SOR/91-620199110

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20196

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PENSION ACTPension and Allowance Adjustment RegulationsRegulations Respecting the Annual Adjustment of Pensions and AllowancesP.C.1991-2098  199110

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His Excellency the Governor General in Council, on the recommendation of the Minister of Veterans Affairs, pursuant to subsections 75(1)* and (3)** of the Pension Act, is pleased hereby to revoke the Annual Adjustment of Pensions and Allowances Order, made by Order in Council P.C. 1974-440 of February 26, 1974***, and to make the annexed Regulations respecting the annual adjustment of pensions and allowances, in substitution therefor, effective January 1, 1992.*S.C. 1990, c. 43, s. 24(1)**S.C. 1990, c. 43, s. 24(2)***Not published in the Canada GazetteShort Title

1These Regulations may be cited as the Pension and Allowance Adjustment Regulations.

Annual Adjustment

2The basic pension shall be adjusted annually, pursuant to subsection 75(1) of the Pension Act, in the following manner:(a)the amount referred to in paragraph 75(1)(a) or (b) of that Act shall be adjusted to the nearest cent in accordance with the following rules, namely,(i)where the amount contains a fractional part of a dollar, the fraction shall be expressed as a decimal fraction of three or more digits after the decimal point,(ii)the third and subsequent digits after the decimal point shall be dropped if the third digit after the decimal point is less than five, and(iii)the second digit after the decimal point shall be increased by one and the third and subsequent digits after the decimal point shall be dropped if the third digit after the decimal point is five or greater than five; and(b)the quotient obtained from the ratio referred to in subparagraph 75(1)(a)(ii) of that Act shall be expressed as a decimal fraction in accordance with the following rules, namely,(i)where the quotient contains a fraction that is less than one, that fraction shall be expressed as a decimal fraction of four or more digits after the decimal point,(ii)the fourth and subsequent digits after the decimal point shall be dropped if the fourth digit after the decimal point is less than five, and(iii)the third digit after the decimal point shall be increased by one and the fourth and subsequent digits after the decimal point shall be dropped if the fourth digit after the decimal point is five or greater than five.SOR/92-601, s. 2(F)

3The percentage referred to in subsection 75(3) of the Pension Act shall be the quotient expressed as a decimal fraction in accordance with paragraph 2(b), converted to a percentage in the following manner:(a)the quotient shall be multiplied by 100; and(b)100 shall be subtracted from the product obtained pursuant to paragraph (a).