Regulations Amending the Canada Pension Plan Regulations: SOR/2024-265

Canada Gazette, Part II, Volume 159, Number 1

Registration
SOR/2024-265 December 16, 2024

CANADA PENSION PLAN

P.C. 2024-1320 December 16, 2024

Her Excellency the Governor General in Council, on the recommendation of the Minister of State (Seniors), makes the annexed Regulations Amending the Canada Pension Plan Regulations under paragraphs 89(1)(a) and (b) of the Canada Pension Plan footnote a.

Regulations Amending the Canada Pension Plan Regulations

Amendments

1 The long title of the Canada Pension Plan Regulations footnote 1 is replaced by the following:

Canada Pension Plan Regulations

2 Section 1 of the Regulations and the heading before it are repealed.

3 (1) Subparagraph 52(i)(v) of the Regulations is repealed.

(2) Paragraph 52(j) of the Regulations is replaced by the following:

4 The heading before section 66 and sections 66 and 67 of the Regulations are replaced by the following:

Attendance at a School or University

66 (1) For the purposes of paragraph (b) of the definition dependent child in subsection 42(1) of the Act,

(2) A child referred to in paragraph (1)(a) or (b) who is absent from the educational institution during any normal period of scholastic vacation is considered to be in full-time or part-time attendance, as the case may be, at the educational institution during that period.

(3) A child referred to in paragraph (1)(a) or (b) who is absent from the educational institution because of illness is, during the period of that absence, considered to be in full-time attendance or part-time attendance, as the case may be, at the educational institution if

(4) A child referred to in paragraph (3)(b) is considered to be in full-time attendance or part-time attendance, as the case may be, at the educational institution until the end of the normal period of scholastic vacation that follows the academic year in respect of which the child was determined by the Minister to be unable to resume attendance.

(5) A child referred to in paragraph (1)(a) or (b) who is absent from the educational institution because of illness and who, during this absence, dies or ceases to be a dependent child or disabled contributor’s child is considered to have been in full-time or part-time attendance, as the case may be, at the educational institution until the end of the month in which they die or in which they cease to be a dependent child or disabled contributor’s child.

67 An applicant or beneficiary who claims that a dependent child of 18 or more years of age is or was for a period in full-time or part-time attendance at a school or university shall file with the Minister an attestation to that effect, signed by the child, and any supporting documentation.

5 (1) Paragraph 72(2)(f) of the Regulations is replaced by the following:

(2) Subparagraph 72(2)(g)(ii) of the Regulations is replaced by the following:

Coming into Force

6 These Regulations come into force on the later of

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

During the 2022–2024 triennial review of the Canada Pension Plan (CPP), Canada’s federal and provincial ministers of finance agreed in principle to make a series of changes including the creation of a new children’s benefit for part-time attendance at a school or university. While legislative amendments were made to create the benefit, regulatory changes to the Canada Pension Plan Regulations (CPP Regulations) are needed to implement it.

Background

The CPP is a social insurance program funded by the contributions of employees, employers, and self-employed persons, and by the revenue earned on CPP investments. It covers virtually all employed and self-employed persons in Canada, excluding Quebec, which operates its own comprehensive plan, the Quebec Pension Plan (QPP).

The intent of the CPP is to provide contributors and their families with minimum basic income replacement upon the retirement, disability, or death of a wage earner. The amount of benefits payable is generally based on wage earners’ contributions to the CPP and the length of their contributory periods. While the CPP is primarily a retirement plan, it also provides supplementary disability and survivor benefits which reflect the insurance nature of the Plan and are not a direct return on contributions. Among these benefits, are two types of children’s benefits, which provide a monthly, flat-rate amount to help support the dependent children of contributors who are unable to work due to disability or in the event of death. The two types of children’s benefits are as follows:

The purpose of the CPP children’s benefits is to provide financial assistance for dependent children under the age of 18 that would otherwise be normally provided by the disabled or deceased contributor. For children aged 18 to 24 (inclusive), the purpose is related to defraying some of the cost of education.

