Human Resources Legislative Update
Regulation Exempts Remuneration From CPP Contributions
Date: December 20, 2013
On December 18, 2013, the federal government published a regulation amending the Canada Pension Plan Regulations to add a new type of exempted employment in respect of which contributions are not required under Canada Pension Plan (“CPP”) legislation, in addition to the exemption for employment as a judge appointed by the Government of Canada. The new exemption applies to “employment by appointment of Her Majesty in right of Ontario, or of an agent of Her Majesty in right of Ontario, as a member of an agency, board, commission, committee or other incorporated or unincorporated body, who is paid fees or other remuneration on a per diem basis, or a retainer or honorarium, and who is not in the full-time employment of Her Majesty in right of Ontario or of an agent of Her Majesty in right of Ontario.”
Regulations Amending the Canada Pension Plan Regulations follow recent case law that found CPP contributions to be generally required on fees and other compensatory amounts paid to board members, council members and office-holders. The Regulations respond to a government of Ontario request to exclude as remuneration for CPP purposes, remuneration received by certain Crown appointees or employees of Crown agencies who are not in the full-time employment of Her Majesty. These regulations are now in force.
Background information on this jurisprudence is available in our article, “Federal Court of Appeal Interpretation Stands: Remuneration of Office-Holders Pensionable for CPP Purposes.”