Bill C-36: An Act to amend the Canada Pension Plan and the Old Age Security Act

First Session, Thirty-ninth Parliament, 55-56 Elizabeth II, 2006-2007 STATUTES OF CANADA 2007CHAPTER 11 An Act to amend the Canada Pension Plan and the Old Age Security Act ASSENTED TO 3rd MAY, 2007 BILL C-36 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canada Pension Plan and the Old Age Security Act”. SUMMARY This enactment amends the Canada Pension Plan to implement the existing full funding provision for new benefits and benefit enhancements. It also provides for their calculation, the requirements for public reporting of those costs and the integration of those costs into the process for setting the contribution rate. It changes the contributory requirement for disability benefits under the Canada Pension Plan for contributors with 25 or more years of contributions to the Canada Pension Plan, to require contributions in only three of the last six years in the contributory period. Other contributors will continue to have to meet the existing requirement of contributions in four of the last six years in their contributory period. It also makes changes to the Canada Pension Plan of an administrative nature to modernize service delivery. It authorizes the Governor in Council to make regulations respecting the payment of interest on amounts owing to Her Majesty under Part II of the Act. It also addresses anomalies in the Act, amends the penalty provisions and clarifies certain language used in the Act. In addition, this enactment amends the Old Age Security Act to authorize the Governor in Council to make regulations respecting the payment of interest on amounts owing to Her Majesty under the Act. The enactment also eliminates the ability of estates or successions to apply for income-tested benefits and ensures that sponsored immigrants are treated the same for the purpose of determining entitlements to income-tested benefits. It also corrects anomalies in the Act, amends the penalty provisions, modernizes and simplifies the application and delivery of the Old Age Security program and clarifies certain language used in the Act. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca .vis1 {position: absolute;display:block;} .vis2 {position: static;} 55-56 ELIZABETH II —————— CHAPTER 11 An Act to amend the Canada Pension Plan and the Old Age Security Act [Assented to 3rd May, 2007] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. C-8 CANADA PENSION PLAN 1. The Canada Pension Plan is amended by adding the following after section 4: ELECTRONIC ALTERNATIVES Power of Ministers 4.1 The Minister of Social Development and the Minister of National Revenue may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act. 2. Paragraph 44(2)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (i) and by adding the following after subparagraph (i): (i.1) for at least 25 calendar years included either wholly or partly in the contributor’s contributory period, of which at least three are in the last six calendar years included either wholly or partly in the contributor’s contributory period, or 2000, c. 12, s. 47 3. (1) The portion of paragraph 55.1(1)(b) of the Act before subparagraph (i) is replaced by the following: (b) in the case of spouses, following the approval by the Minister of an application made by or on behalf of either spouse, by the estate or succession of either spouse or by any person that may be prescribed, if 2000, c. 12, s. 47 (2) Paragraph 55.1(1)(c) of the Act is replaced by the following: (c) in the case of common-law partners, following the approval by the Minister of an application made by or on behalf of either former common-law partner, by the estate or succession of one of those former common-law partners or by any person that may be prescribed, if (i) the former common-law partners have been living separate and apart for a period of one year or more, or one of the former common-law partners has died during that period, and (ii) the application is made within four years after the day on which the former common-law partners commenced to live separate and apart or, if both former common-law partners agree in writing, at any time after the end of that four-year period. 1997, c. 40, s. 80 4. (1) Subsection 66(2) of the Act is replaced by the following: Recovery of amount of payment (2) If a person has received or obtained a benefit payment to which the person is not entitled, or a benefit payment in excess of the amount of the benefit payment to which the person is entitled, the amount of the benefit payment or the excess amount, as the case may be, constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. Recovery of amount of interest (2.01) Interest payable under this Part constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. (2) Section 66 of the Act is amended by adding the following after subsection (2.01): Recovery of amount of penalty (2.02) The amount of a penalty imposed on a person under section 90.1 constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. 