Short Title

1 These Regulations may be cited as the Retirement Compensation Arrangements Regulations, No. 1.

Interpretation

2 In these Regulations,

Act

Act means the Special Retirement Arrangements Act;(Loi)

Canadian Forces Pension Fund

Canadian Forces Pension Fund has the same meaning as in subsection 2(1) of the Canadian Forces Superannuation Act; (Caisse de retraite des Forces canadiennes)

Canadian Forces Superannuation Account

Canadian Forces Superannuation Account means the account referred to in section 4 of the Canadian Forces Superannuation Act; (compte de pension de retraite des Forces canadiennes)

external retirement compensation arrangement

external retirement compensation arrangement means a retirement compensation arrangement within the meaning of subsection 248(1) of the Income Tax Act established by an approved employer or an eligible employer; (régime externe)

immediate benefit

immediate benefit means a benefit payable under section 15 to a participant who is entitled to a benefit payable immediately on ceasing to contribute under Division I that is not reduced on account of the age or period of pensionable service of the participant; (prestation immédiate)

Minister

Minister means

• (a) for the purposes of Parts I and II, the Minister of Public Works and Government Services,

• (b) for the purposes of Part III, the Minister of National Defence, and

• (c) for the purposes of Part IV, the Solicitor General of Canada; (ministre)

misconduct

misconduct, in respect of a person, means malversation in office, abandonment of office or the wilful disobedience of the provisions of any statute or regulation governing the performance of official duties, the breach of which involves dismissal from the Public Service, and includes conduct for which the person’s employment in the Public Service is terminated by the Governor in Council for cause and behaviour for which the person’s employment terminated by reason of having brought disrepute to the federal government or to the office held by the person in the Public Service; (inconduite)

participant

participant means

• (a) for the purposes of Part I, a person referred to in paragraph 4(d) or (e),

• (b) for the purposes of Part II, a person referred to in paragraph 4(a),

• (c) for the purposes of Part III, a person referred to in paragraph 4(b), and

• (d) for the purposes of Part IV, a person referred to in paragraph 4(c); (participant)

Public Service

Public Service has the same meaning as in section 3 of the Public Service Superannuation Act; (fonction publique)

Public Service Pension Fund

Public Service Pension Fund has the same meaning as in subsection 3(1) of the Public Service Superannuation Act; (Caisse de retraite de la fonction publique)

retirement compensation arrangement

retirement compensation arrangement means the retirement compensation arrangement established under section 4; (régime)

Royal Canadian Mounted Police Pension Fund

Royal Canadian Mounted Police Pension Fund has the same meaning as in subsection 3(1) of the Royal Canadian Mounted Police Superannuation Act; (Caisse de retraite de la Gendarmerie royale du Canada)

Royal Canadian Mounted Police Superannuation Account

Royal Canadian Mounted Police Superannuation Account means the account referred to in section 4 of the Royal Canadian Mounted Police Superannuation Act; (compte de pension de retraite de la Gendarmerie royale du Canada)

Superannuation Account

Superannuation Account means the account referred to in section 4 of the Public Service Superannuation Act. (compte de pension de retraite)

supplementary death benefit

supplementary death benefit[Repealed, SOR/2000-242, s. 1]

2.1 In these Regulations, agreement means an agreement as amended from time to time.

Designation of Arrangement

3 For the purposes of section 15 of the Act, the retirement compensation arrangement is a designated arrangement.

Establishment of Arrangement

4 There is hereby established a retirement compensation arrangement for the payment of benefits to or in respect of any person who

• (a) on or after December 15, 1994 is required to contribute to the Superannuation Account or Public Service Pension Fund;

• (b) on or after December 15, 1994 is required to contribute to the Canadian Forces Superannuation Account or the Canadian Forces Pension Fund;

• (c) on or after December 15, 1994 is required to contribute to the Royal Canadian Mounted Police Superannuation Account or the Royal Canadian Mounted Police Pension Fund;

• (d) is or has been a deputy head, has to the person’s credit under the Public Service Superannuation Act not less than ten years of pensionable service and elects, in accordance with section 7, before the person ceases to be employed in the Public Service, to become subject to the retirement compensation arrangement, other than a person whose employment terminates or terminated by reason of misconduct; or

• (e) immediately before December 15, 1994 was deemed by section 14 of the Public Service Superannuation Act, as that section read at that time, to be employed in the Public Service.

PART IDeputy Heads

Application

5 This Part applies to persons described in paragraphs 4(d) and (e).

6 Words and expressions used in this Part and not otherwise defined in the Act or in these Regulations have the same meaning as in the Public Service Superannuation Act.

Contributions and Benefits

7 An election by a person referred to in paragraph 11(1)(d) of the Act to become subject to the retirement compensation arrangement shall

• (a) be made in writing;

• (b) be signed and dated by the person;

• (c) state the person’s intention to participate in the retirement compensation arrangement under this Part;

• (d) state the period in respect of which the person intends to contribute to the retirement compensation arrangement; and

• (e) be delivered or mailed to the Minister within 60 days after the date referred to in paragraph (b).

• 8 (1) Subject to subsection (2), a participant referred to in paragraph 4(d) shall contribute to the Retirement Compensation Arrangements Account at a rate equal to twice the applicable rate set out in section 5 of the Public Service Superannuation Act, read without reference to paragraph 5(6)(b) of that Act.

• (2) If the aggregate of the period of pensionable service of a participant — consisting of pensionable service under the Public Service Superannuation Act, other pensionable service as determined under subsection 5(5) of that Act and the period specified by the participant in an election under paragraph 11(1)(d) of the Act — exceeds 35 years, the participant shall contribute to the Retirement Compensation Arrangements Account, in respect of the portion of the aggregate period that exceeds 35 years, at a rate equal to twice the rate set out in subsection 5(3), (3.1) or (4) of the Public Service Superannuation Act, as the case may be, read without reference to paragraph 5(6)(b) of that Act.

• (3) Contributions under subsections (1) and (2) shall be based on the salary that the participant was receiving on the day that the participant was last employed as a deputy head, adjusted from time to time in accordance with any revisions to the participant’s salary range.

• 9 (1) Subject to subsection (2), every participant referred to in paragraph 4(e) shall contribute to the Retirement Compensation Arrangements Account at the rate, and in respect of the salary, established in respect of the participant under section 14 of the Public Service Superannuation Act as that section read immediately before December 15, 1994.

• (2) If the aggregate of the period of pensionable service of a participant — consisting of pensionable service under the Public Service Superannuation Act, other pensionable service as determined under subsection 5(5) of that Act and the period specified by the participant in an election under section 14 of that Act as that section read immediately before December 15, 1994 — exceeds 35 years, the participant shall contribute to the Retirement Compensation Arrangements Account, in respect of the portion of the aggregate period that exceeds 35 years, at a rate equal to the rate established in respect of the participant under that section as it read immediately before that date.

10 Every participant shall pay contributions to the Retirement Compensation Arrangements Account pursuant to section 8 or 9 monthly, quarterly, semi-annually or annually, by sending the amount payable in respect of that period to the Minister before the end of the period.

11 A participant may, at any time, by notice in writing to the Minister,

• (a) revoke an election made under paragraph 11(1)(d) of the Act or under section 14 of the Public Service Superannuation Act as it read immediately before December 15, 1994, in respect of the portion of the remainder of the period specified in the election in respect of which contributions have not been made by the participant; or

• (b) suspend an election referred to in paragraph (a) in respect of any portion of the remainder of the period specified in the election in respect of which contributions have not been made by the participant.

• 12 (1) Where an amount payable by a participant pursuant to section 8 or 9 is unpaid at the expiration of the period in respect of which an election applies and the participant has not revoked the election in respect of the period for which the amount payable is owing, the Minister shall notify the participant in writing of the amount payable and demand that the amount be paid within 60 days after the date of the notice.

• (2) If, at the expiration of the 60 day period referred to in subsection (1), the amount payable referred to in that subsection has not been paid and the participant has not revoked the election in respect of the period for which the amount payable is owing, that amount shall be deducted from any benefit that is or becomes payable under this Part to or in respect of the participant

  • (a) where the benefit is payable monthly,

    • (i) by reservation from the monthly benefit in approximately equal instalments equal to the lesser of

      • (A) the unpaid amount divided by the number of months in respect of which the contributions are unpaid, and

      • (B) 30 per cent of the gross monthly benefit, or

    • (ii) if the recipient so elects, in a lump sum at the time the benefit becomes payable; and

  • (b) in any other case, in a lump sum at the time the benefit becomes payable.

