An Act to amend the Canadian Forces Superannuation Act and to make consequential amendments to other Acts (S.C. 2003, c. 26)

Benefits Payable to Survivors, Children and Other Beneficiaries

Marginal note:Benefits payable on death of retired member

• 25. (1) On the death of a contributor who, at the time of their death, was entitled under this Part to an annuity or an annual allowance, the survivor and children of the contributor are entitled to the following allowances, computed on the basis of the product obtained by multiplying the average annual pay received by the contributor during the period specified in subparagraph 15(1)(a)(ii) by the number of years of pensionable service to the contributor’s credit, one one-hundredth of the product so obtained being referred to in this section as the “basic allowance”:

  • (a) in the case of a survivor, an immediate annual allowance equal to the basic allowance; and

  • (b) in the case of each child, an immediate annual allowance equal to one-fifth of the basic allowance or, if the contributor died without leaving a survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, other than an immediate annual allowance under section 25.1, two-fifths of the basic allowance.

• Marginal note:Total child allowance

  (2) The total amount of the allowances paid under paragraph (1)(b) shall not exceed four-fifths of the basic allowance or, if the contributor died without leaving a survivor, the survivor is dead or the survivor is not entitled to receive an allowance under this Part, other than an immediate annual allowance under section 25.1, eight-fifths of the basic allowance.

• Marginal note:Apportionment of total among children

  (3) If, in computing the allowances to which the children of a contributor are entitled under subsections (1) and (2), it is determined that there are more than four children of the contributor entitled to an allowance, the total amount of the allowances shall be apportioned among the children in such shares as the Minister considers just and proper under the circumstances.

• Marginal note:Benefits payable on death of serving member — more than two years

  (4) On the death of a contributor who has to their credit two or more years of pensionable service and was a member of the regular force at the time of death, the survivor and children of the contributor are entitled to the annual allowances to which they would have been entitled under subsections (1), (2) and (3) had the contributor, immediately before death, become entitled under this Part to an annuity or an annual allowance.

• Definition of “child”

  (5) For the purposes of subsections (1) to (4), “child” means a child of the contributor who

  • (a) is less than eighteen years of age; or

  • (b) is eighteen or more years of age but less than twenty-five years of age, and is in full-time attendance at a school or university as defined in the regulations.

• Marginal note:Benefits payable on death of serving member — less than two years

  (6) On the death of a contributor who has to their credit less than two years of pensionable service and was a member of the regular force at the time of death, the survivor and children of the contributor, in any case where the contributor died leaving a survivor or a child less than eighteen years of age, are entitled jointly to a death benefit equal to the greater of

  • (a) a return of contributions, and

  • (b) an amount equal to one month’s pay for each year of pensionable service to the credit of the contributor, computed on the basis of the rate of pay authorized to be paid to them at the time of their death.

Marginal note:Optional survivor benefit

• 25.1 (1) If the person to whom a contributor is married or with whom the contributor is cohabiting in a relationship of a conjugal nature, having so cohabited for a period of at least one year, would not be entitled to an immediate annual allowance under any other provision of this Act in the event of the contributor’s death, the contributor may opt, in accordance with the regulations, to reduce the amount of the annuity or annual allowance to which the contributor is entitled in order that the person could become entitled to an immediate annual allowance under subsection (2).

• Marginal note:Payment

  (2) A person referred to in subsection (1) is entitled to an immediate annual allowance in an amount determined in accordance with the option and the regulations if the contributor dies and the option is not revoked or deemed to have been revoked in accordance with the regulations, and the person was married to the contributor at the time of the contributor’s death, or was cohabiting with the contributor in a relationship of a conjugal nature for a period of at least one year immediately before the contributor’s death.

• Marginal note:No entitlement

  (3) A person who is entitled to receive an annual allowance under section 29 after the contributor’s death is not entitled to an immediate annual allowance under subsection (2) in respect of that contributor.