1997, c. 40, s. 80 (3) Subsection 66(2.1) of the French version of the Act is replaced by the following: Déduction (2.1) Le montant de la créance peut en outre être déduit, de la façon réglementaire, des sommes à payer au débiteur ou à sa succession en vertu de la présente loi ou de toute autre loi dont l’application incombe au ministre ou au titre de tout programme dont la gestion lui est confiée. 1997, c. 40, s. 80 (4) Subsection 66(2.7) of the Act is replaced by the following: Garnishment (2.7) If the Minister knows or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment to Her Majesty under this Part, the Minister may, by a notice served personally or by confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability. (5) Section 66 of the Act is amended by adding the following after subsection (5): Exclusion of Financial Administration Act (6) Section 155.1 of the Financial Administration Act does not apply in relation to amounts owing to Her Majesty under this Part. 5. (1) Subsection 89(1) of the Act is amended by striking out the word “and” at the end of paragraph (l) and by adding the following after paragraph (l): (l.1) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Part, including (i) the technology or process, and the format, that must be used, (ii) the place where an electronic document is to be made or sent, (iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received, (iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and (v) the circumstances in which an elec-tronic document must be signed with an electronic signature or a secure electronic signature; (l.2) providing that a requirement under a provision of this Part to provide a document or information by non-electron-ic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with; and (2) Section 89 of the Act is amended by adding the following after subsection (1): Regulations — payment of interest (2) The Governor in Council may make regulations respecting the payment of interest on amounts owing to Her Majesty under this Part, including regulations prescribing (a) the circumstances in which interest is payable; (b) rates of interest or the manner of calculating rates of interest; (c) terms and conditions for the imposition and payment of interest; and (d) terms and conditions under which the Minister may waive, reduce or remit the interest payable. Personal Information Protection and Electronic Documents Act (3) In paragraphs (1)(l.1) and (l.2), “electron-ic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. 6. The heading before section 90.1 of the English version of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Administrative Monetary Penalties 7. (1) The portion of subsection 90.1(1) of the French version of the Act before paragraph (a), as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Pénalités 90.1 (1) S’il prend connaissance de faits qui, à son avis, démontrent qu’une personne a commis l’un des actes ou omissions ci-après, le ministre peut lui infliger une pénalité pour chacun de ces actes ou omissions : (2) Paragraph 90.1(1)(d) of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: (d) received or obtained by cheque or otherwise a benefit payment to which the person knew that they were not entitled, or a benefit payment that the person knew was in excess of the amount of the benefit payment to which they were entitled, and did not return the cheque or the amount of the benefit payment, or the excess amount, as the case may be, without delay; or (3) Paragraph 90.1(1)(e) of the French version of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: e) participer, consentir ou acquiescer à la commission de tout acte ou omission visé à l’un ou l’autre des alinéas a) à d). (4) Section 90.1 of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is amended by adding the following after subsection (1): Purpose of penalty (1.1) The purpose of the penalty is to promote compliance with this Act and not to punish. (5) Subsection 90.1(4) of the Act, as enacted by section 87 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Rescission, etc., of penalty (4) The Minister may rescind the imposition of a penalty under subsection (1), or reduce the penalty, (a) on the presentation of new facts; (b) on being satisfied that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact; (c) on being satisfied that the penalty cannot be collected within the reasonably foreseeable future; or (d) on being satisfied that payment of the penalty would cause undue hardship to the debtor. 8. The Act is amended by adding the following before section 90.2: Administration and Enforcement 9. Subsection 96(1) of the Act is replaced by the following: Application for statement of earnings and request for reconsideration 96. (1) Subject to the provisions of any agreement entered into under section 105, every contributor may require the Minister, by application made in the prescribed manner, to furnish or make available to the contributor a statement of the unadjusted pensionable earnings shown to the contributor’s account in the Record of Earnings, and if a contributor is not satisfied with the statement, they may request that it be reconsidered by the Minister. 