Annuities Agents Pension Regulations (C.R.C., c. 319)

Short Title

1 These Regulations may be cited as the Annuities Agents Pension Regulations.

Interpretation

2 In these Regulations,

a(f) Ultimate

a(f) Ultimate and a(f) and a(m) Ultimate Tables mean the tables so entitled appearing in the Mortality of Annuitants 1900-1920 published on behalf of the Institute of Actuaries and The Faculty of Actuaries in Scotland, 1924; (a(f) Ultimate eta(f) and a(m) Ultimate)

agent

agent means a person engaged as an agent of the Minister of Employment and Immigration pursuant to the Government Annuities Regulations to sell annuities under the Government Annuities Act on a full-time basis and who, at the time of becoming engaged as such, has not attained the age of 65 years; (agent)

annuity

annuity means an annuity computed in accordance with section 7; (pension)

contributor

contributor means an agent and, unless the context otherwise requires, a former agent to whom or in respect of whom an annuity or other benefit is payable or may become payable in accordance with these Regulations; (contributeur)

current service

current service means service performed on or after the effective date and includes any period during which a contributor is on an authorized leave of absence and in respect of which contributions are paid by the contributor; (service courant)

deferred annuity

deferred annuity means an annuity that becomes payable to a contributor at the time he reaches 65 years of age; (pension à jouissance différée)

disabled

disabled means incapable of pursuing regularly any substantially gainful occupation; (invalide)

earnings

earnings mean the commissions paid to an agent for the performance of his duties and determined in accordance with the scale of commissions from time to time approved by the Minister of Employment and Immigration; (gains)

effective date

effective date means October 1, 1961; (date d’entrée en vigueur)

immediate annuity

immediate annuity means an annuity that becomes payable to a contributor immediately upon his becoming entitled thereto; (pension à jouissance immédiate)

Minister

Minister means the President of the Treasury Board; (ministre)

misconduct

misconduct means wilful disobedience of the provisions of any statute, regulation or directive governing the performance of the official duties of an agent, the breach of which involves the termination of his engagement, malversation in office, or abandonment of office; (inconduite)

past service

past service means service performed prior to the effective date; (service antérieur)

Public Service

Public Service has the same meaning as in the Public Service Superannuation Act; (Fonction publique)

recipient

recipient means a person to whom any benefit has become payable under these Regulations; (bénéficiaire)

return of contributions

return of contributions means the return of the amount paid by the contributor into the Annuities Agents Pension Account, without interest; (remise des contributions)

service

service means the performance by an agent of the duties assigned to him by or on behalf of the Minister of Employment and Immigration in accordance with the terms of his engagement, and, where military service with the Canadian Armed Forces during the Second World War constitutes a break in the service, includes that military service. (service)

Pensions

3 Subject to these Regulations, an annuity or other benefit herein specified shall be paid to or in respect of every agent who is required to contribute, or on whose behalf contributions are paid, into the Annuities Agents Pension Account in accordance with these Regulations, and who dies or ceases to be engaged, which annuity or other benefit shall, subject to these Regulations, be based upon the number of years of service to the credit of that person at the time he dies or ceases to be engaged.

Annuities Agents Pension Account

4 There shall be an account in the Consolidated Revenue Fund to be known as the Annuities Agents Pension Account.

Payments in and out of the Annuities Agents Pension Account

5 Every agent is required to contribute to the Annuities Agents Pension Account five per cent of his earnings in respect of current service, by reservation from earnings.

• 6 (1) There shall be credited to the Annuities Agents Pension Account in each fiscal year,

  • (a) on the last day of each quarter of such year, namely, on the last day of June, September, December and March, respectively, an amount representing interest which shall be calculated at the rate of one per cent on the balance to the credit of the Account on the last day of the preceding quarter;

  • (b) such amount as is determined by the Minister of Finance to be required to meet the cost of the benefits chargeable against the Account for the year in respect of current service of contributors after taking into consideration the contributions paid into the Account by contributors; and

  • (c) such amount as is estimated by the Minister of Finance to be required to meet the costs of the benefits payable during the year under these Regulations in respect of past service of contributors.

