Pension Plan Transfer Agreements Regulations (SOR/98-445)

Regulations are current to 2017-11-20 and last amended on 2016-06-23. Previous Versions

Pension Plan Transfer Agreements Regulations

SOR/98-445

PUBLIC SERVICE SUPERANNUATION ACT

FINANCIAL ADMINISTRATION ACT

Registration 1998-08-28

Pension Plan Transfer Agreements Regulations

T.B. 826479 1998-08-25

The Treasury Board, on the recommendation of the President of the Treasury Board, pursuant to paragraph 42.1(1)(v.6)Footnote a of the Public Service Superannuation Act and paragraph 7(2)(a) of the Financial Administration Act, hereby makes the annexed Pension Plan Transfer Agreements Regulations.

Interpretation

 The definitions in this section apply in these Regulations.

Act

Act means the Public Service Superannuation Act. (Loi)

demand for funds

demand for funds means a request for funds made by the Minister in accordance with an agreement entered into under subsection 40.2(2) of the Act concerning the payment of amounts calculated in accordance with section 6 of the Regulations. (demande de fonds)

employee

employee means an employee of an employer in respect of whom the Minister has entered into an agreement under subsection 40.2(2) of the Act who has ceased to be employed by that employer and is or becomes employed by the public service. (employé)

employer

employer means an eligible employer with whom the Minister has entered into an agreement under subsection 40.2(2) of the Act. (employeur)

pensionable service

pensionable service means any service that an employee is entitled to count for the purposes of any plan referred to in subsection 40.2(1) of the Act and that may be counted by the employee in accordance with an agreement for the purposes of subsection 6(1) of the Act, subject to the conditions set out in subsection 40.2(9) of the Act. (période de service ouvrant droit à pension)

registered pension plan

registered pension plan means a pension plan registered under section 147.1 of the Income Tax Act. (régime de pension agréé)

  • SOR/2016-203, s. 62(E).

Class of Pension Plan

 For the purposes of subsection 40.2(1) of the Act, a pension plan is a registered pension plan:

  • (a) with at least 10 active participants at the time the employer enters into a transfer agreement under subsection 40.2(2) of the Act; or

  • (b) established as a result of a divestiture of service under section 40.1 of the Act.

Pensionable Service

 Pensionable service includes periods of past service that an employee is entitled to count under paragraph 147.1(10)(a) of the Income Tax Act.

 The demand for funds made to an employer in respect of an employee shall be determined in accordance with a transfer agreement and shall equal the total of:

  • (a) an amount not exceeding the value, actuarially calculated in accordance with the transfer agreement, of all benefits that would have been payable under Parts I and III of the Act in respect of the pensionable service of the employee; and

  • (b) an amount that represents interest on the amount determined in accordance with paragraph (a) as of the date of payment, which interest shall be determined by the Minister under subparagraph 40.2(3)(a)(ii) of the Act.

 Any period of part-time service credited to an employee by an employer shall be deemed to be a period of part-time service within the meaning of the Act.

  •  (1) The period of service of an employee that, according to the employer, is subject to credit-splitting under a federal or provincial Act shall be credited on a pro-rata basis.

  • (2) The total period referred to in subsection (1) shall be retained in determining eligibility for a benefit.

  •  (1) The period of service of an employee in respect of which the amounts referred to in a demand for funds have been paid in total by an employer into the Superannuation Account is deemed to be pensionable service in accordance with subsection 6(1) of the Act.

  • (2) The period of service of an employee in respect of which the amounts referred to in a demand for funds have not been paid in total by an employer is calculated as follows:

    • (a) if the employer has specified that the period credited is exclusively a period of full-time service, the period of service is pro-rated on the basis of the amounts paid by the employer and is deemed to be the most recent period; and

    • (b) if the employer has credited a period of service consisting of both part-time service and full-time service, the period is converted to a period of full-time service, costed as a period of full-time service and deemed to be the most recent period.

Coming into Force

 These Regulations come into force on August 28, 1998.

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