Public Service Superannuation Regulations (C.R.C., c. 1358)

Regulations are current to 2016-05-12 and last amended on 2010-08-03. Previous Versions

 A contributor described in paragraph 84(1)(c) who wishes to exercise an option for a transfer value must do so on or before the later of

  • (a) April 30, 1998, and

  • (b) the date that is one year after the date on which the contributor becomes entitled to a deferred annuity pursuant to section 28 of the Act.

  • SOR/97-222, s. 1.

Form and Manner of Exercise of Option

  •  (1) An option for a transfer value must be

    • (a) exercised in writing;

    • (b) dated and signed by the contributor; and

    • (c) sent to the Minister, or to a person designated by the Minister, within the applicable period referred to in sections 85 to 87.

  • (2) An option for a transfer value is deemed to be exercised on the date on which it is sent in accordance with paragraph (1)(c).

  • SOR/97-222, s. 1.

Void Option

 If a contributor exercises an option for a transfer value under section 13.01 of the Act and is re-employed in the Public Service and is required to make contributions under section 5 of the Act before the transfer value has been paid, the exercise of the option for the transfer value is void.

  • SOR/97-222, s. 1;
  • SOR/2003-13, s. 4.

Determination of Transfer Value

  •  (1) Subject to subsection (2), the transfer value to which a contributor is entitled is a lump sum amount equal to the actuarial present value on valuation day of the accrued pension benefits that would be payable to or in respect of the contributor under the Act had the contributor become entitled to a deferred annuity under section 13 of the Act on ceasing to be employed in the Public Service, together with interest calculated in accordance with section 93.

  • (2) Where the lump sum amount referred to in subsection (1) is less than the amount of a return of contributions that would be payable on valuation day if the contributor were eligible to receive a return of contributions, the transfer value to which the contributor is entitled is a lump sum amount equal to the amount of that return of contributions, together with interest calculated in accordance with section 93.

  • SOR/97-222, s. 1.

 The determination of the actuarial present value of the accrued pension benefits referred to in subsection 90(1) is subject to the following rules:

  • (a) supplementary benefits are to be increased to take into account the period beginning on the later of January 1 of the year in which valuation day occurs and the date on which the contributor ceased to be employed in the Public Service and ending on valuation day; and

  • (b) the possibility that the contributor could receive an annual allowance is to be excluded.

  • SOR/97-222, s. 1.
  •  (1) In determining the actuarial present value of the accrued pension benefits referred to in subsection 90(1), the following actuarial assumptions are to be used:

    • (a) the mortality rates for former contributors and surviving spouses, including mortality projection factors, shall be those used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act;

    • (b) the interest rates shall be the interest rates for fully indexed pensions — adjusted by the interest rates for unindexed pensions to take into account Part III of the Act — determined in accordance with the section “Pension Commuted Values” of the Standards of Practice — Practice-Specific Standards for Pension Plans, published by the Canadian Institute of Actuaries, as amended from time to time;

    • (c) the probability that a contributor will be survived by children shall be based on the rates regarding the assumed number, average age and eligibility status of children at the death of a contributor used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act;

    • (d) the probability that a contributor will become entitled to a benefit by reason of disability shall be based on the disability incidence rates used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act, taking into account the probability set out in that report that, where termination of employment was on account of disability, there would be immediate eligibility for Canada Pension Plan or Quebec Pension Plan disability benefits;

    • (e) the rates of marriage on termination of employment and the rates of divorce after termination of employment shall be those established by the Chief Actuary of the Office of the Superintendent of Financial Institutions in accordance with statistics on marriage and divorce published by Statistics Canada; and

    • (f) the determination of the age difference between spouses on termination of employment shall be established by the Chief Actuary of the Office of the Superintendent of Financial Institutions in accordance with statistics published by Statistics Canada.

  • (2) The actuarial valuation report referred to in paragraphs (1)(a), (c) and (d) is the actuarial valuation report most recently laid before Parliament in accordance with section 45 of the Act before valuation day or, if that report was laid before Parliament in the month in which valuation day occurs or in the preceding month, the report that was laid before Parliament immediately previous to that report.

