Public Service Superannuation Regulations (C.R.C., c. 1358)

75 An election ceases to have effect on the earliest of

• (a) the day on which the spouse dies,

• (b) the day on which the annulment of the marriage of the contributor and the spouse takes effect, and

• (c) the day on which the divorce between the contributor and the spouse takes effect.

Effective Dates of Reduction

• 76 (1) Subject to subsections (2) to (5), the amount of the reduction of a contributor’s immediate annuity or annual allowance, calculated in accordance with section 68, shall be subtracted from the monthly instalment of the immediate annuity or annual allowance payable to the contributor, effective on the first day of the second month after the month in which the election is made.

• (2) Where a contributor is entitled to a deferred annuity and the deferred annuity has not become payable on the day the election is made, the amount of the reduction shall be subtracted from the monthly instalments of the deferred annuity payable to the contributor, effective on the later of

  • (a) the first day of the month after the month in which the annuity becomes payable, and

  • (b) the first day of the second month after the month in which the election is made.

• (3) Where a contributor has revised the level of reduction pursuant to subsection 74(1), the revised amount of the reduction shall be subtracted from the monthly instalments of the annuity or annual allowance payable to the contributor, effective on the first day of the month after the month in which the revision was made.

• (4) In the case of a contributor described in section 70, the revised amount of the reduction becomes effective on the first day of the month after the month in which the immediate annuity or annual allowance becomes payable.

• (5) In the case of a contributor described in section 71, the adjusted amount of the reduction is effective on the first day of the month following the month in which the deferred annuity becomes payable.

Revocation

77 For the purposes of subsection 13.1(4) of the Act, an election made by a contributor is deemed to be revoked on the day on which the contributor is required to contribute to the Superannuation Account pursuant to subsection 5(1) of the Act.

Termination of Reduction

78 Where an election is revoked pursuant to subsection 74(2), ceases to have effect pursuant to section 75, or is deemed to be revoked pursuant to section 77, the reduction ceases on the first day of the month in which the election is revoked or ceases to have effect.

Surviving Spouse Allowance

79 The immediate annual allowance to which a spouse is entitled on the death of the contributor who had made an election, is equal to an amount determined in accordance with clause 68(b)(ii)(B), if paragraph 68(b) were read without reference to supplementary benefits payable under Part III of the Act.

Limit on Annual Allowance on Involuntary Retirement

80 Despite clause 13(1)(c)(ii)(C) or 13.001(1)(c)(ii)(C) of the Act, the amount of the annual allowance payable under either of those clauses to a contributor who ceases to be employed after November 27, 1997 shall not exceed the amount determined by the formula set out in paragraph 8503(3)(c) of the Income Tax Regulations, as that paragraph read on January 15, 1992.

• 80.1 (1) Notwithstanding Part I of the Act, the amount of an annuity or annual allowance payable to a contributor in respect of a period of service prior to January 1, 1990 that is not service described in subsection 8504(7) of the Income Tax Regulations shall not exceed the amount determined by the formula in paragraph 8504(6)(b) of those Regulations, as that subsection and that paragraph read on January 15, 1992.

• (2) The limit set out in subsection (1) applies in respect of a contributor who ceases to be employed on or after the coming into force of paragraph 41.1(1)(c) of the Retirement Compensation Arrangements Regulations, No. 1.

Interest on Return of Contributions

81 For the purposes of subsection 10(9) of the Act, for any period before January 1, 1997, interest shall be calculated and the balances determined under subsection 10(9) of the Act as it read on December 31, 1996.

• 82 (1) For the purposes of subsection 10(9) of the Act, for any period on or after January 1, 1997, interest shall be calculated and balances determined in accordance with this section and shall be calculated in respect of every quarter up to and including the quarter preceding the quarter in which the return of contributions is paid.

• (2) In this section, 1996 closing balance means the aggregate of all amounts referred to in paragraphs (a), (b) and (c) of the definition return of contributions in subsection 10(1) of the Act, as it read on December 31, 1996, that have been paid by the contributor or transferred to the credit of the contributor before January 1, 1997, plus the interest thereon calculated in accordance with section 81.

