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

Election in Respect of Surviving Spouse Benefits

59 For the purposes of sections 60 to 79,

election

election means an election under section 13.1 of the Act; (choix)

level of reduction

level of reduction means, in respect of an immediate annuity, an annual allowance or a deferred annuity, one of the three amounts determined pursuant to section 68, where levels one, two and three correspond to a reduction that provides a surviving spouse with an immediate annual allowance that is equal to 30, 40 or 50 per cent, respectively, of an annuity referred to in clause 68(b)(ii)(A), if paragraph 68(b) were read without reference to supplementary benefits payable under Part III of the Act; (niveau de réduction)

spouse

spouse means a spouse referred to in section 13.1 of the Act. (conjoint)

60 For the purposes of section 13.1 of the Act, a contributor may make an election to reduce the amount of the contributor’s annuity or annual allowance not later than one year after the latest of

• (a) the day on which this section comes into force,

• (b) the day on which the contributor and the spouse are married, and

• (c) the day on which the contributor’s annuity or annual allowance becomes payable.

• 61 (1) Notwithstanding section 60, a contributor may make an election after the expiration of the period provided for in that section where the contributor has received in writing, from a person employed in the public service whose ordinary duties included the giving of advice respecting the election,

  • (a) erroneous or misleading information regarding the period during which the contributor could make an election; or

  • (b) materially erroneous or misleading information regarding the amount of the reduction of the contributor’s annuity or annual allowance or the amount of the immediate annual allowance to which the spouse would be entitled.

• (2) An election may be made under subsection (1) not later than three months after the day on which a written notice containing the correct information is sent to the contributor.

62 An election shall be made in writing and shall

• (a) indicate the level of reduction in respect of the contributor’s annuity or annual allowance;

• (b) indicate the date of birth of the contributor’s spouse and the date of the spouse’s marriage to the contributor; and

• (c) be signed and dated by the contributor and signed by a witness other than the contributor’s spouse.

• 63 (1) An election shall be sent to the Minister, or to a person designated by the Minister, within the period referred to in section 60 or subsection 61(2), as the case may be.

• (2) An election is made on the day on which the election is sent in accordance with subsection (1).

64 The contributor, or a person acting on behalf of the contributor, shall, within one year after the day on which an election is made, send to the Minister or to a person designated by the Minister

• (a) a document that is evidence of the date of birth of the spouse;

• (b) a document that is evidence of the marriage of the contributor and the spouse; and

• (c) where the name of the spouse as indicated on a document referred to in paragraph (a) is not the same as the name of the spouse as indicated on a document referred to in paragraph (b), any other document that confirms that the evidence of the birth and the marriage relates to the spouse, or a statutory declaration by which the spouse declares that the documents are in respect of the spouse.

• 65 (1) Notwithstanding sections 48 and 49, for the purposes of section 13.1 of the Act, proof of age of the contributor’s spouse is established, subject to subsections (2) and (3), by a birth certificate issued by a civil authority.

• (2) Where a birth certificate referred to in subsection (1) cannot be obtained, proof of age of the spouse is established

  • (a) by a statutory declaration of the spouse in which the spouse attests to the spouse’s date of birth and explains the reasons why the birth certificate cannot be obtained; and

  • (b) by a document that was created

    • (i) within five years after the date of birth of the spouse and that indicates the name of the spouse and the date of birth or age of the spouse, or

    • (ii) at least 20 years before the day on which the election is made and that indicates the date of birth of the spouse, which document is accompanied by a statutory declaration by which a person, other than the contributor or the spouse, attests that the date stated in the document is the correct date of birth of the spouse.

• (3) Where a document or statutory declaration referred to in paragraph (2)(b) is to be submitted but cannot be obtained, the statutory declaration referred to in paragraph (2)(a) shall set out the reasons why the document or statutory declaration cannot be obtained.

• 66 (1) Subject to subsection (2), proof of the marriage between the contributor and the spouse is established by a marriage certificate issued by a civil authority.

• (2) Where a marriage certificate referred to in subsection (1) cannot be obtained, proof of the marriage between the contributor and the spouse is established by

  • (a) a statutory declaration by which the contributor or the spouse attests to the date of the marriage and explains the reasons why the marriage certificate cannot be obtained; and

  • (b) a document that is similar to a marriage certificate and is issued in relation to the marriage ceremony, or a statutory declaration by a person who attended the marriage ceremony, other than the contributor or the spouse, attesting to the person’s knowledge of the marriage.

Non-compliance with Requirements to Submit Evidence

67 An election is considered not to have been made where any document or statutory declaration that is required by any of sections 64 to 66 is not submitted within one year after the day on which the election is made.

Calculation of the Reduction

• 68 (1) The amount of the reduction of the monthly instalment of the immediate annuity, annual allowance or deferred annuity of a contributor who makes an election is equal to the amount determined as follows:

  • (a) calculate the actuarial present value of the immediate annuity, annual allowance or deferred annuity to which the contributor is entitled under Part I of the Act immediately before the election, and the supplementary benefits payable in respect thereof under Part III of the Act taking into account

    • (i) any amount that is or is to be deducted pursuant to subsection 11(2) of the Act, and

    • (ii) the minimum death benefit payable in accordance with section 27 of the Act;

  • (b) convert the amount determined in accordance with paragraph (a) into the following annuities, each of which has the same actuarial present value, namely,

    • (i) an immediate single life annuity that is payable to the contributor by monthly instalments beginning on the first day of the month following the month in which the election is made, or, in the case of a contributor who is entitled to a deferred annuity that is not payable at the time the contributor makes the election, from the first day of the month in which the contributor reaches the age of 60 years, and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act, and

