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Public Service Superannuation Act (R.S.C., 1985, c. P-36)

Act current to 2019-08-28 and last amended on 2019-08-28. Previous Versions

PART ISuperannuation (continued)

Benefits (continued)

Annuities: How Computed

Marginal note:Computation of annuities

  •  (1) The amount of any annuity to which a contributor may become entitled under this Part is an amount equal to the aggregate of

    • (a) an amount equal to

      • (i) the number of years of pensionable service to the credit of the contributor occurring in the period preceding the day on which this subsection comes into force, not exceeding thirty-five, divided by fifty,

      multiplied by

      • (ii) the average annual salary received by the contributor during any five-year period of pensionable service selected by or on behalf of the contributor, or during any period so selected consisting of consecutive periods of pensionable service totalling five years, or

      • (iii) in the case of a contributor who has to the contributor’s credit less than five years of pensionable service, the average annual salary received by the contributor during the period of pensionable service to the contributor’s credit; and

    • (b) an amount equal to

      • (i) the number of years of pensionable service to the credit of the contributor occurring in the period on and after the day on which this subsection comes into force, not exceeding thirty-five years less the number of years of pensionable service to the credit of the contributor under subparagraph (a)(i), divided by fifty,

      multiplied by the lesser of

      • (ii) the average annual salary received by the contributor during the period referred to in subparagraph (a)(ii) or (iii), as applicable, and

      • (iii) the annual rate of salary that is fixed by the regulations made under paragraph 42.1(1)(a), or that may be determined in the manner prescribed by those regulations, and in force on the day on which the contributor most recently ceased to be employed in the public service.

  • Marginal note:Deduction from annuity

    (2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor

    • (a) has not reached the age of sixty-five years, and

    • (b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan,

    there shall be deducted from the amount of any annuity to which that contributor is entitled under this Part an amount equal to the percentage, as set out in subsection (2.1), of

    • (c) the average annual salary received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings,

    multiplied by

    • (d) the number of years of pensionable service after 1965 to the credit of the contributor, not exceeding thirty-five, divided by fifty.

  • Marginal note:Percentages

    (2.1) For the purposes of subsection (2), the percentage that applies in respect of a contributor is

    • (a) 35%, if the contributor was born before 1943;

    • (b) 34.25%, if the contributor was born in 1943;

    • (c) 33.5%, if the contributor was born in 1944;

    • (d) 32.75% if the contributor was born in 1945;

    • (e) 32%, if the contributor was born in 1946; and

    • (f) 31.25%, if the contributor was born after 1946.

  • Marginal note:Definitions

    (3) For the purposes of subsection (2),

    Average Maximum Pensionable Earnings

    Average Maximum Pensionable Earnings means, with respect to any contributor, the average of the Year’s Maximum Pensionable Earnings for the year in which the contributor

    • (a) ceased to be employed in the public service, or

    • (b) becomes entitled to receive a retirement pension under the Canada Pension Plan or a provincial plan similar thereto,

    whichever is the earlier, and for each of the four preceding years; (moyenne des maximums des gains ouvrant droit à pension)

    Year’s Maximum Pensionable Earnings

    Year’s Maximum Pensionable Earnings has the same meaning as in the Canada Pension Plan. (maximum des gains annuels ouvrant droit à pension)

  • Marginal note:Air traffic controller benefits

    (4) For the purpose of paragraph (a) of the definition Average Maximum Pensionable Earnings in subsection (3) when applied in computing the annuity payable to a contributor pursuant to subsection 17(2), that contributor shall be deemed to have ceased to be employed in the public service at the time he ceased to be employed in operational service, as defined in section 15.

  • Marginal note:Circumstances where annuity to be increased

    (5) Where a person who was a contributor on December 31, 1965, and who has been employed in the public service substantially without interruption since that day has become entitled to an immediate annuity under this Part and

    • (a) the amount of the annuity, together with such amount as is determined in accordance with the regulations to be the amount of any retirement or disability pension to which that person is entitled under the Canada Pension Plan or a provincial pension plan or, in the case of a retirement pension, to which he would be entitled thereunder, if he applied therefor and it had not been commuted, that is attributable to contributions made thereunder in respect of his employment in the public service,

    is less than

    • (b) the amount of the annuity to which he would have been entitled under this Part if no deduction was made as required under subsection (2),

    the amount of the annuity payable to him under this Part shall, on application therefor by him in the manner prescribed by the regulations, be increased by the amount of the difference effective from such day as is determined in accordance with the regulations.

  • Marginal note:Exception

    (6) Subsection (5) does not apply to a person described therein during any period that a retirement pension is not payable to him.

