Canadian Forces Superannuation Act

Marginal note:Annual allowance

• 18 (1) A contributor who is entitled to a deferred annuity may opt, in accordance with the regulations, for an annual allowance in place of the deferred annuity. The allowance is payable to the contributor

  • (a) immediately, if they are 50 or more years of age when they exercise their option; or

  • (b) on their reaching 50 years of age, if they are less than 50 years of age when they exercise their option.

• Marginal note:Amount of allowance

  (2) The amount of the annual allowance is equal to the amount of the deferred annuity, reduced by the product obtained by multiplying five per cent of the amount of that annuity by the number of years by which the contributor’s age in years, to the nearest one-tenth of a year, at the time the allowance is payable is less than 60.

• Marginal note:Alternative amount

  (3) If a contributor is 50 years or more of age when they cease to be a member of the regular force and has not less than 25 years of pensionable service to their credit, the amount of the annual allowance is the greater of

  • (a) the amount calculated under subsection (2), and

  • (b) the amount of the deferred annuity reduced by the product obtained by multiplying five per cent of the amount of that annuity by the greater of

    • (i) 55 minus the contributor’s age in years at the time they exercise their option, to the nearest one-tenth of a year, and

    • (ii) 30 minus the number of years of pensionable service to their credit, to the nearest one-tenth of a year.

• Marginal note:Adjustment

  (4) If a contributor who was receiving an annual allowance payable under subsection (1) re-enrols in the regular force, the amount of any annuity or annual allowance to which that contributor may become entitled under this Part on again ceasing to be a member of the regular force shall be adjusted in accordance with the regulations to take into account the amount of the annual allowance they have received.