Defence Services Pension Part V Regulations (SOR/55-416)

• 28 (1) The whole of the elected augmenting service of a pensioner shall be subject to deductions in the following manner:

  • (a) in respect of that part of the augmenting service which the pensioner performs subsequent to making the election required by section 26, reservations shall be made from his pay and allowances as provided in section 47 of the Act,

  • (b) in respect of that part of elected augmenting service which the pensioner performed prior to the making of the election required by section 26, the whole of that augmenting service shall be subject to deductions,

    • (i) where it is non-contributory augmenting service, to the same extent and in the manner as if that augmenting service were prior non-contributory service under Part V and the election made to count that augmenting service were made under subsection (1) of section 48 of the Act and regulations relating thereto, and

    • (ii) where it is contributory service and deductions have been made under the Act, the Public Service Superannuation Act, or the Civil Service Superannuation Act, or deferred pay deductions have been made from his pay and allowances, pursuant to pay regulations applicable to his service, and,

      • (A) those deductions have not previously been paid to him by way of gratuity or otherwise, such deductions shall be deemed to be the deductions required by this section in respect of the period of service for which the deductions were made, or

      • (B) those deductions have previously been paid to him by way of gratuity or otherwise, to the same extent and in the manner as if that augmenting service could be counted as service under subsection (3) or (4) of section 56 of the Act and regulations relating thereto.

• (2) The sums required by this section when deducted shall be paid into, or where applicable transferred to the Permanent Services Pension Account.

29 Where a pensioner, contributing for elected augmenting services by way of repayment by instalments any amount required by section 27 or by way of making the deductions required by section 28, ceases to serve on augmenting service before payment of those instalments or deductions have been made in full, he shall be deemed to have contributed in respect of the augmenting service he elected and the remaining instalments or deductions shall be reserved out of his pension.

• 30 (1) Subject to subsection (5), a pensioner who ceases to serve on augmenting service described in paragraph (a) of subsection (1) of section 26, shall be entitled to have his pension computed on the term of service upon which his pension was originally based, together with the augmenting service elected pursuant to that section (the whole period hereinafter in this section being called the “pensionable term”),

  • (a) if he was granted his original pension as a man pursuant to section 49 of the Act for any reason other than inefficiency or misconduct and ceases to serve on augmenting service at his own request, or upon the expiration of the period of augmenting service, or for any of the reasons contained in paragraph (b) or (c) of that section after performing at least twenty-five years service in the forces during the pensionable term;

  • (b) if he was granted his original pension as a man pursuant to section 49 of the Act for any reason other than inefficiency or misconduct and ceases to serve on augmenting service at his own request, after performing at least twenty years but less than twenty-five years of service in the forces during the pensionable term, or if his original pension was granted pursuant to paragraph (e) of that section and ceases to serve by reason of the expiration of the augmenting service, but his pension computed on the pensionable term shall be subject to the reduction provided in paragraph (e) of that section;

  • (c) if he is not entitled to have his pension computed under paragraph (a) and was granted his original pension pursuant to paragraph (b), (c) or (d) of section 49 or section 54 of the Act and ceases to serve on the augmenting service for any of the reasons contained in paragraph (b) or (c) of section 49 of the Act or by reason of the expiration of the period of his augmenting service;

  • (d) if he is not entitled to have his pension computed under paragraph (a) and was granted his original pension pursuant to paragraph (e) of section 49 of the Act and serves in the forces on the augmenting service and ceases to serve therein for any of the reasons contained in paragraph (b) of that section;

  • (e) if he was granted his original pension pursuant to paragraph (e), (f) or (g) of section 49 of the Act and serves in the forces on the augmenting service and ceases to serve therein for the reason contained in paragraph (c) of that section;

  • (f) if he is not entitled to have his pension computed under paragraph (a), was granted his original pension pursuant to paragraph (f) or (g) of section 49 of the Act, serves in the forces on the augmenting service and ceases to serve in the forces by reason of the expiration of the augmenting service or for any of the reasons contained in paragraph (b) of section 49 of the Act, but if he has less than twenty years in the forces during the pensionable term, the pension computed on the pensionable term shall be subject to the reduction applicable to a grant of a pension under the circumstances contained in paragraph (f) or (g) of section 49 of the Act, as applicable;

  • (g) if he is not entitled to have his pension computed under paragraph (a) and was granted his original pension pursuant to paragraph (e), (f) or (g) of section 49 of the Act and serves on the augmenting service in the naval, army or air forces of Canada other than the forces and ceases to serve therein by reason of the expiration of the augmenting service or for any of the reasons contained in paragraph (b) or (c) of that section, but the pension computed on the pensionable term shall be subject to the reduction applicable to a grant of a pension under the Act contained in paragraph (e), (f) or (g) of that section as applicable; or

  • (h) if he was granted his original pension pursuant to paragraph (h) or (i) of section 49 of the Act and ceases to serve on the augmenting service by reason of the expiration of the augmenting service, or for any of the reasons contained in paragraph (b) or (c) of that section, or at his own request if his original pension was granted as a man and has served at least twenty years in the forces during the pensionable term, but the pension computed upon the pensionable term shall be subject to the reduction applicable to the grant of a pension under the Act contained in paragraph (h) or (i) of that section as applicable.

