Short Title

1 These Regulations may be cited as the Canadian Forces Superannuation Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Canadian Forces Superannuation Act; (Loi)

a(f) Ultimate Table

a(f) Ultimate Table means the table so entitled appearing in the “Mortality of Annuitants 1900-1920” published on behalf of the Institute of Actuaries and the Faculty of Actuaries in Scotland, 1924; (Table a (f) Ultimate)

Minister

Minister means the Minister of National Defence; (ministre)

past earnings election

past earnings election[Repealed, SOR/2016-64, s. 1]

pensionable earnings election

pensionable earnings election, in relation to a period of pensionable service of a contributor who was a participant under subsection 4(2) of the Reserve Force Pension Plan Regulations, means an election made under subsection 11(1) of those Regulations. (choix visant les gains ouvrant droit à pension)

• 3 (1) Days of Canadian Forces service are

  • (a) in the regular force, days of service for which pay was authorized to be paid and days of leave for maternity or parental purposes granted under the Queen’s Regulations and Orders for the Canadian Forces; and

  • (b) in the reserve force,

    • (i) days of service for which pay was authorized to be paid except that any day of service for which pay was authorized to be paid for a period of duty or training of less than six hours is considered to be 1/2 of a day,

    • (ii) in the proportion determined under subsection (3), days in a period of exemption or leave referred to in paragraph 2(b) of the Reserve Force Pension Plan Regulations, and

    • (iii) in the proportion of 1/4 of a day for each day, days in a period before April 1, 1999, if the records of the Canadian Forces or the Department of National Defence permit the verification of the duration of the period but not the number of days of service for which pay was authorized to be paid.

• (2) Each day of service for which pay was authorized to be paid and during which the contributor served on Class “A” Reserve Service within the meaning of article 9.06 of the Queen’s Regulations and Orders for the Canadian Forces shall count as 1 2/5 days of Canadian Forces service.

• (3) The proportion referred to in subparagraph (1)(b)(ii) shall be determined by the formula

  A/B

  where

  A

  is the number of the contributor’s days of Canadian Forces service in the 364 days before the period; and

  B

  is the number of days in the 364 days during which the contributor was a member of the Canadian Forces.

• (3.1) For the purposes of subsections (1) and (2), days of Canadian Forces service are determined without taking into account section 11.

• (4) Any total number of days of Canadian Forces service that includes a fraction shall be rounded to the next higher multiple of a day.

3.1 For the purposes of paragraph 16(1)(a) of the Act, a contributor is considered to have not less than 25 years of Canadian Forces service if they have completed not less than 9,131 days of Canadian Forces service.

4 For the purposes of subsection 16(2) of the Act, the number of years of Canadian Forces service that is greater than the minimum number of 25 years

• (a) in the case of an officer of the rank of colonel and above,

  • (i) from March 1, 2007 until December 31, 2007 is 28 and, for those purposes, 10,227 days of Canadian Forces service is considered to equal 28 years,

  • (ii) from January 1, 2008 until December 31, 2008 is 27 and, for those purposes, 9,861 days of Canadian Forces service is considered to equal 27 years, and

  • (iii) from January 1, 2009 until December 31, 2009 is 26 and, for those purposes, 9,496 days of Canadian Forces service is considered to equal 26 years; and

• (b) in the case of any other officer, from March 1, 2007 until December 31, 2007 is 26 and, for those purposes, 9,496 days of Canadian Forces service is considered to equal 26 years.

• 5 (1) For the purposes of subsection 5(4) of the Act, the specified kind of superannuation or pension benefit is one that

  • (a) is granted under the Judges Act; or

  • (b) is payable out of the Consolidated Revenue Fund or out of any account or fund in the Consolidated Revenue Fund, other than the Superannuation Account or the Government Annuities Account, and

    • (i) is related in amount to the period of service that may be counted by the person to whom the superannuation or pension benefit is payable, and

    • (ii) is payable in instalments during the lifetime of the recipient and thereafter if the superannuation or pension plan so provides.

• (2) For the purposes of paragraph 8(2)(a) of the Act, the kind of superannuation or pension benefit therein referred to is one that

  • (a) is provided in whole or in part as a result of contributions made other than by the contributor;

  • (b) is related in amount to a period of service; and

  • (c) is payable in instalments during the lifetime of the recipient and thereafter if the superannuation or pension plan so provides.

• 6 (1) For the purposes of clause 6(b)(ii)(E) of the Act, time of war during the Second World War is the period from September 10, 1939, to September 30, 1947, both dates inclusive.

• (2) For the purposes of paragraph 7(1)(g) of the Act, pay on a full-time basis means pay at the rates prescribed by the regulations made under the National Defence Act for officers and non-commissioned members of the regular force and reserve force on Class “C” Reserve Service.

7 For the purposes of paragraph 18(4)(f) of the Act, the period referred to therein is six months.

8 [Repealed, SOR/2016-64, s. 5]

Contributor — Reserve Force Member

• 8.1 (1) Despite subsection 41(3) of the Act, a member of the reserve force is considered to be a member of the regular force and becomes a contributor for the purposes of Part I of the Act, except for paragraph 16(2)(a), and these Regulations

  • (a) on March 1, 2007 if,

    • (i) on that date, the member is not a person required to contribute to the Public Service Pension Fund or the Royal Canadian Mounted Police Pension Fund,

    • (ii) on that date, the member does not have any pensionable service to their credit under Part I of the Act,

    • (iii) on that date, the member’s total number of days of Canadian Forces service during any period of 60 months beginning on or after April 1, 1999 was no less than 1,674, and

    • (iv) during the first month of the period, the member already was or became a member of the Canadian Forces and remained a member, without any interruption of more than 60 days, until March 1, 2007;

  • (b) on the first day of the month in which the member would, despite subsection 4(4) of the Reserve Force Pension Plan Regulations, have become a participant in accordance with subsection 4(2) of those Regulations if the member is a person in respect of whom the payment of a transfer value has been effected under subsection 22(2) of the Act;

  • (c) subject to subsection (3), on the first day on which they become entitled to receive salary as a member of the reserve force if the member, under Part I of the Act,

    • (i) is in receipt of an annuity or annual allowance,

    • (ii) is entitled to a deferred annuity or an annual allowance, or

    • (iii) has exercised an option for the payment of a transfer value and has become entitled to receive the salary before that payment has been effected; or

  • (d) in any other case, on the first day of the month following a period of 60 months ending after March 1, 2007 if

    • (i) the member’s total number of days of Canadian Forces service during the period was no less than 1,674,

    • (ii) the member already was or became a member of the Canadian Forces during the first month of the period and remained a member of the Canadian Forces throughout the period without any interruption of more than 60 days, and

    • (iii) the member does not have any pensionable service to their credit under Part I of the Act.

• (2) If a member of the reserve force is required to contribute to the Public Service Pension Fund or the Royal Canadian Mounted Police Pension Fund

  • (a) on March 1, 2007, then the reference in paragraph (1)(a) to “March 1, 2007” is to be read as a reference to the first day after the member ceases to contribute to the fund;

  • (b) on the first day of the month referred to in paragraph (1)(b) or (d), then that first day is the first day of the first month after the member ceases to contribute to the fund; and

  • (c) on the day referred to in paragraph (1)(c), then that day is the first day after the member ceases to contribute to the fund.

• (3) A member of the reserve force who is in receipt of an annuity or annual allowance under Part I of the Act and who was a member of the regular force, other than by operation of this section, on the day on which they most recently ceased to contribute to the Superannuation Account or Canadian Forces Pension Fund is considered to be a member of the regular force and becomes a contributor, for the purposes of that Part and these Regulations, beginning on the earlier of

  • (a) the day after the day on which the member completes one year of continuous full-time service in the reserve force, and

  • (b) the day after the day on which the member exercises an early contribution option.

8.2 For the purposes of paragraph 8.1(3)(b), a member of the reserve force is entitled to exercise the early contribution option

• (a) before the day on which they are required to contribute to the Canadian Forces Pension Fund;

• (b) no earlier than the first day, on or after March 1, 2007, in respect of which they were entitled to receive salary as a member of the reserve force while in receipt of an annuity or annual allowance; and

• (c) no later than the last day of the 12th month after the month in which they were last entitled to receive salary as a member of the reserve force.

• 8.3 (1) A contributor who is a member of the reserve force ceases to be considered to be a member of the regular force for the purposes of Part I of the Act and these Regulations on the earlier of

  • (a) the day on which the contributor ceases to be a member of the Canadian Forces, and

  • (b) the last day of a period of 12 months in respect of which they were not entitled to receive salary.

