Pension and Allowance Adjustment Regulations

The Pension and Allowance Adjustment Regulations were made under subsections 75(1) and (3) of the Pension Act, with the approval of the Governor General in Council. These regulations revoked the Annual Adjustment of Pensions and Allowances Order made by Order in Council P.C. 1974-440, dated February 26, 1974, and established new regulations to be effective January 1, 1992.

The regulations provide for annual adjustments to pensions and allowances under the Pension Act. The basic pension shall be adjusted annually in two ways: (a) by rounding the amount to the nearest cent according to specific rules; and (b) by expressing the quotient obtained from a ratio as a decimal fraction following specific rules.

The percentage referred to in subsection 75(3) of the Pension Act is also expressed as a decimal fraction, converted to a percentage. The regulations are designed to provide clear guidelines for adjusting pensions and allowances under the Pension Act, ensuring consistency and accuracy in these adjustments.