Marginal note:Lump sum payments

26. If in this Part it is provided that the survivor and children of a contributor are entitled jointly to a death benefit under subsection 25(6), the total amount of that benefit shall be paid to the survivor of the contributor, except that

Marginal note:Minimum benefits

• 40. (1) If, on the death of a contributor who, on ceasing to be a member of the Canadian Forces, was entitled to an immediate annuity or an annual allowance from which a deduction had been made pursuant to subsection 15(2), there is no person to whom an allowance provided in this Part may be paid, or where the persons to whom such allowance may be paid die or cease to be entitled to it and no other amount may be paid to them under this Part, any amount by which the calculated amount, within the meaning of subsection (2), exceeds the aggregate of all amounts paid to those persons and to the contributor under this Part or Part V of the former Act shall be paid

  • (a) as provided in section 38 for amounts payable under that section, if the contributor was not a member of the regular force on or after December 20, 1975; or

  • (b) as provided in section 39 for amounts payable under that section, if the contributor was a member of the regular force on or after December 20, 1975.

• Definition of “calculated amount”

  (2) For the purposes of subsection (1), “calculated amount” means an amount equal to one month’s pay for each year of pensionable service to the credit of the contributor, computed on the basis of the rate of pay authorized to be paid to them at the time they cease to be a member of the regular force, minus an amount equal to the amount by which

  • (a) the total amount the contributor would have been required to contribute to the Superannuation Account or the Canadian Forces Pension Fund up to the time they cease to be a member of the regular force, other than interest or charges for payments by instalments, in respect of service after 1965, if they had contributed on the basis of the rate set out in subsection 5(1) as it read on December 31, 1965,

  exceeds

  • (b) the total amount the contributor was required to contribute to the Superannuation Account or the Canadian Forces Pension Fund up to the time they cease to be a member of the regular force, other than interest or charges for payments by instalments, in respect of service after 1965.

Re-enrolment or Transfer

Marginal note:Persons re-enrolled or transferred

• 41. (1) If a person who has become entitled to an annuity or an annual allowance under this Act or a pension under Part V of the former Act by virtue of having served in the regular force is re-enrolled in or transferred to the regular force and becomes a contributor under this Part, whatever right or claim that they may have had to that annuity, annual allowance or pension (in this section referred to as the “original annuity”) then ceases and the period of service on which the original annuity was based may be counted by them as pensionable service for the purposes of this Part.

• Marginal note:Benefits prescribed by regulations

  (2) If, on subsequently ceasing to be a member of the regular force, a contributor referred to in subsection (1) is entitled to an annuity or annual allowance under this Part the capitalized value of which is less than the capitalized value of the original annuity, the contributor shall be entitled to benefits prescribed in regulations made under subsection (3) in place of any other benefit under this Part and Part III to which they would otherwise be entitled, but in no case shall the capitalized value of the benefits be less than the capitalized value of the original annuity.

• Marginal note:Regulations

  (3) For the purposes of subsection (2), the Governor in Council may make regulations prescribing benefits to which a contributor is entitled and respecting the manner of determining capitalized values, including the manner of taking into account any benefit under Part III.

• Marginal note:Limitation on application

  (5) This section does not apply in the case of a contributor who ceases to be a member of the regular force after the coming into force of this subsection.

Marginal note:Regulations

• 50. (1) The Governor in Council may make regulations

  • (a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;

  • (b) prescribing the circumstances in which, and the terms and conditions on which, elections may be made and options may be exercised under this Part, except section 19, and respecting the manner of and time for doing so;

  • (c) prescribing the circumstances in which, and the terms and conditions on which, elections under this Part may be revoked or amended, options under this Part revoked, and new elections or options made or exercised, and respecting the manner of and time for doing so;

  • (d) prescribing the terms and conditions on which a person who is retired from the regular force and, within sixty days after their retirement from it, again becomes a member of the regular force is deemed to have continued to be a member of the regular force despite their retirement from it;

  • (e) prescribing the extent to which and the circumstances under which any period of service of a person, whether before or after March 1, 1960, for which no pay was authorized to be paid or for which any forfeiture of pay or deduction from pay in respect of a period of suspension from duty was authorized to be made shall be counted as pensionable service for the purposes of this Act, prescribing the pay that is deemed to have been authorized to be paid to that person and to have been received by that person during that period, and prescribing, despite section 5, the contributions to be made by that person to the Superannuation Account or the Canadian Forces Pension Fund in respect of that pay;

  • (f) specifying, for the purposes of subsection 2(4), the employment as a member of the Canadian Forces that is excepted employment;

  • (g) fixing an annual rate of pay for the purposes of subsection 5(6) or prescribing the manner of determining the annual rate of pay;

  • (h) prescribing, for the purposes of subsection 9(3), the portion of the period of service that shall be counted as pensionable service for the purposes of this Act;

  • (i) respecting the manner of determining the amount of a transfer value within the meaning of section 10, the terms and conditions under which a contributor may become entitled to a transfer value and any other matters that the Governor in Council considers necessary for the purposes of carrying out section 22;

  • (j) respecting the manner in which, and the determination of the balances on which, interest is to be calculated under section 13 and respecting the rates of interest for the purposes of paragraph 13(b);

  • (k) prescribing the evidence required to satisfy the Minister that a contributor is not entitled to a disability pension described in paragraph 15(2)(b), the manner in which and the time within which that evidence shall be provided and the form of that evidence;

  • (l) respecting, for the purposes of subsection 15(4), the manner of determining pay that a contributor is deemed to have received;

  • (m) prescribing service in the regular force or in the reserve force that constitutes Canadian Forces service for the purposes of paragraph 16(1)(a);

  • (n) specifying, for the purposes of subsection 18(4), the method by which the amount of any annuity or annual allowance payable to a contributor described in subsection 18(1) shall be adjusted;

  • (o) specifying, for the purposes of subsection 21(2), the method by which the amount of any immediate annuity payable to a contributor described in subsection 21(1) shall be adjusted;

  • (p) defining, for the purposes of subsection 25(5), the expression “full-time attendance at a school or university” as applied to a child of a contributor;

  • (q) respecting the determination of disability for the purposes of this Part and the conditions on which an immediate annuity shall be paid or continue to be paid, including the initial assessment and subsequent periodic or other assessments of that disability;

  • (r) respecting the reduction to be made in the amount of an annuity or annual allowance when an option is exercised under subsection 25.1(1), the amount of the immediate annual allowance to be paid under subsection 25.1(2), the circumstances in which an option is deemed to have been revoked and any other matters that the Governor in Council considers necessary for the purposes of carrying out section 25.1;

  • (s) providing for the continuation in force of any outstanding direction made by the Minister or the Treasury Board under section 62 of the former Act, under the circumstances contemplated by that section and subject to modification or suspension as contemplated by that section;

  • (t) respecting the rates at which interest shall be credited to the Superannuation Account under paragraph 55(1)(b), the manner in which it shall be calculated and the time at which it shall be credited to the Account;

  • (u) respecting the additional information that is required to be included in annual reports referred to in section 57;

  • (v) providing for the payment out of the Superannuation Account or the Canadian Forces Pension Fund, on the death of a contributor and on application to the Minister by or on behalf of a person to whom any annual allowance becomes payable under this Part, of the whole or any part of the portion of the estate, legacy, succession or inheritance duties or taxes that are payable by the person that is determined in accordance with the regulations to be attributable to that allowance, and prescribing the amounts by which and the manner in which any such allowance and any amount payable in any such case under any of sections 38 to 40 shall be reduced; and

  • (w) generally, for carrying into effect the purposes and provisions of this Act.

• Marginal note:Retroactive application of regulations

  (2) Regulations made under this Act may, if they so provide, be retroactive and have effect with respect to any period before they are made.