An Act to increase the rate of return on Government Annuity contracts, to increase their flexibility and to discontinue future sales thereofGovernment Annuities Improvement ActGovernment Annuities Improvement197512
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20264
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G-3.8831974-75-76Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:Short Title
Short titleThis Act may be cited as the Government Annuities Improvement Act.
Interpretation
MinisterIn this Act, Minister means such member of the Queen’s Privy Council for Canada as is designated by the Governor in Council to administer the Government Annuities Act.Words and expressionsUnless the context otherwise indicates, words and expressions have the same meaning as in the Government Annuities Act.
Increased Rate of Return
Increased interest for deferred annuitiesIn determining the value of an annuity prior to the date on which it becomes payable, the rate or rates of interest to be used shall, for the period before April 1st, 1975, be the rate or rates of interest applicable to that annuity contract and, for the period commencing April 1st, 1975, shall, subject to subsection (2), be seven per cent per annum.Governor in Council may vary interest rateThe Governor in Council may by regulation vary, in respect of any annuity or category of annuities, the seven per cent rate of interest mentioned in subsection (1), but the rate of interest fixed by regulation may not, in respect of any annuity, be lower than the rate or rates of interest applicable to that annuity prior to April 1st, 1975.
Calculation of amount of annuityAt the date on which an annuity becomes payable, if that date is on or after April 1st, 1975, the amount of annuity payable shall be calculated by using the value of that annuity determined in accordance with section 3 and the table or tables of values prescribed under paragraph 13(b) of the Government Annuities Act applicable to that annuity contract.
Annuity payments to be increasedAll amounts payable by way of an annuity on or after April 1st, 1975 shall be increased by the applicable percentage or percentages shown in the schedule.Amendment of scheduleThe Governor in Council may, by regulation, amend the schedule in respect of any annuity or category of annuities.
Maximum annuity max exceed $1,200 per yearNotwithstanding subsection 8(1) of the Government Annuities Act, the total amount payable by way of an annuity or annuities to any annuitant or to joint annuitants may exceed twelve hundred dollars a year to the extent that such excess results from the application of section 3 or 5 or both.Regulations may permit further increase in maximumThe Governor in Council may make regulations for permitting the total amount payable by way of annuity or annuities to any annuitant or to joint annuitants to exceed the maximum permitted by subsection (1).
Increased Flexibility
Variation and substitutionThe Minister may, upon such terms and conditions as are prescribed by regulation,vary an existing annuity contract with the consent of the purchaser; orsubstitute a new annuity contract for an existing one where there is a change of purchaser.
When purchaser dies or goes out of existenceWhere an annuity contract under the Government Annuities Act does not permit the annuitant to request changes in his annuity without the purchaser’s consent and the purchaser has died or gone out of existence, the annuitant has the same right to request changes in his annuity as had the purchaser.
Commutation available in certain casesWhen, under an annuity contract under the Government Annuities Act, the annuity is payable for a term of years certain or for the life of the annuitant, whichever period is the longer, and the annuitant has died before the expiration of that term of years certain, then, notwithstanding subsection 12(2) of the Government Annuities Act, the remaining instalments may, at the request of the purchaser or his legal representative, be commuted into a lump sum payment, the amount of which shall be calculated in accordance with the regulations.
General
Interest to date of repayment in certain casesThe interest referred to in subsection 12(1) of the Government Annuities Act shall accrue to the date of repayment in cases where the relevant death occurs after the commencement of this Act, even if the annuity contract stipulates that the interest will accrue only to the date of death.
Rate of interest in certain casesNotwithstanding the provisions of The Appropriation Act No. 4, 1950, Vote 695, and of Appropriation Act No. 6, 1960, Vote 526, the interest mentioned in those Votes shall, after March 31st, 1975, accrue at a rate determined from time to time by the Governor in Council.
Transferability of benefitsNotwithstanding subsection 10(1) the Government Annuities Act, where an annuity contract is a registered retirement savings plan within the meaning of the Income Tax Act or is under a registered pension fund or plan within the meaning of the Income Tax Act, any monies payable under that contract may, at the request of the annuitant or, if the annuitant is dead, at the request of the beneficiary, be paid to another registered retirement savings plan within the meaning of the Income Tax Act or to another registered pension fund or plan within the meaning of the Income Tax Act.
Discontinuance of Sales of Annuities
No new contractsAfter the commencement of this Act, no further annuity contracts may be entered into under the Government Annuities Act, except as provided by the terms of an existing annuity contract under that Act or by paragraph 7(b) of this Act.
Registration deadline under group contractsNo further registration of employees under annuity contracts mentioned in subsection 6(3) of the Government Annuities Act may take place after March 31st, 1979.
Government Annuities Account
Calculation of liabilityNotwithstanding anything in section 15 of the Government Annuities Act, the liability outstanding at the end of each fiscal year in respect of annuity contracts shall be calculated on the basis of such rate or rates of interest and mortality tables, and in such manner, as is prescribed by regulation.Credits to AccountIf at the end of any fiscal year the liability calculated under subsection (1) exceeds the balance of the Government Annuities Account, there shall be credited to the Account and charged to the Consolidated Revenue Fund an amount equal to the excess of the liability over the balance of the Account.Charges to AccountIf at the end of any fiscal year the liability calculated under subsection (1) is less than the balance of the Government Annuities Account, there shall be charged to the Account and credited to the Consolidated Revenue Fund an amount equal to the amount by which the balance of the Account exceeds the liability.
[Repealed, 2026, c. 3, s. 571]
Regulations
RegulationsThe Governor in Council may make regulationsprescribing terms and conditions for the purposes of section 7;respecting the manner in which a grant of letters probate, or similar document, of any court or authority outside Canada is to be proved for the purposes of the Government Annuities Act;prescribing the manner in which lump sum payments mentioned in section 9 are to be calculated; andprescribing the manner in which the liability outstanding at the end of each fiscal year in respect of annuity contracts is to be calculated, and the rate or rates of interest and mortality tables to be used in that regard.
Report to Parliament
Annual report to ParliamentWithin nine months after the end of each fiscal year, the Minister shall prepare a report on all business done under the Government Annuities Act and this Act during that fiscal year and shall lay the report before Parliament within fifteen days after it bas been prepared or, if Parliament is not then sitting, within the first fifteen days next thereafter that Parliament is sitting.RepealSection 16 of the Government Annuities Act is repealed.
Rate or rates of interest applicable to the annuity contractPercentage increase3%32%3 1/2%29%4%22%5%14%5 1/4%10%
2026, c. 32026-03-26