• 13 (1) A person referred to in paragraph 11(1)(d) of the Act becomes subject to the retirement compensation arrangement on the day on which the person ceases to be employed in the Public Service within the meaning of section 27 of the Public Service Superannuation Regulations.

• (2) A person referred to in paragraph 11(1)(e) of the Act becomes subject to the retirement compensation arrangement on December 15, 1994.

• (3) A participant shall contribute to the Retirement Compensation Arrangements Account until the day preceding the earliest of

  • (a) the day the participant attains the age of 60,

  • (b) the day of revocation of the participant’s election to become subject to the retirement compensation arrangement,

  • (c) the day the participant becomes re-employed in the Public Service and required to contribute to the Superannuation Account or Public Service Pension Fund under the Public Service Superannuation Act,

  • (d) the day the participant begins to receive an annuity or annual allowance under the Public Service Superannuation Act in respect of the participant’s periods of service under that Act,

  • (e) the expiration of the period specified in the participant’s election under paragraph 11(1)(d) of the Act or under section 14 of the Public Service Superannuation Act as that section read immediately before December 15, 1994,

  • (f) the day the participant elects to transfer his or her accrued pension benefits under the Public Service Superannuation Act to an eligible employer, and

  • (g) the day on which the participant dies.

• 14 (1) Benefits shall be paid under this Part to a participant only in respect of periods of service for which contributions have been made or are payable by that participant.

• (2) If a participant is entitled under the Canadian Forces Superannuation Act, the Royal Canadian Mounted Police Superannuation Act or the Members of Parliament Retiring Allowances Act to a benefit, other than a return of contributions, in respect of a period of service,

  • (a) no benefit shall be payable under this Part in respect of that period; and

  • (b) the participant is entitled to the return of his or her contributions under this Part in respect of that period, together with interest calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act.

• 14.1 (1) A person who opts for a transfer value under section 13.01 of the Public Service Superannuation Act is deemed to have never been subject to the retirement compensation arrangement under this Part.

• (2) The person shall be entitled to the return of his or her contributions under this Part together with interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act.

• 15 (1) Subject to section 15.1, a participant who ceases to be required to contribute to the Retirement Compensation Arrangements Account under this Part may opt to receive a benefit of the type that the participant would otherwise be entitled to receive under section 13 of the Public Service Superannuation Act, based on the participant’s age on ceasing to be required to contribute under this Part and on the aggregate of the pensionable service to the credit of the participant under that Act and the period of service in respect of which the participant was required to contribute under this Part.

• (2) Payment of a benefit under subsection (1) is subject to the same conditions as are set out in section 10 of the Public Service Superannuation Act in respect of annuity or annual allowance payable under that Act.

• (3) Subject to subsection 17(1), the amount of any benefit to which a participant is entitled is an amount equal to

  • (a) the amount that would be payable to the participant under Part I of the Public Service Superannuation Act, as if

    • (i) the period of pensionable service to the credit of the participant is the total of the period in respect of which the participant was required to contribute under this Part and the period of pensionable service to the credit of the participant under that Act, not exceeding thirty five years,

    • (ii) for the purpose of determining the average annual salary in subsection 11(1) of that Act, the salary of the participant while the participant was required to contribute under this Part is that referred to in subsection 8(3) or 9(1), and

    • (iii) the computation referred to in paragraph 11(1)(b) of that Act is made without reference to the annual rate of salary fixed or determined by the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

  less

  • (b) the aggregate of the following amounts, namely,

    • (i) any annuity or annual allowance payable to the participant under the Public Service Superannuation Act in respect of the period of pensionable service to the credit of the participant,

    • (ii) any benefit payable under Part II to the participant in respect of the period of pensionable service to the credit of the participant under that Act, and

    • (iii) any supplementary benefits payable with respect to amounts referred to in subparagraphs (i) and (ii) accrued between the date the participant ceased to be employed in the Public Service and the date the participant ceased to be required to contribute under this Part.

• (4) Where a participant is entitled to an annuity or annual allowance under the Public Service Superannuation Act and opts to receive a benefit in the form of an annuity or annual allowance under this Part, the benefit becomes payable on the same day as the participant’s annuity or annual allowance becomes payable under that Act.

• 15.1 (1) Subject to subsection (2), if an amount is paid to an eligible employer in respect of a participant pursuant to subsection 40.2(3) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to the aggregate of

    • (i) an amount calculated by the Minister equal to the actuarial value of the participant’s benefits accrued under this Part and section 68 as of valuation date based on the paid-up contributions of the participant under this Part, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40.2(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under clause 40.2(3)(a)(i)(A) of that Act, and

    • (ii) an amount representing interest after valuation date, if any, on the amount determined under subparagraph (i), calculated at the same rate and in the same manner as in that agreement, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Part and section 68.

• (2) If the eligible employer has not established an external retirement compensation arrangement or has established an external retirement compensation arrangement but is not prepared to provide benefits under that arrangement in respect of the amount referred to in subsection (1), the Minister shall not transfer the amount to that employer, but shall pay to the participant a lump sum amount calculated in accordance with section 15.2.

• (3) If the amount transferred under subsection (1) is less than the lump sum amount that would be paid to the participant under subsection (2), the Minister shall pay to the participant an amount equal to the difference.

• (4) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which the transfer or payment is effected, the amount transferred or paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (5) The transfer or payment of an amount under this section shall be made within the time limit for the payment of an amount to an eligible employer provided in the agreement with that employer or within 12 months after the coming into force of this subsection, whichever is the later.

• (6) When all amounts under this section have been transferred or paid, as applicable, the participant shall cease to be entitled to any benefit under this Part or under section 68 in respect of the period of service to which the transfer or payment relates.

• (7) For the purposes of this section and section 15.2, valuation date has the same meaning as in the agreement with the eligible employer.

15.2 The lump sum amount referred to in subsection 15.1(2) is equal to

• (a) the transfer value that would be paid to the participant under section 13.01 of the Public Service Superannuation Act as of valuation date, whether or not the participant would otherwise be entitled to a transfer value, if the accrued pension benefits that would be payable to or in respect of the participant under that Act were determined as if

  • (i) the period of pensionable service to the credit of the participant were the total of the period in respect of which the participant has made contributions under this Part and the period of pensionable service to the credit of the participant under that Act, not exceeding thirty-five years,

  • (ii) for the purposes of determining the average annual salary in subsection 11(1) of that Act, the salary of the participant for the period for which the participant contributed under this Part were that referred to in subsection 8(3) or 9(1), and

  • (iii) the computation referred to in paragraph 11(1)(b) of that Act were made without reference to the annual rate of salary fixed or determined by the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

and

• (b) interest after valuation date, if any, on the amount referred to in paragraph (a) calculated in accordance with section 93 of the Public Service Superannuation Regulations, with any modifications that the circumstances require,

less the sum of

• (c) any amount paid or payable to or in respect of the participant under that Act and Part II in respect of the period of pensionable service to the credit of the participant under that Act,

and

• (d) an amount equal to the interest, if any, that would be calculated in accordance with section 93 of those Regulations, with any modifications that the circumstances require, on the amounts referred to in paragraph (c) from the date of payment of those amounts to the date to which interest is calculated under paragraph (b).

15.3 to 15.5 [Repealed, SOR/2003-12, s. 5]

16 An option referred to in subsection 15(1) may be revoked in the same manner and under the same circumstances as are set out in sections 19 to 22 of the Public Service Superannuation Regulations in respect of an option referred to in those sections.

• 17 (1) For the purposes of subsection 15(3), where a participant has made an election under section 13.1 of the Public Service Superannuation Act in respect of a spouse married after the participant ceased to be required to contribute to the Retirement Compensation Arrangements Account under this Division, the amount determined under paragraph 15(3)(a) shall be reduced by the same proportion, and for the same period, as the participant’s immediate annuity, annual allowance or deferred annuity is reduced under section 68 of the Public Service Superannuation Regulations.