• (2) All amounts required for the payment of annuities or other benefits herein specified shall be paid out of the Annuities Agents Pension Account.

Computation of Annuities

• 7 (1) For the purposes of this section, average annual earnings means

  • (a) the average annual earnings earned by a contributor during the six-year period immediately preceding his 65th birthday or the effective date, whichever first occurs;

  • (b) in the case of a contributor who has less than six years of past service to his credit, the average annual earnings earned by the contributor during the period of past service to his credit; or

  • (c) in the case of a contributor who

    • (i) had less than six years of past service to his credit before his 65th birthday, and

    • (ii) has a total of six or more years of past service to his credit before ceasing to be engaged as an agent,

    the average annual earnings earned by the contributor during his first six years of past service.

• (2) Subject to subsection (3), the amount of any annuity to which a contributor may become entitled under these Regulations is an amount equal to the aggregate of

  • (a) the sum of

    • (i) 1 1/2 per cent of the contributor’s annual earnings not in excess of $6,000, and

    • (ii) one per cent of the contributor’s annual earnings in excess of $6,000

    for each year of current service to the credit of the contributor; and

  • (b) the sum of

    • (i) 3/4 of one per cent of the contributor’s average annual earnings not in excess of $6,000, and

    • (ii) 1/2 of one per cent of the contributor’s average annual earnings in excess of $6,000

    multiplied by the number of years of past service to the credit of the contributor.

• (3) The amount of any annuity to which a contributor, who ceased to be engaged as an agent prior to the effective date to become employed in the Government Annuities Branch of the Canada Employment and Immigration Commission, may become entitled under these Regulations, is an amount equal to the product of

  • (a) the sum of

    • (i) 3/4 of one per cent of the contributor’s average annual earnings not in excess of $6,000, and

    • (ii) 1/2 of one per cent of the contributor’s average annual earnings in excess of $6,000,

    earned during the six-year period immediately preceding the date he ceased to be engaged as an agent, multiplied by

  • (b) the number of years of past service to the credit of the contributor.

Benefits

8 A contributor who ceases to be engaged as an agent, having to his credit less than five years of service, is entitled to a return of contributions.

• 9 (1) The following provisions are applicable in respect of a contributor who, having ceased to be engaged as an agent, has to his credit five or more years of service, namely,

  • (a) if he ceases to be engaged, having reached 65 years of age, for any reason other than misconduct, he is entitled to an immediate annuity;

  • (b) if he ceases to be engaged, not having reached 65 years of age but having reached 60 years of age, for any reason other than disability or misconduct, he is entitled to

    • (i) a deferred annuity, or

    • (ii) an immediate annuity, which is the actuarial equivalent of a deferred annuity, or

    • (iii) a return of contributions

    at his option;

  • (c) if he ceases to be engaged, not having reached 65 years of age, by reason of having become disabled, he is entitled to

    • (i) an immediate annuity, or

    • (ii) a return of contributions

    at his option;

  • (d) if he ceases to be engaged, not having reached 60 years of age, for any reason other than disability or misconduct, he is entitled to

    • (i) a deferred annuity, or

    • (ii) a return of contributions

    at his option;

  • (e) if he becomes disabled, not having reached 65 years of age but having become entitled to a deferred annuity under paragraph (b) or (d), he ceases to be entitled to that deferred annuity and becomes entitled to an immediate annuity; and

  • (f) if he ceases to be engaged by reason of misconduct, he is entitled to

    • (i) a return of contributions, or

    • (ii) with the consent of the Treasury Board, the whole or any part specified by the Treasury Board of any benefit to which he would have been entitled under this section had he, at the time of his dismissal, ceased to be engaged for any reason other than misconduct, except that in no case shall the capitalized value thereof be less than the return of contributions referred to in subparagraph (i).

• (2) A contributor who ceased to be engaged as an agent prior to the effective date, to become employed in the Government Annuities Branch of the Canada Employment and Immigration Commission, is entitled to an immediate annuity when he ceases to be employed in the Public Service or when he attains the age of 65 years, whichever is the later.

