Royal Canadian Mounted Police Superannuation Regulations (C.R.C., c. 1393)

Election Under Clause 6(b)(ii)(L), (N), (O) or (P) of the Act

Amount to be Paid

• 9.09 (1) For the purposes of paragraph 7(1)(i) of the Act, the amount to be paid for a period of service referred to in clause 6(b)(ii)(L), (O) or (P) 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 30 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) For the purposes of subsection (1), valuation day means

  • (a) the day on which this subsection comes into force, if the contributor makes the election referred to in clause 6(b)(ii)(L), (O) or (P) of the Act within one year after that day;

  • (b) the day on which the contributor most recently became a contributor, if the contributor most recently became a contributor after the day on which this subsection comes into force and makes the election within one year after the day on which the contributor most recently became a contributor; or

  • (c) the day on which the contributor makes the election, in any other case.

Lump Sum Payment

9.091 A contributor who opts to pay for a period of service referred to in clause 6(b)(ii)(L), (N), (O) or (P) of the Act in a lump sum shall ensure that the amount to be paid, despite paragraph 8(5)(a) of the Act, is received by the Commissioner within 30 days after the day on which the Commissioner sends a notice to the contributor of the amount to be paid.

9.092 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 Royal Canadian Mounted Police Pension Fund that was used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 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.

• 9.093 (1) If the amount to be paid is received by the Commissioner in full within the time limit set out in section 9.091, the period of service in respect of which the election was made shall be counted as pensionable service.

• (2) If the amount to be paid is not received by the Commissioner in full within that time limit, the period of service in respect of which the election was made shall be counted as pensionable service, beginning with the part that is most recent in point of time, in the same proportion as the amount that is received by the Commissioner within that time limit bears to the amount to be paid.

• (3) If the period of service in respect of which the election was made that is not counted in whole as pensionable service includes periods of full-time service and periods of part-time service, each of those periods shall be counted as pensionable service, beginning with the part that is most recent in point of time, in the same proportion as the amount that is received by the Commissioner bears to the amount to be paid.

9.094 A contributor’s election to pay for a period of service referred to in clause 6(b)(ii)(L), (N), (O) or (P) of the Act is void if the contributor opts to pay in a lump sum and does not pay into the Retirement Compensation Arrangements Account established under the Special Retirement Arrangements Act, within the time limit set out in section 9.091, any amount required to be paid under section 57 or 58 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.

Annual Rate of Pay

9.095 For the purposes of paragraph 10(4)(b) of the Act, the annual rate of pay that the contributor is deemed to have received during a period of service referred to in clause 6(b)(ii)(L), (O) or (P) of the Act is

• (a) if the contributor was a full-time member on valuation day, within the meaning of subsection 9.09(2), the pay authorized to be paid to the contributor on that day; or

• (b) if the contributor was then a part-time member, the pay that would have been authorized to be paid to the contributor if the contributor had been a full-time member on that day or, if the contributor was then engaged to work concurrently in more than one position, the total of the amounts determined for each position by the formula

  A x B/C

  where

  A

  is the pay that would have been authorized to be paid to the contributor if the contributor had been a full-time member on that day,

  B

  is the weekly average of the hours of work for which the contributor was engaged, and

  C

  is the total of the weekly averages of the hours of work for which the contributor was engaged in all positions.

Transitional

9.096 Section 9 as it read before the day on which sections 9 to 9.095 came into force shall continue to apply to elections made under paragraph 6(b) of the Act before that day.

Recovery of Amounts Paid in Error

• 9.1 (1) Where, under Part I or III of the Act, an amount has been paid in error to a person in respect of an annuity, annual allowance or supplementary benefit, the Minister shall immediately demand payment from that person of that amount.

• (2) If a person from whom payment of an amount has been demanded pursuant to subsection (1) has not paid the amount within 30 days after the day on which the demand is made, the Minister may deduct the amount from the person’s annuity, annual allowance or supplementary benefit, in approximately equal monthly instalments equal to ten per cent of the gross monthly amount of the annuity, annual allowance or supplementary benefit, as the case may be.

• (3) Where deductions are to be made pursuant to this section, the first deduction shall be made in the month following the month in which the 30-day period referred to in subsection (2) ends and further deductions shall be made in each month thereafter until the amount owing has been paid in full.

