Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Canadian Forces Superannuation Act (R.S.C., 1985, c. C-17)

Act current to 2022-11-28 and last amended on 2019-06-21. Previous Versions

PART ISuperannuation (continued)

Benefits: Definitions, etc. (continued)

Marginal note:Duration of payment, etc., to contributor

  •  (1) Where an annuity or an annual allowance becomes payable under this Part to a contributor, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, during the lifetime of the contributor and thereafter until the end of the month during which the contributor dies, and any amount in arrears thereof that remains unpaid at any time after their death shall be paid as provided in section 26, in respect of a death benefit.

  • Marginal note:Duration of payment, etc., to survivor or child

    (2) When an annual allowance becomes payable under this Part to a survivor or child, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, until the end of the month during which the recipient dies or otherwise ceases to be entitled to receive an annual allowance, and any amount in arrears that remains unpaid at any time after the death of the recipient shall be paid to the estate or succession of the recipient or, if less than one thousand dollars, as the Minister may direct.

  • R.S., 1985, c. C-17, s. 11
  • 1999, c. 34, s. 124
  • 2003, c. 26, s. 8

Marginal note:Revocation of option

 If a contributor has exercised an option under this Part, the option may be revoked and a new option exercised by the contributor, in accordance with the regulations.

  • R.S., 1985, c. C-17, s. 12
  • 2003, c. 26, s. 9

Marginal note:Interest on return of contributions

 For the purposes of the definition return of contributions in section 10, interest shall be calculated in the manner that the regulations provide and on the balances that are determined in accordance with the regulations,

  • (a) at the rate of four per cent, compounded annually, for any period before January 1, 2001; and

  • (b) at the rates established in the regulations made under paragraph 50(1)(j) compounded quarterly, for any period beginning on or after January 1, 2001.

  • R.S., 1985, c. C-17, s. 13
  • 1999, c. 34, s. 125
  • 2003, c. 26, s. 10

 [Repealed, 2003, c. 26, s. 11]

Annuities: How Computed

Marginal note:Computation of annuities

  •  (1) The amount of any annuity to which a contributor may become entitled under this Act 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 pay 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 pay 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 pay received by the contributor during the period referred to in subparagraph (a)(ii) or (iii), as applicable, and

      • (iii) the annual rate of pay that is fixed by the regulations made under paragraph 50(1)(g), 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 a member of the regular force.

  • 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 Act an amount equal to the percentage, as set out in subsection (2.1), of

    • (c) the average annual pay 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 or after he or she has attained the age of eighteen years, whichever is the later, 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 he or she ceased to be a member of the regular force 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:Pay deemed to have been received during certain periods

    (4) For the purposes of this section,

    • (a) a person who has to his credit pensionable service that includes any period described in any of clauses 6(b)(ii)(A) to (H) shall be deemed to have received during that period pay at a rate equal to the rate of pay on the basis of which the amount required by this Act to be paid by him for that period of service was determined.

    • (b) [Repealed, 1992, c. 46, s. 40]

  • Marginal note:Computation of average annual pay

    (5) For the purposes of subparagraphs (1)(a)(ii) and (iii), a period of service during which a person continues to be a member of the regular force and is required to make contributions under subsection 5(2), or was required to make contributions under subsection 5(2), (3) 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

    (6) Subparagraphs (1)(a)(ii) and (iii), as enacted by subsection 14(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 75 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 and is a person described in section 41 and who is only entitled to a return of contributions in respect of the period of service in the regular or reserve force after the time of his or her re-enrollment within the meaning of that section.