10. (1) Subsection 101(1) of the Act is amended by striking out the word “and” at the end of paragraph (d.1) and by adding the following after paragraph (d.1): (d.2) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Part, including (i) the technology or process, and the format, that must be used, (ii) the place where an electronic document is to be made or sent, (iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received, (iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and (v) the circumstances in which an elec-tronic document must be signed with an electronic signature or a secure electronic signature; (d.3) providing that a requirement under a provision of this Part to provide a document or information by non-electronic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with; and (2) Section 101 of the Act is amended by adding the following after subsection (1): Personal Information Protection and Electronic Documents Act (2) In paragraphs (1)(d.2) and (d.3), “electronic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. 2005, c. 35, s. 46 11. Subsection 104.01(3) of the Act is replaced by the following: Availability of information to the individual and other persons (3) Subject to the exemptions and exclusions provided in the Privacy Act, if information is relevant to the making of an application or the receipt of a benefit by, or the division of unadjusted pensionable earnings or assignment of a retirement pension that affects, an individ-ual under this Act, it may be made available to (a) the individual; (b) the individual’s representative; (c) a member of Parliament inquiring on behalf of the individual; or (d) on the conditions that may be prescribed, any other individual authorized in writing by the individual. 1997, c. 40, s. 94(5) 12. (1) The portion of paragraph 113.1(4)(c) of the Act before subparagraph (i) is replaced by the following: (c) the financing objective of having a contribution rate, without taking into account the changes referred to in paragraph (d) for which the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) exceeds zero, that is no lower than the rate 1997, c. 40, s. 94(8) (2) Subsections 113.1(11) to (11.04) of the Act are repealed. 1997, c. 40, s. 94(8) (3) The portion of subsection 113.1(11.05) of the Act before paragraph (a) is replaced by the following: Insufficient rates (11.05) Subject to subsections (11.12) and (11.13), if, at October 1 of the year before a three-year period for which a review is required by subsection (1), the contribution rate for self-employed persons for the years in that three-year period less the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) is less than the contribution rate most recently calculated under subparagraph 115(1.1)(c)(i) for self-employed persons for those years, 1997, c. 40, s. 94(8) (4) Subsections 113.1(11.06) to (11.11) of the Act are replaced by the following: Interpretation (11.06) In the calculations under subsections (11.07) to (11.11), A      is one half of the contribution rate most recently calculated under subparagraph 115(1.1)(c)(i) for self-employed persons for the years in the three-year period referred to in subsection (11.05); B      is the contribution rate for employees and employers at October 1 of the third year of the last three-year period for which contribution rates were set for employees and employers, by an Act of Parliament or by a regulation made under subsection (6), on the recommendation of ministers under subsection (1); C      is one half of the contribution rate most recently calculated under subparagraph 115(1.1)(c)(ii) for self-employed persons for the years in the three-year period referred to in subsection (11.05); and D      is the difference between B and C. Determination of rate — 1st case (11.07) If neither A nor D is greater than 4.95% and A is greater than D, the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is A plus C. Determination of rate — 2nd case (11.08) If A is greater than 4.95%, D is less than or equal to 4.95% and the percentage determined by the formula 1/2(A - D) is less than or equal to 0.1%, then the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is the rate determined by the formula 4.95% + 1/2(A - 4.95%) + C Determination of rate — 3rd case (11.09) If A is greater than 4.95%, D is less than or equal to 4.95% and the percentage determined by the formula 1/2(A - D) is greater than 0.1%, then the contribution rate for employees and employers is (a) for the first year after the October 1 date referred to in subsection (11.05), the rate determined by the formula 4.95% + 1/6(A - 4.95%) + C (b) for the next year, the rate determined by the formula 4.95% + 1/3(A - 4.95%) + C and (c) for each subsequent year, the rate determined by the formula 4.95% + 1/2(A - 4.95%) + C Determination of rate — 4th case (11.1) If subsections (11.07) to (11.09) do not apply and the percentage determined by the formula 1/2(A - D) is less than or equal to 0.1%, then the contribution rate for employees and employers for each year after the October 1 date referred to in subsection (11.05) is the