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

Regulations are current to 2020-03-05

Value of an Annuity (continued)

  •  (1) Notwithstanding sections 3 and 4,

    • (a) where a person, prior to April 19, 1948, ceased to be employed by an employer who entered into a contract pursuant to subsection 6(3) of the Act, received from the Minister a statement of the annuity payable to him under the contract containing the following words:

      “This contract witnesseth further that in consideration of the payment of premiums in any other manner than above indicated, such annuity shall be paid at the date of maturity of this contract as such premiums will purchase according to the rates of mortality and interest in effect on the date of inclusion of the annuitant under the Group Annuity Contract, provided, however, that the total annuity payable to the Annuitant hereunder and under any other Canadian Government Annuity Contracts shall not exceed $1,200 per year”

      or words to the like effect, or

    • (b) where a person was included as an employee under such a contract made prior to April 19, 1948, and the contract or the agreement between the employer and his employees pursuant to which the contract was made included the following provision:

      “TERMINATION OF EMPLOYMENT”

      “If for any reason other than his death a member should cease to be employed by the employer before his Normal Retirement Date, the total of the contributions which he has made under the Plan will remain at his credit with the Government, to provide him with an annuity commencing at Normal Retirement Date, or any earlier anniversary thereof.  The member will have the privilege of continuing contributions in order to increase the amount of his annuity”

      or words to the like effect,

    and such person purchased or purchases on his own life an annuity with the same day of commencement and duration as that of the annuity payable to him under the contract referred to in paragraph (a), the rate of interest and the mortality table for computing the purchase price of the annuity purchased by that person shall be the rate of interest and the mortality table authorized for use in computing the purchase price of annuities on the date of his inclusion as an employee under the contract referred to in paragraph (a).

  • (2) Subsection (1) applies only if the total annuities payable to a person under the contracts referred to therein would not exceed the maximum amount authorized for payment to any person under the Act at the date of the inclusion of that person as an employee under the contract referred to in paragraph (1)(a).

 The forms of application and formal contracts and the terms therein contained shall be such as are approved by the Governor in Council and all formal contracts when issued and all formal endorsements added thereto shall be signed by, or bear a facsimile or lithographed signature of the Minister or Deputy Minister and be countersigned by such officer or officers of the Branch as the Minister may direct.

 The age, identity, existence, death, residence or domicile of persons shall be proven by submission of such documents or other evidence as the Minister requires or directs.

 The purchaser of a deferred annuity may make payments at an accounting Post Office and when so doing shall be furnished with a passbook in form approved by the Minister, and the postal employee who receives the payments shall enter records thereof in the passbook when the payments are made.

 All annuities shall be paid monthly unless otherwise agreed upon by the purchaser and the Minister.

 Moneys repayable under subsection 12(1) of the Act may, at the request of the person entitled to payment and with the concurrence of the Minister, be paid in instalments.

 Where an annuity contract does not already so provide, the Minister may, upon the written application and consent of the purchaser received before the annuity becomes payable, enter into an agreement with the purchaser varying the terms of the contract

  • (a) if the contract is for the life of one annuitant only, to provide an annuity for the life of the annuitant, or for a term of years certain not to exceed 20 years or the life of the annuitant, whichever period is longer, or

  • (b) to have the annuity become payable on any future day before or after the day on which the annuity becomes payable under the contract

and the annuity or premiums shall be re-calculated to take into account the variation of such terms.

Minister May Vary Terms

  •  (1) The Minister may enter into an agreement to vary the terms of 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 payment of the annuity was not entered into pursuant to subsection 6(3) of the Act,

      • (i) where the person who entered into the contract applies therefor to the Minister, to vary the terms of the contract so that the annuitant shall be placed in the same position as if he were the purchaser,

      • (ii) where the purchaser of a deferred annuity under paragraph 4(a) of the Act applies to the Minister, before the annuity becomes payable, to vary the terms of the contract to provide for the payment of the annuity in monthly instalments payable for the period between the date of maturity of the contract and a date within two months immediately following the date the annuitant by reason of age could become eligible to receive a pension under the Old Age Security Act, provided the annuitant shall so long live,

      • (iii) where the person who entered into a contract to purchase a deferred annuity under paragraph 4(b) of the Act applies therefor to the Minister before the annuity becomes payable, to vary the terms of the contract so that the annuity will be payable on the life of one annuitant only,

      • (iv) where the remaining instalments of annuity are payable to the legal representatives of a deceased person, and the said legal representatives apply therefor to the Minister, to pay the remaining instalments of the annuity to a designated person and his legal representatives,