• (3) For the purposes of this section, the actuarial equivalent of a deferred annuity shall be determined according to the schedule.

• (4) Where by this section a contributor is entitled to a benefit at his option, if the contributor fails to exercise that option within one year from the time he became so entitled, he shall be deemed to have exercised it in favour of a deferred annuity, if he is entitled to one, otherwise he shall be deemed to have exercised it in favour of a benefit other than a return of contributions.

Payments to Widows

• 10 (1) Upon the death of a contributor who, at the time of his death, had less than five years of service to his credit, the widow of the contributor is immediately entitled to a return of contributions.

• (2) Upon the death of a contributor who, at the time of his death, was entitled under section 9 to an immediate annuity or a deferred annuity, the widow of the contributor is immediately entitled to an annual allowance equal to one-half of the amount of the annuity to which the contributor was entitled.

• (3) Upon the death of a contributor who, at the time of his death, was entitled under section 9 to an immediate annuity, which is the actuarial equivalent of a deferred annuity, the widow of the contributor is immediately entitled to an annual allowance equal to one-half of that deferred annuity.

• (4) Upon the death of a contributor who was engaged as an agent at the time of his death, having to his credit five or more years of service, the widow of the contributor is immediately entitled to the annual allowance to which she would have been entitled under subsection (2) had the contributor, immediately prior to his death, become entitled to an annuity under paragraph 9(1)(a).

11 When by these Regulations the widow of a contributor is entitled to an annual allowance herein specified, payment of the allowance shall be suspended in the event of her remarriage but shall be resumed in the event of the death of her husband by that marriage, but, in lieu of any further claim to payment of the allowance, an amount equal to the return of contributions less the total amount of the payments made to the contributor or to his widow under these Regulations may be paid to the widow, upon request by her to the Minister in writing, at any time before the death of her husband by that marriage.

12 If, upon the death of a contributor, it appears to the Treasury Board that the widow of the contributor had, for a number of years immediately prior to his death, been living apart from him under circumstances that would have disentitled her to an order for separate maintenance under the laws of the province in which the contributor was ordinarily resident, and if the Treasury Board so directs, having regard to the surrounding circumstances, including the welfare of any children involved, she shall be deemed, for the purposes of these Regulations, to have predeceased the contributor.

• 13 (1) Notwithstanding anything in these Regulations, the widow of a contributor is not entitled to any annual allowance under these Regulations if that contributor married after having become entitled under these Regulations to an annuity, unless, subsequent to his marriage, he became or continued to be a contributor under these Regulations.

• (2) Notwithstanding anything in these Regulations, where a contributor dies within five years after his marriage, having been a contributor under these Regulations at the time of his marriage or at any time since his marriage, the amount of any annual allowance to which his widow may be entitled under these Regulations shall, if the Treasury Board is not satisfied that anticipation of impending death was not a consideration affecting the agreement to marry, be reduced by

  • (a) 100 per cent, if the contributor dies within one year after his marriage,

  • (b) 98 per cent, if the contributor dies within the 13th month after his marriage,

  • (c) 96 per cent, if the contributor dies within the 14th month after his marriage,

  and so on, by like progressions, until the 60th month after his marriage, but not thereafter.

• (3) Notwithstanding anything in these Regulations, the amount of any annual allowance to which the widow of a contributor may be entitled under these Regulations shall, if the age of the contributor exceeded that of his widow by 20 or more years, be reduced so that the ratio of the reduced allowance to the allowance is equal to the ratio of the value of a life annuity of $1 per annum to a person aged 20 years less than the contributor at the date of his death to the value of a life annuity of $1 per annum to a person of the age of the widow at that date.

• (4) For the purposes of subsection (3), the value of a life annuity of $1 per annum shall be calculated in accordance with a(f) Ultimate Table, together with interest at the rate of four per cent per annum.

