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Reserve Force Pension Plan Regulations (SOR/2007-32)

Regulations are current to 2020-07-28 and last amended on 2016-03-29. Previous Versions

PART 2Benefits (continued)

DIVISION 1Member’s Benefits (continued)

Participant Who Has Not Less Than Two Years of Pensionable Service (continued)

Marginal note:Immediate annuity

  •  (1) A member who ceases to be a participant and has to their credit not less than two years of pensionable service is entitled to an immediate annuity, if

    • (a) they have completed not less than 9,131 days of Canadian Forces service;

    • (b) they have reached 60 years of age;

    • (c) they have reached 55 years of age and have to their credit not less than 30 years of pensionable service;

    • (d) they are disabled by reason of suffering from a physical or mental impairment that

      • (i) prevents the member from engaging in any employment for which the member is reasonably suited by virtue of education, training or experience, and

      • (ii) can reasonably be expected to last for the remainder of the member’s lifetime; or

    • (e) they cease, otherwise than voluntarily, to be a member because of a reduction in the maximum number of officers or non-commissioned members authorized by the Governor in Council under subsection 15(4) of the National Defence Act, and

      • (i) they have reached 55 years of age and have to their credit not less than 10 years of pensionable service, or

      • (ii) they have to their credit not less than 20 years of pensionable service.

  • Marginal note:Commencement of immediate annuity

    (2) The commencement date of the annuity is the day following the last day on which the member is a participant.

Marginal note:Deferred annuity

  •  (1) A member who ceases to be a participant and has to their credit not less than two years of pensionable service and is not entitled to an immediate annuity is entitled to a deferred annuity.

  • Marginal note:Commencement of deferred annuity

    (2) The commencement date of the annuity is the day on which the pensioner reaches 60 years of age.

Marginal note:Annual allowance

  •  (1) A pensioner who is entitled to a deferred annuity may opt for an annual allowance in place of the annuity.

  • Marginal note:Commencement of annual allowance

    (2) The commencement date of the annual allowance is the date of the option, if the pensioner is 50 or more years of age at that time, or the day on which the pensioner reaches 50 years of age, if the pensioner is less than 50 years of age on the date of the option.

Marginal note:Amount of annual allowance

  •  (1) The amount of the annual allowance is the amount determined by the formula

    A – (A × 5% × B)

    where

    A
    is the amount of the deferred annuity; and
    B
    is 60 minus the pensioner’s age in years, rounded to the nearest 1/10 of a year, at the time the allowance commences.
  • Marginal note:Amount of annual allowance, at least 25 years of pensionable service

    (2) If a pensioner is 50 years or more of age on the day on which they cease to be a participant and has to their credit not less than 25 years of pensionable service, the amount of the annual allowance is the greater of

    • (a) the amount determined by the formula set out in subsection (1), and

    • (b) an amount determined by the same formula but where B is the greater of

      • (i) 55 minus the pensioner’s age in years, rounded to the nearest 1/10 of a year, at the time the pensioner makes the option, and

      • (ii) 30 minus the number of years, rounded to the nearest 1/10 of a year, of pensionable service to the pensioner’s credit.

Marginal note:Bridge benefit

  •  (1) A pensioner is also entitled to a bridge benefit.

  • Marginal note:Commencement of bridge benefit

    (2) The commencement date of the bridge benefit is the same date as that of the annuity or annual allowance.

Marginal note:Interpretation

  •  (1) For the purpose of subsection (2),

    • (a) the bridge benefit earnings for a calendar year are the lesser of

      • (i) the participant’s pensionable earnings for that year, and

      • (ii) the Year’s Maximum Pensionable Earnings for that year, within the meaning of subsection 2(1) of the Canada Pension Plan; and

    • (b) the updated bridge benefit earnings for a calendar year are the lesser of

      • (i) the participant’s updated pensionable earnings for that year, and

      • (ii) the average of the Year’s Maximum Pensionable Earnings for five years consisting of the year the member most recently ceased to be a participant and the preceding four years.

  • Marginal note:Amount of bridge benefit

    (2) The annual amount of the bridge benefit is equal to 0.5 per cent of the greater of the pensioner’s total bridge benefit earnings and total updated bridge benefit earnings.

  • Marginal note:Reduction

    (3) If a pensioner opts for an annual allowance, the amount of the bridge benefit shall be the amount determined by the formula

    A × B/C

    where

    A
    is the amount calculated under subsection (2);
    B
    is the amount of the annual allowance; and
    C
    is the amount of the deferred annuity to which the pensioner was entitled.

Marginal note:Cessation of benefits on again becoming a participant

 A pensioner ceases to be entitled to an annuity or annual allowance on the day before the day on which they again become a participant.

Marginal note:Conversion to immediate annuity on disability

  •  (1) If a pensioner, not having reached 60 years of age but having become entitled under these Regulations to a deferred annuity or annual allowance, becomes entitled to a disability pension under the Canada Pension Plan or a provincial pension plan, the pensioner ceases to be entitled to the deferred annuity or annual allowance and becomes entitled to an immediate annuity, but shall not be entitled to a bridge benefit.

  • Marginal note:Commencement of annuity

    (2) The commencement date of the annuity is the day on which the pensioner becomes entitled to the disability pension.

  • Marginal note:Benefit when entitlement to disability pension ceases

    (3) If a pensioner, not having reached 60 years of age, has ceased to be entitled to the disability pension, the pensioner ceases to be entitled to the immediate annuity and becomes entitled to the deferred annuity or annual allowance and the bridge benefit to which the pensioner was previously entitled.

Marginal note:Deduction calculation

  •  (1) In the event that a pensioner ceases to be entitled to an annual allowance under section 49 or subsection 50(1), an amount, subject to subsections (2) and (3), determined by the following formula shall be deducted from any annuity or annual allowance payments that the pensioner receives on again ceasing to be a participant or on becoming entitled to an annuity under subsection 50(1):

    A/12 × B

    where

    A
    is five per cent of the sum of the annual allowance and the bridge benefit that the pensioner was receiving before again becoming a participant or before becoming entitled to a disability pension under the Canada Pension Plan or a provincial pension plan; and
    B
    is the lesser of
    • (a) the number of years, rounded to the nearest 1/10 of a year, during which the pensioner received the annual allowance; and

    • (b) the value determined for B of either subsection 46(1) or paragraph 46(2)(b), which value was used in determining the amount of the annual allowance.

  • Marginal note:Minimum amount

    (2) The deduction from the amount of those payments shall not result in the pensioner receiving less than the payments that the pensioner was receiving — before the pensioner again became a participant or the pensioner became entitled to the disability pension — minus the amount of the bridge benefit, if the pensioner is no longer entitled to it.

  • Marginal note:Limit

    (3) The total of the amounts to be deducted shall not exceed the total amount that was received as an annual allowance and a bridge benefit by the pensioner before the pensioner again became a participant or the pensioner became entitled to the disability pension.

 
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