• (2) In respect of members of the reserve force referred to in paragraph 8.1(1)(c) and in subsection 8.1(3), subsection 41(1) of the Act is adapted as follows:

  • 41 (1) If a member of the reserve force referred to in paragraph 8.1(1)(c) or subsection 8.1(3) of the Canadian Forces Superannuation Regulations is considered to be a member of the regular force and becomes a contributor under this Part, any right or claim that they may have had to the annuity or annual allowance referred to in that paragraph or subsection then ceases and the period of service on which that annuity or annual allowance was based may be counted by them as pensionable service for the purposes of this Part, except that

    • (a) if, on subsequently ceasing to be considered to be a member of the regular force, they are not entitled under this Act to any benefit other than a return of contributions, the amount so returned shall not include any amount paid into the Superannuation Account or the Canadian Forces Pension Fund to their credit at any time before the time that they were considered to be a member of the regular force, and whatever right or claim that, but for this subsection, they would have had to their most recent annuity or annual allowance on subsequently ceasing to be considered to be a member of the regular force shall be restored to them; and

    • (b) if, on subsequently ceasing to be considered to be a member of the regular force, they are entitled under this Act to an annuity or annual allowance the capitalized value of which is less than the capitalized value of the most recent annuity or annual allowance to which they were entitled, in lieu of any other benefit under this Act, whatever right or claim that, but for this subsection, they would have had to their most recent annuity or annual allowance on subsequently ceasing to be considered to be a member of the regular force shall be restored to them, and there shall be paid to them an amount equal to their contributions under this Act made in respect of the period of their service in the reserve force after the time that they were most recently considered to be a member of the regular force.

8.31 In respect of a member of the reserve force referred to in section 8.3, subsection 40(1) of the Act is adapted as follows:

• 40 (1) If, on the death of a contributor who, on ceasing to be a member of the regular force, was entitled to an immediate annuity or an annual allowance from which a deduction had been made in accordance with subsection 15(2), there is no person to whom an allowance provided in this Part may be paid, or if the persons to whom the allowance may be paid die or cease to be entitled to it and no other amount may be paid to them under this Part, any amount by which the calculated amount, within the meaning of subsection (2), exceeds the aggregate of all amounts paid to those persons and to the contributor under this Part shall be paid as provided in section 39 for amounts payable under that section.

8.4 In respect of a member who is described in subsection 8.1(3) of these Regulations, subsections 41(4) and (5) of the Act are adapted as follows:

• (4) A member who is described in subsection 8.1(3) of the Canadian Forces Superannuation Regulations may, within the period set out in clauses 6(b)(ii)(G) and (H) as adapted by subsection 12.2(2) of those Regulations, and in the manner prescribed by those Regulations, elect to repay the amount of annuity or annual allowance, referred to in subsection 8.1(3), that the member has received.

• (5) The member making the election under subsection (4) shall pay into the Canadian Forces Pension Fund, at the time and in the manner prescribed by the Regulations, an amount equal to the amount of the annuity or annual allowance multiplied by the member’s number of days of Canadian Forces service while in receipt of the annuity or annual allowance, divided by 365.

8.5 In respect of a member of the reserve force referred to in subsection 8.1(3), paragraph 8(2)(c) of the Act is adapted as follows:

• (c) an election to pay for a period of service in the reserve force by a member of the reserve force referred to in subsection 8.1(3) of the Canadian Forces Superannuation Regulations, unless the member has made the election referred to in subsection 41(4), as adapted by section 8.4 of those Regulations.

Allowances Constituting Part of Pay

• 9 (1) For the purpose of the definition pay in subsection 2(1) of the Act, commencing the first day of the month following the date on which this subsection comes into force, the monthly allowance that constitutes part of the pay for all ranks is $30.

• (2) Subject to paragraph 7(1)(k) of the Act and except as provided in subsection (3), the monthly allowances, which shall constitute part of the pay of rank, shall be, in the case of a period of elective pensionable service performed

  • (a) prior to September 1, 1946, as prescribed under Part V of the former Act effective September 1, 1946; and

  • (b) subsequent to August 31, 1946, as prescribed under the Act or Part V of the former Act, as applicable, from time to time during the relevant period.

• (3) Subsections (1) and (2) do not apply to an officer who is in receipt of consolidated rates of pay.

• (4) [Repealed, SOR/92-717, s. 1]

Pensionable Service

Medical Examination

10 Every medical examination required by paragraph 8(2)(b) of the Act shall be

• (a) undergone by the contributor within the period of 90 days before or after the making of the election by that person, or within such other period as the Minister may prescribe; and

• (b) performed by a medical officer of the Canadian Forces or a civilian medical practitioner acting in that capacity who shall certify whether or not the contributor is disabled.

Income Tax Act Compliance

• 10.1 (1) Notwithstanding Part I of the Act, an election made after August 15, 1997 to count as pensionable service any period of service after December 31, 1989 is void in respect of any service in relation to which the Minister of National Revenue refuses to issue a certification, pursuant to paragraph 147.1(10)(a) of the Income Tax Act, that the conditions prescribed pursuant to that paragraph, as at January 15, 1992, were met in respect of the service after December 31, 1989.

• (2) Despite paragraph 8(2)(a) of the Act, an election made after August 15, 1997 in respect of any service after December 31, 1989 that would be void under that paragraph is void only if, 60 days after being notified that the Minister of National Revenue has issued the certification referred to in subsection (1), the elector is entitled to count the service to which the certification relates for the purposes of any superannuation or pension benefit of a kind referred to in subsection 5(2), other than a superannuation or pension benefit payable under Part I of the Act.

• (3) Section 45 of the Act does not apply to a person who elects under subsection 43(1) of the Act after August 15, 1997 in respect of service after December 31, 1989 if the Minister of National Revenue refuses to issue the certification referred to in subsection (1).

Former Participants Under the Reserve Force Pension Plan Regulations

10.2 Any period of pensionable service to the member’s credit under section 34 of the Reserve Force Pension Plan Regulations on the day before the day on which the member becomes a contributor is counted as a period of pensionable service to the contributor’s credit for the purposes of Part I of the Act.

10.3 A member who has made a pensionable earnings election, and is still paying in respect of the election by way of instalments on the day before the day on which the member becomes a contributor, is required to pay into the Canadian Forces Pension Fund, by instalments reserved from pay and allowances or otherwise, amounts equal to the unpaid instalments on the same terms and conditions as set out in sections 18 to 23 of the Reserve Force Pension Plan Regulations as those that would apply to a participant under those Regulations in respect of a pensionable earnings election.

Service Without Pay

• 11 (1) Any period of service of a contributor in the Canadian Forces of 60 consecutive days or less in respect of which, pursuant to regulations made under the National Defence Act,

  • (a) a forfeiture has been imposed,

  • (b) a deduction has been imposed for a period of suspension from duty in an amount equal to the whole of the pay and allowances withheld, or

  • (c) a forfeiture referred to in paragraph (a) together with a deduction described in paragraph (b) has been imposed,

  whether or not they were a contributor during that service and whether or not the service was performed before or after February 1, 1968, shall, to the extent that it may otherwise be counted as pensionable service under the Act, be counted as pensionable service, but any period of such service that exceeds 60 consecutive days shall not be counted as pensionable service.

• (2) Any portion of a period of service of a contributor that is three months or less in duration and in respect of which no pay was authorized to be paid, other than any period of service during which a deduction or forfeiture described in paragraph (1)(a), (b) or (c) has been imposed, shall be counted as pensionable service.

• (2.1) Where a period of service of a contributor in respect of which no pay was authorized to be paid, other than any period of service during which a deduction or forfeiture described in paragraph (1)(a), (b) or (c) has been imposed, exceeds three months, the portion of the period of service that is in excess of three months shall be counted as pensionable service unless the contributor elects not to count that service as pensionable service.

• (2.2) An election not to count as pensionable service a portion of a period of service in excess of three months referred to in subsection (2.1) shall be made by

  • (a) completing Form CFSA 106 (Surrender of Right to Count Pensionable Service Without Pay) within 90 days after the later of

    • (i) the end of the period of service, and

    • (ii) the day on which the contributor is required to resume making contributions under the Act; and

  • (b) sending the form to the Minister, or a person designated by the Minister, within 30 days after making the election.

• (2.3) In respect of a contributor who, as a reserve force member, was entitled to exercise the option referred to in section 8 of the Reserve Force Pension Plan Regulations, that section continues to apply until all of the contributions referred to in that section have been paid.

• (2.4) A contributor who, as a reserve force member, exercised the option referred to in section 8 of the Reserve Force Pension Plan Regulations cannot elect to count as pensionable service any day of reserve force service in respect of which that option was exercised.

