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

Non-compliance with Requirements to Submit Evidence

41 An election is considered not to have been made where any document or statutory declaration that is required by any of sections 38 to 40 is not submitted within one year after the day on which the election is made.

Calculation of the Reduction

• 42 (1) The amount of the reduction of the monthly instalment of the immediate annuity or the annual allowance of a contributor who makes an election is equal to the amount determined as follows:

  • (a) calculate the actuarial present value of the immediate annuity or the annual allowance to which the contributor is entitled under Part I of the Act immediately before the election, and the supplementary benefits payable in respect thereof under Part III of the Act taking into account

    • (i) any amount that is or is to be deducted pursuant to subsection 10(2) of the Act, and

    • (ii) the minimum death benefit payable in accordance with section 22 of the Act;

  • (b) convert the amount determined in accordance with paragraph (a) into the following annuities, each of which has the same actuarial present value, namely,

    • (i) an immediate single life annuity that is payable to the contributor by monthly instalments beginning on the first day of the month after the month in which the election is made, and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were an annuity payable under Part I of the Act, and

    • (ii) a joint and survivor pension benefit that consists of

      • (A) an immediate annuity that is payable, during the life of the contributor, by monthly instalments beginning on the first day of the month after the month in which the election is made, and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act, and

      • (B) an annuity that is payable during the life of the surviving spouse, by monthly instalments beginning on the first day of the month after the month in which the contributor died and that is equal to 30, 40 or 50 per cent, in accordance with the election made by the contributor, of the annuity determined in accordance with clause (A), and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were an annuity payable under Part I of the Act; and

  • (c) subject to subsection (2), subtract the first monthly instalment of the annuity referred to in clause (b)(ii)(A) from the first monthly instalment of the annuity referred to in subparagraph (b)(i), and adjust the amount obtained to take into account

    • (i) that the reduction is effective during the lesser of

      • (A) the period of the life of the contributor,

      • (B) the period of the life of the spouse, and

      • (C) the duration of the marriage,

    • (ii) that the reduction becomes effective in the month referred to in subsection 47(1) or (2), as the case may be, and

    • (iii) that the increase in the reduction under section 43 will apply to the reduction in each year referred to in that section.

• (2) For the purposes of paragraph (1)(c), in determining the reduction for a contributor in respect of whom a minimum death benefit would be payable if the contributor were to die on the day on which the election is made, the actuarial present value that is converted in accordance with subparagraph (1)(b)(i) shall not take into account the amount of the minimum death benefit in respect of that contributor.

Indexation

• 43 (1) Subject to subsection (2), the amount of the reduction determined in accordance with section 42 is increased on January 1 of each year after the year in which the reduction is first in effect, by the amount that would be payable as a supplementary benefit under Part III of the Act if the amount of the reduction determined under section 42 were an immediate annuity that became payable under Part I of the Act on January 1 of the year in which the election was made.

• (2) Where the election is made in the year in which the contributor retires, the increase in the amount of the reduction pursuant to subsection (1) is determined in respect of the first year during which the increase is in effect from the first day of the month in which the contributor most recently ceased to be employed in the Royal Canadian Mounted Police.

Actuarial Assumptions

• 44 (1) For the purposes of section 42, the following are the only demographic assumptions on which the actuarial present values are to be based:

  • (a) the rate of mortality for any contributor who is a member of the Royal Canadian Mounted Police not holding a rank in the Force is the average of the rates of mortality for contributors who receive benefits in relation to a disability and contributors who receive benefits not in relation to a disability, of the same age group as the contributor, as set out in the actuarial valuation report laid before Parliament in accordance with section 45 of the Public Service Superannuation Act, taking into account the mortality projection factors set out in the report, which average is weighted in accordance with the benefits paid to contributors in relation to a disability and to contributors other than in relation to a disability;

  • (b) the rate of mortality for any contributor who is a member of the Royal Canadian Mounted Police holding a rank in the Force is set out in the actuarial valuation report laid before Parliament in accordance with section 30 of the Act;

  • (c) the rates of mortality of survivors are the rates in respect of spouses used in the preparation of the actuarial valuation report laid before Parliament in accordance with section 45 of the Public Service Superannuation Act, taking into account the mortality projection factors set out in the report; and

  • (d) the rates of divorce shall be those established by the Superintendent of Financial Institutions in accordance with the most recent statistics on divorce published by Statistics Canada.

• (2) The actuarial valuation reports referred to in subsection (1) are the most recent actuarial valuation reports laid before Parliament before the day of the election, or, if those reports were laid before Parliament in the month in which that day falls or in the preceding month, the reports that were laid before Parliament immediately before those reports, in each case with any terminological modifications that the circumstances require.

