Public Service Superannuation Regulations

6.1 (1) Where the surviving spouse of a contributor has received an amount set out in subsection 25(2) of the Act, as that provision read prior to June 29, 1989, the Minister shall, in accordance with subsections (2) and (4), deduct an equivalent amount from the surviving spouse’s annual allowance payments made pursuant to section 34 of the Statute Law (Superannuation) Amendment Act.

(2) The deductions taken pursuant to subsection (1)

• (a) shall be equal to 10 per cent of the gross amount of the annual allowance payable to the surviving spouse, except that the last deduction taken may be less than the preceding deductions;

• (b) shall be taken from each payment, commencing on the date on which this section comes into force; and

• (c) shall end on the date of the earlier of the following occurrences, namely,

  • (i) the death of the surviving spouse, and

  • (ii) the full repayment of the amount referred to in subsection (1).

(3) A surviving spouse from whose annual allowance deductions are taken pursuant to this section may, at any time, repay the amount referred to in subsection (1) by making

• (a) a lump sum payment;

• (b) monthly payments in an amount greater than 10 per cent of the gross monthly amount of the person’s annual allowance; or

• (c) both a lump sum payment and monthly payments paid over a period equal to or less than that originally scheduled.

(4) Where deductions taken in the manner set out in subsection (2) would cause financial hardship to the surviving spouse, the Minister may reduce the deductions taken but such deductions shall not in any case be less than five per cent of the gross monthly amount of the annual allowance, or $1, whichever is greater.