rate determined by the formula D + 1/2(A - D) + C Determination of rate — 5th case (11.11) If subsections (11.07) to (11.1) do not apply, then the contribution rate for employees and employers is (a) for the first year after the October 1 date referred to in subsection (11.05), the rate determined by the formula D + 1/6(A - D) + C (b) for the next year, the rate determined by the formula D + 1/3(A - D) + C and (c) for each subsequent year, the rate determined by the formula D + 1/2(A - D) + C 1997, c. 40, s. 94(8) (5) Subsection 113.1(11.14) of the Act is replaced by the following: Adjustment (11.14) If a contribution rate determined under any of subsections (11.07) to (11.11) is not a multiple of 0.005%, the contribution rate is to be rounded to the nearest multiple of 0.005%. R.S., c. 30 (2nd Supp.), s. 56 (6) Subsection 113.1(12) of the Act is replaced by the following: Application of subsection 114(2) (12) For greater certainty, subsection 114(2) does not apply to any amendments to the schedule made under subsection (6) or subsections (11.05) to (11.11). 1997, c. 40, s. 95(4) 13. Subsection 114(4.1) of the Act is replaced by the following: Exception (4.1) Subsections (2) and (4) do not apply in respect of changes under any of subsections 113.1(11.05) to (11.11) to benefits or contribution rates. 1997, c. 40, s. 96(1) 14. Paragraph 115(1.1)(c) of the Act is replaced by the following: (c) 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 (i) a contribution rate, calculated in the prescribed manner, without taking into account the changes referred to in paragraph 113.1(4)(d) for which the contribution rate most recently calculated under subparagraph (ii) exceeds zero, and (ii) a contribution rate calculated in the prescribed manner in respect of the changes referred to in paragraph 113.1(4)(d); (c.1) specify the contribution rates referred to in subparagraphs (c)(i) and (ii); and R.S., c. O-9 OLD AGE SECURITY ACT 15. The Old Age Security Act is amended by adding the following after section 5: Withdrawal of application 5.1 (1) An applicant may withdraw an application for a pension by giving a written notice of their withdrawal to the Minister at any time before payment of the pension commences. Effect of withdrawal (2) If an application for a pension is withdrawn under subsection (1), the withdrawn application shall not after that time be used for the purpose of determining the applicant’s eligibility for a pension. 1995, c. 33, s. 5; 1998, c. 21, par. 119(1)(a) 16. (1) Subsection 11(4) of the Act is replaced by the following: Waiver of application (4) The Minister may waive the requirement referred to in subsection (2) for an application for payment of a supplement for any month or months in a payment period if an application for payment of a supplement has been made in respect of any payment period before that payment period. 2001, c. 27, s. 264 (2) Subparagraph 11(7)(e)(ii) of the Act is replaced by the following: (ii) a person in respect of whom an undertaking by a sponsor is in effect as provided under the Immigration and Refugee Protection Act. 17. (1) Section 14 of the Act is amended by adding the following after subsection (1): Waiver — statement of income (1.01) The Minister may waive the requirement to make a statement of income under subsection (1) if that information has been made available to the Minister under this Act and, in that case, the statement is deemed to have been made for the purposes of this Part. 1998, c. 21, s. 110(2); 2000, c. 12, par. 207(1)(d) (2) Subsections 14(2) to (6) of the Act are replaced by the following: Additional statement if retirement in current payment period (2) If in a current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, that person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year in which the person ceased to hold that office or employment or ceased to carry on that business, which income shall be calculated as the total of (a) any pension income received by the person in that part of that calendar year that is after the month in which the person ceases to hold that office or employment or to carry on that business, divided by the number of months in that part of that calendar year and multiplied by 12, (b) the income from any office or employment or any business for that calendar year other than income from the office, employment or business that has ceased, and (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. Additional statement if retirement in the last month of the calendar year that is in the current payment period (3) Despite subsection (2), if in the last month of a calendar year that ends in the current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, the person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year that is immediately after the month in which the person ceased to hold that office or employment or ceased to carry on that business, which income shall be calculated as the total of (a) any pension income received by the person in that calendar year, (b) the income from any office or employment or any business for that calendar year other