Canadian Forces Superannuation Act (R.S.C., 1985, c. C-17)

Marginal note:Other elective service

• 8 (1) A contributor may, within two years after the coming into force of this section, elect, in accordance with subsection (2) or (3), as the case may be, to pay for any period of service that they would have been entitled to count as elective service under section 6 of this Act as it read immediately before that coming into force if they were a member of the regular force continuously from the day immediately before that coming into force until the day on which they make the election.

• Marginal note:Old rules applicable

  (2) If a contributor makes an election under subsection (1) to pay for a period of service for which they would not have been entitled to make an election under section 7, the provisions of this Act, and the regulations made under it, as they read immediately before the coming into force of this section, apply to an election under that subsection.

• Marginal note:New rules applicable and election regarding cost

  (3) If a contributor makes an election under subsection (1) to pay for a period of service for which they would also have been entitled to make an election under section 7, then subsection 7(3) and the regulations made under subsection 7(2) apply to the election made under subsection (1), except that the contributor may further elect, in accordance with the regulations, for the provisions of this Act, and the regulations made under it, as they read immediately before the coming into force of this section, to apply to the determination of the amount to be paid for the period of service and the terms and conditions applicable to payment for that service.

8.1 [Repealed, 2003, c. 26, s. 5]

Marginal note:Election for absence from duty

• 9 (1) If, under any regulations made under paragraph 50(1)(e), a contributor is required to count as pensionable service for the purposes of this Act a period of service that exceeds three months, the contributor may, despite those regulations, elect, in accordance with the regulations, not to count as pensionable service that portion of the period that is in excess of three months.

• Marginal note:Contributions not required

  (2) Despite section 5, a contributor who makes an election under subsection (1) is not required to contribute to the Superannuation Account or the Canadian Forces Pension Fund under that section in respect of the portion of the period to which the election relates.

• Marginal note:Election for period of service before December 1, 1995

  (3) A contributor who makes an election under subsection (1) in respect of a period of service that ended before December 1, 1995 and who has, before that day, made some but not all of the contributions that are required to be made by the contributor to the Superannuation Account in respect of that period shall, at the time the election is made, cease to be required to make any further contributions to the Superannuation Account in respect of that period and shall count as pensionable service for the purposes of this Act such portion of that period as is prescribed by the regulations.

Marginal note:Amendment or revocation of election

9.1 An election under this Part may be amended by the elector, within the time prescribed by the regulations for the making of the election, by increasing the period or periods of service for which they elect to pay, and is otherwise irrevocable except under such circumstances and on such terms and conditions, including payment by the elector to Her Majesty of such amount in respect of any benefit accruing to the elector during the subsistence of the election, as a consequence of their having so elected, as is prescribed by the regulations.

Marginal note:Entitlement to benefits to cease on election

9.2 Despite anything in the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, on the making of any election under this Act to pay for service that they have to their credit under either of those Acts, the contributor so electing, and any person to whom any benefit might otherwise have become payable under the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, in respect of that contributor, cease to be entitled to any benefit under that Act in respect of any service of that contributor to which that election relates.

Marginal note:Regulations

9.3 The Governor in Council may make regulations prescribing the manner of determining the amount to be charged to the account maintained in the accounts of Canada, or the pension fund established pursuant to the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, and credited to the Canadian Forces Pension Fund or to the Superannuation Account, as the case may be, in respect of a contributor who elects to pay for a period of service that they were entitled to count for pension purposes under the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act.

Benefits: Definitions, etc.

Marginal note:Definitions

10 In this Act, except Part I.1,

annuity

annuity means an annuity computed in accordance with section 15; (annuité)

cash termination allowance

cash termination allowance[Repealed, 2003, c. 26, s. 7]

deferred annuity

deferred annuity means an annuity that becomes payable to the contributor at the time he reaches sixty years of age; (annuité différée)

immediate annuity

immediate annuity means an annuity that becomes payable to the contributor immediately on his becoming entitled thereto; (annuité immédiate)

recipient

recipient[Repealed, 2003, c. 26, s. 7]

return of contributions

return of contributions means a return of

• (a) the amount paid by the contributor into the Superannuation Account or the Canadian Forces Pension Fund but not including any amount so paid pursuant to subsection 39(7) of the Public Service Superannuation Act or subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act, and

• (b) any amount paid by him or her into any other account or fund, together with interest, if any, that has been transferred to the Superannuation Account or the Canadian Forces Pension Fund,

to the extent that the amount remains to his or her credit in the Superannuation Account or the Canadian Forces Pension Fund, together with interest, if any, calculated pursuant to section 13; (remboursement de contributions)

transfer value

transfer value means a lump sum amount, representing the value of the contributor’s pension benefits, as determined in accordance with the regulations. (valeur de transfert)

Marginal note:Duration of payment, etc., to contributor

• 11 (1) Where an annuity or an annual allowance becomes payable under this Part to a contributor, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, during the lifetime of the contributor and thereafter until the end of the month during which the contributor dies, and any amount in arrears thereof that remains unpaid at any time after their death shall be paid as provided in section 26, in respect of a death benefit.

• Marginal note:Duration of payment, etc., to survivor or child

  (2) When an annual allowance becomes payable under this Part to a survivor or child, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, until the end of the month during which the recipient dies or otherwise ceases to be entitled to receive an annual allowance, and any amount in arrears that remains unpaid at any time after the death of the recipient shall be paid to the estate or succession of the recipient or, if less than one thousand dollars, as the Minister may direct.

Marginal note:Revocation of option

12 If a contributor has exercised an option under this Part, the option may be revoked and a new option exercised by the contributor, in accordance with the regulations.

Marginal note:Interest on return of contributions

13 For the purposes of the definition return of contributions in section 10, interest shall be calculated in the manner that the regulations provide and on the balances that are determined in accordance with the regulations,

• (a) at the rate of four per cent, compounded annually, for any period before January 1, 2001; and

• (b) at the rates established in the regulations made under paragraph 50(1)(j) compounded quarterly, for any period beginning on or after January 1, 2001.

14 [Repealed, 2003, c. 26, s. 11]

Annuities: How Computed

Marginal note:Computation of annuities

• 15 (1) The amount of any annuity to which a contributor may become entitled under this Act is an amount equal to the aggregate of

  • (a) an amount equal to

    • (i) the number of years of pensionable service to the credit of the contributor occurring in the period preceding the day on which this subsection comes into force, not exceeding thirty-five, divided by fifty,

    multiplied by

    • (ii) the average annual pay received by the contributor during any five-year period of pensionable service selected by or on behalf of the contributor, or during any period so selected consisting of consecutive periods of pensionable service totalling five years, or

    • (iii) in the case of a contributor who has to the contributor’s credit less than five years of pensionable service, the average annual pay received by the contributor during the period of pensionable service to the contributor’s credit, and

  • (b) an amount equal to

    • (i) the number of years of pensionable service to the credit of the contributor occurring in the period on and after the day on which this subsection comes into force, not exceeding thirty-five years less the number of years of pensionable service to the credit of the contributor under subparagraph (a)(i), divided by fifty,

    multiplied by the lesser of

    • (ii) the average annual pay received by the contributor during the period referred to in subparagraph (a)(ii) or (iii), as applicable, and

    • (iii) the annual rate of pay that is fixed by the regulations made under paragraph 50(1)(g), or that may be determined in the manner prescribed by those regulations, and in force on the day on which the contributor most recently ceased to be a member of the regular force.

• Marginal note:Deduction from annuity

  (2) Notwithstanding subsection (1), unless the Minister is satisfied that a contributor

  • (a) has not reached the age of sixty-five years, and

  • (b) has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a provision of a provincial pension plan similar to the Canada Pension Plan,

  there shall be deducted from the amount of any annuity to which that contributor is entitled under this Act an amount equal to the percentage, as set out in subsection (2.1), of

  • (c) the average annual pay received by the contributor during the period of pensionable service described in subsection (1) applicable to him or her, not exceeding his or her Average Maximum Pensionable Earnings,

  multiplied by

  • (d) the number of years of pensionable service after 1965 or after he or she has attained the age of eighteen years, whichever is the later, to the credit of the contributor, not exceeding thirty-five, divided by fifty.

• Marginal note:Percentages

  (2.1) For the purposes of subsection (2), the percentage that applies in respect of a contributor is

  • (a) 35%, if the contributor was born before 1943;

  • (b) 34.25%, if the contributor was born in 1943;

  • (c) 33.5%, if the contributor was born in 1944;

  • (d) 32.75% if the contributor was born in 1945;

  • (e) 32%, if the contributor was born in 1946; and

  • (f) 31.25%, if the contributor was born after 1946.

• Marginal note:Definitions

  (3) For the purposes of subsection (2),

  Average Maximum Pensionable Earnings

  Average Maximum Pensionable Earnings means, with respect to any contributor, the average of the Year’s Maximum Pensionable Earnings for the year in which he or she ceased to be a member of the regular force and for each of the four preceding years; (moyenne des maximums des gains ouvrant droit à pension)

  Year’s Maximum Pensionable Earnings

  Year’s Maximum Pensionable Earnings has the same meaning as in the Canada Pension Plan. (maximum des gains annuels ouvrant droit à pension)

• Marginal note:Pay deemed to have been received during certain periods

  (4) For the purposes of this section, a contributor who has to their credit pensionable service that includes any period of service referred to in paragraph 6(b) is deemed to have received during that period pay determined in accordance with the regulations.

• Marginal note:Computation of average annual pay

  (5) For the purposes of subparagraphs (1)(a)(ii) and (iii), a period of service during which a person continues to be a member of the regular force and is required to make contributions under subsection 5(2), or was required to make contributions under subsection 5(2), (3) or (4) as it read on December 31, 2012, is deemed to be a period of pensionable service to his or her credit.

• Marginal note:Application

  (6) Subparagraphs (1)(a)(ii) and (iii), as enacted by subsection 14(1) of the Budget Implementation Act, 1999, apply with respect to benefits payable to or in respect of a person who contributes under section 5 or 75 on or after the day on which this subsection comes into force but do not apply to a person who became entitled to an annuity before the coming into force of this subsection and is a person described in section 41 and who is only entitled to a return of contributions in respect of the period of service in the regular or reserve force after the time of his or her re-enrollment within the meaning of that section.

• Marginal note:Application

  (7) The definition Average Maximum Pensionable Earnings in subsection (3), as enacted by subsection 14(2) of the Budget Implementation Act, 1999, applies only with respect to deductions from annuities made under subsection (2) that take effect on or after the day on which this subsection comes into force.