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Public Service Superannuation Regulations (C.R.C., c. 1358)

Regulations are current to 2024-05-28 and last amended on 2021-06-10. Previous Versions

Transfer Value (continued)

Determination of Transfer Value (continued)

  •  (1) In determining the actuarial present value of the accrued pension benefits referred to in subsection 90(1), the following actuarial assumptions are to be used:

    • (a) the mortality rates for former contributors and survivors, including mortality projection factors, shall be those used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act;

    • (b) the interest rates shall be the interest rates for fully indexed pensions — adjusted by the interest rates for unindexed pensions to take into account Part III of the Act — determined in accordance with the section “Pension Commuted Values” of the Standards of Practice — Practice-Specific Standards for Pension Plans, published by the Canadian Institute of Actuaries, as amended from time to time;

    • (c) the probability that a contributor will be survived by children shall be based on the rates regarding the assumed number, average age and eligibility status of children at the death of a contributor used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act;

    • (d) the probability that a contributor will become entitled to a benefit by reason of disability shall be based on the disability incidence rates used in the preparation of the most recent actuarial valuation report relating to the pension plan established under the Act, taking into account the probability set out in that report that, where termination of employment was on account of disability, there would be immediate eligibility for Canada Pension Plan or Quebec Pension Plan disability benefits; and

    • (e) the probability that a contributor will have a survivor shall be based on the rates regarding the average age and eligibility status of survivors on the date of the death of a contributor used in the preparation of the most recent actuarial valuation report.

    • (f) [Repealed, SOR/2016-203, s. 37]

  • (2) The actuarial valuation report referred to in paragraphs (1)(a) and (c) to (e) is the actuarial valuation report most recently laid before Parliament in accordance with section 45 of the Act before valuation day or, if that report was laid before Parliament in the month in which valuation day occurs or in the preceding month, the report that was laid before Parliament immediately before that report.

  • SOR/97-222, s. 1
  • SOR/2003-13, s. 5
  • SOR/2007-29, s. 3
  • SOR/2016-203, ss. 37, 41

 [Repealed, SOR/2016-203, s. 38]

  •  (1) For the purposes of determining the deferred annuity referred to in subsection 90(1), a contributor’s pensionable service is that which is to the credit of the contributor on the date of ceasing to be employed in the public service.

  • (2) For the purposes of subsection 13.01(3) of the Act and notwithstanding subsection (1), the pensionable service to the credit of a contributor who has elected to pay for a period of pensionable service by means of instalments shall include only the portion of the pensionable service subject to the election that corresponds to the payments that were made or ought to have been made on or before valuation day.

  • SOR/97-222, s. 1
  • SOR/2016-203, s. 46(E)

Reduction

 If a division of a contributor’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the day on which payment of a transfer value is effected, the transfer value referred to in section 90 shall be reduced to take into account the adjustment to the contributor’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

  • SOR/97-222, s. 1
  • SOR/2016-203, s. 39

Prescribed Retirement Savings Plan or Fund

 A retirement savings plan prescribed for the purposes of section 26 of the Pension Benefits Standards Act, 1985 is prescribed as a kind of retirement saving plan or fund for the purposes of paragraph 13.01(2)(b) of the Act.

  • SOR/97-222, s. 1

Prescribed Immediate and Deferred Life Annuity

 An immediate life annuity and a deferred life annuity as defined in subsection 2(1) of the Pension Benefits Standards Regulations, 1985 are prescribed as a kind of immediate life annuity and a kind of deferred life annuity for the purposes of paragraph 13.01(2)(c) of the Act.

  • SOR/97-222, s. 1

Adaptation of Subsection 13.01(2) of the Act

 For the purposes of subsection 13.01(2) of the Act, where the transfer value determined in accordance with sections 90 to 95 exceeds the amount which may, in accordance with section 8517 of the Income Tax Regulations, be transferred to a retirement savings plan or fund or to a financial institution for the purchase of an immediate or deferred life annuity, the excess shall be paid to the contributor.