than income from the office, employment or business that has ceased, and (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. Additional statement if loss of pension income in current payment period (4) If in a current payment period a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), suffers a loss of income due to termination of or reduction in pension income, the person may, not later than the end of the second payment period after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, file a statement of the person’s estimated income for the calendar year in which the loss is suffered, which income shall be calculated as the total of (a) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss is suffered, divided by the number of months in that part of that calendar year and multiplied by 12, (b) the income from any office or employment or any business for that calendar year, and (c) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. Additional statement if retirement before current payment period (5) If, in the circumstances described in paragraphs (a) and (b), a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), ceases to hold an office or employment or ceases to carry on a business, the person may, not later than the end of the payment period that is immediately after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, (a) if the person ceases to hold that office or employment or to carry on that business in the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that calendar year, (ii) the income from any office or employment or any business for that calendar year, other than income from the office, employment or business that has ceased, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income; and (b) if the person ceases to hold that office or employment or to carry on that business in a month that is before the payment period and after the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that part of that calendar year that is after the month in which the person ceases to hold that office or employment or to carry on that business, divided by the number of months in that part of that calendar year and multiplied by 12, (ii) the income from any office or employment or any business for that calendar year, other than income from the office, employment or business that has ceased, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. Additional statement if loss of pension income before current payment period (6) If, in the circumstances described in paragraph (a) or (b), a person who is an applicant, or is an applicant’s spouse or common-law partner who has filed a statement as described in paragraph 15(2)(a), suffers a loss of income due to a termination of or reduction in pension income, the person may, not later than the end of the payment period that is immediately after the current payment period, in addition to making the statement of income required by subsection (1) in the case of the applicant or in addition to filing a statement as described in paragraph 15(2)(a) in the case of the applicant’s spouse or common-law partner, (a) if the loss is suffered in the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that calendar year, (ii) the income from any office or employment or any business for that calendar year, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income; and (b) if the loss is suffered in a month that is before the payment period and after the last calendar year ending before the payment period, file a statement of the person’s estimated income for the calendar year ending in the current payment period, which income shall be calculated as the total of (i) any pension income received by the person in that part of that calendar year that is after the month immediately before the month in which the loss is suffered, divided by the number of months in that part of that calendar year and multiplied by 12, (ii) the income from any office or employment or any business for that calendar year, and (iii) the person’s income for the base calendar year calculated as though, for that year, the person had no income from any office or employment or any business and no pension income. 1998, c. 21, s. 111; 2000, c. 12, par. 207(1)(e) 18. (1) Subsection 15(1.1) of the Act is replaced by the following: Statement if application waived (1.1) If the requirement for an application for payment of a supplement for any month has been waived under subsection 11(4) for a person who did not have a spouse or common-law partner immediately before the last payment period in respect of which a supplement was paid or, if no supplement was ever paid to the person, immediately before the last payment period in respect of which an application for payment of a supplement was received but who has a spouse or common-law partner immediately before the current payment period, the person shall notify the Minister without delay of the date of that change, the name and address of the spouse or common-law partner and whether, to the person’s knowledge, the spouse or common-law partner is a pensioner. (2) Section 15 of the Act is amended