PART 1Establishment of the Plan and Participation, Contributions, Pensionable Earnings and Pensionable Service (continued)
DIVISION 2Contributions, Pensionable Earnings and Pensionable Service (continued)
Pensionable Earnings (continued)
Marginal note:Amending plan of instalments
19 The participant may decrease the period of instalments by increasing the amount of the remaining instalments.
Marginal note:Time and amount of payment
(2) The instalments
(a) shall be calculated in the manner referred to in subsection 18(1), except that they may be for amounts of less than $5.00;
(b) shall be payable on the first day of each month following the date of the notice, until the earlier of
(c) after the period referred to in paragraph 18(2)(a) or (3)(a), shall be adjusted to be not less than the amount of the instalment before the last of those referred to in section 17 and the period shall be adjusted accordingly.
Marginal note:Application of payment
(2) The amount paid shall be applied to the payment of any amount referred to in the notice referred to in subsection 20(1) and the person may direct
Marginal note:No direction
(3) Unless the person has given the direction no later than 30 days after the date of the payment, the remainder shall be applied to reduce the balance of the amount to be paid and the period of instalments shall be decreased in order that the amount of the instalments remains the same.
Marginal note:Deemed option
22 At the request of a participant or pensioner, they are deemed to have opted, at the time of making the election, for the total of the amounts received by the Minister as of the date of the request, if
(a) they establish that financial hardship will be caused if they are required to continue to pay the instalments; or
(b) at the commencement date of an annuity or annual allowance, the instalments are greater than the increase in the monthly amount of the benefits payable that results from the election.
- SOR/2016-64, s. 62
Marginal note:Reservation from annuity or annual allowance
23 Instalments shall be reserved from a pensioner’s annuity or annual allowance when it commences.
Marginal note:Election not made
(a) in the case of an election to count earnings as pensionable earnings from a period after December 31, 1989, if the Minister of National Revenue refuses to issue a certification under paragraph 147.1(10)(a) of the Income Tax Act;
(b) at the request of the person who made the election if they received erroneous or misleading information in writing, with respect to the amount to be paid or the consequences of the election on their benefits, from a person whose normal duties include giving information about those matters, and, in making the election, they acted on that information; or
(c) if the person who made the election has not paid the amount to be paid under subsection 16(1) within the required period.
(2) If a past earnings election is deemed not to have been made, any payments received from a plan, fund, or institution of a type referred to in paragraph 61(1)(a) shall be transferred to a plan, fund, or institution, of any type referred to in that paragraph, at the direction of the person who made the election.
Marginal note:New election
(3) Despite the expiry of the period for making the election, the person may make an election no later than 90 days after the later of
Marginal note:No election after second refusal
(4) In the case of another refusal, the person shall not make the election.
- SOR/2016-64, s. 63
Marginal note:Amount unpaid at death
25 Any amount referred to in section 87 of the Act shall be recovered by reservation from the monthly benefits payable to the survivor or children under Division 2 of Part 2, in amounts equal to 10 per cent of those benefits. A person may, at any time, pre-pay any amount that remains unpaid.
Marginal note:Crediting of earnings
Marginal note:Date of crediting
(2) The past earnings shall come to the participant’s credit on the date of the election.
Transfer Value Earnings Elections
Marginal note:When entitled to elect
27 A participant may make a transfer value earnings election commencing the day on which they again become a participant.
Marginal note:Election period ends
28 The participant shall make the transfer value earnings election no later than one year after the date of the written notice advising the participant that they have become entitled to make the election.
Marginal note:Deferment of entitlement
29 A participant who ceases to be a participant before the expiry of the period for making a transfer value 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 the participant that they have again become entitled to make it.
- SOR/2016-64, s. 64
Marginal note:Amount to pay
30 (1) A participant who makes an election to count transfer value earnings as pensionable earnings shall pay an amount equal to the transfer value that was determined under section 56, together with interest.
Marginal note:Interest to be paid
(2) Interest shall be calculated in accordance with the rates determined under subsection (3), compounded quarterly for the period beginning on the day on which the payment of the transfer value was effected and ending on the last day of the month preceding the month in which the election was made.
Marginal note:Rate of interest
(3) The rate of interest in respect of each quarter is equal to the rate of return that existed in respect of the second quarter preceding the quarter for which interest is being calculated and set out in the table entitled “Balanced” on the line “Mercer Median” in the column entitled “3 Months” in the Summary of Investment Performance Survey of Canadian Institutional Pooled Funds, published by Mercer Investment Consulting, as amended from time to time.
Marginal note:Zero interest
(4) If the amount of interest calculated under subsection (2) is negative, the amount of interest for the purpose of subsection (1) shall be zero.
Marginal note:90-day time limit
31 (1) In respect of a transfer value earnings election, only payments received no later than 90 days after the date of the written notice advising the participant of the amount to be paid will be taken into account.
Marginal note:Payment received late
(2) Payments received no later than 120 days after the date of the notice will be taken into account if the participant establishes that they gave written instructions in a timely fashion to cause the payments to be received no later than 90 days after that date and that the payments were received after that time through no fault of the participant.
- SOR/2016-64, s. 65
Marginal note:Crediting of earnings
32 (1) The transfer value earnings shall be counted as pensionable earnings in respect of each day that the participant earned them and in the same proportion as the payments taken into account in respect of a transfer value earnings election bear to the amount required to be paid under subsection 30(1).
Marginal note:Date of crediting
(2) The transfer value earnings shall come to the participant’s credit on the date of the election.
- SOR/2016-64, s. 66
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