Benefits, How Payable

• 14 (1) Subject to these Regulations, where an annuity or annual allowance becomes payable under these Regulations, it shall be paid in equal monthly instalments commencing on the first day of the month coincident with or immediately following the day on which the recipient becomes entitled thereto and it shall continue to be paid on the first day of each month thereafter until the first day of the month during which the recipient dies and any amount in arrears thereof that remains unpaid at any time after his death shall, in the case of an annuity payable to a contributor who died leaving a widow, be paid in a lump sum as though that amount were a return of contributions to which his widow is entitled under these Regulations, and shall, in any other case, be paid to the recipient’s estate or, if less than $500, as the Treasury Board may direct.

• (2) Where a contributor or the widow of a contributor requests that an annuity or annual allowance be paid otherwise than in equal monthly instalments, or where the Minister is of opinion that the payment of an annuity or annual allowance in equal monthly instalments is not practicable, the Minister may direct, if such direction does not result in the payment of an aggregate amount greater than the aggregate amount of equal monthly instalments otherwise payable in accordance with subsection (1), that the annuity or annual allowance be paid, in arrears in equal instalments, quarterly, semi-annually or annually.

• (3) Where a contributor has become entitled under these Regulations to an annuity or an annual allowance the monthly instalments of which would amount to less than $10 each, there may be paid to that contributor, upon request by him to the Minister in writing within three months from the time when he became so entitled, an amount determined in accordance with subsection (4) to be the capitalized value of the said annuity, which payment shall be in lieu of any other benefit under these Regulations.

• (4) Where pursuant to these Regulations an annuity may be capitalized, the capitalized value shall be computed, where the contributor ceases to be engaged as an agent by reason of

  • (a) age, according to the bases set out in a(f) and a(m) Ultimate Table together with interest at the rate of four per cent per annum; and

  • (b) illness, according to the mortality basis set out in the Actuarial Report on the Superannuation Account, 1947, together with interest at the rate of four per cent per annum.

• (5) For the purposes of subsection (4), the mortality basis set out in the Actuarial Report on the Superannuation Account, 1947, means the select mortality rates derived from the 1924-1947 experience of Public Service ill-health pensioners for use in the 1947 valuation of the Superannuation Account, examples of which appear on page 9 of the Report on Actuarial Examination of the Superannuation Account in the Consolidated Revenue Fund for the period March 31, 1931, to December 31, 1947.

Residual Amounts

15 Where, upon the death of a contributor, there is no widow to whom an allowance provided in these Regulations may be paid, or where the widow to whom such allowance may be paid dies or ceases to be entitled thereto and no other amount may be paid to her under these Regulations, any amount by which the amount of a return of contributions exceeds the aggregate of all amounts paid to the widow and to the contributor under these Regulations shall be paid to the contributor’s estate, or, if less than $500, as authorized by the Treasury Board.

Disability Payments

• 16 (1) A contributor is not entitled to an annuity under these Regulations in respect of a disability unless

  • (a) he has undergone a medical examination; and

  • (b) the Medical Services Branch, National Capital Zone of the Department of National Health and Welfare has certified that he is disabled.

• (2) A contributor who

  • (a) is less than 65 years of age, and

  • (b) is in receipt of an annuity payable under these Regulations in respect of a disability previously incurred by him,

  shall undergo medical examinations until he reaches 65 years of age at such times and at such places as the Minister may determine.

• (3) Where a contributor who has undergone a medical examination in accordance with subsection (2) is certified by the Medical Services Branch, National Capital Zone of the Department of National Health and Welfare, to have regained his health or to be capable of performing the duties of an agent, payment of the annuity shall be suspended but shall be resumed, subject to these Regulations, at such time as he reaches 65 years of age, or again becomes disabled.

• (4) A report in accordance with the form prescribed by the Minister concerning each medical examination undergone by a contributor to whom subsection (1) or (2) applies shall be made to the Minister as soon as practicable after the medical examination is conducted.

• (5) Unless otherwise determined by the Minister, a medical examination required by these Regulations shall be undergone at the expense of the contributor.