  • SOR/97-222, s. 1

Payment where Contributor is Deceased

 Where the payment of a transfer value cannot be effected in accordance with subsection 13.01(2) of the Act because the contributor is deceased, the payment shall be made to the estate of the contributor.

  • SOR/97-222, s. 1

Election for Transfer Value Service or Pension Transfer Agreement Service

  •  (1) The following definitions apply in sections 101 to 107.

    pension transfer agreement service

    pension transfer agreement service means any period of service in respect of which a payment has been made in respect of a contributor in accordance with an agreement entered into under subsection 40.2(2) of the Act. (période de service visée par un accord de transfert)

    transfer value service

    transfer value service means any period of service in respect of which payment of a transfer value or a commuted value has been effected in accordance with subsection 13.01(2) of the Act, subsection 22(2) of the Canadian Forces Superannuation Act or subsection 12.1(2) of the Royal Canadian Mounted Police Superannuation Act. (période de service relative à une valeur de transfert)

  • (2) For the purposes of sections 103 and 107, valuation day is the day on which

    • (a) the contributor most recently became a contributor; or

    • (b) section 107 comes into force, if the contributor most recently became a contributor before that day and if

      • (i) the contributor has, under clause 6(1)(b)(iii)(M) of the Act, elected, within the period referred to in paragraph 101(3)(b), to count as pensionable service a period of service in respect of which payment of a transfer value or a commuted value has been effected in accordance with subsection 22(2) of the Canadian Forces Superannuation Act or subsection 12.1(2) of the Royal Canadian Mounted Police Superannuation Act, or

      • (ii) the contributor has, under clause 6(1)(b)(iii)(N) of the Act, elected, within the period referred to in paragraph 101(3)(b), to count as pensionable service a period of pension transfer agreement service.

  • SOR/2003-13, s. 7
  • SOR/2016-203, s. 40
  •  (1) A contributor may elect, while employed in the public service and once only under each of clauses 6(1)(b)(iii)(M) and (N) of the Act, to pay for a period of transfer value service or pension transfer agreement service for which they had not previously had an opportunity to elect to pay.

  • (2) The election shall be in writing and dated and signed by the contributor.

  • (3) The election shall be made,

    • (a) in respect of a period of service for which payment of a transfer value was effected in accordance with subsection 13.01(2) of the Act and if the elector became a contributor most recently before the coming into force of this paragraph, no later than the first anniversary of the date of the written notice sent informing the contributor that they have become a contributor; or

    • (b) in any other case, no later than the first anniversary of the day on which this paragraph comes into force or the date of the written notice informing the contributor that they have become a contributor, if it is after this day.

  • (4) The date of the election is the day on which it is delivered to the Minister or, if it is mailed, the day on which it is mailed and the postmark is evidence of that day.

  • (5) Subject to subsection (6), a contributor who elects to pay for only a portion of transfer value service or pension transfer agreement service may be credited with only the period that is most recent in point of time.

  • (6) If a contributor elects to pay for only a portion of transfer value service or pension transfer agreement service that consists of periods of full-time service and part-time service, the portion elected shall consist of full-time service and part-time service in the same proportions as those used in the determination of the transfer value or the payment made under a pension transfer agreement, based on those periods of service that are most recent in point of time.

  • SOR/2003-13, s. 7
  • SOR/2016-203, s. 40
  •  (1) For the purposes of subparagraph 11(1)(a)(i) of the Act, any part of a period of service referred to in clause 6(1)(b)(iii)(M) or (N) of the Act during which the contributor worked part-time is credited to the contributor in the proportion determined by the formula

    A / B

    where

    A
    is the number of hours of work per week for which the contributor was engaged during the part; and
    B
    is the number of hours of work per week for which the contributor would have been engaged during the part if the contributor had worked full-time.
  • (2) If the pension benefits that have accrued in respect of a period of service referred to in clause 6(1)(b)(iii)(M) of the Act were subject to a division under the Pension Benefits Division Act, only the part of the period of service that corresponds to the portion of the benefits that remain accrued to the contributor is credited to the contributor.