• (3) In this section, March 31, 2002 closing balance means the aggregate of

  • (a) the 1996 closing balance and the interest on it calculated in accordance with subsection (4), and

  • (b) the aggregate of all amounts referred to in paragraphs (a), (b) and (c) of the definition return of contributions in subsection 10(1) of the Act that have been paid by the contributor or transferred to the credit of the contributor on or after January 1, 1997 up to and including March 31, 2002 and the interest thereon calculated in accordance with subsection (4).

• (4) For the purposes of paragraphs 10(9)(b) and (c) of the Act in respect of each quarter that begins on or after January 1, 1997 and ends before April 1, 2002, interest shall be calculated at the rate determined under subsection 46(2) on the aggregate of

  • (a) the 1996 closing balance,

  • (b) the aggregate of all amounts referred to in paragraphs (a), (b) and (c) of the definition return of contributions in subsection 10(1) of the Act that have been paid by the contributor or transferred to the credit of the contributor on or after January 1, 1997 and before the end of the preceding quarter, and

  • (c) interest calculated in accordance with this subsection as of the end of the quarter preceding the quarter for which the interest is being calculated.

• (5) For the purposes of paragraph 10(9)(c) of the Act, in respect of each quarter that begins on or after April 1, 2002, interest shall be calculated at the rate determined under subsection (6) on the aggregate of

  • (a) the March 31, 2002 closing balance,

  • (b) the aggregate of all amounts referred to in paragraphs (a), (b) and (c) of the definition return of contributions in subsection 10(1) of the Act that have been paid by the contributor or transferred to the credit of the contributor on or after April 1, 2002 and before the end of the preceding quarter, and

  • (c) the interest calculated in accordance with this subsection as of the end of the quarter preceding the quarter for which interest is being calculated.

• (6) The rate of interest to be used for the purpose of subsection (5) is the effective quarterly rate determined from the annual rate of return of the Public Service Pension Fund published in the previous fiscal year’s annual report for the Public Sector Pension Investment Board as laid before each House of Parliament under subsection 48(3) of the Public Sector Pension Investment Board Act.

• (7) If the annual rate of return referred to in subsection (6) is negative, the rate of interest shall be zero per cent.

Transfer Value

Definitions

• 83 (1) The following definitions apply in sections 84 to 99.

  new employer

  new employer means the employer of a person who has ceased to be employed in the public service upon the divestiture of the administration of a service by Her Majesty and who, being subject to regulations made under paragraph 42.1(1)(u) of the Act, is not entitled to a benefit or to exercise an option for a benefit under the Act until ceasing to be employed by that employer. (nouvel employeur)

  pensionable age

  pensionable age means, for Group 1 contributors, 60 years of age and for Group 2 contributors, 65 years of age. (âge ouvrant droit à pension)

  transfer value service

  transfer value service[Repealed, SOR/2016-203, s. 35]

  valuation day

  valuation day means

  • (a) April 30, 1997, if a contributor exercised an option in favour of a transfer value on or after June 20, 1996 and before April 30, 1997; or

  • (b) the day on which the transfer value referred to in section 13.01 of the Act is transferred, in any other case. (date d’évaluation)

• (2) [Repealed, SOR/2024-201, s. 1]

Eligibility

• 84 (1) Subject to subsection (3), a contributor described in subsection 13.01(1) of the Act is entitled to exercise an option for a transfer value determined in accordance with sections 90 to 95, if the contributor

  • (a) ceases to be employed in the public service or by a new employer on or after April 30, 1997 and is more than ten years younger than pensionable age on the date of ceasing to be employed in the public service or, in the case of a contributor who is subsequently employed by a new employer, on the date of ceasing to be employed by the new employer;

  • (b) ceased to be employed in the public service before April 30, 1997 and was more than ten years younger than pensionable age on the date of ceasing to be so employed and on June 20, 1996; or

  • (c) is more than ten years younger than pensionable age on the date of becoming entitled to a deferred annuity pursuant to section 28 of the Act.

• (2) A contributor described in paragraph (1)(b) includes a person who has opted or is deemed to have opted for a deferred annuity and a person who has opted for an annual allowance that is not yet payable.

• (3) A contributor described in paragraph (1)(a) is not entitled to exercise an option for a transfer value if the contributor has exercised an option for any other benefit under the Act.

Time Limits

85 A contributor described in paragraph 84(1)(a) who wishes to exercise an option for a transfer value must do so within one year after the date on which the contributor ceases to be employed in the public service or, in the case of a contributor who is subsequently employed by a new employer, within one year after the date on which the contributor ceases to be employed by the new employer.

