33. (1) For the purposes of subsection 10(4) of the Act, the capitalized value of an annuity or annual allowance and the supplementary benefits payable in respect thereof under Part III of the Act shall be the actuarial present value of such benefits determined as of the date the request is made based on the following actuarial assumptions:
(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 that 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;
(b) the mortality rates in respect of surviving spouses 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 that report; and
(c) 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.
(2) The actuarial valuation report referred to in subsection (1) is the actuarial valuation report most recently laid before Parliament or, where that report was laid before Parliament in the month in which the request is made, or in the preceding month, the report that was laid before Parliament immediately previous to that report.
- SOR/93-450, s. 11(F);
- SOR/97-490, s. 4;
- SOR/2007-29, s. 1.
Adjustment of certain Annuities and Annual Allowances
34. (1) Subject to subsections (2) and (3), the annuity or annual allowance to which a contributor described in subparagraph 13(1)(d)(ii), subsection 13(6) or section 23 of the Act is entitled shall be adjusted by deducting therefrom an amount equal to the product obtained by multiplying
(a) five per cent of the amount of the annual allowance that the contributor was receiving before becoming disabled or re-employed in the Public Service,
(b) the number of years, calculated to the nearest one-tenth, during which the contributor received an annual allowance, other than those years, calculated to the nearest one-tenth, after the day on which he attained the age at which he could otherwise have retired and been entitled to an immediate annuity based on the length of pensionable service on which the annual allowance was calculated.
(2) The amount of the annuity or annual allowance to which a contributor described in subsection 13(6) or section 23 of the Act may become entitled under Part I of the Act shall not be less than the annual allowance that the contributor was receiving before the contributor’s latest re-employment in the Public Service, plus any increase therein to which the contributor would be entitled in respect of the period of pensionable service to the contributor’s credit as a result of the contributor being so re-employed.
(3) The total amount to be deducted pursuant to subsection (1) shall not exceed the total amount that was received as an annual allowance by the contributor before the contributor became disabled or re-employed in the Public Service.
- SOR/81-866, s. 1;
- SOR/93-450, s. 11(F);
- SOR/2001-160, s. 1.
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