• (2) The benefit payable to the surviving spouse of a participant who has made an election under section 13.1 of the Public Service Superannuation Act, where that spouse married the participant after the participant ceased to be required to contribute to the Retirement Compensation Arrangements Account under this Division, is equal to the amount determined under subsection 15(3), read without reference to subsection (1), multiplied by the percentage of the participant’s annuity or annual allowance, calculated before any reduction is made under section 68 of the Public Service Superannuation Regulations, that the spouse will receive as an allowance under section 79 of those Regulations.

• (3) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction calculated under section 68 of the Public Service Superannuation Regulations.

18 On the death of a participant, a benefit shall be paid to any survivor or child of the participant to whom an allowance is payable under the Public Service Superannuation Act, subject to the conditions set out in subsection 10(3) of that Act, in an amount equal to

• (a) the allowance that would be payable to the survivor or child of the participant under Part I of that Act, calculated as if

  • (i) the period of pensionable service to the credit of the participant is the total of the period in respect of which the participant was required to contribute under this Part and the period of pensionable service to the credit of the participant under that Act, not exceeding 35 years,

  • (ii) for the purpose of determining the average annual salary referred to in subsection 11(1) of that Act, the salary of the participant while the participant was required to contribute under this Part is that referred to in subsection 8(3) or 9(1), and

  • (iii) the maximum monthly amount that may be paid to a survivor or child pursuant to subsections 30.6(1) and (2) of the Public Service Superannuation Regulations do not apply,

less

• (b) the aggregate of the following amounts, namely,

  • (i) any allowance payable to the survivor, or to or on behalf of the child of a participant, under the Public Service Superannuation Act in respect of the period of pensionable service to the credit of the participant,

  • (ii) any benefit payable to the survivor, or to or on behalf of the child of a participant, under Part II in respect of the period of pensionable service to the credit of the participant under the Public Service Superannuation Act, and

  • (iii) any supplementary benefits payable with respect to amounts referred to in subparagraphs (i) and (ii) accrued between the date the participant ceased to be employed in the Public Service and the date the participant ceased to be required to contribute under this Part.

18.1 [Repealed, SOR/2003-12, s. 7]

• 19 (1) A survivor of a participant who is not entitled to the benefit set out in section 18 due to the application of subsection 26(1) of the Public Service Superannuation Act shall be entitled to the benefit referred to in that section if the survivor married the participant or began cohabiting in a relationship of a conjugal nature with the participant during the period in respect of which the participant was required to contribute under this Part.

• (2) A person who is not entitled to the benefit set out in section 18 due to the application of subsection 26(2) of the Public Service Superannuation Act shall be entitled to the benefit referred to in that section if the person became the child, within the meaning of “child” in subsection 3(1) of that Act, of the participant during the period in respect of which the participant was required to contribute under this Part.

• (3) For the purpose of subsection (2), a child born posthumously to a participant is entitled to a benefit under section 18 if the child is born following a gestation period commencing before the date when the participant ceased to be required to contribute under this Part.

• 20 (1) Where under this Part an amount has been paid in error, the Minister shall forthwith demand payment from the recipient of an amount equal to the amount paid in error.

• (2) A person from whom payment of an amount has been demanded by the Minister pursuant to subsection (1) shall, within 30 days after the day on which the demand is made

  • (a) pay that amount to the Minister in one lump sum; or

  • (b) notify the Minister that the person wishes to repay the amount, plus any charges calculated under this paragraph, in approximately equal monthly instalments to be deducted from the person’s benefit for the lesser of

    • (i) the life expectancy of the person, and

    • (ii) the period required to pay that amount and those charges in monthly instalments equal to 10 per cent of the gross monthly amount of the benefit,

    calculated as at the expiration of the 30 day period in accordance with Life Table No. 2 of Vital Statistics Report, No. 4 — Life Tables for Canada and Regions — 1941 and 1931, published by the Department of Trade and Commerce, Dominion Bureau of Statistics, Ottawa, 1947.

• (3) Where a person referred to in subsection (2) does not pay the amount owing within 30 days after the day on which the demand for payment is made, deductions shall be made from the person’s benefit in the manner set out in paragraph (2)(b).

• (4) A person in respect of whom deductions are made under this section may, at any time,

  • (a) pay the amount then owing and the charges calculated under paragraph (2)(b), in one lump sum; or

  • (b) arrange to pay the amount then owing and the charges calculated under paragraph (2)(b),

    • (i) by larger monthly instalments, or

    • (ii) by a lump sum payment and monthly instalments payable over the same or a shorter period than that provided under that paragraph.

• (5) Where deductions are to be made pursuant to paragraph (2)(b), the first deduction shall be made in the month following the month in which the 30 day period referred to in subsection (2) ends.

• (6) Notwithstanding subsection (2), where the monthly deduction referred to in that subsection would cause financial hardship to the person to whom the benefit is payable, a lesser monthly deduction shall be made in an amount equal to the greater of $1 and 5 per cent of the gross monthly amount of the benefit.

• (7) Where a person in respect of whom lesser deductions are made pursuant to subsection (6) dies before the amount owing is paid in full, the balance remaining unpaid shall be recovered from any further benefits payable under the retirement compensation arrangement in respect of that person.

• (8) For the purposes of this section, a demand by the Minister for payment of an amount shall be considered to have been made on the day on which a letter demanding payment and signed by or on behalf of the Minister is mailed.

• (9) Nothing in this section prohibits a person from paying an amount at any time before that amount becomes payable.

21 Where a participant or a recipient requests that a benefit under this Part be paid otherwise than in equal monthly instalments, or where the payment of a benefit in equal monthly instalments is not practicable for administrative reasons, the benefit may be paid in equal payments quarterly, semi-annually or annually in arrears, if payment in arrears would not result in the payment of an aggregate amount greater than the aggregate amount of equal monthly instalments that would otherwise be payable under this Part.

• 22 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part or Part I of the Public Service Superannuation Act, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, a benefit of the type referred to in subsection 27(2) of that Act shall be paid to the beneficiary named by the participant under Part II of that Act or, if no beneficiary is named or the named beneficiary does not survive the participant, to the estate of the participant, subject to the same conditions as are specified in that Act for payment of such a benefit.

• (2) Subject to subsection (3), if five times the aggregate of the benefits referred to in paragraphs (a), (b) and (c) is greater than the total of the participant’s contributions under this Part and Part II and under Part I of the Public Service Superannuation Act together with interest thereon calculated at the rate and in the manner set out in subsection 10(9) of that Act, the amount of a benefit payable under subsection (1) shall be five times the aggregate of

  • (a) the annual amount of any benefit payable to the participant under this Part, determined in accordance with subsection 15(3), not reduced on account of the age or period of pensionable service of the participant,

  • (b) the annual amount of any benefit payable to the participant under Part II, determined in accordance with subsection 35(2), not reduced on account of the age or period of pensionable service of the participant, and

  • (c) the amount of any annuity payable to the participant under the Public Service Superannuation Act, determined in accordance with subsection 11(1) of that Act.

• (3) The amount of the benefit referred to in subsection (2) shall be reduced by the following amounts paid to or in respect of the participant:

  • (a) any amount paid under this Part;

  • (b) any amount paid under Divisions I and II of Part II, including any amount paid under section 39; and

  • (c) any amount paid under Part I of the Public Service Superannuation Act, including any amount paid under section 27 of that Act.

• (4) If the amount determined under subsection (2) is less than the total of the participant’s contributions under this Part and Part II and under Part I of the Public Service Superannuation Act together with interest thereon, calculated at the rate and in the manner set out in subsection 10(9) of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest thereon calculated at the same rate and in the same manner, reduced by any amount paid to or in respect of the participant under this Part.

23 to 27 [Repealed, SOR/2000-242, s. 2]

PART IIParticipation Under the Public Service Superannuation Act

28 Words and expressions used in this Part and not otherwise defined in the Act or in these Regulations have the same meaning as in the Public Service Superannuation Act.