  • Marginal note:Application

    (7) The definition Average Maximum Pensionable Earnings in subsection (3), as enacted by subsection 14(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. C-17, s. 15
  • 1992, c. 46, s. 40
  • 1999, c. 26, s. 14, c. 34, s. 127
  • 2003, c. 26, s. 13
  • 2006, c. 4, s. 203
  • 2012, c. 31, s. 469

Benefits Payable to Contributors

Marginal note:Immediate annuity

  •  (1) A contributor who ceases to be a member of the regular force and who has to their credit two or more years of pensionable service is entitled to an immediate annuity if

    • (a) they have completed not less than 25 years of Canadian Forces service as prescribed by regulations made under paragraph 50(1)(m);

    • (b) they have reached 60 years of age;

    • (c) they have reached 55 years of age and have to their credit not less than 30 years of pensionable service;

    • (d) they are disabled and have to their credit not less than 10 years of pensionable service; or

    • (e) they cease, otherwise than voluntarily, to be a member of the regular force because of a reduction in the maximum number of officers or non-commissioned members of the regular force authorized by the Governor in Council under section 15 of the National Defence Act or they cease, otherwise than voluntarily, to be a member of the regular force in any circumstances specified by the Treasury Board, and

      • (i) they have reached 55 years of age and have to their credit not less than 10 years of pensionable service, or

      • (ii) they have to their credit not less than 20 years of pensionable service.

  • Marginal note:Regulations

    (2) Despite paragraph (1)(a), the Governor in Council may make regulations establishing, for officers, according to their rank, a number of years of Canadian Forces service greater than the minimum number of 25 years referred to in that paragraph and providing for that number to be reduced to 25 years over a maximum period of five years from the coming into force of this section, in the case of

    • (a) contributors who are members of the regular force on the coming into force of this section; and

    • (b) contributors who are entitled to an annuity on the coming into force of this section and who are subsequently re-enrolled in the regular force.

  • R.S., 1985, c. C-17, s. 16
  • 2003, c. 26, s. 14

Marginal note:Deferred annuity

 A contributor who ceases to be a member of the regular force, who has to their credit two or more years of pensionable service and who is not entitled to an immediate annuity, is entitled to a deferred annuity.

  • R.S., 1985, c. C-17, s. 17
  • 2003, c. 26, s. 14

Marginal note:Annual allowance

  •  (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.

  • R.S., 1985, c. C-17, s. 18
  • 1999, c. 34, s. 130
  • 2003, c. 26, s. 14

Marginal note:Alternative annuity for certain members

  •  (1) Subject to regulations made under subsection (2), a contributor who ceases to be a member of the regular force, having been a member continuously from the day immediately before the coming into force of this section until the day on which they ceased to be a member, is entitled, at their option, in place of any other benefit under this Part to which they would otherwise be entitled in respect of the pensionable service that they have to their credit, to an annuity, which may be adjusted in accordance with those regulations, payable from the day on which they cease to be a member of the regular force.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations prescribing the circumstances in which a contributor may exercise an option under subsection (1), the manner of and time for exercising an option and the manner in which the amount of an annuity may be adjusted.

  • R.S., 1985, c. C-17, s. 19
  • 2003, c. 26, s. 14

Marginal note:Return of contributions

 A contributor who ceases to be a member of the regular force and who has to their credit less than two years of pensionable service is entitled to a return of contributions.

  • R.S., 1985, c. C-17, s. 20
  • 2003, c. 26, s. 14

Marginal note:Benefit payable in case of disability after retirement

  •  (1) A contributor who, not having reached 60 years of age but having become entitled under this Part to a deferred annuity or to an annual allowance, becomes entitled to a disability pension under the Canada Pension Plan or a provincial pension plan, ceases to be entitled to that deferred annuity or annual allowance, as the case may be, and becomes entitled to an immediate annuity.

  • Marginal note:Adjustment

    (2) If a contributor ceases under subsection (1) to be entitled to an annual allowance, the immediate annuity shall be adjusted in accordance with the regulations to take into account the amount of the annual allowance that the contributor has received.

  • Marginal note:Benefit where entitlement to disability pension ceases

    (3) A contributor who, not having reached 60 years of age but having become entitled under subsection (1) to an immediate annuity, has ceased to be entitled to a disability pension under the Canada Pension Plan or a provincial pension plan ceases to be entitled to that immediate annuity and becomes entitled to a deferred annuity or to the annual allowance to which they were originally entitled, as the case may be.

  • R.S., 1985, c. C-17, s. 21
  • 2003, c. 26, s. 14
 
Date modified: