragraph (a) is equal to or less than the amount of their basic exemption for the year, their first additional unadjusted pensionable earnings for that year are deemed to be zero. For the purposes of subsection (1), for the year in which a retirement pension becomes payable under this Act, the contributor’s basic exemption is equal to that proportion of the amount of the Year’s Basic Exemption that the number of months in the year that are before the retirement pension becomes payable is of 12; and the contributor’s maximum pensionable earnings is equal to that proportion of the amount of the Year’s Maximum Pensionable Earnings that the number of months in the year that are before the retirement pension becomes payable is of 12.