For children under the age of 18, the benefits are paid on behalf of the child to the person or agency having decision-making responsibility for the child; the presumption is that the disabled contributor or the survivor has decision-making responsibility, but that presumption is rebutted where the disabled contributor or the survivor has less than 20% of the parenting time. For dependent children aged 18 to 24, the benefits are paid directly to the child, but the child must attend an educational institution (such as, but not limited to, high school, college, or university) on a full-time basis to be eligible. In 2024, the rate for full-time students is a flat-rate monthly amount of $294.12.

Current CPP regulatory requirements

The CPP Regulations set out the information and evidence required in support of an application for CPP children’s benefits. They also provide a definition of “full-time attendance at a school or university” in relation to the CPP’s definition of a “dependent child.” The regulations include “normal periods of scholastic vacation” in the definition so that dependent children are eligible to receive children’s benefits during school vacations as long as they were in school full-time prior to the break. Where a dependent child is absent from school or university because of illness, they can still be considered a full-time student, should satisfactory evidence be provided, and the following requirements be met:

The CPP Regulations also require dependent children aged 18 to 24 to provide evidence of full-time attendance at a school or university to support eligibility for the disabled contributor’s child’s benefit or orphan’s benefit. The child must file with the Minister a declaration signed by a responsible officer of their educational institution, certifying their full-time enrollment, and a declaration of such attendance signed by the child. Similarly, the same evidence is required in support of a request to reinstate the disabled contributor’s child’s benefit if the dependent child is aged 18 to 24 and in full-time attendance at a school or university. This requirement dates from an era when students did not have full electronic access to their post-secondary records and registration. Students were required to visit their registrar’s office in person to obtain the school official’s signature and were often charged administrative fees. Although most schools and universities can now provide students with proof of their full-time attendance through online portals, the CPP Regulations still require students to obtain the school official’s signature to certify their full-time enrollment.

However, a proposal to amend this regulatory requirement was prepublished in the Canada Gazette, Part I on October 5, 2024, for a 30-day consultation period. This would amend section 67 of the CPP Regulations to remove the requirement to have a declaration of full-time attendance at a school or university signed by a school official, and instead allow students to provide an attestation confirming their full-time attendance at school or university, provided it was accompanied by documentation in support of the attestation, such as proof of full-time enrollment from their school or university account. As stakeholders were supportive of the proposed change during prepublication, this element was included as part of the current package to ensure that evidentiary requirements for both full-time and part-time students were aligned when the part-time benefit is established.

Defining full-time attendance

While the CPP Regulations currently define full-time attendance at a school or university, the regulatory definition does not provide clear parameters of what constitutes full-time attendance, such as the number of courses, credits, or hours of study, since educational institutions each have their own definition of full-time attendance status, which is based on directives from provincial governments. Requirements differ from province to province, from one educational institution to another, and from one level of study to another. As such, Service Canada interprets this definition through operational policy, which provides that a dependent child is a full-time student if they attend an acceptable educational institution and if they meet the institution’s attendance requirements. Under the policy, an acceptable educational institution is a provincially or territorially recognized educational institution, or an institution recognized as being affiliated with its course of study; it provides the student with a diploma or certificate upon completion of the course of study; it provides training which will directly prepare the student for further study at a recognized educational institution; and it can demonstrate that the student must attend or participate in courses (e.g. submit papers, make presentations, write tests, and pass examinations) that would indicate full-time study. Furthermore, the policy provides that a dependent child is considered to be in full-time attendance if they are enrolled in courses that make up at least 60% of a full course load as recognized by their educational institution.

Since operational policy is not legislated, the Social Security Tribunal (SST) has interpreted the regulatory definition to include students who have less than full-time attendance and to provide CPP children’s benefits to these individuals, creating inconsistencies in how the benefit is allocated. In this regard, the SST has, on several occasions, commented in their decisions that the definition of full-time attendance is open to interpretation and therefore allows the Tribunal to assess each case on its own merits without confining entitlement to a one-size-fits-all scenario.