• (3) Contributions are not required in respect of

  • (a) any portion of a period of service that exceeds 60 days in duration in respect of which a deduction or forfeiture described in paragraph (1)(a), (b) or (c) has been imposed; or

  • (b) any service in respect of which an election has been made under subsection (2.1).

• (4) During a period of service of a contributor, other than a member of the reserve force, that is countable as pensionable service under subsection (1), (2) or (2.1), the contributor is, for the purposes of the Act, deemed to have been authorized to be paid and to have received pay during that period at the rate of pay authorized for the rank held by the contributor at the commencement of the period.

• (4.1) During a period of service of a contributor, who is a member of the reserve force, that is countable as pensionable service under subsection (2) or (2.1), if the contributor is exempted from training and duty under article 9.09 or 9.10 or is granted leave for maternity or parental purposes under article 16.26 or 16.27 of the Queen’s Regulations and Orders for the Canadian Forces, the contributor is, for the purposes of the Act, deemed to have been authorized to be paid and to have received pay during each week for which the contributor is exempted or granted leave, equal to the weekly rate of pay calculated in accordance with instruction 205.461(7) of the Compensation and Benefits Instructions for the Canadian Forces established under section 35 of the National Defence Act.

• (5) The contributions required to be paid by a contributor for a period of pensionable service described in subsection (2) or (2.1) shall be paid

  • (a) by reservation in approximately equal instalments from the contributor’s pay for a period equal to the period of service without pay, commencing on the later of

    • (i) the day following the day on which the period expires, and

    • (ii) the day on which the contributor is required to resume making contributions under the Act; or

  • (b) at the option of the contributor, in a lump sum at any time prior to the completion of payment under paragraph (a).

• (5.1) Where a contributor who is paying an amount by instalments pursuant to paragraph (5)(a) commences another period in respect of which no pay is authorized to be paid, other than a period of service during which a deduction or forfeiture described in paragraph (1)(a), (b) or (c) has been imposed, before all instalments have been paid under paragraph (5)(a),

  • (a) payment of the unpaid instalments is deferred until the later of

    • (i) the day following the day on which the most recent period of service without pay expires, and

    • (ii) the day on which the contributor is required to resume making contributions under the Act; and

  • (b) an amount equal to the aggregate of the amount of the unpaid instalments and the amount payable in respect of the most recent period of service without pay shall be paid in the manner set out in subsection (5), except that the period over which the unpaid instalments were to be paid shall be added to the period of repayment in respect of the most recent period of service without pay.

• (6) Any amount payable by a contributor under this section that is unpaid upon their ceasing to be a member of the regular force shall be reserved in the manner prescribed for recovery of unpaid instalments under subsection 14(5).

• (7) A contributor who is entitled to count as pensionable service any period of service described in subsection (1), (2) or (2.1) shall contribute to the Superannuation Account or Canadian Forces Pension Fund in respect of that service an amount equal to the amount that the contributor would have been required to contribute in respect of the pay deemed by subsection (4) to have been authorized to be paid to the contributor during that period

  • (a) in respect of any portion of a period of service described in subsection (1) that was prior to 1966 or a period of service described in subsection (2) or (2.1), in the manner and at the rate set out in subsection 4(1) of the Act as that subsection read on December 31, 1965;

  • (b) in respect of any portion of a period of service described in subsection (1) that was after 1965 and prior to April 1, 1969, in the manner and at the rate set forth in subsection 4(1) of the Act as that subsection read on March 31, 1969;

  • (c) in respect of any portion of a period of service described in subsection (1) that was after March 31, 1969, in the manner and at the rates set out in subsection 5(1) of the Act; and

  • (d) interest within the meaning of subsection 7(2) of the Act on any amount determined pursuant to any of paragraphs (a) to (c).

• (8) A contributor who makes an election under clause 6(b)(ii)(L) of the Act to count as pensionable service any period of service that the contributor had previously elected under subsection (2.1) not to count as pensionable service shall pay to the Superannuation Account or Canadian Forces Pension Fund an amount equal to

  • (a) where the election is made within one year after the day on which the contributor is required to resume making contributions under the Act,

    • (i) the amount that the contributor would have been required to contribute in respect of that period of service had the contributor not made the election, and

    • (ii) interest within the meaning of subsection 7(2) of the Act; and

  • (b) in any other case,

    • (i) the amount that the contributor would have been required to contribute if the rate of pay for that period of service had been the rate of pay in effect at the time of the election under clause 6(b)(ii)(L) of the Act, and

    • (ii) interest within the meaning of subsection 7(2) of the Act.

• 11.1 (1) Notwithstanding Part I of the Act, a contributor shall not count as pensionable service any period of service, or any portion of a period of service, in respect of which no pay was authorized to be paid, other than a period of service or portion of a period of service during which a deduction or forfeiture described in paragraph 11(1)(a), (b) or (c) has been imposed, that begins after May 15, 1997 unless compensation can be prescribed in respect of that period or portion of a period pursuant to subsection 8507(2) of the Income Tax Regulations, as that subsection read on January 15, 1992.

• (2) A contributor who, by reason of subsection (1), cannot count as pensionable service a period of service, or a portion of a period of service, in respect of which no pay was authorized to be paid

  • (a) notwithstanding Parts I and III of the Act, is not required to contribute to the Superannuation Account or Canadian Forces Pension Fund in respect of that period or portion of a period; and

  • (b) for the purposes of Part II of the Act, remains a participant within the meaning of subsection 60(1) of the Act in respect of that period or portion of a period.

• 12 (1) A contributor who is required under subsection 11(7) or under Part III of the Act to contribute to the Superannuation Account in respect of a period of service referred to in subsection 11(1), (2) or (2.1) shall contribute to that Account in respect of any portion of that period that is after March 31, 1970 the amount that would be required to be contributed under subsection 76(1) of the Act if the period of service were a period of service referred to in that subsection, based on the pay deemed by subsection 11(4) to have been received by the contributor during the period.

• (2) An amount payable by a contributor pursuant to subsection (1) shall be paid

  • (a) where the contribution is in respect of a period of service described in subsection 11(1), by means of a debit to the contributor’s pay account; and

  • (b) where the contribution is in respect of a period of service described in subsection 11(2) or (2.1), in the manner set out in subsection 11(5).

• (3) An amount payable by a contributor under this section that is unpaid

  • (a) at the time the contributor ceases to be a member of the regular force other than by reason of death, or

  • (b) at the time of the contributor’s death,

  shall be recovered in a manner set out for the recovery of unpaid instalments in subsection 14(5) or (7), as the case may be.

Maximum Pay

12.1 For the purposes of subsection 5(5) of the Act, the annual rate of pay is equal to the amount determined by the following formula and rounded to the next highest multiple of $100:

Election for Reserve Force Service

• 12.2 (1) For the purposes of this section and subsection 12.4(2), reserve force service is service in the reserve force

  • (a) in respect of which the contributor was not required to contribute to the Superannuation Account or the Canadian Forces Pension Fund;

  • (b) during which the contributor was not a participant under the Reserve Force Pension Plan Regulations, other than any period in the reserve force in respect of which the contributor was entitled to a return of contributions within the meaning of section 38 of those Regulations;

  • (c) that the contributor is not counting as pensionable service for the purposes of, or in respect of which the payment of a transfer value or a commuted value has not been effected under, the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act; and

  • (d) in respect of which the contributor has not lost the right to make a pensionable earnings election.

• (2) In respect of a member, or former member, of the reserve force who becomes a contributor on or after March 1, 2007, clauses 6(b)(ii)(G) and (H) of the Act are adapted as follows:

  • (G) any period of reserve force service referred to in subsection 12.2(1) of the Canadian Forces Superannuation Regulations, if — during the period beginning on the day on which they become or, if the contributor ceased to contribute to the Canadian Forces Pension Fund before the end of the last period in which the contributor was entitled to make the election, again become a contributor and ending the later of one year after the date of the written notice advising the contributor that they have become entitled to make it, and March 1, 2011 — the contributor elects to pay for that service,

• (3) The election for reserve force service set out in clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection (2), is for all of the contributor’s reserve force service. However, there shall be counted as years of pensionable service, starting with the most recent, only those that would result in a maximum of 35 years of pensionable service to the credit of the contributor.

• (4) The contributor referred to in subsection (2) may not make an election for reserve force service under clause 6(b)(ii)(K) of the Act.