    • (ii) a joint and survivor pension benefit that consists of

      • (A) an immediate annuity that is payable, during the life of the contributor, by monthly instalments beginning on the first day of the month after the month in which the election is made, or, in the case of a contributor who is entitled to a deferred annuity that is not payable at the time the contributor makes the election, beginning on the first day of the month after the month in which the contributor reaches the age of 60 years, and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act, and

      • (B) an annuity that is payable during the life of the surviving spouse, by monthly instalments beginning on the first day of the month after the month in which the contributor died and that is equal to 30, 40 or 50 per cent, in accordance with the election made by the contributor, of the annuity determined in accordance with clause (A), and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act; and

  • (c) subject to subsection (2), subtract the first monthly instalment of the annuity referred to in clause (b)(ii)(A) from the first monthly instalment of the annuity referred to in subparagraph (b)(i), and adjust the amount obtained to take into account

    • (i) that the reduction is effective during the lesser of

      • (A) the period of the life of the contributor,

      • (B) the period of the life of the spouse, and

      • (C) the duration of the marriage,

    • (ii) that the reduction becomes effective in the month referred to in subsection 76(1), (2), (4) or (5), as the case may be, and

    • (iii) that the increase in the reduction under section 69 will apply to the reduction in each year referred to in that section.

• (2) For the purposes of paragraph (1)(c), in determining the reduction for a contributor in respect of whom a death benefit pursuant to section 27 of the Act would be payable if the contributor were to die on the day on which the election is made, the actuarial present value that is converted in accordance with subparagraph (1)(b)(i) shall not take into account the amount of the death benefit payable in respect of that contributor.

Indexation

• 69 (1) Subject to subsection (2), the amount of the reduction determined in accordance with section 68 is increased on January 1 of each year after the year in which the reduction is first in effect, by the amount that would be payable as a supplementary benefit under Part III of the Act if the amount of the reduction determined under section 68 were an immediate annuity that became payable under Part I of the Act on January 1 of the year in which the election was made.

• (2) Where the election is made in the year in which the contributor retires, the increase in the amount of the reduction pursuant to subsection (1) is determined in respect of the first year during which the increase is in effect from the first day of the month in which the contributor most recently ceased to be employed in the public service.

Adjustments

• 70 (1) Where a contributor entitled to a deferred annuity who has made an election becomes entitled to and receives an annual allowance, the amount of the reduction determined in accordance with section 68 shall be revised to take into account the new period during which the reduction is to be made.

• (2) Where a contributor entitled to a deferred annuity or annual allowance who has made an election becomes entitled to and receives an immediate annuity, the amount of the reduction determined in accordance with section 68 shall be revised to take into account the new period during which the reduction is to be made.

71 Where a contributor who receives an immediate annuity by reason of being disabled ceases to be entitled to that annuity and becomes entitled to a deferred annuity, the amount of the reduction determined in accordance with section 68 shall be revised to take into account the new period during which the reduction is to be made, in accordance with subsection 76(2).

Actuarial Assumptions

• 72 (1) For the purposes of sections 68 to 71, the following assumptions are to be used when determining actuarial present values:

  • (a) the rate of mortality for any contributor is the average of the rates of mortality for contributors who receive benefits in relation to a disability and contributors who receive benefits not in relation to a disability, of the same age group as the contributor, as set out in the actuarial valuation report laid before Parliament in accordance with section 45 of the Act, taking into account the mortality projection factors set out in the report, which average is weighted in accordance with the benefits paid to contributors in relation to a disability and to contributors other than in relation to a disability; and

  • (b) the rates of mortality of survivors are those set out for spouses in the actuarial valuation report laid before Parliament in accordance with section 45 of the Act, taking into account the mortality projection factors set out in the report.

  • (c) [Repealed, SOR/2016-203, s. 33]

• (2) For the purposes of subsection (1), the actuarial valuation referred to in that subsection is the most recent actuarial valuation report, or, where the most recent actuarial valuation report was tabled less than two months before the day on which the contributor made an election, the previously tabled report.

73 For the purposes of the determinations referred to in sections 68 to 71, the rates of interest 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, shall be the rates

• (a) subject to paragraph (b), in respect of fully indexed pensions; and

• (b) where a contributor is entitled to an annuity or annual allowance pursuant to section 16, 17 or 24.2 of the Act, in respect of unindexed pensions for the period for which no supplementary benefits would be payable under Part III of the Act.

Revision or Revocation of the Election

• 74 (1) A contributor who has made an election may revise the level of reduction where

  • (a) the contributor received, in writing, from a person employed in the public service whose ordinary duties include the giving of advice respecting the election, materially erroneous or misleading information regarding the amount of the reduction of the contributor’s annuity or annual allowance or the amount of the immediate annual allowance to which the spouse would be entitled; or

  • (b) the amount of the annuity or annual allowance that is payable to the contributor is adjusted in accordance with the Pension Benefits Division Act after the day on which the election was made.

• (2) A contributor may revoke an election where

  • (a) the contributor received materially erroneous or misleading information referred to in paragraph (1)(a); or

  • (b) the amount of the annuity or annual allowance that is payable to the contributor is adjusted in accordance with the Pension Benefits Division Act after the day on which the election was made.

• (3) The revision of the level of reduction or the revocation of the election shall be in writing and shall be sent to the Minister or to the person designated by the Minister

  • (a) within three months after the day on which a written notice containing the correct iinformation is sent to the contributor; or

  • (b) within three months after the day on which the annuity or annual allowance is adjusted in accordance with the Pension Benefits Division Act.

• (4) A revision of the level of reduction or a revocation of the election is effective on the day on which it is sent in accordance with subsection (3).