Aside from the CPP, different federal definitions of school attendance status exist. For example, to manage study permits for international students, Immigration, Refugees and Citizenship Canada relies on the notion of part-time and full-time status as defined by educational institutions. To be issued a study permit, an international student must be deemed to be registered in a recognized educational institution as pursuing education full-time or part-time. To be able to work, the student must, however, have full-time status. The Income Tax Act also includes definitions of school attendance status that rely on the determination by the educational institution when it comes to the computation of taxes or the administration of Lifelong Learning Plans. As well, the Canada Student Financial Assistance Regulations defines a full-time student as a person who, during a confirmed period within a period of studies, is enrolled in courses that constitute at least 60 per cent of a course load recognized by the designated educational institution as constituting a full course load. It also defines a part-time student as a person who, during a confirmed period within a period of studies, is enrolled in courses that constitute at least 20 per cent but less than 60 per cent of a course load recognized by the designated educational institution as constituting a full course load.

The operational policy which defines full-time attendance borrows from the definition of a full-time student set out in the Canada Student Financial Assistance Regulations, at least in cases where the child is attending a post-secondary educational institution. While both the Canada Student Financial Assistance Regulations and the CPP share the similar objective of providing financial assistance to students, fundamental differences exist between the two. The Canada Student Financial Assistance Regulations is limited to post-secondary education, whereas CPP children’s benefits are offered to students regardless of their level of studies (i.e. adult high school). As well, since the Canada Student Financial Assistance Regulations oversee the repayment of student loans, some of the eligibility criteria differ from those of the CPP children’s benefits. For these reasons, the operational policy only borrows certain aspects from the definition of full-time student under the Canada Student Financial Assistance Regulations.

The 2022–2024 CPP triennial review

As joint stewards of the CPP, the federal and provincial ministers of finance review the CPP every three years to ensure it continues to respond to the needs of retirees, workers, and employers, and make recommendations as to whether benefits and/or contribution rates should be changed. This process is referred to as the CPP triennial review. The ministers of finance base their recommendations on a number of factors, including the perspectives of their constituents, the financial sustainability of the plan, as well as the results of an examination of the CPP by the Chief Actuary.

Where changes are proposed to the CPP legislation which create new benefits or change the level of benefits or the rate of contributions, the agreement of at least two thirds of the provinces, representing at least two thirds of the population, is required. The changes come into force only after a notice period, unless all the provinces waive this requirement, and only after provinces have provided formal consent to the changes by way of Orders in Council.

At their December 15, 2023, meeting, which concluded the 2022–2024 triennial review, federal and provincial ministers of finance agreed to amendments to the CPP, which were announced in Budget 2024. Legislative changes to enact these reforms were included in the Budget Implementation Act, 2024, No. 1, which received royal assent on June 20, 2024.

CPP legislative amendments

Among the CPP amendments included in the Budget Implementation Act, 2024, No. 1, is the creation of a new children’s benefit for part-time attendance at a school or university, which will come into force on a day to be fixed by order of the Governor in Council. The legislative amendment extends the current definition of a dependent child to include a dependent child of a contributor that is in part-time attendance at a school or university “as defined by regulation” and provides that dependent children who are attending school or university on a part-time basis will be eligible to receive CPP children’s benefits at 50% of the rate of full-time students.

In addition, the Budget Implementation Act, 2024, No. 1, amended the language used in the CPP by replacing the terms “custody and control” and “living apart” with “decision-making responsibility” and “parenting time,” respectively. The intent of these amendments was to align with changes made in 2019 to the Divorce Act, which replaced the term “custody” with “decision-making responsibility” and added the term “parenting time.” These amendments to the CPP came into force upon royal assent.

Previously under the CPP, when dependent children were under the age of 18, children’s benefits were paid on behalf of the child to the person or agency having “custody and control” of the child. The disabled contributor or the survivor was presumed to have custody and control unless they were “living apart” from the child. As a result of aligning the terminology used in the CPP with that of the Divorce Act, payment is now made to the person or agency who has “decision-making responsibility” for the child, and the disabled contributor or the survivor is now presumed to have decision-making responsibility unless they have less than 20% of the “parenting time” in respect of that child.