12.3 [Repealed, SOR/2010-101, s. 2]

• 12.4 (1) In respect of a contributor who makes an election for reserve force service under clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2) of these Regulations, paragraphs 7(1)(g) and (h) of the Act are adapted as follows:

  • (g) in respect of any period specified in clauses 6(b)(ii)(G) and (H), as adapted by subsection 12.2(2) of the Canadian Forces Superannuation Regulations, the full amount calculated under subsection 12.4(2) of those Regulations or a lesser amount for which the contributor opts at the time of making the election;

• (2) The full amount referred to in paragraphs 7(1)(g) and (h) of the Act, as adapted by subsection (1), is the total of the following amounts:

  • (a) the full amount, under subsection 15(2) of the Reserve Force Pension Plan Regulations, of a pensionable earnings election made under those Regulations, as if it had been made on the day of the election for reserve force service, calculated as if the contributor were a participant under the terms of those Regulations, and their past earnings, determined under the terms of those Regulations, were the past earnings that relate to the periods included in the contributor’s reserve force service; and

  • (b) the full amount of a top-up election made on the day of the election for reserve force service, using the formula in paragraph 14.6(3)(b) as if the value of E were equal to one and as if the reserve force service had become pensionable service to the contributor’s credit under the Reserve Force Pension Plan Regulations as a result of the pensionable earnings election.

• (3) The contributor may not modify the amount for which the contributor has opted.

Revocation of Election

• 13 (1) An election made by a contributor under the Act to pay for a period of service may be revoked by the contributor in whole or in part, on request by the contributor,

  • (a) as to payments made and to be made for the period of service mentioned in the election, if the contributor received erroneous or misleading information in writing, with respect to the amount to be paid or the consequences of the election on their benefits, from a person whose normal duties include giving information about those matters, and the contributor, in making the election, acted on that information; or

  • (b) as to payments to be made for the period of service mentioned in the election, if the contributor establishes that financial hardship will be caused to them if they are required to continue to make the payments.

• (1.1) A revocation that relates only to a portion of the period of service may only apply to the portion of the period of service that is earliest in point of time.

• (2) If an election made by a contributor is revoked for the reason referred to in paragraph (1)(b), the contributor shall pay to Her Majesty an amount in respect of any benefit that accrued to the contributor during the subsistence of the election as a consequence of the election, calculated in accordance with Canadian Life Table No. 2 (1941), Males four per cent or Females four per cent, as the case may be.

• (3) Any payment made by a contributor under subsection (2) in respect of any benefit accruing to them during the subsistence of an election made under the Act that they revoked under subsection (1) for a reason referred to in paragraph (a) thereof prior to December 4, 1969, shall be refunded to that contributor.

• (4) Where an election of a contributor is revoked, in whole or in part pursuant to subsection (1) and the contributor has paid any amount pursuant to the election, the amount so paid shall be applied, firstly, in payment of the amount required to be paid by the contributor under subsection (2), and the remainder of the amount, if any, shall be applied as follows:

  • (a) if the contributor has revoked the election in whole under paragraph (1)(a), the remainder of the amount shall be refunded to them; and

  • (b) in any other case, the remainder of the amount shall be applied towards the payment for that portion of the period of service mentioned in the election that has not been revoked, calculated in accordance with the provisions of the Act and these Regulations, and if any of the said amount remains thereafter, it shall be refunded to the contributor.

• (5) Where the election of a contributor is revoked in whole or in part pursuant to subsection (1) and further payments are required to be made by them, they shall make those payments in such amount and in such manner as the Minister determines and the payments shall be applied, firstly, in payment of the amount required to be paid by the contributor under subsection (2), if that amount has not already been paid, and the remainder of the payments, if any, shall be applied towards the payment for that portion of the period of service mentioned in the election that has not been revoked, calculated in accordance with the provisions of the Act and these Regulations.

• (6) The amount required to be paid by a contributor under subsection (2) may be recovered on behalf of Her Majesty as a debt due to the Crown from any benefit payable under the Act to or in respect of the contributor, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof.

• (7) A request for revocation of an election to pay for service under this section shall be made in writing, dated and signed and sent to the Minister, or to a person designated by the Minister, within one week after the date that it bears.

• (8) Where an election to pay for a period of service is revoked by a contributor pursuant to subsection (1), it shall be considered, for the purposes of a future election to pay for that period of service, to be an election as contemplated by clause 6(b)(ii)(K) of the Act.

• (9) A contributor may revoke, in whole or in part, an election not to count a period of service as pensionable service under subsection 11(2.1) if the contributor received erroneous or misleading information in writing, with respect to the amount to be paid or the consequences of the election on their benefits, from a person whose normal duties include giving information about those matters, and the contributor, in making the election, acted on that information.

Manner of Payment for Elective Pensionable Service

• 14 (1) If, under paragraph 9(1)(b) of the Act, a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — has exercised an option to pay in instalments for pensionable service, those payments shall be made by reservation from pay and allowances or otherwise, for life or for a period of years not greater than for life, and are payable in the following manner:

  • (a) the first instalment is due and payable on the first day of the month immediately following the month of election and succeeding instalments monthly after that time during the term corresponding to the plan of payment selected by the contributor, computed in accordance with Canadian Life Table No. 2 (1941), Males four per cent or Females four per cent, as the case may be; and

  • (b) the contributor may amend the plan of payment to provide for payment of the instalments still to be paid in a lump sum or by larger monthly instalments on a basis similar to that described in paragraph (a), calculated as of the date of the amendment.

• (2) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay in one lump sum, and subsequently the total amount to be paid in respect of the service for which the contributor elected to pay is verified as a greater amount than that on which the original lump sum payment was based, the contributor shall pay the difference either in one lump sum or by instalments, at the contributor’s option, on a basis similar to that described in subsection (1).

• (3) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay by instalments, and subsequently the total amount to be paid in respect of the service for which the contributor has elected to pay is verified as a greater or lesser amount than that on which the original instalments were based, the monthly instalment under subsection (1) shall be increased or decreased in accordance with the verified amount, but the instalment shall not be decreased by more than 5% of the original monthly instalment.

• (4) If a contributor originally exercised an option to pay by instalments for a period of years less than for life, and if they can establish that financial hardship will be caused to them if they are required to continue to pay those instalments, on the application of the contributor, the amount of the monthly instalment may be reduced to a lesser amount on a basis similar to that described in subsection (1), calculated as of the first day of the month following approval of the application.

• (4.1) The application shall be made in writing, dated and signed and sent to the Minister, or a person designated by the Minister, within one week after the date that it bears. It shall be void unless the contributor has passed a medical examination similar to that described in section 10, within the period of 90 days before or after the date of the application.

• (5) Where a contributor, who has elected under the 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 shall be reserved from the benefits payable to them as follows:

  • (a) subject to paragraph (c), where the benefit payable is an annuity, the remaining instalments shall be reserved from that annuity;

  • (b) where the benefit payable is a cash termination allowance, the present value of the remaining instalments shall be reserved from that allowance to the extent that such allowance is not reduced below an amount equivalent to a return of contributions; or

  • (c) where during any period a pension granted under Part V of the former Act or an annuity granted under the Act is not payable or is reduced to an amount that is not sufficient to pay the instalments in full, the unpaid portion of the remaining instalments shall be reserved during such period from the pay and allowances or salary payable to the recipient or from any other amount payable to them by Her Majesty.

• (6) Notwithstanding anything contained in this section, a contributor who, pursuant to subsection 9(3) of the Act, elects to surrender their right under subsection 56(2) of the former Act, to defer payment for their prior service in the regular force for which they were not required to pay until the date of their retirement, shall be required to pay the amount prescribed therein in the following manner:

  • (a) prior to their retirement, the whole or any part of the prescribed amount

    • (i) in a lump sum without interest, or

    • (ii) in monthly instalments of any amount without interest,

    at their option; and

  • (b) upon their retirement, any balance remaining of the contributions required to be paid, in the same manner and subject to the same terms and conditions as would be applicable to an amount required to be paid in accordance with subsection 56(2) of the former Act.

• (7) For the purpose of subsection 9(4) of the Act, where at the death of a contributor any amount payable by them into the Superannuation Account or Canadian Forces Pension Fund is due and payable but remains unpaid, the amount payable, with interest at four per cent per annum from the time it became due to the time of their death, shall be recovered from any allowance payable to the survivor or children as follows:

  • (a) in a lump sum from a cash termination allowance; or

  • (b) by monthly instalments from an annual allowance in an amount equal to 10 per cent of the net monthly allowance, but in any such case payment may be made by or on behalf of the survivor or children that will liquidate the amount at an earlier date.