• 86 (1) Subject to subsection (2), a contributor described in paragraph 84(1)(b) who wishes to exercise an option for a transfer value must do so on or before the later of

  • (a) April 30, 1998, and

  • (b) the date that is six months after the date on which the Minister sends a written notice to the contributor stating that the contributor is entitled to exercise an option for a transfer value.

• (2) A contributor described in paragraph 84(1)(b) may exercise an option for a transfer value after the date provided for in subsection (1), but within the period provided for in subsection (4), where the contributor establishes that the notice referred to in paragraph (1)(b) was not received.

• (3) Where a contributor establishes that the notice referred to in paragraph (1)(b) was not received, the Minister shall forthwith send a written notice to the contributor stating that the contributor is entitled to exercise an option for a transfer value.

• (4) An option may be exercised under subsection (2) within three months after the date on which the notice referred to in subsection (3) is sent, but in no case may an option be exercised after the contributor has commenced to receive an annuity or an annual allowance under the Act in respect of the contributor’s pensionable service.

87 A contributor described in paragraph 84(1)(c) who wishes to exercise an option for a transfer value must do so on or before the later of

• (a) April 30, 1998, and

• (b) the date that is one year after the date on which the contributor becomes entitled to a deferred annuity pursuant to section 28 of the Act.

Form and Manner of Exercise of Option

• 88 (1) An option for a transfer value must be

  • (a) exercised in writing;

  • (b) dated and signed by the contributor; and

  • (c) sent to the Minister, or to a person designated by the Minister, within the applicable period referred to in sections 85 to 87.

• (2) An option for a transfer value is deemed to be exercised on the date on which it is sent in accordance with paragraph (1)(c).

Void Option

89 If a contributor exercises an option for a transfer value under section 13.01 of the Act and is re-employed in the public service and is required to make contributions under section 5 of the Act before the transfer value has been paid, the exercise of the option for the transfer value is void.

Determination of Transfer Value

90 The transfer value to which a contributor is entitled is equal to the greater of

• (a) the actuarial present value on valuation day of the accrued pension benefits that would be payable to or in respect of the contributor had the contributor become entitled to a deferred annuity under section 13 or 13.001 of the Act on ceasing to be employed in the public service, and

• (b) the amount of a return of contributions that would be payable on valuation day if the contributor were eligible to receive a return of contributions.

91 The determination of the actuarial present value of the accrued pension benefits referred to in subsection 90(1) is subject to the following rules:

• (a) supplementary benefits are to be increased to take into account the period beginning on the later of January 1 of the year in which valuation day occurs and the date on which the contributor ceased to be employed in the public service and ending on valuation day; and

• (b) the possibility that the contributor could receive an annual allowance is to be excluded.

• 92 (1) In determining the actuarial present value of the accrued pension benefits referred to in subsection 90(1), the following actuarial assumptions are to be used:

  • (a) the mortality rates for former contributors and survivors, including mortality projection factors, shall be those used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act;

  • (b) the interest rates shall be the interest rates for fully indexed pensions — adjusted by the interest rates for unindexed pensions to take into account Part III of the Act — determined in accordance with the section “Pension Commuted Values” of the Standards of Practice — Practice-Specific Standards for Pension Plans, published by the Canadian Institute of Actuaries, as amended from time to time;

  • (c) the probability that a contributor will be survived by children shall be based on the rates regarding the assumed number, average age and eligibility status of children at the death of a contributor used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act;

  • (d) the probability that a contributor will become entitled to a benefit by reason of disability shall be based on the disability incidence rates used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act, taking into account the probability set out in that report that, where termination of employment was on account of disability, there would be immediate eligibility for Canada Pension Plan or Quebec Pension Plan disability benefits; and

  • (e) the probability that a contributor will have a survivor shall be based on the rates regarding the average age and eligibility status of survivors on the date of the death of a contributor used in the preparation of the most recent actuarial valuation report.

  • (f) [Repealed, SOR/2016-203, s. 37]

• (2) The actuarial valuation report referred to in paragraphs (1)(a) and (c) to (e) is the actuarial valuation report most recently laid before Parliament in accordance with section 45 of the Act before valuation day or, if that report was laid before Parliament in the month in which valuation day occurs or in the preceding month, the report that was laid before Parliament immediately before that report.