Objective

The objectives of the regulations are to ensure that the new CPP children’s benefits for part-time students will be paid to eligible dependent children; to create a distinction between attendance status thereby aligning with the current operational policy on full-time attendance; to reflect recent legislative changes in terminology which support changes made to the Divorce Act, and to repeal obsolete or spent provisions that have no current application.

Description

Attendance at a school or university

The regulations amend the existing definition of “full-time attendance at a school or university,” such that a dependent child will be considered in full-time attendance if they are enrolled in courses that are recognized as full-time study by their educational institution.

The regulations create a new definition of “part-time attendance at a school or university” such that a dependent child will be considered in part-time attendance if they do not meet the definition of full-time attendance, and if they are enrolled in courses that are at least 20% of a full course load as recognized by their educational institution.

As well, the regulations will allow part-time students to continue to receive payment of children’s benefits during normal periods of scholastic vacation and during absences due to illness, in the same manner as the regulations currently provide for full-time students. More specifically, a dependent child who is absent due to illness will still be considered a part-time student if they meet these requirements:

Further to the regulatory proposal published in the Canada Gazette, Part I, on October 5, 2024, the regulations will remove the requirement for a declaration of full-time attendance at a school or university to be signed by a school official, and instead will allow dependent children aged 18 to 24 to provide an attestation confirming their part-time or full-time attendance at school or university, as the case may be, provided it is accompanied by documentation in support of the attestation, such as proof of part-time or full-time enrollment from their school or university account.

Request for reinstatement of disability pension, post-retirement disability benefit or disabled contributor’s child benefit

In cases where a request is made to reinstate the disabled contributor’s child’s benefit, the regulations will require dependent children who are attending school or university on a part-time basis to provide the same evidence as full-time students. That is, both part-time and full-time students will be required to provide an attestation confirming their part-time or full-time attendance, as the cases may be, along with any supporting documentation, such as proof of enrollment from their school or university account.

Individuals who are requesting reinstatement of a disabled contributor’s child’s benefit on behalf of a child under the age of 18 will be required to provide information about their amount of parenting time, instead of whether they are living apart from the child, to align with the changes in the Divorce Act.

Miscellaneous changes

The existing regulations have both a short and long title. The regulations will replace the long title: Regulations Respecting the Administration of the Canada Pension Plan with Canada Pension Plan Regulations and repeal the existing short title to ensure that the regulations will have only one title, in accordance with current practice.

As well, the regulations repeal the requirement for an applicant or beneficiary to provide information about whether a dependent child is living apart from the disabled contributor or the survivor. This information was required for the determination of whom will receive payment of children’s benefits on behalf of a minor child. The Budget Implementation Act, 2024, No. 1, made changes to the way determination of the payee is made. Living with the child is no longer a determining factor. The information now needed is to whether the disabled contributor or the survivor has decision-making responsibility or parenting time in respect of the minor child. The Budget Implementation Act, 2024, No. 1, made the necessary changes to the CPP Regulations to obtain this information. Therefore, the requirement requesting information on whether a disabled contributor or a survivor lives with the child can be repealed.

Regulatory development

Consultation

The CPP is formally reviewed every three years by the federal and provincial ministers of finance to ensure it continues to meet the needs of retirees, workers, and employers and to make recommendations as to whether benefits or contribution rates or both should be changed, in light of the long-term sustainability and affordability of the Plan. This process is a comprehensive, ongoing review of the CPP by both the federal and provincial governments, thereby ensuring that the viewpoints and inputs of all the provinces, representing their constituents, are taken into account when considering amendments of substance.

As part of the 2022–2024 triennial review, the creation of the new children’s benefit for part-time attendance at a school or university was extensively discussed with provincial partners. When legislated, consultation took place as the proposal went through the parliamentary process, which included committee hearings, whereby private citizens, experts, representatives of organizations, public servants, and ministers were invited to appear to elicit information regarding the introduction of this new benefit for part-time students. As well, this legislative amendment was in the public domain when it was announced in Budget 2024 and enacted through the Budget Implementation Act, 2024, No. 1.