14.1 In respect of a member of the reserve force who is a contributor and who makes an election under any of clauses 6(b)(ii)(A) to (F) and (I) to (L) of the Act and 6(b)(ii)(G) and (H) of the Act as adapted by subsection 12.2(2) of these Regulations, or a member or former member of the reserve force who makes a top-up election under section 14.2 of these Regulations, subsection 9(1) of the Act is adapted as follows:

• 9 (1) Any amount required to be paid by a contributor who makes an election under any of clauses 6(b)(ii)(A) to (F) and (I) to (L) and clauses 6(b)(ii)(G) and (H), as adapted by subsection 12.2(2) of the Canadian Forces Superannuation Regulations, or a member or former member of the reserve force who makes a top-up election under section 14.2 of those Regulations shall be paid on the same terms and conditions as those set out in sections 16 to 21 of the Reserve Force Pension Plan Regulations that would apply to a participant in respect of an election made under subsection 11(1) of those Regulations and section 23 of those Regulations applies to any member or former member of the reserve force, who is in receipt of an annuity or annual allowance, in respect of any instalments resulting from a top-up election as if that member or former member had been a participant under those Regulations.

Top-up Election for Contributions Paid Under the Reserve Force Pension Plan Regulations

14.2 A contributor is entitled to make a top-up election, once only, to contribute an additional amount in respect of all of the pensionable service that was counted to the contributor’s credit

• (a) under section 10.2, other than pensionable service described in paragraph (b); and

• (b) under section 10.2 that had been counted to their credit as a result of a pensionable earnings election.

14.3 A contributor may make the top-up election commencing on the day in respect of which they are entitled to receive pay.

14.4 The contributor shall make the top-up election no later than the later of one year after the date of the written notice advising the contributor that they have become entitled to make it and March 1, 2011.

14.5 A contributor who ceases to be considered to be a member of the regular force before the expiry of the period to make a top-up election is, on again being considered to be a member of the regular force, entitled to make the election until the end of one year after the date of the written notice advising the contributor that they have again become entitled to make the election.

• 14.6 (1) For the purposes of this section, former earnings, in respect of a period of pensionable service of a contributor who was a participant under subsection 4(2) of the Reserve Force Pension Plan Regulations, means the earnings that remained to the contributor’s credit as pensionable earnings on the day before the day on which they became or were considered to be a member of the regular force, other than earnings that came to their credit as a result of a pensionable earnings election, less any portion of those earnings that relates to earned premiums in lieu of leave, plus the allowance calculated in respect of that period in accordance with section 9.

• (2) A contributor who makes a top-up election shall pay the full amount or a lesser amount for which the contributor opts at the time of making the election.

• (3) The full amount is

  • (a) in respect of pensionable service described in paragraph 14.2(a), the total of amounts determined for each calendar year by the formula

    B - A

    where

    A

    is the amount that the contributor was required to contribute as a participant under the Reserve Force Pension Plan Regulations on their earnings, for that calendar year, that remained to their credit as pensionable earnings for the purposes of those Regulations on the day before the contributor became a member of the regular force, other than earnings that came to their credit as a result of a pensionable earnings election,

    B

    is the amount that the contributor would have been required to contribute under section 5 of the Act in that calendar year had they been required to so contribute on an amount of salary equal to their former earnings for that calendar year; and

  • (b) in respect of pensionable service described in paragraph 14.2(b), the total of amounts determined for each calendar year by the formula

    (D - C) × E

    where

    C

    is the portion of the full amount, excluding interest, determined for that calendar year by the formula in subsection 15(2) of the Reserve Force Pension Plan Regulations for the purposes of the pensionable earnings election referred to in paragraph 14.2(b) of these Regulations,

    D

    is the greater of the value of C and the amount that the contributor would have been required to contribute in accordance with subsection 5(1) of the Act on an amount of salary for the year of the pensionable earnings election equal to the amount that would be determined as their updated past earnings for that calendar year for the purposes of that election, if the amount of their past earnings for that calendar year were adjusted by subtracting the amount of any earned premiums in lieu of leave and adding the amount of any allowances calculated in respect of that calendar year in accordance with section 9, and

    E

    is the proportion referred to in subsection 26(1) of the Reserve Force Pension Plan Regulations in relation to the pensionable earnings election that was made.

• (4) The contributor may not modify the amount for which the contributor has opted.

14.7 Subsections 9(1), as adapted by section 14.1, and (1.1) to (5) of the Act apply to a top-up election made under section 14.2 as if any amount to be paid in respect of the election were an amount required to be paid under subsection 7(1) of the Act.

14.8 At the request of a contributor, they are deemed to have opted, at the time of making the top-up election, for the total of the amounts received by the Minister as of the date of the request, if

• (a) they establish that financial hardship will be caused to them if they are required to continue to pay the instalments; or

• (b) at the commencement date of an annuity or annual allowance, the instalments are greater than the increase in the monthly amount of the benefits payable that results from the election.

• 14.9 (1) A contributor who made a top-up election is deemed not to have made it,

  • (a) in the case of an election in respect of a period after December 31, 1989, if the Minister of National Revenue refuses to issue a certification under paragraph 147.1(10)(a) of the Income Tax Act; or

  • (b) at the request of the contributor, if they received erroneous or misleading information in writing, with respect to the amount to be paid or the consequences of the election on their benefits, from a person whose normal duties include giving information about those matters and, in making the election, they acted on that information.

• (2) If a top-up election is deemed not to have been made, any amount received from a plan, fund or institution, of a type referred to in subsection 22(2) of the Act, in respect of that election, shall be transferred to a plan, fund or institution, of any type referred to in that subsection, at the direction of the contributor.

• (3) Despite the expiry of the period within which the election referred to in paragraph (1)(a) may be made, the contributor may make an election no later than 90 days after the date of the notice informing the contributor of the refusal by the Minister of National Revenue. In the case of another refusal, the contributor shall not make an election.

Re-enrolment

• 15 (1) Subject to subsection (2), where a contributor is retired from the regular force and within 60 days after their retirement therefrom again becomes a member of the regular force, they shall be deemed for the purposes of the Act to have continued to be a member of the regular force notwithstanding their retirement therefrom.

• (2) Subsection (1) does not apply in any case if the contributor accepts payment at any time, in whole or in part, of a benefit under the Act in respect of their retirement.

• (3) Where a contributor, pursuant to subsection (1), is deemed to have continued to be a member of the regular force, they shall be deemed to have continued to receive pay at a rate equal to the rate of pay authorized to be paid to them for the rank held immediately before their retirement.

• (4) [Repealed, SOR/2016-64, s. 21]

Benefits

Annuity for Certain Members

16 The following definitions apply in sections 16.1 and 16.2.

20-year intermediate engagement

20-year intermediate engagement means a fixed period of 20 continuous years of service in the regular force commencing on the day on which the contributor was transferred to, enrolled in or re-enrolled in the regular force. (engagement de durée intermédiaire de 20 ans)

25-year intermediate engagement

25-year intermediate engagement means a fixed period of 25 continuous years of service in the regular force commencing on the day on which the contributor was transferred to, enrolled in or re-enrolled in the regular force. (engagement de durée intermédiaire de 25 ans)

retirement age

retirement age, as applied to any rank of contributor, means the age determined under chapter 15 of the Queen’s Regulations and Orders for the Canadian Forces as the retirement age applicable to that rank. (âge de la retraite)

16.1 A contributor exercising the option referred to in subsection 19(1) of the Act is entitled to an immediate annuity if

• (a) they have completed a 20-year intermediate engagement that commenced before March 1, 2007 and are not serving on an indefinite period of service;

• (b) they have 10 or more years of regular force pensionable service and have reached retirement age;

• (c) they are not an officer and have at least 25 years of regular force pensionable service; or

• (d) they were a member of the regular force with 10 or more years of regular force pensionable service on March 1, 2007 and

  • (i) they have at least 20 years of regular force pensionable service, unless

    • (A) they have at any time served on a 25-year intermediate engagement and do not, at the time of ceasing to be a member of the regular force, have at least 25 years of regular force pensionable service,

    • (B) they have at any time refused an offer of a 25-year intermediate engagement unless, at the time of the refusal, they were serving on a 20-year intermediate engagement that commenced before March 1, 2007 or had completed a 20-year intermediate engagement that commenced before March 1, 2007, or

    • (C) at the time they cease to be a member of the regular force they are serving on an indefinite period of service, or

  • (ii) they have at least 19 years of regular force pensionable service, they are not serving on an intermediate engagement or an engagement for an indefinite period of service in the regular force, they have not at any time received an offer of a 25-year intermediate engagement and they are

    • (A) an officer who did not fail to accept an offer for an indefinite period of service in the regular force, or

    • (B) a contributor, other than an officer, who ceases to be a member of the regular force on the expiry of a period of engagement and who did not fail to accept an offer to re-engage in the regular force.

