Minister May Vary Terms (continued)
13 The Minister may enter into an agreement to substitute another contract for a contract for the payment of an annuity entered into under the Act or other authority of Parliament, as follows:
(a) in any case where the contract for the purchase of the annuity was not entered into pursuant to subsection 6(3) of the Act,
(i) where two persons have entered into the contract and those two persons apply to the Minister to delete the name of one of the purchasers from the contract, to substitute another contract for the original contract in the name of one purchaser bearing the same effective date as the original contract, and
(ii) in any other case, in such manner as the Minister deems advisable and Treasury Board approves; and
(b) in any case where the contract was entered into pursuant to subsection 6(3) of the Act
(i) where the purchaser ceases to employ registered employees, either in whole or in part, by reason of having disposed of the whole or any part of his undertaking or business and any of the registered employees become employees of the person to whom the purchaser has disposed of his undertaking or business, to provide that the person to whom the purchaser has disposed of his undertaking or business shall stand in the stead of the purchaser and all the rights of the registered employees shall continue as if the undertaking or business or any part thereof had not been disposed of, and
(ii) in any other case, in such manner as the Minister deems advisable and Treasury Board approves.
14 The Minister may enter into a contract to provide for the payment of an annuity the amount of which decreases on a day specified in the contract and under which there may be paid an annuity greater than the maximum permitted under the Act between the due date of the first instalment of annuity and the said day, but in no case shall the annuity agreed to be paid exceed the actuarial equivalent of a constant annuity for the maximum amount so permitted in respect of the annuitant, having the same date of commencement and the same term certain, if any, as the annuity payable under the contract.
15 (1) The Minister may enter into an agreement with the purchaser to vary the terms of a contract or to include a term in a contract entered into pursuant to subsection 6(3) of the Act, to provide that, where an employee has retired or has otherwise ceased to be employed by his employer and the premiums then held for his account are not sufficient to purchase, pursuant to such options as are available to him, an annuity on his life of $120 a year commencing at normal retirement date, the employee may, at a time stipulated in the agreement, surrender his rights to receive the whole or part of his annuity under the contract in consideration of a single payment being made to him, without interest, of an amount that bears the same ratio to the amount of premiums unconditionally held for his account as the portion of the annuity being surrendered bears to the whole annuity.
(2) Where an agreement is entered into in accordance with subsection (1), it shall provide that an employee shall not be permitted to make an election thereunder where such election would result in a forfeiture of any employer premiums which would otherwise vest in him at retirement.
(3) The rate or rates of interest to be used in calculating the annuity that the premiums held for the employee’s account are sufficient to purchase shall be the rate or rates of interest applicable to the annuity contract pursuant to the Act.
(4) Notwithstanding subsection (1), interest at seven per cent per annum for the period commencing April 1, 1975 or the date the premium was paid, whichever is later, will be added to the premiums being refunded, such interest to be calculated to the date the refund is made.
(5) The provisions of subsections (3) and (4) shall be made provisions of every contract to which subsection (1) applies.
Conversion of Contract
16 (1) Notwithstanding anything in these Regulations, where the Minister has under the Act entered into a contract, the effective date of which is later than May 31, 1920, for payment of a deferred annuity
(a) to two persons during their joint lives with continuation to the survivor, or
(b) to one person during his lifetime with continuation to another person, if surviving, during his lifetime,
and one of them dies before the annuity becomes payable, such contract shall, on application in writing by the survivor received by the Minister, be converted into a contract for the payment of an annuity to the said survivor of an amount not exceeding the maximum that might have been paid to him under the original contract.
(2) Where conversion of a contract is made under subsection (1), the premium shall be recalculated in accordance with the rate of interest and the mortality tables that were in effect at the time the contract was entered into and that would have been applied if the survivor had been the sole annuitant thereunder.
(3) The conversion of a contract under subsection (1) may be effected by endorsement written upon or attached to the original contract and executed in accordance with section 6.
(4) Notwithstanding anything in this section, subsection (1) does not apply to contracts designated or engrossed as a deferred last survivor annuity contract, Plan B.
Surrender of Rights and Benefits
17 (1) In this section “public service employer” means a Crown corporation as defined in section 76 of the Financial Administration Act (except any such corporation specified in Part I of Schedule A of the Public Service Superannuation Act), the Bank of Canada and the government of a province.
(2) Where an employee registered under a contract entered into pursuant to subsection 6(3) of the Act becomes
(a) a contributor under the Public Service Superannuation Act, or
(b) a participant in a superannuation or pension fund or plan for employees of a public service employer,
he may, with the concurrence of the Minister and the purchaser, surrender all or part of his rights and benefits under the contract in consideration of having an amount that bears the same ratio to the total of the employee premiums and accrued interest and such employer premiums and accrued interest as may be unconditionally held for his account as the portion of the annuity rights and benefits being surrendered bears to the whole annuity transferred to his credit to the Superannuation Account or to the superannuation or pension fund or plan of the public service employer concerned.
(3) The Minister shall not concur with a surrender mentioned in subsection (1) by a contributor under the Public Service Superannuation Act unless he is satisfied that the contributor will be entitled, upon surrendering all his rights and benefits in accordance with subsection (2) to make a valid election under the Public Service Superannuation Act to count thereunder as pensionable service his service with the purchaser.
(4) The Minister shall not concur with a surrender mentioned in subsection (1) by a participant in a superannuation or pension fund or plan for employees of a public service employer unless he is satisfied that the participant is eligible to count and does count his service with the purchaser as pensionable service under such superannuation or pension fund or plan.
18 The Minister may enter into an agreement to vary the terms of a contract entered into pursuant to section 4 of the Act, or he may vary the terms of an approved form of contract being entered into pursuant to that section, so that the contract conforms to the requirements of the Income Tax Act respecting a “Registered Retirement Savings Plan” within the meaning of that Act.
19 Where the amount payable by way of an annuity or annuities to an employee who is registered under an annuity contract mentioned in subsection 6(3) of the Act is increased and that increase is purchased with moneys that have been paid by the employer pursuant to the contract and that would otherwise be refundable under the contract to the employer without interest, the total amount payable by way of an increased annuity or increased annuities may exceed the maximum permitted by subsection 6(1) of the Government Annuities Improvement Act.
(a) be payable under the contract pursuant to section 5 of the Government Annuities Improvement Act, discounted at the rate of seven per cent per annum, or
(b) otherwise have been payable under the contract, discounted at the rate or rates of interest applicable to the annuity contract pursuant to the Act,
whichever produces the greater amount.
Death of Annuitant
21 Where the purchaser or an annuitant under an annuity contract dies outside Canada, a grant of letters probate, or similar document of a court or authority outside Canada may be proved by the production of a copy of such document duly certified or authenticated by a judge or officer of that court or authority or a notary public or in such other manner as is acceptable to the Minister.
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