by adding the following after subsection (2): Waiver — subsection (1) (2.1) The Minister may waive the requirement to submit the information described in subsection (1) if that information has been submitted to the Minister in a joint application referred to in subsection 19(4). Waiver — paragraph (2)(a) (2.2) The Minister may waive the requirement to file a statement under paragraph (2)(a) if the information has been made available to the Minister under this Act, and, if that is the case, the statement is deemed to have been filed for the purposes of this Part. 1995, c. 33, s. 10; 1998, c. 21, par. 119(1)(d); 2000, c. 12, par. 207(1)(f) 19. (1) Subsection 19(4.1) of the Act is replaced by the following: Waiver of application (4.1) The Minister may waive the requirement referred to in subsection (4) for an application for payment of an allowance for any month or months in a payment period if an application for payment of an allowance has been made in respect of any payment period before that payment period. (2) Paragraph 19(6)(a) of the Act is replaced by the following: (a) any month that is more than 11 months before the month in which the application is received or is deemed to have been made or in which the requirement for an application has been waived, as the case may be; 2001, c. 27, s. 265 (3) Subparagraph 19(6)(d)(ii) of the Act is replaced by the following: (ii) a person in respect of whom an undertaking by a sponsor is in effect as provided under the Immigration and Ref-ugee Protection Act; or 1995, c. 33, s. 11(2); 1998, c. 21, par. 119(1)(g); 2000, c. 12, par. 208(1)(c), 209(k)(E) 20. (1) Subsection 21(5.1) of the Act is replaced by the following: Waiver of requirement for application (5.1) The Minister may waive the requirement referred to in subsection (4) for an application for payment of an allowance for any month or months in a payment period if an application for payment of an allowance has been made in respect of any payment period before that payment period. R.S., c. 34 (1st Supp.), s. 4 (2) Paragraph 21(9)(a) of the Act is replaced by the following: (a) any month more than 11 months before the month in which the application is received or is deemed to have been made or in which the requirement for an application has been waived, as the case may be; 2001, c. 27, s. 266 (3) Subparagraph 21(9)(c)(ii) of the Act is replaced by the following: (ii) a person in respect of whom an undertaking by a sponsor is in effect as provided under the Immigration and Ref-ugee Protection Act; or 21. Section 26 of the Act is amended by adding the following after subsection (1): Information previously submitted (1.1) For greater certainty, the Minister may waive the requirements of subsections 14(1) and 15(1) and (2) in respect of an application for an allowance under this Part if the information required under those subsections has already been submitted to or filed with the Minister in respect of an application for a supplement under Part II. 22. The Act is amended by adding the following after the heading “GENERAL” of Part IV: Effect of Waiver Deeming provision 26.1 When the requirement for an application for a benefit is waived by the Minister under this Act, the application is deemed to have been made by the applicant on the day on which the requirement is waived and, for greater certainty, the applicant shall not be paid that benefit for any month that is more than 11 months before the month in which the application is deemed to have been made. 23. Section 29 of the Act is replaced by the following: Application for pension by estate, etc. 29. (1) Despite anything in this Act, an application for a pension that would have been payable to a deceased person who, before their death, would have been entitled, on approval of an application, to payment of that pension under this Act may be made within one year after the person’s death by the estate or succession, by the liquidator, executor or administrator of the estate or succession or heir of that person or by any person that may be prescribed by regulation. Pension payable to estate or other persons (2) If an application is made under subsection (1), the pension that would have been payable to a deceased person referred to in that subsection shall be paid to the estate or succession or to any person that may be prescribed by regulation. Application deemed to have been received on date of death (3) Any application made under subsection (1) is deemed to have been received on the date of the death of the person who, before their death, would have been entitled to payment of the pension. 2000, c. 12, s. 202 24. (1) Subsection 30(1) of the Act is replaced by the following: Retroactive application by survivor 30. (1) Despite paragraph 19(6)(b), if a person dies and the person’s survivor would have been entitled to an allowance under section 19 had the survivor and the deceased person made a joint application for it before the death of the deceased person, the survivor may make application for an allowance under section 19 within one year after the death of the deceased person. R.S., c. 34 (1st Supp.), s. 8(2); 2000, c. 12, par. 209(q)(E) (2) Subsection 30(3) of the Act is repealed. 