Retirement Compensation Arrangements Regulations, No. 1 (SOR/94-785)

• 15 (1) Subject to section 15.1, a participant who ceases to be required to contribute to the Retirement Compensation Arrangements Account under this Part may opt to receive a benefit of the type that the participant would otherwise be entitled to receive under section 13 or 13.001 of the Public Service Superannuation Act, based on the participant’s age on ceasing to be required to contribute under this Part and on the aggregate of the pensionable service to the credit of the participant under that Act and the period of service in respect of which the participant was required to contribute under this Part.

• (2) Payment of a benefit under subsection (1) is subject to the same conditions as are set out in section 10 of the Public Service Superannuation Act in respect of annuity or annual allowance payable under that Act.

• (3) Subject to subsection 17(1), the amount of any benefit to which a participant is entitled is an amount equal to

  • (a) the amount that would be payable to the participant under Part I of the Public Service Superannuation Act, as if

    • (i) the period of pensionable service to the credit of the participant is the total of the period in respect of which the participant was required to contribute under this Part and the period of pensionable service to the credit of the participant under that Act, not exceeding thirty five years,

    • (ii) for the purpose of determining the average annual salary in subsection 11(1) of that Act, the salary of the participant while the participant was required to contribute under this Part is that referred to in subsection 8(3) or 9(1), and

    • (iii) the computation referred to in paragraph 11(1)(b) of that Act is made without reference to the annual rate of salary fixed or determined by the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

  less

  • (b) the aggregate of the following amounts, namely,

    • (i) any annuity or annual allowance payable to the participant under the Public Service Superannuation Act in respect of the period of pensionable service to the credit of the participant,

    • (ii) any benefit payable under Part II to the participant in respect of the period of pensionable service to the credit of the participant under that Act, and

    • (iii) any supplementary benefits payable with respect to amounts referred to in subparagraphs (i) and (ii) accrued between the date the participant ceased to be employed in the public service and the date the participant ceased to be required to contribute under this Part.

• (4) Where a participant is entitled to an annuity or annual allowance under the Public Service Superannuation Act and opts to receive a benefit in the form of an annuity or annual allowance under this Part, the benefit becomes payable on the same day as the participant’s annuity or annual allowance becomes payable under that Act.

• 15.1 (1) Subject to subsection (2), if an amount is paid to an eligible employer in respect of a participant pursuant to subsection 40.2(3) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to the aggregate of

    • (i) an amount calculated by the Minister equal to the actuarial value of the participant’s benefits accrued under this Part and section 68 as of valuation date based on the paid-up contributions of the participant under this Part, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40.2(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under clause 40.2(3)(a)(i)(A) of that Act, and

    • (ii) an amount representing interest after valuation date, if any, on the amount determined under subparagraph (i), calculated at the same rate and in the same manner as in that agreement, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Part and section 68.

• (2) If the eligible employer has not established an external retirement compensation arrangement or has established an external retirement compensation arrangement but is not prepared to provide benefits under that arrangement in respect of the amount referred to in subsection (1), the Minister shall not transfer the amount to that employer, but shall pay to the participant a lump sum amount calculated in accordance with section 15.2.

• (3) If the amount transferred under subsection (1) is less than the lump sum amount that would be paid to the participant under subsection (2), the Minister shall pay to the participant an amount equal to the difference.

• (4) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which the transfer or payment is effected, the amount transferred or paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (5) The transfer or payment of an amount under this section shall be made within the time limit for the payment of an amount to an eligible employer provided in the agreement with that employer or within 12 months after the coming into force of this subsection, whichever is the later.

• (6) When all amounts under this section have been transferred or paid, as applicable, the participant shall cease to be entitled to any benefit under this Part or under section 68 in respect of the period of service to which the transfer or payment relates.

• (7) For the purposes of this section and section 15.2, valuation date has the same meaning as in the agreement with the eligible employer.

15.2 The lump sum amount referred to in subsection 15.1(2) is equal to

• (a) the transfer value that would be paid to the participant under section 13.01 of the Public Service Superannuation Act as of valuation date, whether or not the participant would otherwise be entitled to a transfer value, if the accrued pension benefits that would be payable to or in respect of the participant under that Act were determined as if

  • (i) the period of pensionable service to the credit of the participant were the total of the period in respect of which the participant has made contributions under this Part and the period of pensionable service to the credit of the participant under that Act, not exceeding thirty-five years,

  • (ii) for the purposes of determining the average annual salary in subsection 11(1) of that Act, the salary of the participant for the period for which the participant contributed under this Part were that referred to in subsection 8(3) or 9(1), and

  • (iii) the computation referred to in paragraph 11(1)(b) of that Act were made without reference to the annual rate of salary fixed or determined by the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

and

• (b) interest after valuation date, if any, on the amount referred to in paragraph (a) calculated in accordance with section 93 of the Public Service Superannuation Regulations, with any modifications that the circumstances require,

less the sum of

• (c) any amount paid or payable to or in respect of the participant under that Act and Part II in respect of the period of pensionable service to the credit of the participant under that Act,

and

• (d) an amount equal to the interest, if any, that would be calculated in accordance with section 93 of those Regulations, with any modifications that the circumstances require, on the amounts referred to in paragraph (c) from the date of payment of those amounts to the date to which interest is calculated under paragraph (b).

15.3 to 15.5 [Repealed, SOR/2003-12, s. 5]

16 An option referred to in subsection 15(1) may be revoked in the same manner and under the same circumstances as are set out in sections 19 to 22 of the Public Service Superannuation Regulations in respect of an option referred to in those sections.

