Canadian Forces Superannuation Regulations

14 (1) If, under paragraph 12.4(b), a contributor — other than a contributor who is a member of the reserve force or a contributor who was a member of the reserve force and has made a top-up election under section 14.2 — has exercised an option to pay in instalments, those payments must be made by reservation from pay and allowances or otherwise, for life or for a period of years not greater than for life, and are payable in the following manner:

• (a) the first instalment is due and payable on the first day of the month immediately following the month of election and succeeding instalments monthly after that time during the term corresponding to the plan of payment selected by the contributor, computed in accordance with Canadian Life Table No. 2 (1941), Males four per cent or Females four per cent, as the case may be; and

• (b) the contributor may amend the plan of payment to provide for payment of the instalments still to be paid in a lump sum or by larger monthly instalments on a basis similar to that described in paragraph (a), calculated as of the date of the amendment.

(2) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay in one lump sum, and subsequently the total amount to be paid in respect of the service for which the contributor elected to pay is verified as a greater amount than that on which the original lump sum payment was based, the contributor shall pay the difference either in one lump sum or by instalments, at the contributor’s option, on a basis similar to that described in subsection (1).

(3) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay by instalments, and subsequently the total amount to be paid in respect of the service for which the contributor has elected to pay is verified as a greater or lesser amount than that on which the original instalments were based, the monthly instalment under subsection (1) shall be increased or decreased in accordance with the verified amount, but the instalment shall not be decreased by more than 5% of the original monthly instalment.

(4) If a contributor originally exercised an option to pay by instalments for a period of years less than for life, and if they can establish that financial hardship will be caused to them if they are required to continue to pay those instalments, on the application of the contributor, the amount of the monthly instalment may be reduced to a lesser amount on a basis similar to that described in subsection (1), calculated as of the first day of the month following approval of the application.

(4.1) The application must be made in writing, dated and signed and sent to the Minister, or a person designated by the Minister, within one week after the date that it bears and is void unless the contributor has passed a medical examination similar to that described in subsection 12.21(3) within the period of 90 days before or after the date of the application.

(5) Where a contributor, who has elected under the Act or Part V of the former Act to pay for any period of service and has undertaken to pay for that period by instalments, ceases to be a member of the regular force before all the instalments have been paid, the unpaid instalments shall be reserved from the benefits payable to them as follows:

• (a) subject to paragraph (c), where the benefit payable is an annuity, the remaining instalments shall be reserved from that annuity;

• (b) where the benefit payable is a cash termination allowance, the present value of the remaining instalments shall be reserved from that allowance to the extent that such allowance is not reduced below an amount equivalent to a return of contributions; or

• (c) where during any period a pension granted under Part V of the former Act or an annuity granted under the Act is not payable or is reduced to an amount that is not sufficient to pay the instalments in full, the unpaid portion of the remaining instalments shall be reserved during such period from the pay and allowances or salary payable to the recipient or from any other amount payable to them by His Majesty.

(6) [Repealed, SOR/2025-256, s. 14]

(7) For the purposes of section 87 of the Act, the amount and interest referred to in that section may be recovered from any allowance payable under the Act to the survivor or children as follows:

• (a) in a lump sum from a cash termination allowance; or

• (b) by monthly instalments from an annual allowance in an amount equal to 10% of the net monthly allowance, in which case payment may be made by or on behalf of the survivor or children in order to liquidate the amount due before the date on which the last monthly instalment would have otherwise been due.