• (2) The pension computed on the pensionable term as provided in subsection (1) shall be one-fiftieth of the average annual amount of the pay and allowances received by the pensioner during the last six years of the pensionable term for each year of the pensionable term but no pension shall be computed on a number of years in excess of thirty-five.

• (3) Where a pensioner dies while performing elected augmenting service or dies while in receipt of a pension computed on a pensionable term, his widow and children will be entitled to an annual pension computed on the pensionable term to the same extent and subject to the same conditions as are applicable to the widow and children of a deceased or former contributor.

• (4) A period of absence from duty shall not break the continuity of augmenting service elected pursuant to subsection (1) of section 26, but such period may only be included as augmenting service to the same extent and subject to the same conditions as is applicable to the service of a contributor under sections 21 and 22, except that a continuous period of absence on leave without pay and allowances in excess of sixty days shall not be included as augmenting service.

• (5) Subject to subsection (2), where the amount of a pension computed in accordance with subsections (1) and (2) is less than the total amount of the original pension increased by one-fiftieth of the average annual pay and allowances received during the augmenting service for each year of the augmenting service, then in lieu of entitlement to a pension computed pursuant to subsections (1) and (2) a pensioner shall be entitled to an annual pension equal to the latter amount.

31 A requisition for payment of a pension computed in accordance with the provisions of sections 26 to 30 inclusive shall be supported by the certificates required by section 58 of the Act.

• 32 (1) Notwithstanding any of the provisions contained in sections 25 to 31 a pensioner shall be deemed not to have elected to count augmenting service where

  • (a) he ceases to serve on a full-time paid basis in the forces or in the naval, army or air forces of Canada other than the forces prior to completion of a period of augmenting service as described in paragraph (a) of subsection (1) of section 26; or

  • (b) he is not entitled to have his pension computed upon the pensionable term pursuant to subsection (1) of section 30.

• (2) Where the provisions of subsection (1) are applicable, all sums deducted from the pay and allowances of a pensioner or paid by him by reason of the provisions of sections 25 to 31 inclusive shall be refunded to him without interest or shall be applied, where applicable, towards the abatement of any deductions owed by the pensioner, where by reason of the provisions of subsection (1) he becomes subject to deductions pursuant to Deferred Pay Regulations or Part V and regulations relating thereto other than sections 25 to 31 inclusive and his entitlement to pension payments shall be restored retroactively to the date of election as if he had never elected.

Succession Duties

• 33 (1) In this section, pension means an annual pension payable under the Act to a widow or child and includes a compassionate allowance payable to a child.

• (2) For the purposes of this section, where, under the Act, a pension is payable to a child, the widow of the person in respect of whom that pension is payable to that child is presumed, prima facie, to be the guardian of that child.

• (3) Where, upon the death of any person in respect of whom any pension becomes payable under Part V of the Act to a successor, application in writing may be made, by or on behalf of the successor, to the Minister for payment out of the Permanent Services Pension Account in the Consolidated Revenue Fund of the whole or any part of the portion of the succession duties payable by that successor which is attributable to that pension, and where the Minister directs, in accordance with the application, that the whole or any part of the portion of the succession duties so payable shall be paid out of the Permanent Services Pension Account in the Consolidated Revenue Fund, the maximum portion of the succession duties that may be so paid is the proportion which

  • (a) the value of the pension payable to the successor

  is of

  • (b) the value of the whole estate,

  calculated for the purposes of determining the succession duties payable in respect thereof.

• (4) Where the Minister makes a direction in accordance with subsection (3), the pension shall be reduced either for a term, requested by the successor in the application made under subsection (3), or during the entire period for which the pension is payable, if the successor fails to make a request in the application under subsection (3) that the pension be reduced for a term, by one-twelfth of an amount determined by dividing the amount of the succession duties to be paid out of the Permanent Services Pension Account in the Consolidated Revenue Fund, by the value of an annuity of one dollar per annum, payable monthly to a person of the age of the successor at the date of payment of the succession duties out of the Permanent Services Pension Account in the Consolidated Revenue Fund, calculated,

  • (a) in the case of a pension payable to the widow of the person in respect of whose death the pension is payable, in accordance with a(f) Ultimate Table with interest at the rate of four per centum per annum, and

  • (b) in the case of a pension payable to a child of the person in respect of whose death the pension is payable, at an interest rate of four per centum per annum and mortality shall not be taken into account.

