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

Marginal note:Terms of payment

• 72 (1) The annual allowance shall be paid in equal monthly payments in arrears,

  • (a) in the case of a survivor, until the end of the month during which the survivor dies; and

  • (b) in the case of a child, until the end of the month during which the earlier of the following occurs:

    • (i) the child reaches 18 years of age or dies, or

    • (ii) if the child is enrolled in and pursuing a full-time course of study, the child ceases to be enrolled in and pursuing a full-time course of study or reaches 25 years of age.

• Marginal note:Arrears

  (2) Any amount in arrears after the death of the survivor or child who has reached 18 years of age shall be paid to the estate or succession.

Marginal note:Marriage or cohabitation after pensioner reaches 60 years

73 A survivor is not entitled to an annual allowance in respect of a pensioner if, at the time the pensioner married the survivor or began to cohabit with the survivor in a relationship of a conjugal nature, the pensioner had reached 60 years of age unless, after that time, the pensioner again became a participant.

Marginal note:Waiver by survivor

• 74 (1) A survivor may waive entitlement to an annual allowance if it results in

  • (a) an increase in the allowance payable to a child under section 68 or 70; or

  • (b) a payment under section 78.

• Marginal note:Time for waiver

  (2) The survivor shall waive the entitlement no later than three months after the survivor is notified of their entitlement to the allowance. That waiver is to take effect as of the day after the death of the participant or pensioner.

Marginal note:Child after pensioner reaches 60 years

75 A person who becomes the child of a pensioner at a time when the pensioner was over 60 years of age is not entitled to an annual allowance, unless,

• (a) after that time the pensioner again became a participant; or

• (b) the child was born to the pensioner following a gestation period that commenced prior to the day when the pensioner reached 60 years of age or ceased to be a participant, whichever is the later.

Marginal note:Death within one year after marriage

76 If a participant or pensioner dies within one year after marriage, no annual allowance is payable to the survivor or a person who becomes a child of the participant or pensioner after the marriage unless it is established that the participant or pensioner was at the time of the marriage in such a condition of health as to justify the participant or pensioner in having an expectation of surviving for at least one year after the marriage.

Marginal note:Saving provision

77 Nothing in sections 75 and 76 shall be held to prejudice any right that a child of an earlier marriage of the participant or pensioner has to an allowance under section 68 or 70.

Marginal note:Minimum benefit — no survivor or child

78 If, on the death of a participant or pensioner who has to their credit not less than two years of pensionable service, there is no survivor or child to whom an annual allowance may be paid, or if the survivor or child to whom an annual allowance may be paid dies or ceases to be entitled to it and no other amount may be paid to them under this Division, an amount equal to the amount determined by the following formula shall be paid as a death benefit to the estate or succession of the participant or pensioner:

Marginal note:Survivor not to receive benefits

79 A survivor is not entitled to receive any benefit under this Division in respect of the participant or pensioner if the survivor could not be found within one year after the Minister has been notified of the death of the participant or pensioner or the survivor is found criminally responsible for the death of the participant or pensioner.

DIVISION 3Indexing Benefits

Marginal note:Indexing benefit

80 The following persons are entitled to an indexing benefit:

• (a) a pensioner who is in receipt of an annuity or annual allowance and who

  • (i) is receiving it under paragraph 43(1)(d) or subsection 50(1),

  • (ii) has reached at least 55 years of age and whose combination of years of age and full years of pensionable service equals at least 85, or

  • (iii) has reached 60 years of age; and

• (b) a survivor or child who is in receipt of an annual allowance under Division 2.

Marginal note:Retirement month or year

• 81 (1) For the purposes of this section, retirement month or retirement year means

  • (a) in respect of a pensioner, the month or year during which the pensioner most recently became entitled to an annuity or annual allowance under Division I of Part 2; and

  • (b) in respect of a survivor or child, the retirement month or retirement year of the pensioner, or the month or year of death of the participant, in respect of whom the annual allowance is payable.

• Marginal note:Calculation of indexing benefit

  (2) The indexing benefit for a month in any year shall be calculated with reference to the retirement year and shall be equal to the amount of the supplementary retirement benefit that would be payable for that month in respect of the annuity or annual allowance and the bridge benefit of the pensioner, survivor or child under subsections 4(1) and (2) of the Supplementary Retirement Benefits Act if that Act applied to that person.

• Marginal note:Calculation of indexing benefit — year following retirement

  (3) In respect of a month in the year following the retirement year, the indexing benefit is equal to the amount determined by the formula

  A × B/12

  where

  A

  is the amount of the indexing benefit that would, but for this subsection, be payable to the pensioner, survivor or child for that month; and

  B

  is the number of complete months that remained in the retirement year after the retirement month.

