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

Elections

Marginal note:Manner of making elections

• 8 (1) Every election made by a contributor under this Part shall be made by him while a member of the regular force and shall be evidenced in writing, in the form prescribed by the regulations, and witnessed, and the original thereof shall be forwarded to a person designated by the Minister for the purpose, within the time prescribed by this Act for the making of the election or, in the case of an election that may be made by the contributor at any time before he ceases to be a member of the regular force, within one month from the time of the making of the election.

• Marginal note:Void elections

  (2) An election under this Part is void in so far as it is

  • (a) an election to pay for any period of service described in any of clauses 6(b)(ii)(A) to (H) that the elector is entitled to count for the purposes of any superannuation or pension benefit of a kind specified in the regulations, otherwise than under the provisions of this Act;

  • (b) an election to pay for any period of service described in clause 6(b)(ii)(K) or (L) or an election under subsection 18(2) of the Canadian Forces Superannuation Act, chapter C-9 of the Revised Statutes of Canada, 1970, unless the elector has passed a medical examination, as prescribed by the regulations, within such time immediately before or after the making of the election as is prescribed by the regulations; or

  • (c) an election to pay for any continuous period of full-time service in the reserve force of one year by a person who became a contributor by virtue of subsection 41(3), unless the person has elected under subsection 41(4) to repay that part of the annuity or pension, as during that period, the person was entitled to receive under this Act or the former Act.

• Marginal note:Right to elect for part of period

  (3) A contributor who is entitled under this Part to elect to pay for a period of service is entitled to elect to pay for part only of that period but only that part which is most recent in point of time.

• Marginal note:Right to amend or revoke

  (4) An election under this Part may be amended by the elector, within the time prescribed by this Act for the making of the election, by increasing the period or periods of service for which he elects 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 his having so elected, as is prescribed by the regulations.

Marginal note:Special procedures for certain elections

8.1 When an election is made to count as pensionable service a period of service specified in clause 6(b)(ii)(L), (M) or (N), section 8 applies in the manner and to the extent set out in the regulations.

Marginal note:Manner of payment

• 9 (1) Subject to this section, any amount required by subsection 7(1) to be paid by a contributor in respect of any period of service for which he has elected to pay shall be paid by him into the Superannuation Account

  • (a) in a lump sum, at the time of making the election, or

  • (b) in instalments, on such terms and computed on such bases as to mortality and interest as are prescribed by the regulations,

  at his option.

• Marginal note:Election after March 31, 2000

  (1.1) For the purposes of subsection (1), an amount required to be paid by a contributor pursuant to an election made after March 31, 2000 shall be paid into the Canadian Forces Pension Fund.

• Marginal note:Unpaid instalments

  (2) Where a contributor who has elected under this Act or Part V of the former Act to pay for any period of service and has undertaken to pay for that period by instalments, ceases to be a member of the regular force before all the instalments have been paid, the unpaid instalments may be reserved, in accordance with the regulations, from any amount payable to him by Her Majesty including any annuity or other benefit payable to him under this Act, until such time as all the instalments have been paid or the contributor dies, whichever occurs first.

• Marginal note:Saving provision

  (3) Nothing in this Act shall be held to affect any right, privilege, obligation or liability that a person who elected to become a contributor under Part V of the former Act had under subsection 56(2) of that Act, immediately before March 1, 1960, but a contributor may, at any time before ceasing to be a member of the regular force, elect to surrender any right had by him under subsection 56(2) of that Act to pay for any period of service described therein in the manner authorized by that subsection, whereupon he is subject to subsections (1) and (2) of this section in all respects as though he had elected under this Act, at the time of the surrender of such right, to pay for that period.

• Marginal note:Recovery of amounts due

  (4) When any amount payable by a contributor into the Superannuation Account or the Canadian Forces Pension Fund by reservation from pay and allowances or otherwise has become due, but remains unpaid at the time of death, that amount, with interest at four per cent per annum from the time it became due, may be recovered in accordance with the regulations from any allowance payable under this Act to the survivor or children of the contributor, without prejudice to any other recourse available to Her Majesty with respect to the recovery of it, and any amounts so recovered shall be credited to the Superannuation Account or paid into the Canadian Forces Pension Fund and shall be deemed, for the purposes of the definition return of contributions in section 10, to have been paid into that Account or Fund by the contributor.

• Marginal note:Recovery of annuity paid in error

  (5) Where any amount has been paid in error under this Part or Part III on account of any annuity, annual allowance or supplementary benefit, the Minister may retain by way of deduction from any subsequent payment of that annuity, allowance or supplementary benefit, in the manner prescribed by regulation, an amount equal to the amount paid in error, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof.

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) a person who has to his credit pensionable service that includes any period described in any of clauses 6(b)(ii)(A) to (H) shall be deemed to have received during that period pay at a rate equal to the rate of pay on the basis of which the amount required by this Act to be paid by him for that period of service was determined.

  • (b) [Repealed, 1992, c. 46, s. 40]

• 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.