Bill C-564: An Act respecting a Senior Consumer Price Index

C-564 Third Session, Fortieth Parliament, 59 Elizabeth II, 2010 HOUSE OF COMMONS OF CANADA BILL C-564 An Act respecting a Senior Consumer Price Index first reading, September 28, 2010 Mr. Marston 403052 SUMMARY This enactment requires the Chief Statistician of Canada to prepare a consumer price index for senior citizens to reflect the characteristics of consumer spending by persons aged 60 years and older. It also makes amendments to the Canada Pension Plan and the Old Age Security Act to provide that the pensions provided under those Acts are indexed in accordance with this Senior Consumer Price Index. 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;} 3rd Session, 40th Parliament, 59 Elizabeth II, 2010 house of commons of canada BILL C-564 An Act respecting a Senior Consumer Price Index Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Senior Consumer Price Index Act. PRICE INDEX Senior Consumer Price Index 2. Commencing six months after this Act comes into force, the Chief Statistician of Canada shall, under the authority conferred by section 22 of the Statistics Act, prepare and publish for each calendar month a price index that reflects the characteristics of consumer spending by persons aged 60 years and older. CONSEQUENTIAL AMENDMENTS R.S., c. C-8 Canada Pension Plan 3. (1) The definition “Consumer Price Index” in subsection 2(1) of the Canada Pension Plan is repealed. (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: “Senior Consumer Price Index”« indice des prix à la consommation pour aînés » “Senior Consumer Price Index” means the Senior Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act; 4. (1) Subsection 43(1) of the Act is replaced by the following: Pension Index for subsequent years 43. (1) Subject to subsection (2), the Pension Index for each year shall be calculated, in prescribed manner, as the average for the twelve month period ending October 31 in the preceding year of the Senior Consumer Price Index for each month in that twelve month period. (2) Subsection 43(3) of the Act is replaced by the following: Where basis of Senior Consumer Price Index is changed (3) Where at any time the Senior Consumer Price Index is adjusted to reflect a new time basis or a new content basis with a resulting percentage adjustment being made in the figures for that Index, a corresponding percentage adjustment shall, at the time of the next calculation of the Pension Index, be made in all values then existing of the Pension Index. R.S., c. O-9 Old Age Security Act 5. (1) The definition “Consumer Price Index” in section 2 of the Old Age Security Act is repealed. (2) Section 2 of the Act is amended by adding the following in alphabetical order: “Senior Consumer Price Index”« indice des prix à la consommation pour aînés » “Senior Consumer Price Index”, with respect to any adjustment quarter, means the average for that adjustment quarter of the Senior Consumers Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that adjustment quarter; 6. (1) Paragraph 7(2)(b) of the Act is replaced by the following: (b) the ratio that the Senior Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Senior Consumer Price Index for the second adjustment quarter that relates to that payment quarter. (2) Subsection 7(4) of the Act is replaced by the following: Effect of reduction in Senior Consumer Price Index (4) Where, in relation to any payment quarter, the Senior Consumer Price Index for the first adjustment quarter is lower than the Senior Consumer Price Index for the second adjustment quarter, (a) no pension adjustment shall be made pursuant to subsection (2) in respect of that payment quarter; and (b) no pension adjustment shall be made pursuant to that subsection in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Senior Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Senior Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph shall be deemed to be the second adjustment quarter that relates to that subsequent payment quarter. 7. (1) Paragraph 12(2)(b) of the Act is replaced by the following: (b) the ratio that the Senior Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Senior Consumer Price Index for the second adjustment quarter that relates to that payment quarter, (2) Subsection 12(4) of the Act is replaced by the following: Effect of reduction in Senior Consumer Price Index (4) Where, in relation to any payment quarter, the Senior Consumer Price Index for the first adjustment quarter is lower than the Senior Consumer Price Index for the second adjustment quarter, (a) no supplement adjustment shall be made pursuant to subsection (2) in respect of that payment quarter; and (b) no supplement adjustment shall be made pursuant to that subsection in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Senior Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Senior Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph shall be deemed to be the second adjustment quarter that relates to that subsequent payment quarter. 8. (1) Paragraph 22(4.2)(b) of the Act is replaced by the following: (b) the ratio that the Senior Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Senior Consumer Price Index for the second adjustment quarter that relates to that payment quarter. (2) Subsection 22(4.4) of the Act is replaced by the following: Reduction in Senior Consumer Price Index (4.4) If, in relation to any payment quarter, the Senior Consumer Price Index for the first adjustment quarter is lower than the Senior Consumer Price Index for the second adjustment quarter, (a) no adjustment of the supplement equivalent for the survivor is to be made under subsection (4.2) in respect of that payment quarter; and (b) no adjustment of the supplement equivalent for the survivor is to be made under that subsection in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Senior Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Senior Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph is deemed to be the second adjustment quarter that relates to that subsequent payment quarter. 9. Section 27 of the Act and the heading before it are replaced by the following: Adjustment in Senior Consumer Price Index Where basis of Senior Consumer Price Index changed 27. Where at any time the Senior Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis or a new content basis, a corresponding adjustment shall be made in the Senior Consumer Price Index with respect to any adjustment quarter that is used for the purpose of calculating the amount of any benefit that may be paid under this Act. 10. Paragraph 34(b) of the Act is replaced by the following: (b) prescribing the manner in which the average of the Senior Consumer Price Index for any period of months shall be determined and the manner in which any such average that is determined to be a fraction of a whole number shall be expressed; R.S., c. W-3 War Veterans Allowance Act 11. Subsection 22(1) of the War Veterans Allowance Act is replaced by the following: Increases 22. (1) The income factors specified in column II of the schedule, except the income factor specified for orphans and children, shall be increased simultaneously with and by the same amount as any increase in the amount of each of the Old Age Security pension and the Guaranteed Income Supplement provided from time to time by amendments to the Old Age Security Act, other than regular quarterly adjustments made under that Act in relation to the Senior Consumer Price Index. COMING INTO FORCE Coming into force 12. Sections 3 to 11 of this Act come into force one year after it receives royal assent. Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada