Jobs and Growth Act, 2012 (S.C. 2012, c. 31)
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Assented to 2012-12-14
PART 4VARIOUS MEASURES
Division 23Public Sector Pensions
R.S., c. P-36Public Service Superannuation Act
Marginal note:1996, c. 18, s. 30(1)
485. (1) The portion of subsection 13(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Group 1 contributors with two or more years of pensionable service
13. (1) The following provisions are applicable in respect of any Group 1 contributor described in subsection 12(0.1) who has to his or her credit two or more years of pensionable service:
Marginal note:1996, c. 18, s. 30(3); 1999, c. 34, s. 65(4); 2003, c. 22, subpar. 225(z.19)(xiv)(E)
(2) Subsections 13(3) and (4) of the Act are replaced by the following:
Marginal note:Allowance to survivor and children
(3) On the death of a Group 1 contributor described in subsection 12(0.1) who was employed in the public service at the time of death, having to his or her credit two or more years of pensionable service, the contributor’s survivor and children are entitled to the annual allowances to which they would have been entitled under subsection (2) had the contributor, immediately before his or her death, become entitled under subsection (1) to an immediate annuity or a deferred annuity or an annual allowance payable immediately or on reaching 50 years of age.
Marginal note:Voluntary retirement of Group 1 contributor
(4) Despite anything in this section, a Group 1 contributor described in subsection 12(0.1) who voluntarily retires from the public service, not having been employed in it substantially without interruption for a period of two years immediately before retirement from it, is entitled only to a return of contributions.
486. The Act is amended by adding the following after section 13:
Group 2 Contributors with Two or More Years of Pensionable Service
Marginal note:Group 2 contributors with two or more years of pensionable service
13.001 (1) The following provisions are applicable in respect of any Group 2 contributor described in subsection 12.1(1) who has to his or her credit two or more years of pensionable service:
(a) if the contributor ceases to be employed in the public service, having reached 65 years of age, he or she is entitled to an immediate annuity;
(b) if the contributor ceases to be employed in the public service, not having reached 65 years of age, by reason of having become disabled, he or she is entitled to an immediate annuity;
(c) if the contributor ceases to be employed in the public service, not having reached 65 years of age, for any reason other than disability, he or she is entitled to
(i) if at the time he or she ceases to be so employed, he or she has reached 60 years of age and has to his or her credit not less than 30 years of pensionable service, an immediate annuity, or
(ii) in any other case, at his or her option,
(A) a deferred annuity,
(B) if at the time he or she ceases to be so employed, he or she has reached 55 years of age and has to his or her credit not less than 25 years of pensionable service, an annual allowance, payable immediately on his or her exercising his or her option, equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying 5% of the amount of that annuity by
(I) 60 minus his or her age in years, to the nearest 1/10 of a year, at the time he or she exercises his or her option, or
(II) 30 minus the number of years, to the nearest 1/10 of a year, of pensionable service to his or her credit,
whichever is the greater,
(C) if at the time he or she ceases to be so employed, he or she has reached 60 years of age, has been employed in the public service for a period of or for periods totalling at least 10 years and does not voluntarily retire from the public service, an annual allowance, payable immediately on his or her so ceasing to be employed, equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying
(I) 5% of the amount of that annuity
by
(II) 30 minus the number of years, to the nearest 1/10 of a year, of pensionable service to his or her credit,
except that in any such case the whole or any part of the reduction provided for by this clause may be waived by the Treasury Board, or
(D) an annual allowance, payable
(I) immediately on his or her exercising his or her option, in the case of a contributor 55 or more years of age, or
(II) on his or her reaching 55 years of age, in the case of a contributor who exercises his or her option when he or she is less than 55 years of age,
which allowance shall be equal to the amount of the deferred annuity referred to in clause (A) reduced by the product obtained by multiplying
(III) 5% of the amount of that annuity
by
(IV) 65 minus his or her age in years, to the nearest 1/10 of a year, at the time the allowance becomes payable; and
(d) if he or she becomes disabled, not having reached 65 years of age but having become entitled to
(i) a deferred annuity, he or she ceases to be entitled to that deferred annuity and becomes entitled to an immediate annuity, or
(ii) an annual allowance, he or she ceases to be entitled to that annual allowance and becomes entitled to an immediate annuity, which shall be adjusted in accordance with the regulations to take into account the amount of the annual allowance he or she has received.
Marginal note:Allowance to survivor and children
(2) On the death of a contributor who, at the time of death, was entitled under subsection (1) to an immediate annuity or a deferred annuity, or to an annual allowance payable immediately or on reaching 55 years of age, the contributor’s survivor and children are entitled to an annual allowance, respectively, as described in paragraphs 12.1(5)(a) and (b) and subject to the limitations set out in subsections 12.1(5) and (6).
Marginal note:Allowance to survivor and children
(3) On the death of a Group 2 contributor described in subsection 12.1(1) who was employed in the public service at the time of death, having to his or her credit two or more years of pensionable service, the contributor’s survivor and children are entitled to the annual allowances to which they would have been entitled under subsection (2) had the contributor, immediately before his or her death, become entitled under subsection (1) to an immediate annuity or a deferred annuity or an annual allowance payable immediately or on reaching 55 years of age.
Marginal note:Voluntary retirement of Group 2 contributor
(4) Despite anything in this section, a Group 2 contributor described in subsection 12.1(1) who voluntarily retires from the public service, not having been employed in it substantially without interruption for a period of two years immediately before retirement from it, is entitled only to a return of contributions.
Marginal note:Exceptions
(5) Subsection (4) does not apply to a contributor described in paragraph 10(5)(c) or subsection 10(7) or a contributor who has made an election in respect of any period specified in clause 6(1)(b)(iii)(M) or under subsection 39(6) or under any regulations made under subsection 42(8).
Marginal note:Calculation of period of service
(6) For the purposes of subsection (4), in calculating the period during which a contributor has been employed in the public service, there shall be included any period of service of the contributor
(a) as a member of the regular force or as a member of the Force; or
(b) with an eligible employer with whom the Minister has entered into an agreement under section 40.2, that the contributor is, in accordance with the agreement, entitled to count as pensionable service for the purposes of this Part,
that is within a period of two years immediately before his or her retirement from the public service.
Marginal note:When annual allowance to be adjusted
(7) If a contributor described in paragraph (1)(c) who was receiving an annual allowance payable under this Part is subsequently re-employed in the public service, the amount of any annuity or annual allowance to which that contributor may become entitled under this Part on again ceasing to be employed in the public service shall be adjusted in accordance with the regulations to take into account the amount of the annual allowance that he or she has received.
Group 1 and Group 2 Contributors with Two or More Years of Pensionable Service
Marginal note:1999, c. 34, s. 69
487. Section 19 of the Act is replaced by the following:
Marginal note:Additional amount to be contributed by air traffic controllers
19. Subject to subsection 5(6), every person employed in operational service and required to contribute to the Public Service Pension Fund under subsection 5(2) is, except in the circumstances described in subsection 5(3), required to contribute to the Public Service Pension Fund by reservation from salary or otherwise, in addition to any other amount required under this Act, 2% of his or her salary.
Marginal note:1992, c. 46, s. 12; 1999, c. 34, s. 73; 2003, c. 22, subpar. 225(z.19)(xxiii)(E)
488. Sections 24.2 and 24.3 of the Act are replaced by the following:
Marginal note:Special pension plan
24.2 Any person who is employed in operational service by the Correctional Service of Canada on or after March 18, 1994 and who was required by subsection 5(1.1) or (1.2), as it read on December 31, 2012, to contribute to the Superannuation Account or the Public Service Pension Fund or is required by subsection 5(2) to contribute to the Public Service Pension Fund is entitled, at his or her option on ceasing to be employed in the public service, in respect of the operational service that is pensionable service to his or her credit, to an immediate annuity or annual allowance calculated in the manner prescribed by the regulations, in the circumstances and subject to the terms and conditions prescribed by those regulations, in lieu of any benefit to which that person is otherwise entitled under subsection 13(1) or 13.001(1) in respect of that service.
Marginal note:Computation of benefit under subsection 13(1) or 13.001(1)
24.3 If a person is entitled to a benefit under subsection 13(1) or 13.001(1), and section 24.2, the number of years of pensionable service to his or her credit is, for the purpose of computing the benefit to which he or she is entitled under subsection 13(1) or 13.001(1), deemed to be
(a) the number of years of pensionable service to his or her credit
minus
(b) the number of years of pensionable service to his or her credit in respect of which he or she is entitled to a benefit under section 24.2.
Marginal note:1999, c. 34, s. 74
489. Subsection 24.4(1) of the Act is replaced by the following:
Marginal note:Additional amount to be contributed
24.4 (1) Subject to subsections (2) and 5(6), every person who is employed in operational service by the Correctional Service of Canada on or after March 18, 1994 and who is required by subsection 5(2) to contribute to the Public Service Pension Fund is, except in the circumstances described in subsection 5(3), required to contribute to the Public Service Pension Fund by reservation from salary or otherwise, in addition to any other amount required under this Act, any percentage of his or her salary that is determined by the Treasury Board on the recommendation of the Minister, which recommendation is to be based on actuarial advice.
Marginal note:1992, c. 46, s. 12
490. Section 24.5 of the Act is replaced by the following:
Marginal note:References to certain sections
24.5 A reference in subsection 10(6) to a benefit specified at the contributor’s option under section 13 or 13.001 shall be read as including a reference to an immediate annuity or annual allowance at the contributor’s option under section 24.2, and a reference in subsection 13(2) or (3) or 13.001(2) or (3) to the immediate annuity, deferred annuity or annual allowance to which the contributor was entitled under subsection 13(1) or 13.001(1) shall be read as including a reference to the contributor’s entitlement to an immediate annuity or annual allowance under section 24.2.
Marginal note:When annuity or annual allowance to be adjusted
24.6 If a person who was employed in operational service by the Correctional Service of Canada and who is receiving an annual allowance payable under section 24.2 is subsequently re-employed in the public service, the amount of any annuity or annual allowance to which he or she may become entitled under this Part on again ceasing to be employed in the public service shall be adjusted in accordance with regulations made under paragraph 42(1)(x.1) to take into account the amount of any annual allowance that he or she has received.
Marginal note:1999, c. 34, s. 75
491. (1) Paragraph 25(6)(a) of the Act is replaced by the following:
(a) an increase in the allowance payable to a child under paragraph 12(4)(b) or 12.1(5)(b); or
Marginal note:1999, c. 34, s. 75
(2) The portion of subsection 25(10) of the Act before paragraph (a) is replaced by the following:
Marginal note:Apportionment of allowance when two survivors
(10) When an annual allowance is payable under paragraph 12(4)(a) or 12.1(5)(a) or subsection 13(2) or 13.001(2) and there are two survivors of the contributor, the total amount of the annual allowance shall be apportioned so that
492. (1) Subsection 26(5) of the Act is replaced by the following:
Marginal note:Saving provision
(5) Nothing in this section prejudices any right that a child of an earlier marriage of the contributor has to an allowance under any of sections 12 to 13.001.
Marginal note:1999, c. 34, s. 76(3)
(2) Paragraph 26(7)(b) of the Act is replaced by the following:
(b) required by subsection 5(1.1) or (1.2), as it read on December 31, 2012, or by subsection 5(2) to contribute to the Superannuation Account or the Public Service Pension Fund.
Marginal note:1999, c. 34, s. 78(1)
493. (1) Subsection 27(1) of the Act is replaced by the following:
Marginal note:Minimum benefits
27. (1) This subsection applies to
(a) a contributor who was not required to contribute to the Superannuation Account under subsection 5(1) in the period that began on or after December 20, 1975 and that ended on December 31, 1999;
(b) a contributor who was not required to contribute to the Superannuation Account or the Public Service Pension Fund under subsection 5(1.1) or (1.2), as it read on December 31, 2012, in the period that began on or after January 1, 2000 and that ended on December 31, 2012; and
(c) a contributor who was not required to contribute to the Public Service Pension Fund under subsection 5(2).
If, on the death of such a contributor, there is no person to whom an allowance provided in this Part may be paid, or if the persons to whom that allowance may be paid die or cease to be entitled to that allowance and no other amount may be paid to them under this Part, any amount by which the amount of a return of contributions exceeds the aggregate of all amounts paid to those persons and to the contributor under this Part and the Superannuation Act shall be paid, as a death benefit, to the contributor’s estate or succession or, if less than $1,000, as the Minister may direct.
Marginal note:1999, c. 34, s. 78(2)
(2) The portion of subsection 27(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Minimum benefits
(2) If, on the death of a contributor who was required to contribute to the Superannuation Account under subsection 5(1) in the period that began on or after December 20, 1975 and that ended on December 31, 1999, a contributor who was required to contribute to the Superannuation Account or the Public Service Pension Fund under subsection 5(1.1) or (1.2), as it read on December 31, 2012, in the period that began on or after January 1, 2000 and that ended on December 31, 2012, or a contributor who was required to contribute to the Public Service Pension Fund under subsection 5(2), there is no person to whom an allowance provided in this Part may be paid, or if the persons to whom that allowance may be paid die or cease to be entitled to that allowance and no other amount may be paid to them under this Part, an amount equal to the amount by which
494. Paragraph 28(a) of the Act is replaced by the following:
(a) is less than 60 years of age, in the case of a Group 1 contributor described in subsection 12(0.1), or is less than 65 years of age, in the case of a Group 2 contributor described in subsection 12.1(1), and
Marginal note:1992, c. 46, s. 15; 1999, c. 34, s. 79; 2003, c. 22, subpar. 225(z.19)(xxv)(E)
495. Section 29 of the Act is replaced by the following:
Marginal note:Persons re-employed
29. If a person who is entitled, under any of subsections 12(1), 12.1(2), 13(1) or 13.001(1) or any regulations made for the purposes of section 24.2, to an annuity or an annual allowance is re-employed in the public service and becomes a contributor under this Part, whatever right or claim that he or she may have to the annuity or annual allowance shall be terminated without delay, but the period of service on which the benefit was based, except any period specified in clause 6(1)(a)(iii)(C) or (E), may be counted by that person as pensionable service for the purposes of subsection 6(1), except that if that person, on ceasing to be so re-employed, exercises his or her option under this Part in favour of a return of contributions, or is not entitled under this Part to any benefit other than a return of contributions, the amount so returned shall not include any amount paid into the Superannuation Account or the Public Service Pension Fund to his or her credit at any time before the time when he or she became re-employed, but whatever right or claim that, but for this section, he or she would have had to the annuity or annual allowance on ceasing to be so re-employed shall then be restored to him or her.
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