Determination of Transfer Value
90. (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.
91. 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.
92. (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.
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