  • (3) If the pension benefits that have accrued in respect of a period of service referred to in clause 6(1)(b)(iii)(N) of the Act were subject to a division under a pension plan that was subject to the Pension Benefits Standards Act, 1985 or an equivalent provincial law, only the part of the period of service that corresponds to the portion of the benefits that remain accrued to the contributor is, after confirmation of the division by the employer, credited to the contributor.

  • (4) The total period of service shall be taken into account in determining eligibility for a benefit.

  • SOR/2003-13, s. 7
  • SOR/2016-203, s. 40
  •  (1) For the purposes of paragraph 7(1)(k) of the Act, the amount to be paid for a period of service referred to in clause 6(1)(b)(iii)(M) or (N) of the Act is the actuarial present value of the pension benefits that have accrued under the Act in respect of the period of service, that value being determined on valuation day on a going-concern basis and in accordance with the methods and assumptions used in the preparation of the actuarial valuation report that was most recently laid before Parliament in accordance with section 45 of the Act before valuation day or, if that report was laid before Parliament in the month in which valuation day occurs or in the preceding month, of the report that was laid before Parliament immediately before that report.

  • (2) The amount to be paid shall bear interest, compounded annually, beginning on the first day of the month after the day on which the election is made and ending on the last day of the month that precedes the day on which the payment is received, at a rate equal to the projected rate of return of the Public Service Pension Fund that was used in the preparation of the actuarial valuation report that was most recently laid before Parliament in accordance with section 45 of the Act before the day on which the payment is received or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

  • SOR/2003-13, s. 7
  • SOR/2016-203, s. 40
  •  (1) The amount to be paid for a period of service referred to in clause 6(1)(b)(iii)(M) or (N) of the Act shall be paid to the Public Service Pension Fund in a lump sum.

  • (2) The election is void unless the amount is received by the Minister no later than the 90th day after the date of the written notice from the Minister informing the contributor that the past service pension adjustment, within the meaning of subsection 8303(1) of the Income Tax Regulations, certification has been issued by the Canada Revenue Agency.

  • (3) The period of service in respect of which the election was made shall be counted as pensionable service, in the same proportion as the amount that is received by the Minister within the time limit set out in subsection (2) bears to the total amount to be paid, beginning with the part that is most recent in point of time.

  • SOR/2003-13, s. 7
  • SOR/2016-203, s. 40

 The election is void if the contributor does not pay into the Retirement Compensation Arrangements Account established under the Special Retirement Arrangements Act, within the time limit set out in subsection 104(2), any amount required to be paid under section 38.3 of the Retirement Compensation Arrangements Regulations, No. 1 for the part of the period of service in respect of which the election was made that is counted as pensionable service.

  • SOR/2016-203, s. 40

 If a contributor’s election is void for the reasons set out in subsection 104(2) or in section 105, the contributor is not entitled to make another election in respect of any period of service to which the election applies.

  • SOR/2016-203, s. 40

 In respect of a contributor making the election referred to in clause 6(1)(b)(iii)(M) or (N) of the Act, paragraph 11(7)(c.1) of the Act is adapted as follows:

  • (c.1) a person who has to their credit a period of service described in clause 6(1)(b)(iii)(M) or (N) is deemed to have received during that period

    • (i) if they were a full-time employee on valuation day, as determined under subsection 100(2) of the Public Service Superannuation Regulations, the salary that was authorized as payable to them on that day, or

    • (ii) if they were then a part-time employee, the salary that would have been authorized as payable to them if they had been a full-time employee on that day or, if they were then engaged to work concurrently in two or more positions, the total of the salary determined for each position by the formula

      A × B / C

      where

      A
      is the salary that would have been authorized as payable to them if they had been a full-time employee on that day,
      B
      is the weekly average of the hours of work for which they were engaged, and
      C
      is the aggregate of the weekly averages of the hours of work for which they were engaged in all positions.
  • SOR/2016-203, s. 40
 

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