Diversion of Amounts Payable in Certain Cases

• 17 (1) Where any court in Canada of competent jurisdiction has made an order requiring a recipient to pay an amount to his spouse, former spouse, child or other dependent and the court has issued to the Minister a notice, in a form prescribed by the Minister, requesting him on behalf of the recipient to pay to the person named in the order an amount specified in the notice, the amount so specified or any lesser amount specified by the Minister shall, if the Minister so directs, be deducted either in a lump sum or in instalments from any amount that is or is about to become payable to the recipient under these Regulations and shall be paid to the person named in the order.

• (2) Where a contributor or a person to whom any benefit has become payable under these Regulations, has disappeared under circumstances that, in the opinion of the Minister, raise beyond a reasonable doubt a presumption that he is dead, the Minister may issue a certificate declaring that such person is presumed to be dead and stating the date upon which his death is presumed to have occurred, and upon the issue of the certificate such person shall be deemed, for all purposes of these Regulations, to have died on the date so stated in the certificate.

• (3) Where, for any reason, a recipient is unable to manage his own affairs, or where he is incapable of managing his own affairs and there is no person entitled by law to act as his committee, the Minister may pay to any person designated by the Treasury Board to receive payment on behalf of the recipient any amount that is payable to the recipient under these Regulations.

• (4) For the purpose of these Regulations, any payment made by the Minister pursuant to subsection (1) or (3) is deemed to be a payment to the recipient in respect of whom such payment is made.

Contributors Re-engaged as Agents or Employed in the Public Service

18 If a contributor who is entitled to an annuity under section 9 is re-engaged as an agent or becomes employed in the Public Service, whatever right or claim he may have under these Regulations to payment of the said annuity shall, with respect to the period during which he continues to be so engaged as an agent or employed in the Public Service, be suspended until such time as he ceases to be so engaged or employed.

• 19 (1) Subject to the Public Service Superannuation Act, where a contributor who ceases to be engaged as an agent to become employed in the Public Service elects to count his service as an agent, or any portion thereof, as service in pensionable employment for purposes of the Public Service Superannuation Act, the Minister of Finance may transfer into the Superannuation Account to the credit of the contributor

  • (a) an amount equal to the total amount paid into the Annuities Agents Pension Account in respect of that contributor, except any portion thereof so paid by Her Majesty in right of Canada;

  • (b) such amount paid into the Annuities Agents Pension Account in respect of that contributor by Her Majesty in right of Canada as the Minister of Finance determines; and

  • (c) such amount representing interest as the Minister of Finance determines.

• (2) Upon the Minister of Finance making a transfer in accordance with subsection (1), the contributor in respect of whom the transfer is made ceases to be entitled to any other benefit under these Regulations.

Contributor Convicted of an Indictable Offence

20 Where a contributor is convicted of an indictable offence committed by him while engaged as an agent, if the Treasury Board is of the opinion that the commission of the offence by the contributor constituted misconduct in office, any annuity payable under these Regulations to or in respect of the contributor shall be reduced by such amount as the Treasury Board, in its discretion, considers appropriate.

Proof of Age, Death or Marital Status

• 21 (1) For the purposes of these Regulations the age, death or marital status of a contributor or of the widow of a contributor shall be proved by forwarding to the Minister such evidence of age, death or marital status as the Minister, from time to time, considers appropriate.

• (2) The Minister, in any case in which he considers it necessary or advisable in connection with the administration of these Regulations, may require any person to submit to him a statutory declaration setting out the facts that the Minister considers relevant in that case.

• (3) Notwithstanding anything in these Regulations, no benefits shall be paid under these Regulations until the evidence required by the Minister in accordance with subsections (1) and (2) has been received by him.

Elections

22 The exercise of an option and a request to the Minister under these Regulations by a contributor, or by the widow of a contributor, shall be evidenced in writing in the form prescribed by the Minister and signed by the person making the election or request and the original thereof shall be

• (a) sent by registered mail to the Minister, or

• (b) delivered or sent by registered mail to a person designated by the Minister

within the time prescribed by these Regulations for the making of the election or the forwarding of the request.

Benefits Not Assignable

23 Annuities or other benefits payable under these Regulations are not capable of being assigned, charged, attached, anticipated or given as security and any transaction purporting to assign, charge, attach, anticipate or give as security any annuity or other benefit is void.