2005, c. 35, s. 56 25. Subsection 33.01(3) of the Act is replaced by the following: Availability of information to the individual or other persons (3) Subject to the exemptions and exclusions provided in the Privacy Act, if information is relevant to the making of an application or the receipt of a benefit by the individual under this Act, it may be made available to (a) the individual; (b) the individual’s representative; (c) a member of Parliament inquiring on behalf of the individual; or (d) on the conditions that may be prescribed, any other individual authorized in writing by the individual. 26. (1) Paragraph 34(o) of the Act is replaced by the following: (o) providing for the making of any application or statement, or the doing of any other act or thing required or permitted by this Act, by any person or agency, and for the payment of a benefit to any person or agency, on behalf of any other person or beneficiary if it is established in any manner and by any evidence that may be prescribed by the regulations that the other person or beneficiary is, by reason of infirmity, illness, insanity or other cause, incapable of manag-ing their own affairs, and prescribing the manner in which any benefit authorized to be paid to the person or agency shall be administered and expended for the benefit of the other person or beneficiary and accounted for; (2) Section 34 of the Act is amended by striking out the word “and” at the end of paragraph (p), by adding the word “and” at the end of paragraph (q) and by adding the following after paragraph (q): (r) respecting the use of electronic means to create, communicate, make available, collect, receive, store or otherwise deal with a document or information under this Act, including (i) the technology or process, and the format, that must be used, (ii) the place where an electronic document is to be made or sent, (iii) the time and circumstances when an electronic document is considered to be sent or received and the place where it is considered to have been sent or received, (iv) the technology or process to be used to make or verify an electronic signature and the manner in which the signature is to be used, and (v) the circumstances in which an elec-tronic document must be signed with an electronic signature or a secure electronic signature; and (s) providing that a requirement under a provision of this Act to provide a document or information by non-electronic means is satisfied by the provision of an electronic document if the prescribed conditions, if any, have been complied with. 27. The Act is amended by adding the following after section 34: Personal Information Protection and Electronic Documents Act 34.1 In paragraphs 34(r) and (s), “electronic document”, “electronic signature” and “secure electronic signature” have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act. Regulations — payment of interest 34.2 The Governor in Council may make regulations respecting the payment of interest on amounts owing to Her Majesty under this Act, including regulations prescribing (a) the circumstances in which interest is payable; (b) rates of interest or the manner of calculating rates of interest; (c) terms and conditions for the imposition and payment of interest; and (d) terms and conditions under which the Minister may waive, reduce or remit the interest payable. 1997, c. 40, s. 105 28. (1) Subsection 37(2) of the Act is replaced by the following: Recovery of amount of payment (2) If a person has received or obtained a benefit payment to which the person is not entitled, or a benefit payment in excess of the amount of the benefit payment to which the person is entitled, the amount of the benefit payment or the excess amount, as the case may be, constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. Recovery of amount of interest (2.01) Interest payable under this Act constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. (2) Section 37 of the Act is amended by adding the following after subsection (2.01): Recovery of amount of penalty (2.02) The amount of a penalty imposed on a person under section 44.1 constitutes a debt due to Her Majesty and is recoverable at any time in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act. 1997, c. 40, s. 105 (3) Subsection 37(2.1) of the French version of the Act is replaced by the following: Déduction (2.1) Le montant de la créance peut en outre être déduit, de la façon réglementaire, des sommes à payer au débiteur ou à sa succession en vertu de la présente loi ou de toute autre loi dont l’application incombe au ministre ou au titre de tout programme dont la gestion lui est confiée. 