• Marginal note:Minimum amount

  (4) The aggregate of the amount of the annuity or annual allowance and the bridge benefit, and of the indexing benefit that may be payable in respect of that amount, in any month of any year, shall not be less than the aggregate of the following amounts that were or may be payable for any month in the year before that year:

  • (a) the annuity or annual allowance and that portion of the indexing benefit that related to it; and

  • (b) if the pensioner continues to be entitled to the bridge benefit, that benefit and the portion of the indexing benefit that related to it.

Marginal note:Manner of payment

82 The indexing benefit shall be paid at the same time, in the same manner and in respect of the same period as the annuity, annual allowance and bridge benefit.

DIVISION 4Contributors

Marginal note:Participants who become contributors

• 83 (1) When a former participant is required to contribute to the Canadian Forces Pension Fund and has pensionable earnings to their credit at that time, there shall be charged to the Fund and credited to the Canadian Forces Pension Fund an amount equal to the transfer value that would have been determined under section 56, excluding interest, if the former participant had had the right to opt for the payment of a transfer value and had done so.

• Marginal note:Rights and obligations extinguished

  (2) The former participant’s rights and obligations, and those of any person to whom a benefit might have become payable in respect of that former participant, under these Regulations shall be extinguished on the day before the day on which the former participant is required to contribute to the Canadian Forces Pension Fund.

PART 3Establishment and Administration of the Reserve Force Pension Fund

Marginal note:Fund established

84 The Reserve Force Pension Fund is established.

Marginal note:Amounts to be deposited

85 There shall be deposited into the Fund

• (a) the amounts that participants are required to contribute under the Act and the amounts that they are required to pay, under these Regulations, in respect of elections made to count past earnings or transfer value earnings as pensionable earnings; and

• (b) the income from the investment of any contributions and from amounts deposited into the Fund plus profits minus losses on the sale of the investments.

Marginal note:When amounts to be deposited

• 86 (1) The time within which the amounts referred to in paragraph 59.3(a) of the Act are to be deposited into the Fund is no later than 30 days after the end of the month in which the contributions to which they relate are deposited.

• Marginal note:Exceptions

  (2) Despite subsection (1),

  • (a) except for the period before the laying before Parliament of the first actuarial valuation report referred to in subsection 59.6(1) of the Act, a deposit may only be made, in respect of the benefits that have accrued in relation to the pensionable earnings referred to in paragraph 10(1)(a), during the period beginning with the laying before Parliament of an actuarial valuation report that does not show a non-permitted surplus and ending with laying of any actuarial report that shows a non-permitted surplus; and

  • (b) the time within which the arrears resulting from paragraph (a) are to be deposited into the Fund is no later than 30 days after the laying of the most recent actuarial report that no longer shows a non-permitted surplus.

• Marginal note:Non-permitted surplus

  (3) A non-permitted surplus exists when the amount by which assets exceed liabilities in the Fund, as determined by the actuarial valuation report, is greater than the lesser of

  • (a) 20% of the amount of liabilities in respect of participants and pensioners as determined in that report, and

  • (b) the greater of

    • (i) twice the estimated amount, for the calendar year following the date of that report, of the total of

      • (A) the contributions that will be required of participants in respect of their earnings during that year, and

      • (B) the part of the amounts to be deposited under section 85 that is in respect of the benefits that have accrued in relation to the pensionable earnings referred to in paragraph 10(1)(a), and

    • (ii) 10% of the amount of liabilities in respect of participants and pensioners as determined in that report.

Marginal note:Deposit of estimated amounts based on actuarial report

• 87 (1) If, following the laying before Parliament of any actuarial valuation report under subsection 59.6(1) of the Act, an amount not previously subject to an estimate under paragraph 59.3(a) of the Act is estimated under that paragraph to be required to meet the cost of benefits payable under these Regulations, the time within which this amount is deposited to the Fund is 15 years after the laying of the report.

• Marginal note:Equal annual instalments

  (2) That amount shall be deposited in equal annual instalments, with the first instalment to be paid in the fiscal year in which the report is laid before Parliament.

• Marginal note:Adjustments

  (3) If, after the laying of a subsequent report, the amount that is estimated is less than the amount that was estimated following the immediately preceding report, the amount of each remaining instalment shall be reduced accordingly.

Marginal note:Transfer of amounts

88 The amounts deposited to the Fund shall be transferred to the Public Sector Pension Investment Board within the meaning of the Public Sector Pension Investment Board Act to be dealt with in accordance with that Act.