• 16.2 (1) A contributor described in clause 16.1(d)(i)(A) or (B) is entitled to an immediate annuity that is reduced

  • (a) in the case of an officer, by 5% for every full year by which their years of age, on the day on which they cease to be a member of the regular force, are less than retirement age; and

  • (b) in any other case, by 5% multiplied by the lesser of

    • (i) the number of full years by which their years of age are less than retirement age, and

    • (ii) the number of full years by which their years of regular force pensionable service are less than 25.

• (2) A contributor described in clause 16.1(d)(i)(C) is entitled to an immediate annuity reduced in accordance with subsection (1), but, if the contributor completed a 20-year intermediate engagement that commenced before March 1, 2007, the amount of the annuity may not be less than an amount calculated as follows:

  A/50 × B

  where

  A

  is the number of years of pensionable service to the contributor’s credit after having completed the 20-year intermediate engagement; and

  B

  is 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.

• 16.3 (1) A contributor exercising the option referred to in subsection 19(1) of the Act with 10 or more years of regular force pensionable service on March 1, 2007, who has served continuously as a member of the regular force from March 1, 2007 until the day on which they cease to be a member of the regular force and who has less than 20 years of regular force pensionable service, is entitled to an immediate annuity reduced in accordance with subsection (2) if they cease to be a member of the regular force by reason of a workforce reduction.

• (2) The immediate annuity is to be reduced by the least of the following percentages:

  • (a) 30%,

  • (b) 5% for every full year by which the contributor’s full years of regular force pensionable service are less than 20, or

  • (c) 5% for every full year by which the contributor’s years of age are less than the retirement age applicable to the contributor’s rank.

• (3) The reduction is to cease when the contributor reaches 65 years of age.

Annuity Calculation — Reserve Force Service

16.4 For the purposes of paragraph 15(1)(a) of the Act, in the case of a contributor who is or was a member of the reserve force,

• (a) if the contributor’s pensionable service in a calendar year was service in the reserve force, and the contributor had no days of Canadian Forces service during that pensionable service, the amount of pay received by the contributor in respect of that service is deemed to be zero; and

• (b) if the pensionable service of a contributor in a calendar year, other than pensionable service referred to in paragraph (a), includes a period during which the number of days of Canadian Forces service is less than the number of days of pensionable service, the amount of pay received by the contributor in respect of the pensionable service in that calendar year shall be calculated as follows:

  A × B/(C + D)

  where

  A

  is the total amount of the pay received by the contributor for the portion of the calendar year that is pensionable service,

  B

  is the number of days of pensionable service of the contributor in the portion of the calendar year that is pensionable service,

  C

  is the number of days of Canadian Forces service of the contributor that are days of service in the reserve force in the portion of the calendar year that is pensionable service, calculated without reference to subsection 3(2), and

  D

  is the number of days of regular force service in the calendar year that are days of pensionable service.

16.5 If the pensionable service of a contributor in a calendar year includes a period that relates to earnings in respect of which a pensionable earnings election has been made or is a period in respect of which the contributor has made an election under clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2), the amount of pay received by the contributor in respect of that period, for the purpose of calculating the average annual pay referred to in paragraph 15(1)(a) of the Act, is the amount that would be calculated as the updated pensionable earnings of a participant under subsection 37(2) of the Reserve Force Pension Plan Regulations for the calendar year if

• (a) the participant’s pensionable earnings for the calendar year was the contributor’s pay for that period; and

• (b) the year that the participant most recently ceased to be a participant was the year in which the election is made, or 2007 if the contributor has remained a participant or a member of the regular force from March 1, 2007 to the day of the election.

• 16.6 (1) In respect of a contributor who has been a member of the reserve force, the number of years of pensionable service referred to in subparagraph 15(1)(a)(i) or (b)(i), paragraph 15(2)(d) or subsection 25(1) of the Act shall be adjusted in accordance with subsection (2) in respect of any calendar year or portion of a calendar year of pensionable service that

  • (a) came to the contributor’s credit by reason of a election for reserve force service under clauses 6(b)(ii)(G) and (H) of the Act as adapted by subsection 12.2(2) of these Regulations if the contributor opted for a lesser amount under paragraphs 7(1)(g) and (h) of the Act as adapted by subsection 12.4(1) of these Regulations;

  • (b) came to the contributor’s credit under section 10.2, other than service described in paragraph (c), if the contributor did not make the top-up election or opted to pay a lesser amount on the date of the election;

  • (c) came to the contributor’s credit by reason of a pensionable earnings election if the contributor

    • (i) opted at the time of making the election to pay a lesser amount,

    • (ii) failed to make the top-up election under paragraph 14.2(b) in respect of that service, or

    • (iii) made the top-up election but opted to pay a lesser amount under subsection 14.6(2);

  • (d) is service in the reserve force during which the member was considered to be a member of the regular force by virtue of section 8.1;

  • (e) came to the contributor’s credit by reason of a election for reserve force service under clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2), if the contributor did not opt, at the time of the election, for a lesser amount;

  • (f) came to the contributor’s credit by reason of a pensionable earnings election if the contributor chose to pay the full amount at the time of the election and in respect of which the contributor later made the top-up election under paragraph 14.2(b) and paid the full amount; and

  • (g) is referred to in paragraph 14.2(a) if the contributor made the top-up election and chose to pay the full amount.

• (2) The adjustment shall be made by subtracting from the total number of years of pensionable service the total of the values determined by the following formula for each calendar year or portion of a calendar year of pensionable service:

  A/365 × [1 - (B/A × C)]

  where

  A

  is the lesser of 365 and the number of days of pensionable service in the calendar year or portion of it;

  B

  is the lesser of 365 and the number of days of Canadian Forces service completed by the contributor in the calendar year or portion of it;

  C

  is

  • (a) in respect of pensionable service described in paragraph (1)(a), the ratio of the lesser amount to the full amount determined under subsection 12.4(2),

  • (b) in respect of pensionable service described in paragraph (1)(b), the value determined by the formula

    (D + E)/(E + F)

    where

    D

    is

    • (i) where the top-up election was made, the value determined by the formula:

      K × (L/M)

      where:

      K

      is the full amount that would have been calculated under paragraph 14.6(3)(a) in respect of a top-up election made on the first day on which that election could have been made,

      L

      is the lesser amount for which the contributor opted under subsection 14.6(2), and

      M

      is the full amount calculated under subsection 14.6(3),

    • (ii) otherwise, zero,

    E

    is the total of the amounts determined to be the value of A in paragraph 14.6(3)(a) that would have been calculated in respect of a top-up election exercised on the first day on which the contributor would have been entitled to make the election, and

    F

    is the full amount that would have been calculated under paragraph 14.6(3)(a) in respect of a top-up election made on the first day on which that election could have been made,

  • (c) in respect of pensionable service described in paragraph (1)(c), the value determined by the formula

    G/H × (G + I)/(G + J)

    where

    G

    is, if the contributor opted for a lesser amount at the time of making the pensionable earnings election, that amount, or otherwise the amount determined to be the value of H,

    H

    is the full amount determined by the formula in subsection 15(2) of the Reserve Force Pension Plan Regulations,

    I

    is

    • (i) where the top-up election was made and the contributor opted under subsection 14.6(2) for a lesser amount, the value determined by the formula

      N × (O/P)

      where

      N

      is the full amount that would have been calculated under paragraph 14.6(3)(b) in respect of a top-up election made on the first day on which that election could have been made,

      O

      is the lesser amount for which the contributor opted under subsection 14.6(2), and

      P

      is the full amount calculated under subsection 14.6(3);

    • (ii) if the top-up election was not made, zero, or

    • (iii) otherwise, the amount calculated as the value of N in subparagraph (i), and

    J

    is the full amount that would have been calculated under paragraph 14.6(3)(b) in respect of a top-up election made on the first day on which that election could have been made, and

  • (d) in respect of pensionable service described in paragraphs (1)(d) to (g), one.

Adjustment — Previous Annual Allowance

• 16.7 (1) The adjustment referred to in subsections 18(4) and 21(2) of the Act shall be made by deducting from the amount of the annuity or annual allowance an amount determined in accordance with the formula

  A × B

  where

  A

  is 5% of the annual allowance that the contributor was receiving before again becoming a member of the regular force or before becoming entitled to a disability pension under the Canada Pension Plan or a provincial pension plan; and

  B

  is the lesser of

  • (a) the number of years, rounded to the nearest 1/10, during which the contributor received the annual allowance, and

  • (b) if the amount of the allowance was determined under

    • (i) subsection 18(2) of the Act, 60 minus the contributor’s age in years, rounded to the nearest 1/10, at the time at which the allowance is payable, or

    • (ii) subsection 18(3) of the Act, the lesser of

      (A)

      the number resulting from the calculation in subparagraph (i), and

      (B)

      the greater of the numbers calculated under subparagraphs 18(3)(b)(i) and (ii) of the Act in the determination of the original allowance.

