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Pension Benefits Division Regulations (SOR/94-612)

Regulations are current to 2022-06-20 and last amended on 2012-09-01. Previous Versions

Charging

 Where an amount has been transferred pursuant to section 8 of the Act, that amount shall be charged to the account from which the member’s pension benefits are or will become payable.

Adjustment

  •  (1) In this Part, division factor is 0.5, except that

    • (a) where the amount transferred is a lump sum amount referred to in subsection 8(4) of the Act, the division factor is equal to the product of

      (A ÷ B) × 0.5

      where

      A
      is the amount determined under subsection 8(4) of the Act, and
      B
      is the amount determined under these Regulations that, but for subsection 8(4) of the Act, would have been transferred pursuant to paragraph 8(1)(a) of the Act; and
    • (b) where the member was not vested at valuation day and is entitled to a pension under the member’s pension plan on the day the pension benefits are adjusted, the division factor is equal to the product of

      (C ÷ D) × 0.5

      where

      C
      is the amount transferred under paragraph 8(1)(a) of the Act, and
      D
      is the amount that, but for subsection 8(4) of the Act, would have been transferred pursuant to paragraph 8(1)(a) of the Act had the member been vested on valuation day.
  • (2) For the purposes of determining the indexed division annuity, if separation day occurs before termination day, the division annuity of a member is to be increased on termination day by the benefit indices established under the Supplementary Retirement Benefits Act that would apply if the member had ceased to be employed on separation day, and further increased to take into account the period beginning on January 1 of the year in which termination day occurs and ending on termination day.

  • SOR/97-420, s. 3

 Where a transfer has been effected pursuant to section 8 of the Act, the pension benefits of the member shall be adjusted

  • (a) in accordance with sections 21 and 22, where the member is entitled to a pension under the member’s pension plan;

  • (b) in accordance with section 23, where the member is entitled to a return of contributions or a cash termination allowance;

  • (c) in accordance with subsection 23.1(1), if the member has directed that a payment be made to an eligible employer under a transfer agreement entered into under section 40.2 of the Public Service Superannuation Act; and

  • (d) in accordance with subsection 23.1(1.1), if the member has directed that a payment be made to an eligible employer under a transfer agreement entered into under section 24.1 of the Royal Canadian Mounted Police Superannuation Act.

  • SOR/97-420, s. 4
  • SOR/2003-408, s. 13
  • SOR/2012-132, s. 1
  •  (1) The member’s pension benefits shall be adjusted beginning on the later of the day on which a pension is first payable under the pension plan and the first day of the month following valuation day.

  • (2) For the purpose of adjusting a member’s pension benefits, the member’s annuity shall be reduced by

    • (a) an amount equal to the member’s reduction, in respect of any period during which the member is not a recipient; and

    • (b) an amount equal to the member’s indexed reduction, in respect of any period during which the member is a recipient.

  • (3) A reduction or indexed reduction referred to in subsection (2) shall be reduced by an amount equal to the reduction adjustment after the later of

    • (a) the first day of the month after valuation day; and

    • (b) the first day of the month in which a CPP deduction from the member’s annuity is required to be made under the member’s pension plan.

  • SOR/97-420, s. 5

 Notwithstanding section 21, where a transfer has been effected pursuant to paragraph 8(1)(a) of the Act and the member is entitled to

  • (a) a pension by reason of disability, the reduction of the pension benefits shall begin on the first day of the month following the month during which the member would first be entitled to receive a pension that would not be reduced on account of age;

  • (b) a pension that is reduced on account of age before or after becoming entitled to a pension by reason of disability, the reduction of the pension benefits shall be determined as if the member were not entitled to a pension by reason of disability; or

  • (c) supplementary benefits by reason of disability, the member shall not be considered a recipient for the purposes of subsection 21(2) until the day the member would have become a recipient by reason of age or by reason of age and pensionable service.

 The return of contributions or the cash termination allowance to which a member is entitled under the member’s pension plan shall be reduced by the product of

  • (a) the return of contributions the member would have been entitled to receive in respect of the period subject to division, determined in the case of a member who is entitled to a cash termination allowance as if the member were entitled to a return of contributions, had there not been a transfer of the member’s pension benefits pursuant to paragraph 8(1)(a) of the Act; and

  • (b) the division factor.

  •  (1) Any amount to be paid in respect of a member to an eligible employer pursuant to a transfer agreement entered into under section 40.2 of the Public Service Superannuation Act, or to be paid to the member as a consequence of that payment, shall be reduced by the actuarial present value of the reduction that would have been made to the member’s pension benefits under sections 20 and 21 had the member remained employed in the Public Service.

  • (1.1) Any amount to be paid in respect of a member to an eligible employer under a transfer agreement entered into under section 24.1 of the Royal Canadian Mounted Police Superannuation Act, or to be paid to the member as a consequence of that payment, shall be reduced by the actuarial present value of the reduction that would have been made to the member’s pension benefits under sections 20 and 21 had the member remained a member of the Royal Canadian Mounted Police.

  • (2) The actuarial present value shall be calculated in accordance with the methodology and assumptions set out in the agreement.

  • SOR/97-420, s. 6
  • SOR/2003-408, s. 14
  • SOR/2007-298, s. 3
  • SOR/2012-132, s. 2

 Where a transfer has been effected pursuant to paragraph 8(1)(a) of the Act, any minimum benefit payable under the member’s pension plan shall be determined on the basis that the member’s annuity is reduced by the amount of the indexed reduction.

 Despite any provision of a pension plan, if a division of the pension benefits that have accrued to a member under that pension plan in respect of any period of pensionable service has been effected, the spouse, former spouse or former common-law partner in whose favour the division is effected ceases to be entitled to any pension to which he or she would have been entitled as a surviving spouse or surviving common-law partner in respect of that period of service.

  • SOR/2003-408, s. 15
 
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