While there has been no specific external consultation on these regulations, they clarify the application of the legislative amendment, which introduced the new benefit for part-time students. Consultation did not take place regarding the definitions of part-time and full-time attendance as they are consistent with other legislation and programs that define school attendance status, and therefore are not expected to be contentious among stakeholders. As well, the amended definition of full-time attendance is consistent with the current operational policy and does not represent a departure from the status quo, other than formalizing the policy’s definition. In addition, the amendment which replaces a signed declaration of school attendance with an attestation signed by the child confirming their attendance stems from a regulatory proposal that was prepublished in the Canada Gazette, Part I, on October 5, 2024, for a 30-day consultation. Stakeholders were supportive of that proposal and, moreover, this measure is relieving in nature.

As well, the legislative amendment which aligned the language used in the CPP with the Divorce Act has been in force since June 20, 2024, and therefore the change in terminology made to be consistent with the legislation is not anticipated to attract concerns from stakeholders.

For the reasons outlined above, an exemption from prepublication in the Canada Gazette, Part I, was granted.

Modern treaty obligations and Indigenous engagement and consultation

As required by the Cabinet Directive on Modern Treaty Implementation, an assessment of modern treaty implications was conducted on this initiative. As a result, it was found that modern treaty/self-government obligations were not triggered by this initiative.

Instrument choice

The creation of the new children’s benefit for dependent children aged 18 to 24 that are in part-time attendance at a school or university was enacted through the Budget Implementation Act, 2024, No. 1, and will come into force on a day to be fixed by order of the Governor in Council; changes to support the implementation of this new benefit can only be done through regulatory amendments since the amended legislation indicates the meaning of “part-time attendance at a school or university” is defined by regulation. Regulatory amendments were also required to amend the existing definition of “full-time attendance at a school or university,” since the definition is currently prescribed by regulation, and to amend the requirements for the information and evidence required in support of an application for CPP children’s benefits. As a result, no other options for instrument choice were considered as part of the implementation and regulatory design phases of this initiative.

Regulatory analysis

Benefits and costs

A Cost-Benefit Analysis of this regulatory proposal has been prepared and is available by contacting the Seniors Pensions and Policy Secretariat’s corporate generic inbox at EDSC.SRDS.SPAP.CORP-CORP.SPPS.ISSD.ESDC@hrsdc-rhdcc.gc.ca. Organizations such as the Office of the Chief Actuary (OCA) and Service Canada were consulted and provided inputs to the content of the analysis. Estimates are based on costing assumptions prepared by the OCA for federal and provincial ministers of finance in support of the 2022 to 2024 CPP triennial review. Demographic and economic assumptions relied extensively on results prepared for the Actuarial Report (31st) on the Canada Pension Plan to derive forecasting estimates. All impacts are assumed to take effect as of January 2025.

Baseline scenario

The status quo arrangement is defined as the baseline scenario for this analysis and, as such part-time students are not eligible for the children’s benefits. The CPP children’s benefits offer a flat monthly rate benefit amount to help support the dependent children of CPP contributors who are unable to work due to death or disability. There are two types of children’s benefits:

For dependent children aged 18 to 24 (inclusive), the child must be in full-time attendance at a school or university to be eligible. The CPP Regulations provide a definition of what constitutes full-time attendance and prescribes the information and evidence that is required in support of an application for children’s benefits. Students are required to submit a certified declaration of full-time attendance, as defined in the CPP Regulations, signed by both the student and school official.

Regulatory scenario

Under the proposed regulatory scenario, the new benefit for part-time students is included in the CPP legislation and regulations, allowing children of disabled or deceased contributors aged 18–24 (inclusive) who attend a recognized educational institution (such as, but not limited to, high school, college or university) on a part-time basis to receive 50 per cent of the children’s benefits amount provided to full-time students, as per the status quo provisions. The evidence requirement to demonstrate attendance has been changed so that students can supply proof of enrollment without needing a signature from a school official.