• (2) The amount to be deducted under subsection (1) shall not result in the contributor receiving less than the amount of the annual allowance that the contributor was receiving before the contributor again became a member of the regular force or before the contributor became entitled to the disability pension, less any amount that is deducted under subsection 15(2) of the Act.

• (3) The amount to be deducted under subsection (1) shall not exceed the total amount that was received as an annual allowance by the contributor before the contributor again became a member of the regular force or became entitled to the disability pension.

Transfer Value

16.8 A contributor who is described in subsection 22(1) of the Act and has not reached 50 years of age may opt for the payment of the transfer value referred to in that subsection.

16.9 A contributor shall exercise the option for the payment of a transfer value no later than the later of one year after the day on which they cease to be a member of the regular force and March 1, 2008.

16.91 The contributor is deemed not to have exercised the option for the payment of a transfer value if, before the transfer value has been paid, the contributor again becomes, or under section 8.1 is considered to be, a member of the regular force.

16.92 The transfer value is an amount, together with interest calculated in accordance with section 16.98, equal to the greater of

• (a) the actuarial present value, on the date of the option, of the accrued pension benefits that would be payable to or in respect of the contributor, and

• (b) a return of contributions, calculated as of the date of the option as if the contributor had been entitled to a return of contributions on that date.

• 16.93 (1) The calculation of the accrued pension benefits shall be based on the pensionable service to the contributor’s credit on the day after the day on which they cease to be a member of the regular force and the pensionable service shall include only the portion of the pensionable service that is subject to an election — other than a pensionable earnings election or an election under clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2) — for which the contributor has paid or ought to have paid before the date of the option.

• (2) For the purposes of the calculation of the accrued pension benefits, the calculation of the adjustment referred to in section 16.6 is subject to the following rules:

  • (a) if the pensionable service to the contributor’s credit includes pensionable service that was subject to a pensionable earnings election or an election under clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2) of these Regulations, the contributor is considered to have opted at the time of the election to pay a lesser amount corresponding to the payments in respect of the election that were made or ought to have been made on or before the date of the option for the payment of a transfer value;

  • (b) if the contributor has made a top-up election under section 14.2, the contributor is considered to have opted at the time of the election to pay a lesser amount corresponding to the payments in respect of the top-up election that were made or ought to have been made on or before the date of the option for the payment of a transfer value; and

  • (c) if the top-up election was made in respect of pensionable service that came to the contributor’s credit under a pensionable earnings election, for the purposes of calculating the full amount referred to in paragraph 14.6(3)(b) in respect of the pensionable earnings election, the proportion referred to in the description of E in that paragraph is calculated on the basis that the contributor opted for a lesser amount, at the time of the pensionable earnings election, equal to the amount referred to in paragraph (a).

16.94 The calculation of the actuarial present value of the accrued pension benefits is subject to the following rules:

• (a) the supplementary benefits are to be increased to take into account the period beginning on the later of January 1 of the year in which the option was exercised and the day on which the contributor ceased to be a member of the regular force and ending on the date of the option; and

• (b) the possibility that the contributor may receive an annual allowance is to be excluded.

• 16.95 (1) For the purposes of subsection (2), the actuarial valuation report is the actuarial valuation report most recently laid before Parliament, under section 56 of the Act, before the date of the option or, if that report was laid before Parliament in the month in which the option was exercised or in the preceding month, the preceding report that was laid before Parliament.

• (2) In determining the actuarial present value of a contributor’s accrued pension benefits, the following actuarial assumptions are to be used:

  • (a) the mortality rates for contributors and survivors are the mortality rates, including annual percentages of mortality reduction, used in the preparation of the actuarial valuation report;

  • (b) the interest rates are the interest rates for fully indexed pensions — adjusted by the interest rates for unindexed pensions to take into account Part III of the Act — 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;

  • (c) the probability that a contributor will be survived by children is based on the rates regarding the average number, average age and eligibility status of children at the death of a contributor, used in the preparation of the actuarial valuation report;

  • (d) the probability that a contributor will become entitled to an annuity under paragraph 16(1)(d) of the Act is based on the rates of termination owing to disability used in the preparation of the actuarial valuation report, taking into account the probability — as set out in that report — that there would be immediate eligibility for a disability pension under the Canada Pension Plan or a provincial pension plan; and

  • (e) the probability that a contributor will have a survivor at death is based on the probability that a contributor will have a survivor at death and on the age difference between those persons that was used in the preparation of the actuarial valuation report.

16.96 There shall be deducted from the amount of the transfer value

• (a) contributions remaining unpaid in respect of pay that the contributor is deemed to have received under subsections 11(4) and (4.1); and

• (b) arrears in respect of a pensionable earnings election, an election made under section 6 of the Act or clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2), or a top-up election made under section 14.2.

• 16.97 (1) A retirement savings plan prescribed for the purposes of section 26 of the Pension Benefits Standards Act, 1985 is prescribed as a kind of retirement savings plan or fund for the purposes of paragraph 22(2)(b) of the Act.

• (2) A deferred life annuity and an immediate life annuity, as defined in subsection 2(1) of the Pension Benefits Standards Regulations, 1985, are prescribed as a kind of deferred life annuity and a kind of immediate life annuity for the purposes of paragraph 22(2)(c) of the Act.

• (3) Any portion of the transfer value, the payment of which is being effected by a transfer under subsection 22(2) of the Act, that is in excess of the amount that may be transferred in accordance with section 8517 of the Income Tax Regulations shall be paid to the contributor.

• (4) If, after the option for the payment of the transfer value described in section 22 of the Act has been exercised but before that payment has been effected, the contributor dies, the following rules apply:

  • (a) the amount that may be transferred shall be paid accordingly and any excess shall be paid

    • (i) to the person who would have been entitled to an annual allowance as a survivor under subsection 25(1) of the Act had the option for the payment of a transfer value not been exercised, or

    • (ii) to the contributor’s estate or succession if there is no person who would have been entitled to the annual allowance as a survivor; or

  • (b) if no amount may be transferred, all of the transfer value shall be paid in accordance with subparagraphs (a)(i) and (ii).

• (5) If there are two persons who would have been entitled to an annual allowance under subsection 25(1) of the Act as survivors had the transfer value option not been exercised, each of them shall be entitled to a share of the excess or of the transfer value, as the case may be, determined by the formula

  A × B/C

  where

  A

  is the amount of the excess or of the transfer value;

  B

  is the total number of years that the person cohabited with the contributor while married to or in a relationship of a conjugal nature with the contributor; and

  C

  is the sum of the number of years that each of the two persons cohabited with the contributor while married to or in a relationship of a conjugal nature with the contributor.

• (6) In determining the number of years for the purpose of subsection (5), part of a year shall be counted as a full year if the part is six or more months and shall be ignored if it is less.

• 16.98 (1) Interest shall be calculated, in accordance with the rate determined under subsections (2) and (3), and converted to an effective annual rate, for the period beginning on the date of the option and ending on the last day of the month before the month in which the transfer value is paid or, if the contributor has not yet given the direction referred to in subsection 22(2) of the Act, ending 90 days after the date of the option.

• (2) The rate of interest is equal to the rate of return that existed in respect of the second quarter before the date of the option and set out in the table entitled “Balanced” on the line “Mercer Median” in the column entitled “3 Months” in the Summary of Investment Performance Survey of Canadian Institutional Pooled Funds, published by Mercer Investment Consulting, as amended from time to time.

• (3) If the rate of return is negative, the rate of interest is 0.0%.

16.99 If a division of a contributor’s pension benefits is effected under the Pension Benefits Division Act before the day on which payment of a transfer value is effected, the transfer value shall be reduced to take into account the adjustment to the pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

16.991 [Repealed, SOR/2016-64, s. 27]

Payments to Survivor and Children

17 For the purposes of subsection 31(2) of the Act, if a child was born to a person at a time when that person was over 60 years of age and, after that time, that person did not become or continue to be a contributor, the child is not entitled to an allowance under the Act unless the child was born following a gestation period that commenced prior to the date when the contributor attained the age of 60 years or ceased to be a member of the regular force, whichever is later.