• (4) A person in respect of whom deductions are made under subsection (2) may, at any time,

  • (a) pay the amount then owing in one lump sum;

  • (b) arrange to have the amount of the monthly instalments increased; or

  • (c) make a partial payment and arrange to have the remaining amount owing deducted in approximately equal monthly instalments, over a period equal to or less than the period over which instalments would otherwise be payable under that subsection.

• (5) Notwithstanding subsection (2), where payment pursuant to that subsection would cause the person financial hardship, the person may pay the amount owing by reservation from the annuity, annual allowance or supplementary benefit of approximately equal instalments over a period not exceeding three times the period over which the instalments would be paid under that subsection or 15 years, whichever is the lesser.

• (6) If the person dies, the balance of any amount owing shall be deducted in a lump sum.

• (7) For the purposes of this section, a demand by or on behalf of the Minister for payment of an amount from a contributor or recipient shall be considered to have been made on the day on which a letter demanding payment, signed by or on behalf of the Minister and addressed to the contributor or recipient, is placed in the mail.

• (8) Nothing in this section prohibits a person from paying an amount at any time before that amount becomes payable.

Leave of Absence Without Pay

• 10 (1) Subject to subsections (2) and (3), the contribution that a contributor who is on leave of absence without pay shall pay to the Superannuation Account or the Royal Canadian Mounted Police Pension Fund is

  • (a) in respect of the first three months of the leave, the amount referred to in subsection (4); and

  • (b) subject to subsection 6.1(2) of the Act, in respect of the remainder of the leave, two and one-half times that amount in respect of any portion of that remainder that is before January 1, 2016 and two times that amount in respect of any portion of that remainder that is after December 31, 2015.

• (2) Subject to subsection 6.1(2) of the Act, where a contributor is absent from the Force on leave of absence without pay

  • (a) [Repealed, SOR/2015-250, s. 1]

  • (b) where the Commissioner is satisfied that the contributor is absent

    • (i) in order to undergo training or instruction to the advantage of the Force,

    • (ii) because of a physical or mental impairment that prevents the contributor from performing the duties of the employment in which they were engaged before the commencement of the impairment, or

    • (iii) because of the pregnancy of the contributor,

    • (iv) [Repealed, SOR/2015-250, s. 1]

  the contribution that the contributor shall pay to the Superannuation Account or the Royal Canadian Mounted Police Pension Fund is the amount referred to in subsection (4).

• (3) Subject to subsection 6.1(2) of the Act, where a contributor is absent from the Force on leave of absence without pay

  • (a) because of the birth of a child of the contributor,

  • (b) in order to carry out parental responsibilities in respect of the acceptance of custody of a child for adoption, or

  • (c) to provide a child of the contributor with care and custody,

  the contribution that the contributor shall pay into the Superannuation Account or the Royal Canadian Mounted Police Pension Fund, in respect of any portion of the leave that falls within the 52-week period following the day of the birth of the child of the contributor or the day of adoption of the child by the contributor, is the amount referred to in subsection (4).

• (4) For the purposes of subsections (1) to (3),

  • (a) if the period of leave of absence without pay or any portion of it was after 1999 but before January 1, 2004, the amount in respect of that period or portion is the amount that would have been payable under subsection 5(1), (6) or (7) of the Act as it read on December 31, 2003, if the contributor had not been on leave;

  • (b) if the period of leave of absence without pay or any portion of it was after 2003 but before January 1, 2013, the amount in respect of that period or portion is the amount that would have been payable under subsection 5(2) or paragraph 5(7)(b) of the Act, as it read on December 31, 2012, if the contributor had not been on leave; and

  • (c) if the period of leave of absence without pay or any portion of it was after 2012, the amount in respect of that period or portion is the amount that would have been payable under subsection 5(1) or (2) of the Act, if the contributor had not been on leave.

10.1 For the purposes of Parts I and III of the Act, a contributor who is absent from the Force on leave of absence without pay is deemed to have received, during that absence, pay equal to the pay that would have been authorized to be paid to the contributor had the contributor not been absent.

10.2 Subject to sections 10.3 to 10.6, an amount payable by a contributor under section 10 shall be paid

• (a) in a lump sum, within 30 days after the contributor’s return to duty in a position in respect of which they are required under section 5 of the Act to contribute to the Royal Canadian Mounted Police Pension Fund and in a capacity other than on leave of absence without pay from another position in the Force; or

• (b) in approximately equal instalments, by reservation from the contributor’s pay, over a period beginning on the contributor’s return to duty in a position and capacity referred to in paragraph (a) and equal to twice the period of absence in respect of which the contributor is required to contribute under section 10.

