Canadian Forces Superannuation Regulations (C.R.C., c. 396)

Indexation

• 67 (1) Subject to subsection (2), the amount of the reduction determined in accordance with section 66 is increased each year beginning on January 1 of the year after the year in which the reduction is first in effect, by the amount that would be payable as a supplementary benefit under Part III of the Act if the amount of the reduction were an immediate annuity that became payable under Part I of the Act on January 1 of the year in which the option is exercised.

• (2) If the option is exercised in the year in which the contributor retires, the increase in the amount of the reduction under subsection (1) is determined in respect of the first year during which the increase is in effect, beginning on the first day of the month in which the contributor most recently ceases to be a member of the regular force.

Actuarial Assumptions

• 68 (1) For the purposes of sections 66 and 67, the following are the only demographic assumptions on which the actuarial values are to be based:

  • (a) the rate of mortality for any contributor is the average of the rates of mortality for contributors who receive benefits in relation to a disability and contributors who receive benefits not in relation to a disability, of the same age group as the contributor, as set out in the actuarial valuation report laid before Parliament in accordance with section 56 of the Act, taking into account the mortality projection factors set out in that report, which average is weighted in accordance with the benefits paid to contributors in relation to a disability and to contributors other than in relation to a disability, where

    • (i) the rates of mortality for contributors who receive benefits in relation to a disability are the weighted averages of the rates for disabled officers and disabled non-commissioned members, for all ages as set out in the report, where the weighting is in accordance with the aggregate pay of officers and non-commissioned members in continuing, full-time military service, and

    • (ii) the rates of mortality for contributors who receive benefits that are not in relation to a disability are the weighted averages of the rates for non-disabled officers and non-disabled non-commissioned members, as set out in the report, where the weighting is the same as in subparagraph (i); and

  • (b) the rates of mortality of elective beneficiaries are the rates of mortality for surviving spouses set out in the actuarial valuation report laid before Parliament in accordance with section 56 of the Act, taking into account the mortality projection factors set out in the report.

  • (c) [Repealed, SOR/2024-175, s. 4]

• (2) The actuarial valuation report referred to in subsection (1) is the most recent actuarial valuation report laid before Parliament or, if the most recent actuarial valuation report is laid less than two months before the day on which the contributor has exercised the option, the previous one so laid.

69 For the purposes of the determinations referred to in sections 66 and 67, the interest rates are the rates for fully indexed pensions, determined in accordance with the section entitled “Pension commuted values” of the Standards of Practice, published by the Canadian Institute of Actuaries, as amended from time to time.

Revocation of Options

• 70 (1) Any application for revocation of an option must be sent in writing to the Minister or to the person designated by the Minister for that purpose.

• (2) The option is revoked on the day on which the application for revocation is sent in accordance with subsection (1).

• (3) A contributor who revokes their option under subsection (2), must not exercise a new option in favour of the elective beneficiary of the option that was revoked, except in the following circumstances:

  • (a) the contributor received, in writing, from a member of the Canadian Forces or a person employed in the public service whose ordinary duties included the giving of advice respecting the options, materially erroneous or misleading information regarding the amount of the reduction of the contributor’s annuity or annual allowance or the amount of the immediate annual allowance to which the elective beneficiary would be entitled; or

  • (b) the amount of the annuity or annual allowance that is payable to the contributor is adjusted in accordance with the Pension Benefits Division Act after the day on which the revoked option was exercised.

• (4) A new option in favour of the elective beneficiary of the option that was revoked must be exercised in writing and must

  • (a) indicate which of the reductions referred to in paragraph 58(a) is applicable;

  • (b) be signed by the contributor and a witness, other than the elective beneficiary, and bear the date of the contributor’s signature;

  • (c) be included with the application for revocation referred to in subsection (1); and

  • (d) be sent within three months after the day on which

    • (i) a written notice containing the correct information is sent to the contributor, or

    • (ii) the annuity or annual allowance is adjusted in accordance with the Pension Benefits Division Act.

• (5) That new option is exercised on the day on which it is sent with the application for revocation referred to in subsection (1).

71 An option is deemed to have been revoked on the earliest of the day on which

• a) the elective beneficiary dies;

• b) the annulment of the marriage between the contributor and the person in whose favour the option was exercised takes effect;

• c) the divorce between the contributor and the person referred to in paragraph (b) takes effect;

• (d) the contributor ceases cohabiting with the person with whom they were cohabiting in a relationship of a conjugal nature for a period of at least one year and in whose favour the option was exercised; and

• (e) the contributor is required to contribute to the Canadian Forces Pension Fund under section 5 of the Act.

72 If an option is revoked or is deemed to have been revoked, the reduction determined in accordance with section 66 in respect of the option that is revoked or deemed to have been revoked ceases on the first day of the month in which the option is revoked under subsection 70(2) or the first day of the month in which the option is deemed to have been revoked under section 71, as the case may be.

Effective Dates of Reduction

• 73 (1) Subject to subsection (2), the amount of the reduction of a contributor’s annuity or annual allowance, determined in accordance with section 66, is to be subtracted from the monthly instalments of the annuity or annual allowance payable to the contributor, beginning on the first day of the second month after the month in which the option is exercised.

• (2) In the case of a contributor who exercises a new option in accordance with subsection 70(4), the amount of the reduction determined in accordance with section 66 is to be subtracted from the monthly instalments of the annuity or annual allowance payable to the contributor, beginning on the first day of the month after the month in which the new option is exercised.

74 [Repealed, SOR/2024-175, s. 5]

Allowance Amount

• 75 (1) For the purposes of subsection 25.1(2) of the Act, the immediate annual allowance to which a person who is the elective beneficiary and the survivor of the contributor is entitled is equal to an amount determined in accordance with clause 66(1)(b)(ii)(B), if paragraph 66(1)(b) were read without reference to the supplementary benefits payable under Part III of the Act.

• (2) Despite subsection (1), when a contributor dies within one year after the day on which the option is exercised, the person is not entitled to an immediate annual allowance if the Minister establishes that the contributor was not, on that day, in such a condition of health as to justify the contributor in having an expectation of surviving for at least one year.

Reconsideration Under Subsection 93(1) of the Act

• 76 (1) A request for a reconsideration under subsection 93(1) of the Act shall be made in writing to the Minister and shall set out

  • (a) the name and service or pension number of the member or former member of the regular force or of the reserve force in respect of whose service the benefit or entitlement to benefit arises;

  • (b) details of the decision to be reconsidered; and

  • (c) a statement of the facts that form the basis of, and the grounds for, the request.

• (2) If the person making the request has failed to provide sufficient information to enable the Minister to reconsider the decision, the Minister may request additional information.

• (3) The person shall provide the requested information no later than 30 days after the date of the request.

• (4) The Minister shall allow a reasonable extension of the time period if the person is able to establish that they were unable to provide the requested information within the time period due to circumstances beyond their control.