45 For the purposes of the determinations referred to in section 42, the rates of interest determined in accordance with the section entitled “Pension Commuted Values” of the Standards of Practice — Practice-Specific Standards for Pension Plans, published by the Canadian Institute of Actuaries, as amended from time to time, are the rates for fully indexed pensions.

Revision or Revocation of an Election

• 46 (1) A contributor who has made an election may revise the level of reduction where

  • (a) the contributor, before making the election, received, from an authorized advisor who normally gives information about these matters, materially erroneous or misleading information regarding the amount of the reduction of the contributor’s annuity or annual allowance or the amount of the immediate annual allowance to which the spouse would be entitled; or

  • (b) the amount of the annuity or annual allowance that is payable to the contributor is adjusted in accordance with the Pension Benefits Division Act after the day on which the election was made.

• (2) A contributor may revoke an election where

  • (a) the contributor, prior to making the election, received materially erroneous or misleading information referred to in paragraph (1)(a); or

  • (b) the amount of the annuity or annual allowance that is payable to the contributor is adjusted in accordance with the Pension Benefits Division Act after the day on which the election was made.

• (3) The revision of the level of reduction shall be in writing.

• (4) The revision is valid only if it is sent to the Minister, or to a person designated by the Minister,

  • (a) within three months after the day on which a written notice containing the corrected information is sent to the contributor; or

  • (b) within three months after the day on which the pension is adjusted in accordance with the Pension Benefits Division Act.

• (5) A revision of the level of reduction is effective on the day on which it is sent.

• (6) The day of the sending of the revision is the day on which it is delivered or, if it is sent by mail, the day on which it is mailed and the postmark is evidence of that day.

Effective Dates of Reduction

• 47 (1) Subject to subsection (2), the amount of the reduction of a contributor’s immediate annuity or annual allowance, calculated in accordance with section 42, shall be subtracted from the monthly instalment of the immediate annuity or annual allowance payable to the contributor, effective on the first day of the second month after the month in which the election is made.

• (2) Where a contributor has revised the level of reduction pursuant to subsection 46(1), the revised amount of the reduction shall be subtracted from the monthly instalments of the annuity or annual allowance payable to the contributor, effective on the first day of the month after the month in which the revision was made.

Cessation of Effect of Election

48 An election ceases to have effect on the earliest of

• (a) the day on which the spouse dies,

• (b) the day on which the annulment of the marriage of the contributor and the spouse takes effect, and

• (c) the day on which the divorce between the contributor and the spouse takes effect.

Revocation

49 For the purposes of subsection 14.1(2) of the Act, the day on which the election made by a contributor is deemed to have been revoked is the day on which the contributor is required to contribute to the Royal Canadian Mounted Police Pension Fund under section 5 of the Act.

Termination of Reduction

50 Where an election is revoked pursuant to subsection 46(2), ceases to have effect pursuant to section 48, or is deemed to be revoked pursuant to section 49, the reduction ceases on the first day of the month in which the election is revoked or ceases to have effect.

Surviving Spouse Allowance

51 The immediate annual allowance to which the spouse is entitled on the death of the contributor who made an election is equal to the amount determined in accordance with clause 42(1)(b)(ii)(B), if paragraph 42(1)(b) were read without reference to supplementary benefits payable under Part III of the Act.

Limit on Annual Allowance on Involuntary Retirement

52 Despite subparagraph 11(9)(b)(iii) of the Act, the amount of an annual allowance that becomes payable under that subparagraph to a contributor who ceases to be employed after February 7, 2002 shall not exceed the amount determined by the formula set out in paragraph 8503(3)(c) of the Income Tax Regulations.

Prescribed Periods and Ages

Prescribed Periods

• 53 (1) For the purposes of paragraphs 11(1)(a), (2)(a), (3)(a), (5)(a), (7)(a) and (8)(a), subsections 11(11), 12.1(1) and 13(3) and section 14 of the Act, the prescribed period is two years.

• (2) For the purposes of subparagraph 11(9)(b)(iii) of the Act, the prescribed number of years is 10 years.

• (3) For the purposes of paragraphs 11(3)(c) and (5)(c) of the Act, the prescribed period is 20 years.

• (4) For the purposes of paragraph 11(5)(d) of the Act, the prescribed period is 25 years.

• (5) For the purposes of subparagraph 11(9)(b)(ii) of the Act, the prescribed number of years of pensionable service is 25 years.

• (6) For the purposes of paragraph 11(9)(a) and clause 11(9)(b)(iii)(B) of the Act, the prescribed number of years of pensionable service is 30 years.

• (7) For the purposes of subsection 11(12) of the Act, the prescribed period is 35 years.

Prescribed Ages

• 54 (1) For the purposes of subparagraph 11(9)(b)(ii) of the Act, the prescribed age is 50 years.

• (2) For the purposes of paragraph 11(9)(a) and subparagraph 11(9)(b)(iii) of the Act, the prescribed age is 55 years.