Results of the cost-benefit analysis (CBA)

The cost-benefit analysis compares the baseline scenario with the regulatory scenario to establish incremental costs and benefits.

The total estimated present value (PV) costs of the regulatory scenario over eleven years are $76.64 million. These costs include:

Monetized costs

Key assumptions for deriving cost estimates:

Program costs (CPP payment disbursement to students from CPP fund)

The PV costs to disburse benefit payments to part-time students from the CPP funds is estimated at $70.66 million over eleven years. These program costs were estimated by the OCA. The OCA estimated that the number of beneficiaries eligible for the new children’s benefits for part-time attendance will be 6,712 in 2025, slowly increasing to 7,457 in 2030 and 8,163 in 2035. The OCA based this number on information from Statistics Canada stating that approximately 4% of children between the ages of 18 and 24 (inclusive) are part-time students. On a monetized basis, the OCA estimated CPP benefit payments to part-time students would be expected to increase total incremental CPP benefit payments by $8.0 million in 2025, $9.0 million in 2026, 2027 and 2028, and $10.0 million in 2029 to 2035. All estimates are in 2024 dollars and rounded to the nearest million.

The costing provided by the OCA are based on the same estimate assumptions as those used in the 31st Actuarial Report on the CPP. Some assumptions used by the OCA to establish its costing are as follows:

Implementation and administrative costs (administrative cost reimbursement to ESDC)

Implementation and administrative costs are estimated at $2.94 million in PV costs over eleven years in costs to the CPP Account to reimburse federal organizations, such as the Department of Employment and Social Development Canada for roles in benefit administration and processing-related costs. Given the low number of estimated new beneficiaries as a proportion of all CPP beneficiaries served (6,712 new beneficiaries out of more than 6.8 million CPP beneficiaries), the additional implementation and administrative costs resulting from the new children’s benefits for part-time attendance were estimated to be between $0.33 million and $0.49 million per year for the purposes of this CBA.

Lost returns from investments in the fund

The PV costs in lost investment returns for the CPP Accounts from reduced contribution surpluses due to new benefit payment obligations to part-time students is estimated at $3.04 million over eleven years.

The lost returns were estimated based on internal calculations using the OCA’s projections. An average annual real rate of return on investment of 4.08% was used. This rate was derived from OCA’s estimates published in the 31st Actuarial Report on the CPP, which are as follows: 3.83% in 2025, 4.08% in 2026, 4.11% in 2027, 4.05% in 2028, 4.08% in 2029, 4.10% in 2030 to 2034, and 4.21% 2035.

Qualitative costs
Monetized benefits

Benefit payments from the CPP fund to eligible part-time students

It is estimated that $70.66 million in benefit payments will be transferred to eligible part-time students who are children of disabled or deceased CPP contributors.

In 2024, the flat-rate monthly amount for full-time students receiving CPP children’s benefits is $294.12. The amount of a flat-rate children’s benefit for part-time attendance valued at 50% of this amount would have been $147.06, had this benefit existed in 2024. Total annual amounts of additional benefits payable to part-time students are estimated based on the number of new net beneficiaries in a given year multiplied by the level of the flat-rate benefit for children of disabled or deceased CPP contributors payable.

Qualitative benefits
Results of cost-benefit analysis

The proposed regulatory scenario would see total discounted PV costs of $76.64 million over the estimated 2025 to 2035 time horizon, and $70.66 million in estimated PV benefits. The impacts of this change would be a net cost of $5.98 million (PV) over the scenario’s eleven-year time horizon or net annualized cost of $0.80 million. It is expected that qualitative benefits such as alleviating the “all-or-nothing approach” and the nil impact on the contribution rate are expected to offset these cost impacts.

Cost-benefit statement
Total benefits ($millions)
Impacted stakeholder Description of benefit First year Year 5 Final year Total (PV) Annualized value
CPP Children’s Benefits Recipients table 1 note * Payments received by part time students who qualify $8.00 $10.00 $10.00 $70.66 $9.42
All stakeholders Total benefits $8.00 $10.00 $10.00 $70.66 $9.42

Table 1 note(s)

Table 1 note *

All values for CPP disbursements made to students are rounded to the nearest $1.0 million dollars for CBA purposes.