DIVISION IAdditional Pensionable Earnings

• 29 (1) Any person who, on or after December 15, 1994, is required to contribute to the Superannuation Account or the Public Service Pension Fund and whose annual rate of salary is greater than the annual rate of salary determined under section 5.1 of the Public Service Superannuation Regulations shall contribute to the Retirement Compensation Arrangements Account on the excess salary at the same rates and subject to the same conditions as are set out in section 5 of the Public Service Superannuation Act.

• (2) Any person employed in operational service within the meaning of section 15 of the Public Service Superannuation Act who on or after December 15, 1994 is required to contribute to the Superannuation Account or Public Service Pension Fund and whose annual rate of salary is greater than the annual rate of salary determined under section 5.1 of the Public Service Superannuation Regulations shall contribute to the Retirement Compensation Arrangements Account on the excess salary an additional amount at the rate set out in section 19 of that Act.

• (3) Any person employed in operational service within the meaning of section 53 of the Public Service Superannuation Regulations who on or after December 15, 1994 is required to contribute to the Superannuation Account or Public Service Pension Fund and whose annual rate of salary is greater than the annual rate of salary determined under section 5.1 of those Regulations shall contribute to the Retirement Compensation Arrangements Account an additional amount on the excess salary at the rate set out in subsection 55(1) of those Regulations.

• (4) Any period during which a participant was required to contribute to the Retirement Compensation Arrangements Account under Part I is to be included in calculating years of pensionable service for the purposes of determining applicable contribution rates pursuant to subsections (1) to (3).

• 30 (1) Contributions by a participant under section 29 shall be based on a salary equal to the portion of the annual rate of salary of the participant that exceeds the annual rate of salary determined under section 5.1 of the Public Service Superannuation Regulations.

• (2) Contributions by a participant under section 29 in respect of periods of leave without pay shall be payable at the same rates and in the same manner as are specified in sections 7 to 7.2 of the Public Service Superannuation Regulations, based on a salary equal to the portion of the annual rate of salary of the participant that exceeds the annual rate of salary determined under section 5.1 of those Regulations.

• (3) An election under section 5.3 of the Public Service Superannuation Act in respect of a period of leave without pay constitutes an election not to contribute to the Retirement Compensation Arrangements Account.

31 A participant who makes an election under section 57 of the Public Service Superannuation Regulations or under paragraph 6(1)(b) or section 20 of the Public Service Superannuation Act, other than an election under clause 6(1)(b)(iii)(M) of that Act, shall pay to the Retirement Compensation Arrangements Account, in respect of any portion of the participant’s annual rate of salary that exceeds the annual rate of salary determined under section 5.1 of those Regulations, the amount that the participant would be required to contribute in respect of that portion under section 57 of those Regulations or under section 7 or paragraph 20(1)(b) of that Act in the same manner and subject to the same conditions as are set out in subsection 57(3) of those Regulations or in section 8 or subsection 20(3) of that Act, respectively.

32 A participant becomes subject to the retirement compensation arrangement on the later of

• (a) the day on which the participant’s annual rate of salary exceeds the annual rate of salary determined under section 5.1 of the Public Service Superannuation Regulations, and

• (b) December 15, 1994.

33 A participant ceases to be required to contribute to the Retirement Compensation Arrangements Account under this Part on the day on which the participant ceases to be employed in the Public Service within the meaning of section 27 of the Public Service Superannuation Regulations.

34 [Repealed, SOR/2002-73, s. 12]

• 35 (1) A benefit shall be paid under this Part to a participant who is entitled to an annuity or annual allowance under the Public Service Superannuation Act as of the same day that the annuity or annual allowance becomes payable.

• (2) Subject to subsection 36(1), the benefit to which a participant is entitled shall be in an amount equal to

  • (a) the amount of the annuity or annual allowance that would be payable to the participant under Part I of the Public Service Superannuation Act if paragraph 11(1)(b) of that Act applied without reference to the annual rate of salary fixed by or determined in accordance with the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

  less

  • (b) any annuity or annual allowance payable to the participant under that Act and any benefit payable under paragraph 41.1(1)(c), in respect of the period of pensionable service to the credit of the participant.

• (3) The benefit to which a participant is entitled is payable in the same manner and is subject to the same conditions as the annuity or annual allowance payable to the participant under the Public Service Superannuation Act.

• 36 (1) For the purposes of subsection 35(2) and paragraph 41.1(1)(c), where a participant has made an election under section 13.1 of the Public Service Superannuation Act in respect of a spouse married after the participant ceased to be required to contribute to the Superannuation Account or to the Retirement Compensation Arrangements Account under this Division, the amount determined under paragraph 35(2)(a) or 41.1(1)(c) shall be reduced by the same proportion, and for the same period, as the participant’s immediate annuity, annual allowance or deferred annuity is reduced under section 68 of the Public Service Superannuation Regulations.

• (2) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction made under section 68 of the Public Service Superannuation Regulations.

37 The benefit payable to the surviving spouse of a participant who has made an election under section 13.1 of the Public Service Superannuation Act, where that spouse married the participant after the participant ceased to be required to contribute to the Retirement Compensation Arrangements Account under Division I of Part I is equal to the amount determined under subsection 35(2), read without reference to subsection 36(1), multiplied by the percentage of the participant’s annuity or annual allowance, calculated before any reduction is made under section 68 of the Public Service Superannuation Regulations, that the spouse will receive as an allowance under section 79 of those Regulations.

• 38 (1) Subject to subsection (2), a participant shall be entitled to a return of contributions made under this Part, together with interest calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act, if the participant is entitled to a return of contributions under that Act.

• (2) No return of contributions is payable to a participant under subsection (1) if the difference calculated under subsection 35(2) is nil.

• 38.1 (1) A participant who opts for a transfer value under section 13.01 of the Public Service Superannuation Act shall receive a lump sum amount in lieu of any other benefit under this Division.

• (2) The lump sum amount is equal to

  • (a) the transfer value that would be paid to the participant under section 13.01 of the Public Service Superannuation Act if paragraph 11(1)(b) of that Act applied without reference to the annual rate of salary fixed by or determined in accordance with the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

  less

  • (b) any amount paid or payable to the participant under that Act and section 41.2 in respect of the period of pensionable service of the participant to which the transfer value relates.

• (3) to (6) [Repealed, SOR/2003-230, s. 7]

38.2 Subsection 38.1(2) and sections 38.4, 38.5 and 41.3, as those provisions read immediately before the coming into force of this section, continue to apply in respect of a deferred annuity that a participant opted or was deemed to have opted to receive under paragraph 38.1(1)(b) or subsection 38.2(2), as those provisions read immediately before the coming into force of this section.

38.3 The following conditions apply if a person elects under clause 6(1)(b)(iii)(M) of the Public Service Superannuation Act to pay for “transfer value service” within the meaning of subsection 83(1) of the Public Service Superannuation Regulations:

• (a) if the person received a lump sum amount under section 38.1 or 41.2 or opted to receive a lump sum amount under paragraph 38.1(1)(a), as that provision read immediately before the coming into force of this section, he or she shall pay to the Retirement Compensation Arrangements Account, within 90 days after the day on which the election referred to in section 100 of those Regulations is received by the Minister, the aggregate of

  • (i) the amount determined by multiplying the total amount paid under sections 38.1 and 41.2 by the fraction, the numerator of which is the portion of the transfer value service that he or she elects to pay for under section 100 of those Regulations, and the denominator of which is the transfer value service, and

  • (ii) the amount representing interest on the amount determined under subparagraph (i) calculated in the same manner as provided in paragraph 101(1)(b) of those Regulations; or

• (b) if the person opted to receive or was deemed to have opted to receive a deferred annuity under paragraph 38.1(1)(b) or subsection 38.2(2), as those provisions read immediately before the coming into force of this section, the participant shall surrender his or her entitlement to the deferred annuity on the day of the election referred to in section 100 of those Regulations.

