PART 1Establishment of the Plan and Participation, Contributions, Pensionable Earnings and Pensionable Service (continued)
DIVISION 2Contributions, Pensionable Earnings and Pensionable Service (continued)
Marginal note:Pensionable earnings
Marginal note:Not pensionable earnings
(2) There shall not be counted as pensionable earnings those earnings in respect of which
(a) the participant has opted, under section 8, not to contribute;
(b) the member was entitled to a return of contributions, within the meaning of section 38;
(c) the payment of a transfer value has been effected in accordance with section 61; or
(d) an amount is charged to the Fund and credited to the Canadian Forces Pension Fund under section 83.
11 (1) A participant is entitled to make an election, once only in respect of each type of earnings in each period during which the participant is a participant, to count past earnings and transfer value earnings as pensionable earnings.
Marginal note:Past earnings
(2) Past earnings are the earnings, up to the product calculated under paragraph 6(2)(a), in respect of
(a) any period in the reserve force, including any period before March 1, 2007, during which the participant was not a participant except any period
(i) that the participant is counting as pensionable service for the purposes of, or in respect of which the payment of a transfer value or a commuted value has been effected under, the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, or
(ii) in respect of which the payment of a transfer value has been effected in accordance with section 61;
(b) any period in the reserve force in respect of which the participant was entitled to a return of contributions within the meaning of section 38; and
(c) any period in the regular force in respect of which the participant was entitled to a cash termination allowance or a return of contributions.
Marginal note:Most recent earnings
(3) A past earnings election is for all of the past earnings. However, there shall be counted as pensionable earnings, starting with the most recent, only those that would result in a maximum of 35 years of pensionable service to the credit of the participant.
Marginal note:Transfer value earnings
(4) Transfer value earnings are those earnings in respect of which the payment of the last transfer value was effected in accordance with section 61.
Past Earnings Elections
Marginal note:When entitled to elect
Marginal note:Former participant
(2) If the participant had formerly been a participant, they may make the election as soon as they again become a participant.
Marginal note:Participant since March 1, 2007
(3) A participant, who becomes a participant on March 1, 2007 and remains a participant without interruption, may make the election beginning on the day after the first day, on or after March 1, 2007, in respect of which they are entitled to receive earnings but no earlier than the first day of the 25th month following the two periods referred to in paragraph 4(2)(a).
(4) A participant who has ceased to contribute to the Fund by virtue of paragraph 6(2)(b) is not entitled to make a past earnings election.
- SOR/2016-64, s. 59
Marginal note:Election period ends
13 The participant shall make the past earnings election no later than the later of one year after the date of the written notice advising the participant that they have become entitled to make the election and March 1, 2011.
- SOR/2010-101, s. 5
Marginal note:Deferment of entitlement
14 A participant who ceases to be a participant before the expiry of the period for making a past earnings election shall, on again becoming a participant, be entitled to make the election until the end of one year after the date of the written notice advising them that they have again become entitled to make it.
- SOR/2016-64, s. 60
Marginal note:Amount to be paid
15 (1) A participant who makes an election to count past earnings as pensionable earnings shall pay the full amount to count all of those past earnings that can be counted as pensionable earnings or a lesser amount for which the participant opts at the time of making the election.
Marginal note:Determination of full amount
(2) The full amount shall be the total of all amounts — plus interest at seven per cent compounded annually and calculated from the middle of the calendar year until the day of the election — determined for each calendar year by the following formula applied to those past earnings that can be counted as pensionable earnings that relate to any period in that year:
A × B
- is the contribution rate set out in paragraph 6(1)(a) on the date of the election or, if the participant has remained a participant since March 1, 2007, 4.3 per cent; and
- is the amount that would be calculated as the updated pensionable earnings under subsection 37(2), for the calendar year if
(a) the participant’s past earnings that can be counted as pensionable earnings for that calendar year were their pensionable earnings for that calendar year, and
(b) the year in which the election is made or, if the participant has remained a participant since March 1, 2007, the year 2007, is the year that the participant ceased to be a participant.
Marginal note:Retroactive changes not included in calculations
(2.1) The calculation referred to in the description of B of the formula in subsection (2) shall not include any retroactive adjustments to the participant’s earnings made after the day on which they make the election referred to in subsection (1).
(3) The participant cannot modify the amount for which the participant has opted.
- SOR/2016-64, s. 61
Marginal note:If amount is not more than $500
Marginal note:Partial payment
(2) If the participant pays less than that amount, the participant is deemed to have opted, at the time of making the election, for the amount received by the Minister.
Marginal note:If amount is more than $500
17 If the amount to be paid is more than $500, the participant shall pay it by way of monthly instalments.
18 (1) The instalments shall be payable in equal amounts that may not be less than $5.00, except the last one, and be calculated using the mortality rates set out in the Complete life table, Canada, 1995-97, published by Statistics Canada, and interest at four per cent compounded annually.
Marginal note:When payable
(2) The instalments shall be payable on the first day of each month following the month of the election until the earlier of
Marginal note:Change in amount to pay
(3) When the amount shown in the notice advising the participant of the amount to be paid is larger than the amount on which the participant’s instalments are based,
(a) the participant is deemed to have chosen the period consistent with paragraph (2)(a) that would result in the lowest possible instalments not lower than the current instalments; and
(b) any arrears shall be paid by instalments on the first day of each month following the month of the notice, calculated in the manner referred to in subsection (1), except that the instalments may be for less than $5.00, until the end of the remainder of the period deemed to have been chosen or, if earlier, the death of the participant.
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