Retirement Compensation Arrangements Regulations, No. 1 (SOR/94-785)

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 12.2 or 57 of the Public Service Superannuation Regulations or under paragraph 6(1)(b), other than under clause 6(1)(b)(iii)(M) or (N), or section 20 of the Public Service Superannuation 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 sections 12.4 and 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 (1) Subject to subsections (2) and (3), a person who elects to pay for a period of service under clause 6(1)(b)(iii)(M) or (N) of the Public Service Superannuation Act shall pay to the Retirement Compensation Arrangements Account a lump sum amount that is equal to the aggregate of

  • (a) the amount by which the amount determined in accordance with subsection 103(1) of the Public Service Superannuation Regulations exceeds the amount that would be determined in accordance with that subsection if subparagraph 11(1)(b)(iii) of that Act and section 30.6 of those Regulations were not taken into account; and

  • (b) an amount representing interest on the amount determined under paragraph (a) calculated in the manner and at the rates referred to in subsection 103(2) of those Regulations.

• (2) If an adjustment is made under subsection 102(2) or (3) or 104(3) of the Public Service Superannuation Regulations to the period of pensionable service that is counted by the person under the election, the ratio that was used under that subsection of those Regulations to determine the period to be counted shall be applied to reduce the amount that is determined under subsection (1).

• (3) A person who had 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 December 13, 2002, is not required to make a payment under subsection (1), and ceases to be entitled to that annuity.

• 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.