• 38.4 (1) Subject to subsection (2), if an amount is paid to an eligible employer in respect of a participant pursuant to subsection 40.2(3) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to the aggregate of

    • (i) an amount calculated by the Minister equal to the actuarial value of the participant’s benefits accrued under this Division and section 68 as of valuation date based on the paid-up contributions of the participant under this Division, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40.2(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under clause 40.2(3)(a)(i)(A) of that Act, and

    • (ii) an amount representing interest after valuation date, if any, on the amount determined under subparagraph (i) calculated at the same rate and in the same manner as in the agreement with the employer, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (2) If the eligible employer has not established an external retirement compensation arrangement or has established an external retirement compensation arrangement but is not prepared to provide benefits under that arrangement in respect of the amount referred to in subsection (1), the Minister shall not transfer the amount to that employer, but shall pay to the participant

  • (a) in the case of a participant who on valuation date has two or more years of pensionable service to his or her credit under the Public Service Superannuation Act, a lump sum amount calculated in accordance with section 38.5; and

  • (b) in any other case, a lump sum amount equal to the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act.

• (3) If the amount transferred under subsection (1) is less than the lump sum amount that would be paid to the participant under subsection (2), the Minister shall pay to the participant an amount equal to the difference.

• (4) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which the transfer or payment is effected, the amount transferred or paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (5) The transfer or payment of an amount under this section shall be made within the time limit for the payment of an amount to an eligible employer provided for in the agreement with that employer or within 12 months after the coming into force of this subsection, whichever is the later.

• (6) When all amounts under this section have been transferred or paid, as applicable, the participant shall cease to be entitled to any benefit under this Division or under section 68 in respect of the period of service to which the transfer or payment relates.

• (7) For the purposes of this section and section 38.5, valuation date has the same meaning as in the agreement with the eligible employer.

38.5 The lump sum amount referred to in paragraph 38.4(2)(a) is equal to

• (a) the transfer value that would be paid to the participant under section 13.01 of the Public Service Superannuation Act as of valuation date, whether or not the participant would otherwise be entitled to a transfer value, if paragraph 11(1)(b) of that Act applied without reference to the annual rate of salary fixed by or determined in accordance with the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

and

• (b) interest after valuation date, if any, on the amount referred to in paragraph (a) calculated in accordance with section 93 of the Public Service Superannuation Regulations, with any modifications that the circumstances require,

less the sum of

• (c) any amount paid or payable to or in respect of the participant under that Act and section 41.2 in respect of the period of pensionable service to the credit of the participant under that Act,

and

• (d) an amount equal to the interest, if any, that would be calculated in accordance with section 93 of those Regulations, with any modifications that the circumstances require, on the amounts referred to in paragraph (c) from the date of payment of those amounts to the date to which interest is calculated under paragraph (b).

• 38.6 (1) Subject to subsection (3), if an amount is paid to an approved employer in respect of a participant pursuant to subsection 40(3) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to twice the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (2) Subject to subsection (3), if an amount is paid to an approved employer in respect of a participant pursuant to subsection 40(4) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to the greater of

    • (i) an amount equal to the aggregate of

      • (A) an amount calculated by the Minister equal to the actuarial value of the participant’s benefits accrued under this Division and section 68 as of valuation date based on the paid-up contributions of the participant under this Division, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under subparagraph 40(4)(a)(i) of that Act, and

      • (B) an amount representing interest after valuation date, if any, on the amount determined under clause (A) calculated at the same rate and in the same manner as in the agreement with the employer, and

    • (ii) an amount equal to twice the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (3) If the approved employer has not established an external retirement compensation arrangement or has established an external retirement compensation arrangement but is not prepared to provide benefits under that arrangement in respect of the amount referred to in subsection (1) or (2), the Minister shall not transfer the amount to the employer, but shall pay to the participant a lump sum amount equal to the sum of the contributions that the participant has made under this Division plus interest calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act.

• (4) If the amount transferred under subsection (1) or (2) is less than the lump sum amount that would be paid to the participant under subsection (3), the Minister shall pay to the participant an amount equal to the difference.

• (5) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which the transfer or payment is effected, the amount transferred or paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (6) The transfer or payment of an amount under this section shall be made within 12 months after the coming into force of this subsection.

• (7) When all amounts under this section have been transferred or paid, as applicable, the participant shall cease to be entitled to any benefit under this Division or under section 68 in respect of the period of service to which the transfer or payment relates.

• (8) For the purposes of subparagraph (2)(a)(i), valuation date means the date referred to in subparagraph 40(4)(a)(i) of the Public Service Superannuation Act.

• 39 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part or Part I of the Public Service Superannuation Act, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, a benefit of the type referred to in subsection 27(2) of that Act shall be paid to the beneficiary named by the participant under Part II of that Act or, if no beneficiary is named or the named beneficiary does not survive the participant, to the estate of the participant, subject to the same conditions as are specified in that Act for payment of such a benefit.

• (2) Subject to subsection (3), if five times the aggregate of the benefits referred to in paragraphs (a) and (b) is greater than the total of the participant’s contributions under this Part and Part I of the Public Service Superannuation Act, together with interest thereon calculated at the rate and in the manner set out in subsection 10(9) of that Act, the amount of a benefit payable under subsection (1) shall be five times the aggregate of

  • (a) the annual amount of any benefit payable to the participant under this Division, determined in accordance with subsection 35(2), or section 38.4 as that provision read immediately before the coming into force of this paragraph, not reduced on account of the age or period of pensionable service of the participant, and

  • (b) the amount of any annuity payable under the Public Service Superannuation Act, determined in accordance with subsection 11(1) of that Act.

• (3) The amount of the benefit referred to in subsection (2) shall be reduced by the following amounts paid to or in respect of the participant:

  • (a) any amount paid under this Part;

  • (b) any amount paid under Part I of the Public Service Superannuation Act, excluding any amount paid under subsection 13.01(2) of that Act, but including any amount paid under section 27 of that Act; and

  • (c) any amount paid under section 19 in respect of the pensionable service to the credit of the participant under Part I of the Public Service Superannuation Act.

• (4) If the amount determined under subsection (2) is less than the total of the participant’s contributions under this Part and Part I of the Public Service Superannuation Act together with interest calculated at the rate and in the manner set out in subsection 10(9) of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest calculated at the same rate and in the same manner, reduced by any amount paid to or in respect of the participant under this Part.

40 Where a participant or a recipient requests that a benefit under this Part be paid otherwise than in equal monthly instalments, or where the payment of a benefit in equal monthly instalments is not practicable for administrative reasons, the benefit may be paid in equal payments quarterly, semi-annually or annually in arrears, if payment in arrears would not result in the payment of an aggregate amount greater than the aggregate amount of equal monthly instalments that would otherwise be payable under this Part.

41 Where as a result of an election made under subsection 39(1) of the Public Service Superannuation Act the participant ceases to be entitled to benefits provided under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, any contributions paid by the participant under Part III or IV shall be considered to have been paid under this Part and the benefits to which the participant shall be entitled are those payable under this Part.

DIVISION IIAdditional Benefits

• 41.1 (1) Subject to subsection 36(1), a benefit shall be paid to a participant, to a survivor or child of a participant or to a beneficiary of an amount payable under subsection 27(2) of the Public Service Superannuation Act, as the case may be, in an amount equal to

  • (a) the amount by which an allowance payable to such a person under that Act is reduced as a result of the operation of the limit set out in subsection 30.6(1) or (2) of the Public Service Superannuation Regulations,

  • (b) the amount by which a benefit payable under subsection 27(2) of that Act is reduced as a result of the operation of the limit set out in subsection 30.8(1) of the Public Service Superannuation Regulations, and

  • (c) the amount by which an annuity or annual allowance payable to such a person under that Act is reduced as a result of the operation of the limit set out in subsection 80(1) or 80.1(1) of the Public Service Superannuation Regulations.

• (2) The benefit that represents the amount of a reduction referred to in subsection (1) is payable in the same manner and subject to the same terms and conditions as apply to the payment of the allowance, benefit, annuity or annual allowance referred to in paragraph (1)(a), (b) or (c), as the case may be, before the reduction.

• 41.2 (1) If a participant opts for a transfer value under section 13.01 of the Public Service Superannuation Act or becomes entitled to the payment of an amount under subsection 40.2(7) of that Act, a benefit shall be paid to the participant in the form of a lump sum equal to the amount by which the amount payable to the participant under subsection 13.01(2) of that Act is reduced as a result of the operation of the limits set out in any of subsections 30.6(1) and (2), 30.8(1) and 80.1(1) of the Public Service Superannuation Regulations together with interest, if any.