  • Marginal note:Salary deemed to have been received during certain periods

    (7) For the purposes of subsection (1),

    • (a) a person who has to his credit pensionable service that includes any period of service in the forces specified in clause 6(1)(a)(iii)(B) is deemed to have received during that period such salary as was authorized as payable to him from time to time;

    • (b) a person who has to his credit pensionable service that includes a period

      • (i) during which that person, having been employed in the public service immediately prior to his enlistment in the forces, was on active service in the forces during World War I, not having been a civil servant within the meaning of the Superannuation Act, or was on active service in the forces during World War II, not having been a contributor under Part I of that Act, or

      • (ii) during which that person, having been a contributor under Part I of the Superannuation Act immediately prior to his enlistment in the forces and having resigned to enlist, was on active service in the forces during World War II,

      is deemed to have received, during that period in World War I or World War II, a salary at a rate equal to the rate of salary authorized to be paid to him immediately prior to his enlistment, except that in the case of a person who was employed in the public service immediately prior to his enlistment in the forces during one of those wars but was not so employed immediately prior to his enlistment in the forces during the other war, the rate of salary that is deemed to have been received by that person during the period in which he was on active service in the forces during the other war is the initial rate of salary authorized to be paid to him on subsequently becoming employed in the public service;

    • (c) a person who has to his credit pensionable service that includes a period

      • (i) during which that person was on active service in the forces during World War I or World War II, not having been employed in the public service immediately prior to his enlistment or, in the case of a person who elected after January 1, 1954 to pay for that period, not having been employed in the public service on a full-time basis immediately prior to his enlistment,

      • (ii) during which that person was engaged in pensionable employment, or

      • (iii) of service of a kind described in clause 6(1)(b)(iii)(C), (D) or (E),

      is deemed to have received during that period a salary at a rate equal to the initial rate of salary authorized to be paid to him on subsequently becoming employed in the public service;

    • (c.1) a person who has to that person’s credit pensionable service described in clause 6(1)(b)(iii)(M) or (N) is deemed to have received during that period such salary as was authorized as payable to that person from time to time;

    • (d) a person who has to the person’s credit pensionable service that includes a period during which that person was absent from the public service on leave of absence without pay is deemed to have received during that period a salary at a rate as prescribed in the regulations;

    • (e) where a person has to his credit pensionable service that includes any period of service for which he elected or might have elected under this Part to pay an amount calculated on the basis of his salary at the rate authorized to be paid to him on the most recent occasion on which he became a contributor under this Part, he shall be deemed to have received during that period a salary at that rate, notwithstanding paragraphs (b) and (c);

    • (f) a person who, during World War II, was a contributor under Part I of the Superannuation Act is deemed to have received during that period any annual increase that he would have received but for an order in council restricting payment of annual increases to employees in the public service by reason of the war; and

    • (g) where the rate of salary authorized to be paid to a person at any time before July 14, 1960 exceeded fifteen thousand dollars a year, the annual rate deemed to have been so authorized at that time shall be fifteen thousand dollars.

  • Marginal note:Computation of average annual salary

    (8) For the purposes of subparagraphs (1)(a)(ii) and (iii), any period of service during which a person is employed in the public service and is required to make contributions under subsection 5(3), or was required to make contributions under subsection 5(3), (3.1) or (4) as it read on December 31, 2012, is deemed to be a period of pensionable service to his or her credit.

  • Marginal note:Application

    (9) Subparagraphs (1)(a)(ii) and (iii), as enacted by subsection 15(1) of the Budget Implementation Act, 1999, apply with respect to benefits payable to or in respect of a person who contributes under section 5 or 65 on or after the day on which this subsection comes into force but do not apply to a person who became entitled to an annuity before the coming into force of this subsection, is re-employed in the public service and is a contributor referred to in section 29 and who, on ceasing to be re-employed, exercises an option in favour of a return of contributions or is only entitled to a return of contributions.

  • Marginal note:Application

    (10) The definition Average Maximum Pensionable Earnings in subsection (3), as enacted by subsection 15(2) of the Budget Implementation Act, 1999, applies only with respect to deductions from annuities made under subsection (2) that take effect on or after the day on which this subsection comes into force.

  • R.S., 1985, c. P-36, s. 11
  • 1992, c. 46, s. 8
  • 1996, c. 18, s. 26
  • 1999, c. 26, s. 15, c. 34, s. 63
  • 2003, c. 22, s. 225(E)
  • 2006, c. 4, s. 205
  • 2012, c. 31, s. 480
 
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