Canadian Forces Superannuation Regulations

66 (1) The amount of the reduction of the monthly instalment of the annuity or annual allowance of the contributor that results from the exercise of the option is equal to the amount determined as follows:

• (a) calculate the actuarial present value of the annuity or annual allowance to which the contributor is entitled under Part I of the Act immediately before having exercised the option and the supplementary benefits payable in respect of it under Part III of the Act, taking into account

  • (i) any amount that is or is to be deducted under subsection 15(2) of the Act, and

  • (ii) the minimum benefit payable under section 38 of the Act;

• (b) convert the amount determined in accordance with paragraph (a) into the following annuities, each of which has the same actuarial present value, namely,

  • (i) an immediate single life annuity that is payable to the contributor by monthly instalments beginning on the first day of the month following the month in which the option is exercised, and that is determined taking into account the supplementary benefits payable under Part III of the Act as if the annuity were a pension payable under Part I of the Act, and

  • (ii) a joint and survivor pension benefit that consists of

    • (A) an immediate annuity that is payable during the life of the contributor by monthly instalments beginning on the first day of the month after the month in which the option is exercised, and that is determined taking into account the supplementary benefits payable under Part III of the Act as if the annuity were a pension payable under Part I of the Act, and

    • (B) an annuity that is payable during the life of the person who is the elective beneficiary and the survivor of the contributor by monthly instalments beginning on the first day of the month after the month in which the contributor dies and that is equal to 30, 40 or 50%, in accordance with the option exercised by the contributor, of the annuity determined in accordance with clause (A), and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act; and

• (c) subject to subsection (2), subtract the first monthly instalment of the annuity referred to in clause (b)(ii)(A) from the first monthly instalment of the annuity referred to in subparagraph (b)(i), and adjust the amount obtained to take into account

  • (i) that the reduction is effective during the lesser of

    • (A) the duration of the life of the contributor,

    • (B) the duration of the life of the elective beneficiary, and

    • (C) with respect to the contributor and the elective beneficiary, the duration of their marriage or the period of their cohabitation in a relationship of a conjugal nature, as the case may be,

  • (ii) that the reduction becomes effective beginning in the month referred to in subsection 73(1) or (2), as the case may be, and

  • (iii) that the increase in the reduction under section 67 will apply to the reduction in each year referred to in that section.

(2) For the purposes of paragraph (1)(c), in the determination of the reduction for a contributor in respect of whom a minimum benefit would be payable under section 38 of the Act if the contributor were to die on the day on which the option is exercised, the actuarial present value that is converted for the purposes of subparagraph (1)(b)(i) is not to take into account the minimum benefit payable in respect of that contributor under that section.