      • (v) where the purchaser of an annuity contract applies to the Minister, before the annuity becomes payable, to vary the terms of the contract to provide for an annuity the amount of which decreases on a specified day, and under which there may be paid an annuity greater than the maximum permitted under the Government Annuities Improvement Act and the Regulations made thereunder between the due date of the first instalment of annuity and the specified 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,

      • (vi) where the purchaser of an annuity contract applies to the Minister to vary the terms of the contract to provide that if at any time the premiums held to the credit of the contract are not sufficient to purchase an annuity of $120 a year on the life of the annuitant for 20 years certain or for the life of the annuitant, whichever period is the longer, as of the original due date of the first instalment of annuity, as determined under the Act, the purchaser with the concurrence of the annuitant may surrender the rights of the purchaser and the annuitant under the contract in consideration of a single payment being made to the purchaser, without interest, for the period up to and including March 31, 1975 but with interest at the rate of seven per cent per annum for the period commencing April 1, 1975 or the date the premium was paid, whichever is later, to the date of repayment of the refund of the premiums paid under the contract, and

      • (vii) in any other case, in such manner as the Minister deems advisable and Treasury Board approves;

    • (b) where the contract was entered into pursuant to subsection 6(3) of the Act, to provide that the purchaser may, by instrument in writing received by the Minister before the day of commencement of an annuity payable to an annuitant or registered employee, elect

      • (i) that the annuity shall be payable in accordance with any optional type of annuity described in the contract,

      • (ii) that an annuity otherwise payable in accordance with paragraph 4(a) of the Act, shall be payable to the annuitant or registered employee in accordance with paragraph 4(b) of the Act,

      • (iii) that an annuity otherwise payable in accordance with paragraph 4(b) of the Act, shall be payable to the annuitant or registered employee in accordance with paragraph 4(a) of the Act,

      • (iv) to be paid an annuity the amount of which decreases on a specified day and under which there may be paid an annuity greater that the maximum permitted under the Government Annuities Improvement Act and the regulations made thereunder between the due date of the first instalment of annuity and the specified day, but in no case shall the annuity agreed to be paid exceed the actuarial equivalent of a constant annuity for the maximum so permitted in respect of the registered employee having the same date of commencement and the same term certain, if any, as the annuity payable under the contract, or

      • (v) that an annuity otherwise payable in accordance with paragraph 4(a) of the Act shall provide for the payment thereof in monthly instalments payable for the period between the date when the annuity becomes payable under the contract and a date within two months immediately following the date the annuitant or registered employee by reason of age could become eligible to receive a pension under the Old Age Security Act, provided the annuitant or registered employee shall so long live;

    • (c) where the contract was entered into pursuant to subsection 6(3) of the Act, and the purchaser applies therefor to the Minister, to provide

      • (i) for a change in the commencement date of the annuity to be paid to an annuitant or registered employee,

      • (ii) for an increase or decrease in the premium payments to be made with respect to an annuitant or registered employee,

      • (iii) for a change in the conditions whereby premium payments are credited to the accounts of any or all annuitants or registered employees, or

      • (iv) that an annuitant or registered employee shall be placed in the same position with respect to the annuity payable or to become payable to him as if he were the purchaser,

    • (d) where the contract was entered into pursuant to subsection 6(3) of the Act, in any case not provided for in this section, in such manner as the Minister deems advisable and Treasury Board approves; and

    • (e) where, pursuant to section 8 of the Act, an annuity cannot be granted or issued for the reason that accumulated premiums and interest are not sufficient to purchase an annuity greater than $10 a year, to provide for the payment of interest, after April 1, 1975, on such premiums when refunded at the rate of seven per cent per annum to the date of refund.

  • (2) Notwithstanding sections 3, 4 and 5, where an application to vary the terms of a contract pursuant to subparagraph (1)(a)(v) is received by the Minister on or after June 10, 1965, the tables set out in Schedule I shall be used to determine the additional annuity payable if the decrease in the amount of the annuity is to take place within two months immediately following the date the annuitant, by reason of age, could become eligible to receive a pension under the Old Age Security Act prior to attaining the age of 70 years.

  • (3) Notwithstanding sections 3, 4 and 5, where a purchaser elects that an annuity be paid pursuant to subparagraph (1)(b)(iv), and the first instalment of annuity is paid on or after the date of the coming into force of this subsection, the tables set out in Schedule II shall be used to determine the additional annuity payable if the decrease in the amount of the annuity is to take place within two months following the date the annuitant or registered employee, by reason of age, could become eligible to receive a pension under the Old Age Security Act prior to attaining the age of 70 years.

 
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