• 17 (1) For the purposes of subsection 15(3), where a participant has made an election under section 13.1 of the Public Service Superannuation Act in respect of a spouse married after the participant ceased to be required to contribute to the Retirement Compensation Arrangements Account under this Division, the amount determined under paragraph 15(3)(a) shall be reduced by the same proportion, and for the same period, as the participant’s immediate annuity, annual allowance or deferred annuity is reduced under section 68 of the Public Service Superannuation Regulations.

• (2) The benefit payable to the surviving spouse of a participant who has made an election under section 13.1 of the Public Service Superannuation Act, where that spouse married the participant after the participant ceased to be required to contribute to the Retirement Compensation Arrangements Account under this Division, is equal to the amount determined under subsection 15(3), read without reference to subsection (1), multiplied by the percentage of the participant’s annuity or annual allowance, calculated before any reduction is made under section 68 of the Public Service Superannuation Regulations, that the spouse will receive as an allowance under section 79 of those Regulations.

• (3) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction calculated under section 68 of the Public Service Superannuation Regulations.

18 On the death of a participant, a benefit shall be paid to any survivor or child of the participant to whom an allowance is payable under the Public Service Superannuation Act, subject to the conditions set out in subsection 10(3) of that Act, in an amount equal to

• (a) the allowance that would be payable to the survivor or child of the participant under Part I of that Act, calculated as if

  • (i) the period of pensionable service to the credit of the participant is the total of the period in respect of which the participant was required to contribute under this Part and the period of pensionable service to the credit of the participant under that Act, not exceeding 35 years,

  • (ii) for the purpose of determining the average annual salary referred to in subsection 11(1) of that Act, the salary of the participant while the participant was required to contribute under this Part is that referred to in subsection 8(3) or 9(1), and

  • (iii) the maximum monthly amount that may be paid to a survivor or child pursuant to subsections 30.6(1) and (2) of the Public Service Superannuation Regulations do not apply,

less

• (b) the aggregate of the following amounts, namely,

  • (i) any allowance payable to the survivor, or to or on behalf of the child of a participant, under the Public Service Superannuation Act in respect of the period of pensionable service to the credit of the participant,

  • (ii) any benefit payable to the survivor, or to or on behalf of the child of a participant, under Part II in respect of the period of pensionable service to the credit of the participant under the Public Service Superannuation Act, and

  • (iii) any supplementary benefits payable with respect to amounts referred to in subparagraphs (i) and (ii) accrued between the date the participant ceased to be employed in the public service and the date the participant ceased to be required to contribute under this Part.

18.1 [Repealed, SOR/2003-12, s. 7]

• 19 (1) A survivor of a participant who is not entitled to the benefit set out in section 18 due to the application of subsection 26(1) of the Public Service Superannuation Act shall be entitled to the benefit referred to in that section if the survivor married the participant or began cohabiting in a relationship of a conjugal nature with the participant during the period in respect of which the participant was required to contribute under this Part.

• (2) A person who is not entitled to the benefit set out in section 18 due to the application of subsection 26(2) of the Public Service Superannuation Act shall be entitled to the benefit referred to in that section if the person became the child, within the meaning of “child” in subsection 3(1) of that Act, of the participant during the period in respect of which the participant was required to contribute under this Part.

• (3) For the purpose of subsection (2), a child born posthumously to a participant is entitled to a benefit under section 18 if the child is born following a gestation period commencing before the date when the participant ceased to be required to contribute under this Part.

• 20 (1) Where under this Part an amount has been paid in error, the Minister shall forthwith demand payment from the recipient of an amount equal to the amount paid in error.

• (2) A person from whom payment of an amount has been demanded by the Minister pursuant to subsection (1) shall, within 30 days after the day on which the demand is made

  • (a) pay that amount to the Minister in one lump sum; or

  • (b) notify the Minister that the person wishes to repay the amount, plus any charges calculated under this paragraph, in approximately equal monthly instalments to be deducted from the person’s benefit for the lesser of

    • (i) the life expectancy of the person, and

    • (ii) the period required to pay that amount and those charges in monthly instalments equal to 10 per cent of the gross monthly amount of the benefit,

    calculated as at the expiration of the 30 day period in accordance with Life Table No. 2 of Vital Statistics Report, No. 4 — Life Tables for Canada and Regions — 1941 and 1931, published by the Department of Trade and Commerce, Dominion Bureau of Statistics, Ottawa, 1947.

• (3) Where a person referred to in subsection (2) does not pay the amount owing within 30 days after the day on which the demand for payment is made, deductions shall be made from the person’s benefit in the manner set out in paragraph (2)(b).

• (4) A person in respect of whom deductions are made under this section may, at any time,

  • (a) pay the amount then owing and the charges calculated under paragraph (2)(b), in one lump sum; or

  • (b) arrange to pay the amount then owing and the charges calculated under paragraph (2)(b),

    • (i) by larger monthly instalments, or

    • (ii) by a lump sum payment and monthly instalments payable over the same or a shorter period than that provided under that paragraph.

• (5) Where deductions are to be made pursuant to paragraph (2)(b), the first deduction shall be made in the month following the month in which the 30 day period referred to in subsection (2) ends.

• (6) If the monthly deduction referred to in subsection (2) would cause financial hardship to the person to whom the benefit is payable, a lesser monthly deduction shall be made in an amount equal to the greater of $10 and 5% of the gross monthly amount of the benefit.

• (7) Where a person in respect of whom lesser deductions are made pursuant to subsection (6) dies before the amount owing is paid in full, the balance remaining unpaid shall be recovered from any further benefits payable under the retirement compensation arrangement in respect of that person.

• (8) For the purposes of this section, a demand by the Minister for payment of an amount shall be considered to have been made on the day on which a letter demanding payment and signed by or on behalf of the Minister is mailed.

• (9) Nothing in this section prohibits a person from paying an amount at any time before that amount becomes payable.