10.3 Where a contributor who is paying an amount in instalments pursuant to paragraph 10.2(b) commences another absence from the Force on leave of absence without pay before all of the instalments have been paid,

• (a) payment of the unpaid instalments is deferred until the contributor returns to duty in a position and capacity referred to in paragraph 10.2(a); and

• (b) an amount equal to the aggregate of the amount of the unpaid instalments and the amount payable under section 10 in respect of the latest absence is payable in the manner set out in section 10.2, except that the period referred to in paragraph 10.2(b) shall be equal to the aggregate of the period over which the unpaid instalments were to have been deducted and twice the period of the latest absence in respect of which the contributor is required to contribute under section 10.

10.4 Where an amount payable by a contributor pursuant to section 10 is unpaid at the time the contributor ceases to be a member of the Force, that amount shall be paid out of any benefit that is or becomes payable under the Act to or in respect of the contributor

• (a) where the benefit is an annuity, annual allowance or supplementary benefit,

  • (i) by reservation from the monthly instalment of the benefit of an amount equal to the amount of any instalment otherwise payable under paragraph 10.2(b) or 30 per cent of the gross amount of the monthly instalment, whichever is the lesser, or

  • (ii) if the recipient so elects, in a lump sum immediately on the benefit becoming payable; or

• (b) in the case of a benefit other than a benefit referred to in paragraph (a), in a lump sum immediately on the benefit becoming payable.

10.5 Where an amount payable by a contributor pursuant to section 10 is unpaid at the time of death of the contributor, that amount may be recovered, under subsection 8(7) of the Act, from any allowance payable under the Act to the survivor or children of the contributor, at the option of the recipient,

• (a) by reservation of a lump sum immediately on the allowance becoming payable; or

• (b) by reservation from the monthly instalment of the allowance of an amount equal to the amount of any instalment payable by the contributor under paragraph 10.2(b) prior to the death of the contributor or 30 per cent of the gross amount of the monthly instalment, whichever is the lesser.

• 10.6 (1) Notwithstanding sections 10.2 to 10.5, where payment of an amount referred to in any of those sections would cause financial hardship to the contributor or a recipient, the contributor or recipient may choose to pay the amount payable

  • (a) in respect of payment under section 10.2, by reservation from the contributor’s pay in approximately equal instalments over a period not exceeding three times the leave of absence without pay of the contributor or 15 years, whichever is the lesser; and

  • (b) in respect of payment under subparagraph 10.4(a)(i) or paragraph 10.5(b), by reservation from the monthly instalment of the annuity, annual allowance, supplementary benefit or allowance of an amount not less than 15 per cent of the gross amount of the instalment.

• (2) Nothing in section 10.2 or 10.3 prohibits the payment at any time before the time for payment specified in that section of all or part of an amount payable pursuant to section 10.

• 10.7 (1) An election under subsection 6.1(1) of the Act may be made during the period that begins three months after the period of leave of absence without pay commenced and ends three months after the day on which the contributor returns to duty in a position in respect of which they are required under section 5 of the Act to contribute to the Royal Canadian Mounted Police Pension Fund and in a capacity other than on leave without pay from another position in the Force.

• (2) A contributor may revoke an election made under subsection 6.1(1) of the Act if the contributor received, from an authorized advisor who normally gives information about these matters, erroneous or misleading information regarding

  • (a) the amount that would otherwise have been required to be contributed in respect of the period in relation to which the election was made;

  • (b) the amount that would be required to be contributed, or any other conditions that would apply, if the contributor were to make an election under clause 6(b)(ii)(K) of the Act;

  • (c) the resulting benefit that would have been provided by the addition to the contributor’s pensionable service credit of the period in respect of which the election was made; or

  • (d) the deductibility, under the Income Tax Act, of contributions referred to in paragraph (a) or (b).

• (3) A revocation under subsection (2) applies to the entire period of service in respect of which the election was made.

• (4) A revocation under subsection (2) shall be made within three months after the day on which the contributor received written acknowledgement that the information referred to in that subsection was erroneous or misleading.