• (2) The interest shall be calculated in accordance with section 93 of those Regulations.

41.3 to 41.5 [Repealed, SOR/2003-12, s. 14]

DIVISION IIITransfers of Funds in Respect of Employees of Certain Corporations

General

• 41.6 (1) If an amount paid pursuant to subsection 40.2(3) of the Public Service Superannuation Act to an employer listed in Schedule 5 is reduced as a result of the operation of the limits set out in any of subsections 30.6(1) and (2), 30.8(1) and 80.1(1) of the Public Service Superannuation Regulations, the Minister shall transfer to an external retirement compensation arrangement established by that employer, an amount equal to the amount of the reduction, together with interest, if any.

• (2) For the purposes of subsection (1), interest shall be calculated at the same rate and in the same manner as provided in the agreement referred to in subsection 40.2(2) of the Public Service Superannuation Act with the employer.

• (3) The transfer of an amount under this section shall be made within the time limit for the payment of an amount to the employer provided for in the agreement or within 12 months after the day on which the name of the employer is added to Schedule 5, whichever is the later.

• 41.7 (1) If an amount is paid pursuant to subsection 40.2(3) of the Public Service Superannuation Act to an employer listed in Schedule 6 in respect of a participant other than a participant contemplated by section 38.4, the Minister shall pay to an external retirement compensation arrangement established by that employer an amount equal to the aggregate of

  • (a) an amount calculated by the Minister equal to the actuarial value of the liability accrued in respect of the participant under Division I and section 68 as of valuation date, if any, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40.2(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under clause 40.2(3)(a)(i)(A) of that Act, and

  • (b) an amount representing interest after valuation date, if any, on the amount determined under paragraph (a) calculated at the same rate and in the same manner as in the agreement with the employer.

• (2) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the payment of an amount to an external retirement compensation arrangement under subsection (1), the amount paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (3) The payment of an amount under this section shall be made within the time limit for the payment of an amount to the employer provided for in the agreement or within 12 months after the day on which the name of the employer is added to Schedule 6, whichever is the later.

• (4) For the purposes of this section, valuation date has the same meaning as in the agreement with the employer.

Canada Post Corporation

Interpretation

41.8 The following definitions apply in this section and sections 41.81 to 41.84.

Canada Post

Canada Post means the Canada Post Corporation established by the Canada Post Corporation Act. (Postes Canada)

Canada Post Supplementary Retirement Arrangement

Canada Post Supplementary Retirement Arrangement means a supplementary pension plan that has been established by Canada Post under paragraph 46.3(1)(b) of the Public Service Superannuation Act and that has been approved by the Treasury Board under subsection 46.3(2) of that Act. (régime supplémentaire de retraite de Postes Canada)

Application

41.81 This Division applies in respect of the benefits accrued under this Part to persons who, by virtue of the coming into force of section 227 of the Public Sector Pension Investment Board Act, ceased to be employed in the Public Service for the purposes of the Public Service Superannuation Act on October 1, 2000 and

• (a) were employed by Canada Post and were contributors under the Public Service Superannuation Act on September 30, 2000, and

• (b) remains employed by Canada Post for at least one day following September 30, 2000.

Valuation

• 41.82 (1) Subject to subsections (2) and (3), the actuarial present value of the benefits accrued under this Part to the credit of the persons referred to in section 41.81 is calculated as of September 30, 2000 using the actuarial methods and assumptions contained in the Actuarial Report of March 31, 1996 on the Pension Plan for the Public Service of Canada, tabled in Parliament on March 18, 1998 by the President of the Treasury Board.

• (2) The actuarial assumptions contained in the Actuarial Report referred to in subsection (1) are varied as follows:

  • (a) the rate of interest for the period beginning on October 1, 2000 and ending on September 30, 2015 is equal to 1.95% per annum plus one-half of the rates of increase in the consumer price index for that period as set out in the Actuarial Report;

  • (b) the rate of interest for the period after September 30, 2015 is equal to 3.25% per annum;

  • (c) the rate of increase in salaries and the yearly maximum pensionable earnings is 3.9% per annum for the period beginning on October 1, 2000 and ending on September 30, 2001 and 4% per annum after that;

  • (d) the retirement rates are the rates set out in Schedule 1, multiplied by the percentage set out in Schedule 3, based on the projected number of salary level increases after October 1, 2000 set out in column 1 of Schedule 3 and the number of completed years of service after October 1, 2000 set out in column 2 of that Schedule;

  • (e) the termination rates are the rates set out in Schedule 2, multiplied by the percentage set out in Schedule 3, based on the projected number of salary level increases after October 1, 2000 set out in column 1 of Schedule 3 and the number of completed years of service after October 1, 2000 set out in column 2 of that Schedule;

  • (f) transfer values on termination of employment shall be calculated at twice the interest rates specified in paragraphs (a) and (b); and

  • (g) the Assumed Seniority and Promotional Salary Increase scale set out in Table 2A of the Actuarial Report is replaced by the probability distribution of rank at termination of employment set out in Schedule 4.

• (3) The amount calculated in accordance with subsection (1) shall be net of the present value of any instalment payments in respect of periods of service where such payments would have been due and payable into the Retirement Compensation Arrangements Account after September 30, 2000 by persons referred to in section 41.81 had those persons remained employed in the Public Service for the purposes of the Public Service Superannuation Act.

• (4) For the purpose of subsection (3), any instalment payment that is attributable to a period of leave of absence without pay is calculated as if it were due and payable on October 1, 2000.

• (5) For the purpose of subsection (3), the present value is calculated using an interest rate of 3.45% per annum.

Transfer of Funds

• 41.83 (1) The amount calculated in accordance with section 41.82, together with interest calculated in accordance with subsection (2), shall be paid by the President of the Treasury Board over a period not exceeding two years beginning on October 1, 2000.

• (2) Interest on each payment made by the President of the Treasury Board shall be calculated at a rate of 7.25% per annum from October 1, 2000 to the end of the day preceding each payment.

41.84 The amount calculated in accordance with section 41.82 together with interest calculated in accordance with subsection 41.83(2) shall be paid to the Supplementary Fund established under the Canada Post Supplementary Retirement Arrangement out of the Retirement Compensation Arrangements Account.

PART IIIParticipation Under the Canadian Forces Superannuation Act

42 Words and expressions used in this Part and not otherwise defined in the Act or in these Regulations have the same meaning as in the Canadian Forces Superannuation Act.

DIVISION IAdditional Pensionable Earnings

43 Any person who, on or after December 15, 1994, is required to contribute to the Canadian Forces Superannuation Account or the Canadian Forces Pension Fund and whose annual rate of pay is greater than the annual rate of pay determined under section 12.1 of the Canadian Forces Superannuation Regulations shall contribute to the Retirement Compensation Arrangements Account on the excess pay at the same rates and subject to the same conditions as are set out in section 5 of the Canadian Forces Superannuation Act.

• 44 (1) Contributions by a participant under section 43 shall be based on an annual rate of pay equal to the portion of the annual rate of pay of the participant that exceeds the annual rate of pay determined under section 12.1 of the Canadian Forces Superannuation Regulations.

• (2) Contributions by a participant under section 43 in respect of periods of service without pay shall be payable at the same rates and in the same manner as are specified in sections 11 and 12 of the Canadian Forces Superannuation Regulations, based on an annual rate of pay equal to the portion of the annual rate of pay of the participant that exceeds the annual rate of pay determined under section 12.1 of those Regulations.

• (3) A participant may elect not to contribute to the Retirement Compensation Arrangements Account in respect of a period of service without pay subject to the same terms and conditions as are set out in any regulations made under section 6.1 of the Canadian Forces Superannuation Act.

45 A participant who makes an election pursuant to paragraph 6(b) of the Canadian Forces Superannuation Act shall pay to the Retirement Compensation Arrangements Account, in respect of any portion of the participant’s annual rate of pay that exceeds the amount determined under section 12.1 of the Canadian Forces Superannuation Regulations, the amount that the participant would be required to contribute in respect of that portion pursuant to section 7 of that Act, in the same manner and subject to the same conditions as are set out in sections 8 and 9 of that Act.

