Retirement Compensation Arrangements Regulations, No. 1

Version of section 41.82 from 2006-03-22 to 2016-06-16:

  •  (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.

  • SOR/2002-73, s. 17
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