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Government Annuities Regulations (C.R.C., c. 879)

Regulations are current to 2020-03-05

Government Annuities Regulations

C.R.C., c. 879

GOVERNMENT ANNUITIES ACT

Regulations Respecting Government Annuities

Short Title

 These Regulations may be cited as the Government Annuities Regulations.

Interpretation

 In these Regulations and in any document or table of rates authorized or approved thereunder,

Act

Act means the Government Annuities Act; (Loi)

Annuity Table for 1983

Annuity Table for 1983 means

  • (a) in the case of an individual annuity contract, 1983 Table a published in Transactions of the Society of Actuaries, Vol. XXXIII (1981), at page 708, and

  • (b) in the case of a group annuity contract, 1983 Group Annuity Mortality Tables for Males and Females published in Transactions of the Society of Actuaries, Vol. XXXV (1983), at pages 880 and 881. (table de rente pour 1983)

application

application means a document, approved as to form in accordance with section 6, completed and submitted to the Department or Branch by the intended purchaser of an annuity contract; (proposition)

Branch

Branch means the Annuities Branch of the Department; (division)

Commission

Commission[Repealed, SOR/97-495, s. 1]

Department

Department means the Department of Human Resources Development. (ministère)

Director of Annuities

Director of Annuities means the officer of the Branch so designated; (directeur des rentes)

effective date

effective date as applicable to an annuity contract, unless otherwise defined therein, means the date on which the first premium payment is made; (date d’entrée en vigueur)

formal contract

formal contract means a document, approved as to form and executed in accordance with section 6, issued to a purchaser as evidence of annuity contract entered into under the Act; (contrat formel)

formal endorsement

formal endorsement means an endorsement, written upon or attached to a formal contract before or after issue, with the consent of the contracting parties and executed in accordance with section 6. (avenant formel)

  • SOR/97-495, s. 1

Rate of Interest

  •  (1) The rate of interest to be used in the computation of values in tables for determining the values of annuities, shall be

    • (a) in any case where a contract for the payment of an immediate annuity is entered into under paragraph 4(a) of the Act,

      • (i) if the date of commencement of the annuity is earlier than the annuitant’s fifty-fifth birthday, four per cent, or

      • (ii) if the date of commencement of the annuity is on or after the annuitant’s fifty-fifth birthday, 5 1/4 per cent;

    • (b) in any case where a contract for the payment of a deferred annuity is entered into under paragraph 4(a) of the Act,

      • (i) if the date of commencement of the annuity is deferred for more than five years from the effective date of the contract, four per cent, or

      • (ii) if the date of commencement of the annuity

        • (A) is deferred for five years or less from the effective date of the contract, and

        • (B) is on or later than the annuitant’s fifty-fifth birthday,

        four per cent in respect of the period commencing on the effective date of the contract and terminating on the day immediately preceding the date of commencement of the annuity and five per cent thereafter;

    • (c) in any case where the contract for the payment of an immediate annuity is entered into under paragraph 4(b) of the Act,

      • (i) if the date of commencement of the annuity is earlier than the fifty-fifth birthday of one or both of the annuitants, four per cent, or

      • (ii) if the date of commencement of the annuity is on or later than the fifty-fifth birthday of both of the annuitants, 5 1/4 per cent;

    • (d) in any case where the contract for the payment of a deferred annuity is entered into under paragraph 4(b) of the Act,

      • (i) if the date of commencement of the annuity is deferred more than five years after the effective date of the contract, four per cent, or

      • (ii) if the date of commencement of the annuity

        • (A) is deferred for five years or less from the effective date of the contract, and

        • (B) is on or later than the fifty-fifth birthday of both of the annuitants,

        four per cent in respect of the period commencing on the effective date of the contract and terminating on the day immediately preceding the date of commencement of the annuity and five per cent thereafter;

    • (e) in any case where a group contract for the payment of annuities is entered into under subsection 6(3) of the Act on or after April 1, 1953, five per cent from April 1, 1964;

    • (f) in any case where an employee is registered on or after April 1, 1964, under a contract entered into under subsection 6(3) of the Act before April 1, 1953, four per cent; and

    • (g) in the case of any other contract entered into under the Act on or after April 1, 1964, four per cent.

  • (2) Where the date of commencement of a deferred annuity under a contract, the effective date of which is April 1, 1964 or later is changed, the rate of interest applicable to that contract shall be adjusted so that the interest rate payable in respect of the contract is the rate of interest that would have been applicable if the amended date of commencement had been used to determine the rate on the effective date of the contract.

  • (3) Interest calculated in accordance with subsections (1) and (2) shall be compounded annually.

  • (4) For the purposes of section 15 of the Government Annuities Improvement Act, the liability outstanding at the end of a fiscal year is, in respect of annuities, whether they have become payable or not, the present value of future payments on those annuities, taken at the end of that year based on a rate of interest of 7% per annum and the Annuity Table for 1983, as modified by Projection Scale G published in Transactions of the Society of Actuaries, Vol. XXXV (1983), at pages 882 and 883.

  • SOR/97-495, s. 2

Value of an Annuity

  •  (1) The mortality tables to be used in the preparation of tables for determining the values of annuities shall be computed as follows:

    • (a) the basic table shall be the Annuity Table for 1949 (without projection) for males and females published in Transactions of the Society of Actuaries Vol. I, pages 386-389,

    • (b) the mortality rates of the Annuity Table referred to in paragraph (a) shall be modified by Projection Scale C, published in Transactions of the Society of Actuaries Vol. IV, page 272, the rates of decrease for intermediate ages being found by direct interpolation between adjacent quinquennial ages, and

    • (c) the modified mortality rates computed in accordance with paragraphs (a) and (b) shall be used to produce a series of generation mortality tables as set forth herein, except that the mortality rate for any age falling in a calendar year prior to 1950 shall be the mortality rate for that age according to the basic table referred to in paragraph (a), and each table shall apply to annuitants born in the calendar years as follows:

      Generation Table in which age 65 occurs in the calendar yearApplies to annuitants born in the calendar years
      19451890 and before
      19551891-1900
      19651901-1910
      19751911-1920
      19851921-1930
      19951931-1940
      20051941-1950
      20151951-1960
      20251961-1970
  • (2) In determining the value of an annuity payable in accordance with paragraph 4(b) of the Act, the following modification in the use of the mortality tables computed in accordance with subsection (1) shall apply:

    • (a) where one annuitant is a male and the other is a female the joint annuity required in determining the value of the annuity shall be computed as though the female life belonged to the same generation as the male life, or

    • (b) where both annuitants are of the same sex, the joint annuity required in determining the value of the annuity shall be computed as though both lives belonged to the generation of the older life.

  • (3) In determining the values of annuities purchased by group annuity contracts entered into pursuant to subsection 6(3) of the Act, the mortality rates for a male life shall be taken as the rates for the age one year older than the actual age.

  • (4) [Repealed, SOR/97-495, s. 3]

  • SOR/97-495, s. 3
 
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