137.1. From 1 January 1984 and notwithstanding section 137, where the surviving spouse of a contributor first becomes entitled to a surviving spouse’s pension provided for in this Act or to a disability pension under this Act or under a similar plan, having become entitled to the other such pension, the surviving spouse’s pension payable to the surviving spouse thereafter is a basic monthly amount which shall not exceed an amount that, when added to the amount of that spouse’s disability pension, is equal to the sum of the two following amounts:
(a) a flat rate benefit included in the amount of the disability pension;
(b) an amount equal to the lesser of the two following amounts:
i. the sum of the amount of the disability pension reduced by the flat rate benefit provided for in subparagraph a, and 37.5% of the amount of the contributor’s retirement pension, calculated in accordance with section 135 and adjusted, where required, in accordance with the third or fourth paragraph of section 132,
ii. 1/12 of 25% of the average of the Maximum Pensionable Earnings for the year in which the surviving spouse first became entitled to a disability pension or a surviving spouse’s pension, having become entitled to the other such pension, and for each of the two preceding years.
However, in no case may the aggregate of the two pensions contemplated in this section payable to the surviving spouse be less than the amount of the surviving spouse’s pension that would be payable to the surviving spouse if no disability pension were payable to that spouse under this Act or under a similar plan.
1983, c. 12, s. 22; 1985, c. 4, s. 14.