• (5) Where the pension of a successor is to be or is being reduced under this section for a term and the successor, being the widow of a former contributor, remarries before the end of the term and the pension is suspended, if at any time the pension is resumed it shall be reduced for a term equal to the term or the balance of the term, as the case may be, during which the pension would have been reduced had it not been suspended and such reduction shall be made to the same extent and in the same manner as the pension was reduced immediately prior to the suspension.

Reinstatement of Widow’s Pension

• 34 (1) Where by reason of the remarriage of a widow the payment of her pension under Part V has been discontinued and she again becomes a widow, application in writing may be made by her or on her behalf to the Minister for resumption of that pension.

• (2) Subject to subsection (4), upon receipt of the application referred to in subsection (1), the Minister may direct that payment of the pension to the widow discontinued by reason of her remarriage shall, to the extent that she is otherwise entitled under Part V to receive the same, be resumed.

• (3) Where a direction is made pursuant to subsection (2), payment of the pension to the widow shall resume with effect from the first day of the month following the month in which the application for resumption of the pension is received by the Minister or from such earlier date as the Minister may direct, provided that she is otherwise entitled to receive the pension from that date.

• (4) Where a pension or annual allowance (referred to herein as “the allowance” becomes payable to a widow under the Act, the Public Service Superannuation Act, or the Royal Canadian Mounted Police Act (except Part IV), and a direction is made by the Minister pursuant to subsection (2) in respect of such widow, that part only of the discontinued pension shall be resumed which is the greater of

  • (a) an amount which, when added to the annual amount of the allowance equals the annual amount of the discontinued pension, or

  • (b) an amount determined by a fraction of the annual amount of the discontinued pension

    • (i) the numerator of which is that number of years of service upon which the discontinued pension is based which, when added to number of years of service or pensionable services upon which the allowance is based, does not exceed in the aggregate thirty-five years, and

    • (ii) the denominator of which is the number of years of service upon which the discontinued pension is based.

Administration

Payment of Pensions and Gratuities

35 The Chairman of the Service Pension Board and the Judge Advocate General may issue such instructions and prescribe such forms as they may consider necessary to give effect to section 58 of the Act.

36 For the purposes of computing pensions or gratuities total combined service shall be reckoned as follows:

• (a) each complete calendar month shall count as one month; and

• (b) days served during broken periods of calendar months shall be totalled and each thirty days thereof shall be counted as one month, any remaining days amounting to fifteen days or more shall be counted as one additional month, but a period of less than fifteen days shall not be counted.

37 A pension to the widow or child of a contributor shall be payable from the day following the death of the contributor.

38 A pension or gratuity to the children of a contributor shall be paid, for the exclusive benefit of the children, to the widow of the contributor or to the legal guardian if one has been appointed, or to such other person as may be legally entitled to receive monies in trust for the exclusive benefit of the children.

39 If a contributor marries after the coming into force of Part V and if his age exceeds the age of his wife by twenty years or upwards, the pension to such wife under Part V shall be reduced in the proportion that the value of a life annuity as at an age twenty years less than the age of the contributor at the time of his death is of the value of an equal life annuity as at the then actual age of the wife; for the purposes of this section the values of life annuities shall be computed on the basis of the Canadian Life Table No. 2 (1941), Females, and interest at the rate of four per centum per annum.

• 40 (1) A pension shall be payable in full for the month in which the death of the pensioner occurs.

• (2) Payment of a pension to a widow who remarries shall cease as of the day of such remarriage.

• (3) Payment of a pension to a child shall cease as of the date on which the child attains the age of eighteen years.

Debit Balance

41 For the purposes of section 68 of the Act, a debit balance in the pay account of a former member of the forces shall be recovered from

• (a) a gratuity, or return of contributions, in one lump sum, or

• (b) a pension, by monthly instalments in any amount equal to ten per centum of the net pension but in any such case the pensioner may make payments which will liquidate the debit at a date earlier than that which would have occurred had the recovery been made at the rate of ten per centum per month.

Permanent Services Pension Account

• 42 (1) There shall be credited to the Permanent Services Pension Account

  • (a) all contributions made by the contributor under Part V;

  • (b) interest on the last day of each quarter in every fiscal year, namely, on the 30th day of June, on the 30th day of September, on the 31st day of December and on the 31st day of March, respectively, calculated at the rate of one per centum of the balance to the credit of the account on the last day of the preceding quarter;

  • (c) the contribution made by the Government; and

  • (d) all amounts transferred thereto under sections 9 and 12 hereof.

• (2) There shall be charged to the Permanent Services Pension Account

  • (a) all payments of benefits under Part V,

  • (b) all amounts of contributions refunded pursuant to section 5, and

  • (c) amounts of succession duties paid pursuant to section 33.