Jobs and Growth Act, 2012 (S.C. 2012, c. 31)

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: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: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: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: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.