Peca could make an additional $600,000 in bonuses - $50,000 if he plays 40 games, another $50,000 if he suits up for 70 games and an additional $500,000 if Columbus makes the playoffs and Peca plays in at least 65 games.
Peca, 33, had four goals and 11 assists in 35 games with the Toronto Maple Leafs last year before suffering a season-ending leg injury Dec. 22. The unrestricted free agent made US$2.5 million last season.
"We are very pleased to add a player of Michael's ability, character and presence to our hockey club," Columbus general manger Scott Howson said Tuesday in a statement. "We expect that Michael will be a very strong addition to our leadership group."
Peca has 164 goals and 245 assists in 728 career games with Vancouver, Buffalo, the New York Islanders, Edmonton and Toronto.