1997, c. 40, s. 105 (4) Subsection 37(2.7) of the Act is replaced by the following: Garnishment (2.7) If the Minister knows or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment to Her Majesty under this Act, the Minister may, by a notice served personally or by confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability. (5) Section 37 of the Act is amended by adding the following after subsection (4): Exclusion of Financial Administration Act (5) Section 155.1 of the Financial Administration Act does not apply in relation to amounts owing to Her Majesty under this Act. 29. Subsection 39(2) of the Act is replaced by the following: Administration of provincial benefits (1.1) The agreement may provide for the Minister to administer the provincial benefits on behalf of the government of that province in accordance with the terms and conditions set out in the agreement. Province to reimburse expenses (2) It shall be a term of the agreement that the government of the province that is a party to the agreement shall reimburse the Minister for the expenses incurred by the Minister under that agreement. 30. Subsection 42(1) of the Act is replaced by the following: Tabling order 42. (1) An order under section 41 shall be laid before each House of Parliament within the first 15 days on which that House is sitting after the order is made. 31. The heading before section 44 of the Act is replaced by the following: Offences 32. The Act is amended by adding the following after section 44: Administrative Monetary Penalties 33. (1) The portion of subsection 44.1(1) of the French version of the Act before paragraph (a), as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Pénalités 44.1 (1) S’il prend connaissance de faits qui, à son avis, démontrent qu’une personne a commis l’un des actes ou omissions ci-après, le ministre peut lui infliger une pénalité pour chacun de ces actes ou omissions : (2) Paragraph 44.1(1)(d) of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: (d) received or obtained by cheque or otherwise a benefit payment to which the person knew that they were not entitled, or a benefit payment that the person knew was in excess of the amount of the benefit payment to which they were entitled, and did not return the cheque or the amount of the benefit payment, or the excess amount, as the case may be, without delay; or (3) Paragraph 44.1(1)(e) of the French version of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: e) participer, consentir ou acquiescer à la commission de tout acte ou omission visé à l’un ou l’autre des alinéas a) à d). (4) Section 44.1 of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is amended by adding the following after subsection (1): Purpose of penalty (1.1) The purpose of the penalty is to promote compliance with this Act and not to punish. (5) Subsection 44.1(4) of the Act, as enacted by section 107 of chapter 40 of the Statutes of Canada, 1997, is replaced by the following: Rescission, etc., of penalty (4) The Minister may rescind the imposition of a penalty under subsection (1), or reduce the penalty, (a) on the presentation of new facts; (b) on being satisfied that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact; (c) on being satisfied that the penalty cannot be collected within the reasonably foreseeable future; or (d) on being satisfied that payment of the penalty would cause undue hardship to the debtor. 34. The Act is amended by adding the following before section 44.2: Administration and Enforcement 35. The Act is amended by adding the following after section 46: Electronic means 46.1 The Minister may use electronic means to create, communicate, make available, collect, receive, store or otherwise deal with documents or information under this Act. TRANSITIONAL PROVISIONS Application of subparagraph 44(2)(a)(i.1) 36. (1) Subparagraph 44(2)(a)(i.1) of the Canada Pension Plan, as enacted by section 2, applies in respect of an application for a disability pension made in or after the month in which that section comes into force. Limitation (2) However, in the case of a contributor referred to in subparagraph 44(1)(b)(ii) of the Canada Pension Plan, subparagraph 44(2)(a)(i.1) of that Act, as enacted by section 2, applies only if the contributor is deemed to have become disabled no earlier than 15 months before the month in which that section comes into force. Continued application 37. Subparagraphs 11(7)(e)(ii), 19(6)(d)(ii) and 21(9)(c)(ii) of the Old Age Security Act, as they read immediately before the day on which this Act receives royal assent, continue to apply to any person who, before that day, is a beneficiary of a supplement or an allowance under that Act or has made an application for payment of a supplement or an allowance under that Act. Continued application 38. Section 29 of the Old Age Security Act, as it read immediately before the day on which this Act receives royal assent, continues to apply in respect of any application made under that section before that day. COMING INTO FORCE Subsection 114(2) of the Canada Pension Plan 39. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in sections 2, 12 to 14 and 36 of this Act. Subsection 114(4) of the Canada Pension Plan (2) Sections 2, 12 to 14 and 36 of this Act come into force in accordance with subsection 114(4) of the Canada Pension Plan. Order in Council (3) Subsection 4(2), sections 6 and 7, subsections 17(2) and 28(2) and sections 32 and 33 of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada