Public Service Superannuation Act

Marginal note:Definitions

• 10 (1) For the purposes of this Part,

  annuity

  pension

  annuity means an annuity computed in accordance with section 11; (pension)

  cash termination allowance

  allocation de cessation en espèces

  cash termination allowance means an amount equal to one month’s pay for each year of pensionable service computed on the basis of the rate of salary authorized to be paid to the contributor

  • (a) at the time he or she ceases to contribute to the Superannuation Account or the Public Service Pension Fund, or

  • (b) in the case of a contributor who continues to be employed in the Public Service after having ceased to contribute to the Superannuation Account or the Public Service Pension Fund pursuant to subsection 5(1.1) or (1.2), at the time he or she ceases to be employed in the Public Service,

  minus an amount equal to the amount by which

  • (c) the total amount the contributor would have been required to contribute to the Superannuation Account or the Public Service Pension Fund up to the time he or she ceases to be employed in the Public Service, other than interest or charges for payments by instalments, in respect of service after 1965, if he or she had contributed on the basis of the rates set out in subsection 5(1) as it read on December 31, 1965,

  exceeds

  • (d) the total amount the contributor was required to contribute to the Superannuation Account or the Public Service Pension Fund up to the time he or she ceases to be employed in the Public Service, other than interest or charges for payments by instalments, in respect of service after 1965; (allocation de cessation en espèces)

  deferred annuity

  pension différée

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

  immediate annuity

  pension immédiate

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

  recipient

  prestataire

  recipient means a person to whom any benefit is or is about to become payable under this Part or out of the Retirement Fund; (prestataire)

  return of contributions

  remboursement de contributions

  return of contributions means a return of

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

  • (b) any amount to his or her credit in the Retirement Fund that has been transferred to the Superannuation Account, and

  • (c) 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 Public Service Pension Fund,

  to the extent that the amount remains to his or her credit in the Superannuation Account or the Public Service Pension Fund, together with interest, if any, calculated pursuant to subsection (9); (remboursement de contributions)

  transfer value

  valeur de transfert

  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

  (2) Where an annuity or 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 in which he dies, and any amount in arrears thereof that remains unpaid at any time after his death shall be paid as provided in subsection 25(1), in respect of a return of contributions.

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

  (3) 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 in 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:Capitalization

  (4) When a person who is a contributor or survivor has become entitled under this Part to an annuity or annual allowance the amount of which would be less than two per cent of the Year’s Maximum Pensionable Earnings within the meaning of subsection 11(3) in respect of the year in which the request is made, there may be paid to that person, on request by that person, to the Minister in writing within three months from the day on which written notice is sent by the Minister informing the person of the amount of the annuity or annual allowance, an amount determined in accordance with the regulations to be the capitalized value of the annuity or annual allowance, which payment shall be in lieu of any other benefit under this Part and Part III.

• Marginal note:Options

  (5) Where, under section 12 or 13, a contributor is entitled to a benefit therein specified at his option,

  • (a) if he fails to exercise the option within one year from the time he became so entitled, he shall be deemed to have exercised it in favour of a benefit other than a lump sum payment as described in the definitions “cash termination allowance” and “return of contributions” in subsection (1);

  • (b) if, without having exercised or been deemed to have exercised the option, he becomes a contributor under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, he shall be deemed to have exercised the option immediately before becoming a contributor under that Act in favour of a benefit other than a lump sum payment as described in the definitions “cash termination allowance” and “return of contributions” in subsection (1); and

  • (c) if, without having exercised or been deemed to have exercised the option, he or she becomes re-employed in the Public Service, he or she ceases to be entitled to exercise the option until the time that he or she ceases to be so re-employed, unless before that time he or she becomes a contributor under this Part, in which case the period on which that benefit was based, except any such period specified in clause 6(1)(a)(iii)(C) or (E), shall be counted as pensionable service for the purposes of subsection 6(1).

• Marginal note:Revocation of option

  (6) Where, under section 12 or 13, a contributor is entitled to a benefit therein specified at his option, the option may be revoked and a new option exercised by the contributor, under such circumstances and on such terms and conditions as the Governor in Council by regulation prescribes.

• Marginal note:Contributor re-employed before return of contributions paid to him

  (7) Where a contributor who is entitled under section 12 or 13 to a return of contributions becomes re-employed in the Public Service and a contributor under this Part before those contributions have been paid to him, the period of pensionable service to which those contributions relate (except any such period specified in clause 6(1)(a)(iii)(C) or (E)) shall be counted as pensionable service for the purposes of this Part, and the amount of those contributions shall, in lieu of being paid to him, be applied in payment of or on account of the amount required by this Part to be paid by him for that service.

• Marginal note:Annuity in respect of locked-in contributions

  (8) A contributor who has to his credit a period of pensionable service in respect of which no amount can, by virtue of subsection 40(9), be paid to an approved employer is entitled in respect of that service, on ceasing to be employed in the Public Service, to a benefit specified in section 12 or 13 other than a cash termination allowance or a return of contributions.

• Marginal note:Interest on return of contributions

  (9) For the purposes of the definition “return of contributions” in subsection (1), 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, 1997;

  • (b) at the rates established in the regulations made under paragraph 44(1)(c), compounded quarterly, for any period on or after January 1, 1997 and before April 1, 2000; and

  • (c) at the rates established in the regulations made under paragraph 42.1(1)(v.3), compounded quarterly, for any period beginning on or after April 1, 2000.

• Marginal note:Benefits not assignable, etc.

  (10) Subject to Part II of the Garnishment, Attachment and Pension Diversion Act and to the Pension Benefits Division Act,

  • (a) a benefit under this Part or Part III is not capable of being assigned, charged, anticipated or given as security and any transaction that purports to assign, charge, anticipate or give as security any such benefit is void;

  • (b) a benefit to which a contributor, survivor or child is entitled under this Part or Part III is not capable of being surrendered or commuted during the lifetime of that person except under subsection (4), section 13.01 and subsection 25(5) and any transaction that purports to so surrender or commute any such benefit is null and void; and

  • (c) a benefit under this Part or Part III is exempt from attachment, seizure and execution, either at law or in equity.