46 A participant becomes subject to the retirement compensation arrangement on the later of

• (a) the day on which the participant’s annual rate of pay exceeds the annual rate of pay determined under section 12.1 of the Canadian Forces Superannuation Regulations, and

• (b) December 15, 1994.

47 A participant ceases to be required to contribute to the Retirement Compensation Arrangements Account under this Part on the day on which the participant ceases to be required to contribute under Part I of the Canadian Forces Superannuation Act.

• 48 (1) A benefit shall be paid under this Part to a participant who is entitled to an annuity under the Canadian Forces Superannuation Act as of the same day that the annuity becomes payable.

• (2) Subject to subsection 49(1), the benefit to which a participant is entitled shall be in an amount equal to

  • (a) the amount of the annuity that would be payable to the participant under Part I of the Canadian Forces Superannuation Act if paragraph 15(1)(b) of that Act applied without reference to the annual rate of pay fixed by or determined in accordance with the regulations referred to in subparagraph 15(1)(b)(iii) of that Act,

  less

  • (b) any annuity payable to the participant under the Canadian Forces Superannuation Act in respect of the period of pensionable service to the credit of the participant.

• (3) A benefit payable to a participant under subsection (1) is payable in the same manner and subject to the same conditions as is an annuity payable to the participant under the Canadian Forces Superannuation Act.

• 49 (1) For the purposes of subsection 48(2), where a participant has made an election under section 25.1 of the Canadian Forces Superannuation Act in respect of a spouse married when the participant was over 60 years of age, the amount determined under paragraph 8(2)(a) shall be reduced by the same proportion, and for the same period, as the participant’s annuity is reduced under section 66 of the Canadian Forces Superannuation Regulations.

• (2) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction calculated under section 66 of the Canadian Forces Superannuation Regulations.

50 The benefit payable to the surviving spouse of a participant who has made an election under section 25.1 of the Canadian Forces Superannuation Act, where that spouse married the participant when the participant was over 60 years of age, is equal to the amount determined under subsection 48(2), read without reference to subsection 49(1), multiplied by the percentage of the participant’s annuity, calculated before any reduction is calculated under section 66 of the Canadian Forces Superannuation Regulations, that the spouse will receive as an allowance under section 75 of those Regulations.

• 51 (1) Subject to subsection (2), a participant shall be entitled to a return of contributions made under this Part, together with interest calculated at the rate set out in the Canadian Forces Superannuation Act, if the participant is entitled to a return of contributions under that Act.

• (2) No return of contributions is payable to a participant under subsection (1) if the difference calculated under subsection 48(2) is nil.

• 52 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part or Part I of the Canadian Forces Superannuation Act, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, a benefit of the type referred to in section 39 of that Act shall be paid to the beneficiary named by the participant under Part II of that Act or, if no beneficiary is named or the named beneficiary does not survive the participant, to the estate of the participant, subject to the same conditions as are specified in that Act for payment of such a benefit.

• (2) Subject to subsection (3), if five times the aggregate of the benefits referred to in paragraphs (a) and (b) is greater than the total of the participant’s contributions under this Part and Part I of the Canadian Forces Superannuation Act together with interest thereon calculated at the rate and in the manner set out in section 13 of that Act, the amount of a benefit payable under subsection (1) shall be five times the aggregate of

  • (a) the annual amount of any benefit payable to the participant under this Division, determined in accordance with subsection 48(2) not reduced on account of the age or period of pensionable service of the participant, and

  • (b) the amount of any annuity payable to the participant under the Canadian Forces Superannuation Act, determined in accordance with subsection 15(1) of that Act.

• (3) The amount of the benefit referred to in subsection (2) shall be reduced by the following amounts paid to or in respect of the participant:

  • (a) any amount paid under this Part; and

  • (b) any amount paid under Part I of the Canadian Forces Superannuation Act, including any amount paid under section 39 of that Act.

• (4) If the amount determined under subsection (2) is less than the total of the participant’s contributions under this Part and Part I of the Canadian Forces Superannuation Act together with interest thereon calculated at the rate and in the manner set out in section 13 of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest thereon calculated at the same rate and in the same manner reduced by any amount paid to or in respect of the participant under this Part.

53 Section 22 of the Canadian Forces Superannuation Regulations applies to benefits under this Part in the same manner in which that section would apply to an annuity payable under the Canadian Forces Superannuation Act.

54 Where as a result of an election made under subsection 43(1) of the Canadian Forces Superannuation Act the participant ceases to be entitled to benefits provided under the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, any contributions paid by the participant under Part II or IV shall be considered to have been paid under this Part and the benefits to which the participant shall be entitled are those payable under this Part.

DIVISION IIAdditional Benefits

• 54.1 (1) A benefit shall be paid to a survivor or child of a participant equal to the amount by which an allowance payable to that person under the Canadian Forces Superannuation Act is reduced as a result of the operation of the limits set out in subsections 19.2(1) to (5) of the Canadian Forces Superannuation Regulations, which limits apply, as provided in subsection 19.2(6) of those Regulations, to amounts payable in respect of a contributor who dies after the coming into force of this section.

• (2) The benefit referred to in subsection (1) is payable in the same manner and subject to the same terms and conditions as apply to the payment of the allowance before the reduction.

PART IVParticipation Under the Royal Canadian Mounted Police Superannuation Act

55 Words and expressions used in this Part and not otherwise defined in the Act or in these Regulations have the same meaning as in the Royal Canadian Mounted Police Superannuation Act.

DIVISION IAdditional Pensionable Earnings

56 Any person who, on or after December 15, 1994, is required to contribute to the Royal Canadian Mounted Police Superannuation Account or the Royal Canadian Mounted Police Pension Fund and whose annual rate of pay is greater than the annual rate of pay determined under section 8.1 of the Royal Canadian Mounted Police Superannuation Regulations shall contribute to the Retirement Compensation Arrangements Account on the excess pay at the same rates and subject to the same conditions as are set out in section 5 of the Royal Canadian Mounted Police Superannuation Act.

• 57 (1) Contributions by a participant under section 56 shall be based on an annual rate of pay equal to the portion of the annual rate of pay of the participant that exceeds the amount determined under section 8.1 of the Royal Canadian Mounted Police Superannuation Regulations.

• (2) Contributions by a participant under section 56 in respect of periods of leave without pay shall be payable at the same rates and in the same manner as are specified in section 10 of the Royal Canadian Mounted Police Superannuation Regulations, based on an annual rate of pay equal to the portion of the annual rate of pay of the participant that exceeds the annual rate of pay determined under section 8.1 of those Regulations.

• (3) A participant may elect not to contribute to the Retirement Compensation Arrangements Account in respect of a period of leave without pay subject to the same terms and conditions as are set out in any regulations made under section 6.1 or subsection 26.1(1) of the Royal Canadian Mounted Police Superannuation Act.

58 A participant who makes an election pursuant to paragraph 6(b) of the Royal Canadian Mounted Police Superannuation Act shall pay to the Retirement Compensation Arrangements Account, in respect of any portion of the participant’s annual rate of pay that exceeds the amount determined under section 8.1 of the Royal Canadian Mounted Police Superannuation Regulations, the amount that the participant would be required to contribute in respect of that portion pursuant to section 7 of that Act, in the same manner and subject to the same conditions as are set out in sections 8 and 9 of that Act.

59 A participant becomes subject to the retirement compensation arrangement on the later of

• (a) the day on which the participant’s annual rate of pay exceeds the annual rate of pay determined under section 8.1 of the Royal Canadian Mounted Police Superannuation Regulations, and

• (b) December 15, 1994.

60 A participant ceases to be required to contribute to the Retirement Compensation Arrangements Account under this Part on the day on which the participant ceases to be required to contribute under Part I of the Royal Canadian Mounted Police Superannuation Act.

• 61 (1) A benefit shall be paid under this Part to a participant who is entitled to an annuity or annual allowance under the Royal Canadian Mounted Police Superannuation Act as of the same day that the annuity or annual allowance becomes payable.

• (2) Subject to subsection 62(1), the benefit to which a participant is entitled shall be in an amount equal to

  • (a) the amount of the annuity or annual allowance that would be payable to the participant under Part I of the Royal Canadian Mounted Police Superannuation Act if paragraph 10(1)(b) of that Act applied without reference to the annual rate of pay fixed by or determined in accordance with the regulations referred to in subparagraph 10(1)(b)(iii) of that Act,

  less

  • (b) any annuity or annual allowance payable to the participant under that Act and any benefit payable under subsection 67.1(2), in respect of the period of pensionable service to the credit of the participant.

• (3) A benefit payable to a participant under subsection (1) is payable in the same manner and subject to the same conditions as is an annuity payable to the participant under the Royal Canadian Mounted Police Superannuation Act.

• 62 (1) For the purposes of subsection 61(2), where a participant has made an election under section 14.1 of the Royal Canadian Mounted Police Superannuation Act in respect of a spouse married when the participant was over 60 years of age, the amount determined under paragraph 61(2)(a) shall be reduced by the same proportion, and for the same period, as the participant’s annuity or annual allowance is reduced under section 42 of the Royal Canadian Mounted Police Superannuation Regulations.

• (2) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction calculated under section 42 of the Royal Canadian Mounted Police Superannuation Regulations.

63 The benefit payable to the surviving spouse of a participant who has made an election under section 14.1 of the Royal Canadian Mounted Police Superannuation Act, where that spouse married the participant when the participant was over 60 years of age, is equal to the amount determined under subsection 61(2), read without reference to subsection 62(1), multiplied by the percentage of the participant’s annuity or annual allowance, calculated before any reduction is made under section 42 of the Royal Canadian Mounted Police Superannuation Regulations, that the spouse will receive as an allowance under section 51 of those Regulations.

• 64 (1) Subject to subsection (2), a participant shall be entitled to a return of contributions made under this Part, together with interest calculated at the rate set out in the Royal Canadian Mounted Police Superannuation Act, if the participant is entitled to a return of contributions under that Act.

• (2) No return of contributions is payable to a participant under subsection (1) if the difference calculated under subsection 61(2) is nil.

• 65 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part or Part I of The Royal Canadian Mounted Police Superannuation Act, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, a benefit of the type referred to in section 22 of that Act shall be paid to the beneficiary named by the participant under section 31 of that Act or, if no beneficiary is named or the named beneficiary does not survive the participant, to the estate of the participant, subject to the same conditions as are specified in that Act for payment of such a benefit.

• (2) Subject to subsection (3), if five times the aggregate of the benefits referred to in paragraphs (a) and (b) is greater than the total of the participant’s contributions under this Part and under Part I of the Royal Canadian Mounted Police Superannuation Act, together with interest thereon calculated at the rate and in the manner set out in subsection 9(6) of that Act, the amount of a benefit payable under subsection (1) shall be five times the aggregate of

  • (a) the annual amount of any benefit payable to the participant under this Division, determined in accordance with subsection 61(2), not reduced on account of the age or period of pensionable service of the participant, and

  • (b) the amount of any annuity payable to the participant under the Royal Canadian Mounted Police Superannuation Act, determined in accordance with paragraph 10(1)(a) of that Act.

• (3) The amount of the benefit referred to in subsection (2) shall be reduced by the following amounts paid to or in respect of the participant:

  • (a) any amount paid under this Part; and

  • (b) any amount paid under Part I of the Royal Canadian Mounted Police Superannuation Act, including any amount paid under section 22 of that Act.

• (4) If the amount determined under subsection (2) is less than the total of the participant’s contributions under this Part and Part I of the Royal Canadian Mounted Police Superannuation Act together with interest thereon calculated at the rate and in the manner set out in subsection 9(6) of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest thereon calculated at the same rate and in the same manner reduced by any amount paid to or in respect of the participant under this Part.

66 Section 22 of the Royal Canadian Mounted Police Superannuation Regulations applies to benefits under this Part in the same manner in which that section would apply to an annuity or annual allowance payable under the Royal Canadian Mounted Police Superannuation Act.

67 Where as a result of an election made under section 24 of the Royal Canadian Mounted Police Superannuation Act the participant ceases to be entitled to benefits provided under the Public Service Superannuation Act or the Canadian Forces Superannuation Act, any contributions paid by the participant under Part II or III shall be considered to have been paid under this Part and the benefits to which the participant shall be entitled are those payable under this Part.

DIVISION IIAdditional Benefits

• 67.1 (1) A benefit shall be paid to a survivor or child of a participant equal to the amount by which an allowance payable to that person under the Royal Canadian Mounted Police Superannuation Act is reduced as a result of the operation of the limits set out in subsections 20.2(1) to (5) of the Royal Canadian Mounted Police Superannuation Regulations, which limits apply, as provided in subsection 20.2(6) of those Regulations, to amounts payable in respect of a contributor who dies after the coming into force of this section.

• (2) A benefit shall be paid to a participant equal to the amount by which an annual allowance payable to that person under the Royal Canadian Mounted Police Superannuation Act is reduced as a result of the operation of the limit set out in subsection 52(1) of the Royal Canadian Mounted Police Superannuation Regulations, which limit applies, as provided in subsection 52(2) of those Regulations, to an annual allowance payable in respect of a contributor who ceases to be employed after the coming into force of this section.

• (3) The benefit referred to in subsection (1) or (2) is payable in the same manner and subject to the same terms and conditions as apply to the payment of the allowance or annual allowance referred to in that subsection, as the case may be, before the reduction.

PART VGeneral

Supplementary Benefits

• 68 (1) Subject to subsection (2), supplementary benefits shall be paid in respect of periodic payments payable under any of Parts I to IV at the same rates and in the same manner as are specified under the Supplementary Retirement Benefits Act for the payment of supplementary payments.

• (2) Supplementary benefits in respect of benefits payable under Part I shall be calculated in reference to the date on which the participant ceases to be required to contribute to the Retirement Compensation Arrangement Account under that Part.

Recovery of Overpayment

69 Where under Part II, III or IV an amount has been paid in error to a participant, an amount equal to the amount paid in error shall be recovered in the same manner as is specified

• (a) in respect of a participant under Part II, in section 20;

• (b) in respect of a participant under Part III, in section 28 of the Canadian Forces Superannuation Regulations; and

• (c) in respect of a participant under Part IV, in subsection 9(6) of the Royal Canadian Mounted Police Superannuation Regulations.

Public Service Corporations

• 70 (1) For the purposes of subsection 16(1) of the Act, the following are designated corporations:

  • (a) every Public Service corporation set out in Part I of Schedule I to the Public Service Superannuation Act; and

  • (b) every corporation that forms part of the Public Service as a result of a direction of the Treasury Board made under paragraph 40.1(2)(a) of the Public Service Superannuation Act, during the period set out in the direction.

• (2) Every corporation referred to in subsection (1) shall pay to the Retirement Compensation Arrangements Account an amount equal to

  • (a) in respect of each month during the period from December 15, 1994 to March 31, 1995, the amount contributed to that Account by each employee who is a participant, unless the employee has contributed in respect of that period at a rate equal to twice the rate referred to in subsection 29(1); and

  • (b) in respect of each month after March 31, 1995, an amount equal to the total of

    • (i) in respect of each employee who contributed to that Account in respect of that month at twice the rate referred to in section 29(1), the product of

      • (A) the amount contributed by the employee in respect of that month,

      multiplied by

      • (B) the rate used in estimating an amount under paragraph 18(1)(a) of the Act in respect of that month less the applicable rate set out in section 5 of the Public Service Superannuation Act, divided by 2, and

    • (ii) in respect of every other employee who contributed to that Account in respect of that month,

      • (A) the amount contributed by the employee in respect of that month,

      multiplied by

      • (B) the rate used in estimating an amount under paragraph 18(1)(a) of the Act in respect of that month.

Application of Certain Provisions of the Public Service Superannuation Regulations

71 Sections 30, 35 and 47 and subsections 48(1) to (5) of the Public Service Superannuation Regulations apply to benefits under a retirement compensation arrangement in the same manner in which those provisions would apply to an annuity or annual allowance payable under the Public Service Superannuation Act.

Period Referred to in Subsection 19(3) of the Act

72 The period referred to in subsection 19(3) of the Act begins on the first day of the fiscal year in which the report referred to in subsection 19(1) of the Act is laid before Parliament and ends on the last day of the fifteenth fiscal year after the tabling of that report.