Return to table 1 note * referrer
Total costs ($millions)
Impacted stakeholder Description of cost Base year Year 5 Final year Total (PV) Annualized value
CPP Contributors CPP payment disbursement to students from CPP fund $8.00 $10.00 $10.00 $70.66 $9.42
Government administration/processing costs of new CPP benefit payments $0.33 $0.41 $0.49 $2.94 $0.39
Lost returns from Investments due to reduced CPP assets in the CPP fund $0.34 $0.42 $0.51 $3.04 $0.41
All stakeholders Total costs $8.67 $10.83 $11.00 $76.64 $10.22
Summary of costs and benefits ($millions)
Impacts Base year Year 5 Final year Total (PV) Annualized value
Total benefits $8.00 $10.00 $10.00 $70.66 $9.42
Total costs $8.67 $10.83 $11.00 $76.64 $10.22
NET IMPACT -$0.67 -$0.83 -$1.00 -$5.98 -$0.80
Qualitative costs
Qualitative benefits

Small business lens

Analysis under the small business lens concluded that the regulations will not impact Canadian small businesses.

One-for-one rule

The one-for-one rule does not apply to the regulatory amendments, as there is no incremental change in administrative burden on business and no regulatory titles are repealed or replaced.

Regulatory cooperation and alignment

The regulations are not related to a work plan or commitment under a formal regulatory cooperation forum. They are consequential to changes made to the CPP, which Canada’s provincial and federal ministers of finance agreed upon during the 2022–2024 triennial review and were enacted through the Budget Implementation Act, 2024, No. 1.

Effects on the environment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

A gender-based analysis was conducted and established that the regulations will positively affect children of deceased or disabled CPP contributors as they will now be entitled to a benefit in cases where they attend school or university on a part-time basis. Given that women have higher enrollment rates in post-secondary education, this new children’s benefit is expected to have a slightly more direct positive impact on women aged 18 to 24. Further, women are expected to have a slightly higher indirect positive impact as they are more often the surviving and/or disabled parent of dependent children who will be eligible to the new children’s benefit.

Implementation, compliance and enforcement, and service standards

Implementation

The regulations will come into force at the same time as the amendments to the CPP, or if they are registered after that day, on the day they are registered, but not before January 1, 2025.

Compliance and enforcement

The Integrity Services Branch (ISB) regularly conducts random audits and compliance reviews on the CPP to assist in identifying risks, provide information on mitigation and prevention strategies, and identify the nature and extent of incorrect payments due to internal or external program compliance errors, abuse and/or fraud. In addition, to ensure appropriate CPP benefit payments are made, the ISB conducts a number of administrative investigations annually. An administrative investigation is an impartial investigative process conducted by the ISB on files referred from Service Canada employees due to identified anomalies and discrepancies in the files, or due to third-party complaints and voluntary applicant disclosures received by Service Canada. Files referred to the ISB for an administrative investigation may result in the imposition of an administrative monetary penalty when it has been discovered that the applicant or beneficiary knowingly made a misrepresentation (i.e. they knowingly provided false or misleading information or knowingly withheld or omitted relevant information). The ISB is responsible for referrals to the Royal Canadian Mounted Police (RCMP) for criminal investigations. The circumstances of each case would determine if charges could be laid by the RCMP or the Department of Justice under the Criminal Code or the Canada Pension Plan. The RCMP would make the decision concerning the laying of charges in all cases referred by the ISB.

Therefore, random audits, compliance reviews, and administrative investigations will continue to be implemented to verify that the risk to the integrity of the CPP remains low and that eligibility criteria are met under the regulations. Program, policy, and procedural material will be updated to ensure uniformity in the administration of the CPP Regulations by all Service Canada staff.

Contact

Neal Leblanc
Director
Canada Pension Plan Policy and Legislation
Seniors and Pensions Policy Secretariat
Income Security and Social Development Branch
Employment and Social Development Canada
Telephone: 819‑635‑6760