  • SOR/97-222, s. 1;
  • SOR/2003-13, s. 5;
  • SOR/2007-29, s. 3.
  •  (1) The interest referred to in section 90 shall be calculated for the period beginning on valuation day and ending on the last day of the month preceding the month in which payment of the transfer value is effected, at the rate established in accordance with subsections (2) and (3) converted to an effective annual rate.

  • (2) The rate of interest is the rate that existed in respect of the second quarter preceding valuation day and that is set out in the table entitled “Balanced” on the line “MERCER Median” in the column entitled “3 Months” in the Summary Performance of Canadian Institutional Pooled Funds, published by Mercer Investment Consulting Inc., as amended from time to time.

  • (3) If the rate of interest under subsection (2) is negative, the amount of interest for the purposes of subsection (1) is zero.

  • SOR/97-222, s. 1;
  • SOR/2003-13, s. 6.
  •  (1) For the purposes of determining the deferred annuity referred to in subsection 90(1), a contributor’s pensionable service is that which is to the credit of the contributor on the date of ceasing to be employed in the Public Service.

  • (2) For the purposes of subsection 13.01(3) of the Act and notwithstanding subsection (1), the pensionable service to the credit of a contributor who has elected to pay for a period of pensionable service by means of instalments shall include only the portion of the pensionable service subject to the election that corresponds to the payments that were made or ought to have been made on or before valuation day.

  • SOR/97-222, s. 1.

Reduction

 Where a division of a contributor’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which payment of a transfer value is effected, the lump sum amount referred to in section 90 shall be reduced to take into account the adjustment to the contributor’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

  • SOR/97-222, s. 1.

Prescribed Retirement Savings Plan or Fund

 A retirement savings plan prescribed for the purposes of section 26 of the Pension Benefits Standards Act, 1985 is prescribed as a kind of retirement saving plan or fund for the purposes of paragraph 13.01(2)(b) of the Act.

  • SOR/97-222, s. 1.

Prescribed Immediate and Deferred Life Annuity

 An immediate life annuity and a deferred life annuity as defined in subsection 2(1) of the Pension Benefits Standards Regulations, 1985 are prescribed as a kind of immediate life annuity and a kind of deferred life annuity for the purposes of paragraph 13.01(2)(c) of the Act.

  • SOR/97-222, s. 1.

Adaptation of Subsection 13.01(2) of the Act

 For the purposes of subsection 13.01(2) of the Act, where the transfer value determined in accordance with sections 90 to 95 exceeds the amount which may, in accordance with section 8517 of the Income Tax Regulations, be transferred to a retirement savings plan or fund or to a financial institution for the purchase of an immediate or deferred life annuity, the excess shall be paid to the contributor.

  • SOR/97-222, s. 1.

Payment where Contributor is Deceased

 Where the payment of a transfer value cannot be effected in accordance with subsection 13.01(2) of the Act because the contributor is deceased, the payment shall be made to the estate of the contributor.

  • SOR/97-222, s. 1.

Election for Transfer Value Service

  •  (1) Subject to the provisions of the Income Tax Act and the Income Tax Regulations, a contributor while employed in the Public Service may elect, once only, under clause 6(1)(b)(iii)(M) of the Act, to pay for a period of transfer value service for which he or she had not previously had an opportunity to elect.

  • (2) An election to pay for transfer value service shall be in writing, in the form prescribed by the Minister and dated and signed by the person making the election.

  • (3) An election shall be sent to the Minister, or to a person designated by the Minister, no later than one year after the later of the date of the written notice sent informing the contributor that he or she has become a contributor under Part I of the Act or the day on which this section comes into force.

  • (4) An election is deemed to be made on the day on which it is received by the Minister, or the person designated by the Minister.

  • (5) Subject to subsection (6), a contributor who elects to pay for only a portion of transfer value service may only be credited with the period that is most recent in point of time.

  • (6) If a contributor elects to pay for only a portion of transfer value service that comprises periods of full-time service and part-time service, the portion elected shall consist of full-time service and part-time service in the same proportions as those used in the determination of the transfer value, based on those periods of service that are most recent in point of time.

  • (7) An election may not be revoked, except in the circumstances set out in paragraph 18(1)(a), or amended.

  • (8) Paragraph 8(5)(a) of the Act applies to an election made under subsection (1).

  • SOR/2003-13, s. 7.
 
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