18 For the purposes of paragraph 25(5)(b) of the Act, “full-time attendance at a school or university” means enrolment in and pursuance of a full-time course of training or instruction given by a school, college, university or other institution of an educational, professional or technical nature and, for these purposes, full-time attendance includes situations in which the child

• (a) is again enrolled in and pursuing a full-time course of study, or dies, no later than the last day of the fifth month after the month in which the child ceased to be enrolled in and to pursue the full-time course of study; or

• (b) is not again enrolled in and pursuing a full-time course of study within that period owing to their illness and is again enrolled in and pursuing a full-time course of study, or dies, no later than the last day of the twelfth month after the month in which the child ceased to be enrolled in and to pursue the full-time course of study.

19 [Repealed, SOR/2007-33, s. 10]

Limit on Child’s Entitlement

19.1 Notwithstanding subsection 25(4) of the Act, a child of a contributor who dies after May 15, 1997 is not entitled to an annual allowance under section 25 of the Act unless, at the time of the contributor’s death, the child was dependent on the contributor for support.

Limits on Survivors’ Benefits

• 19.2 (1) The monthly amount payable to a survivor or child under section 25 of the Act, in respect of pensionable service after December 31, 1991 of a deceased contributor described in paragraph 8503(2)(d) of the Income Tax Regulations, in the circumstances described in subparagraphs 8503(2)(d)(i) to (iii) of those Regulations, shall not exceed the maximum amount of survivor retirement benefits that may be paid for each month to the beneficiary of a member, determined under subparagraph 8503(2)(d)(iv) of the those Regulations, as that paragraph and those subparagraphs read on January 15, 1992.

• (2) The aggregate of all monthly amounts payable to survivors and children under section 25 of the Act, in respect of pensionable service after December 31, 1991 of a deceased contributor described in paragraph 8503(2)(d) of the Income Tax Regulations, in the circumstances described in subparagraphs 8503(2)(d)(i) to (iii) of those Regulations, shall not exceed the maximum amount of survivor retirement benefits that may be paid for each month to the beneficiaries of a member, determined under subparagraph 8503(2)(d)(v) of those Regulations, as that paragraph and those subparagraphs read on January 15, 1992.

• (3) Subject to subsection (5), the monthly amount payable to a survivor or child under section 25 of the Act in respect of pensionable service after December 31, 1991 of a deceased contributor described in paragraph 8503(2)(e) of the Income Tax Regulations, in the circumstances described in subparagraphs 8503(2)(e)(i) to (iv) of those Regulations, shall not exceed the maximum amount of survivor retirement benefits that may be paid for each month to a beneficiary of a member, determined under subparagraph 8503(2)(e)(v) of those Regulations, as that paragraph and those subparagraphs read on January 15, 1992.

• (4) The aggregate of all monthly amounts payable to survivors and children under section 25 of the Act in respect of pensionable service after December 31, 1991 of a deceased contributor described in paragraph 8503(2)(e) of the Income Tax Regulations, in the circumstances described in subparagraphs 8503(2)(e)(i) to (iv) of those Regulations, shall not exceed the maximum amount of survivor retirement benefits that may be paid for a month to the beneficiaries of a member, determined under subparagraph 8503(2)(e)(vi) of those Regulations as that paragraph and those subparagraphs read on January 15, 1992.

• (5) The present value of all benefits payable to a survivor under section 25 of the Act in respect of pensionable service after December 31, 1991 of a deceased contributor described in paragraph 8503(2)(f) of the Income Tax Regulations, in the circumstances described in subparagraphs 8503(2)(f)(i) to (iv) of those Regulations, as that paragraph and those subparagraphs read on January 15, 1992, calculated as at the time of the contributor’s death, shall not exceed the present value, as at the time immediately before the contributor’s death, of all benefits that have accrued under that section with respect to the contributor to the day of the contributor’s death.

• (6) The limits set out in subsections (1) to (5) apply to amounts payable with respect to a contributor who dies after the coming into force of an order, made under paragraph 10(a) of the Special Retirement Arrangements Act in respect of a person referred to in subparagraph 10(a)(ii) or (vi) of that Act, providing for the payment of benefits to the survivor or children of the contributor.

Prescribed Evidence for the Purposes of Paragraph 50(1)(k) of the Act

• 20 (1) The following are prescribed as evidence for the purpose of paragraph 50(1)(k) of the Act:

  • (a) a document signed by the contributor stating that they have not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a similar provision of the Quebec Pension Plan; and

  • (b) a certificate signed by or on behalf of the Minister charged with the administration of the Canada Pension Plan or the President of the Quebec Pension Board, whichever is appropriate, certifying that the contributor named therein has not become entitled to a disability pension payable under paragraph 44(1)(b) of the Canada Pension Plan or a similar provision of the Quebec Pension Plan.

• (2) A contributor who is a member of the Canadian Forces on June 10, 1976, and who subsequently ceases to be a member of the Canadian Forces shall provide the evidence referred to in paragraph (1)(a) prior to the date on which the contributor is entitled to an annuity under the Act.

• (3) and (4) [Repealed, SOR/2016-64, s. 30]

21 [Repealed, SOR/2001-76, s. 4]

Payments Otherwise than by Monthly Instalments

22 For the purposes of subsections 11(1) and (2) of the Act, where a person in receipt of an annuity or annual allowance requests that it be paid otherwise than in equal monthly instalments, or where the payment of an annuity or annual allowance in equal monthly instalments is not practicable for administrative reasons, the Minister may direct, if such direction does not result in the payment of an aggregate amount greater than the aggregate amount of equal monthly instalments otherwise payable in accordance with the said subsections, that the annuity or annual allowance shall be paid in arrears

• (a) in equal instalments quarterly or semi-annually; or

• (b) annually.

Deemed Re-enrolment — Election to Repay

• 22.1 (1) The member or former member of the reserve force referred to in subsection 41(4) of the Act, as adapted by section 8.4 of these Regulations, shall pay the amount payable under that subsection in a lump sum no later than 120 days after the date of the notice advising the member or former member of the amount due.

• (2) The election referred to in subsection 41(4) of the Act, as adapted by section 8.4 of these Regulations, is void if the member or former member of the reserve force fails to pay the amount within the period set out in subsection (1).

Revocation of Option

• 23 (1) If a contributor received erroneous or misleading information in writing with respect to the amount to be paid or the consequences on their benefits resulting from one of the following options or the following election, from a person whose normal duties include giving information about those matters, and the contributor, in exercising the option or making the election, acted on that information, the contributor may revoke it:

  • (a) an option exercised under subsection 18(1) or 19(1) of the Act, section 67 of An Act to amend the Canadian Forces Superannuation Act and to make consequential amendments to other Acts chapter 26 of the Statutes of Canada, 2003, or section 8.2 or 16.8 of these Regulations;

  • (b) an option deemed to have been exercised under subsection 23(2) or (3) of the Act; or

  • (c) a top-up election made under section 14.2.

• (2) The contributor who revokes an option may exercise a new option under the provisions

  • (a) referred to in paragraph (1)(a); or

  • (b) that were available to the contributor on the day before the day on which the option referred to in paragraph (1)(b) was deemed to have been exercised.

• (3) The contributor who revokes a top-up election made under section 14.2 may make a new election under that provision.

• 24 (1) The options and election referred to in section 23 may only be revoked if

  • (a) the contributor submits an application for revocation within 90 days after the day on which they became aware that erroneous or misleading information was received by them;

  • (b) the application for revocation is made in writing, dated and signed and sent to the Minister, or a person designated by the Minister, within one week after the date that it bears;

  • (c) the contributor establishes that, in exercising the option or making the election, they acted on the erroneous or misleading information without which they would have made a different choice of benefit or would have exercised the option or made the election at a different time;

  • (d) there is a difference of at least 5% between the actual amount of the benefit and the amount that the erroneous or misleading information had indicated that the contributor would be entitled to receive; and

  • (e) subject to section 26, any payment made to the contributor, in respect of any benefit paid to them as a consequence of the option or election that they are applying to revoke, is repaid by the contributor no later than 120 days after the date of the notice informing the contributor of the amount to be repaid.

• (2) The contributor who exercises a new option or makes a new election shall include it with the application for revocation.

• (3) The date of the sending of the application for revocation, and the date of the new option or the new election, if one is exercised or made, 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.

25 If a new option is exercised under subsection 23(2) or a new election is made under subsection 23(3), it shall be effective on the date that

• (a) the revoked option was exercised or the revoked election was made;

• (b) the option would have been exercised or the election would have been made, if the contributor has established, under paragraph 24(1)(c), that they would have exercised or made it on a different date; or

• (c) the contributor ceased to be a member of the regular force, in the case of the deemed option referred to in paragraph 23(1)(b).

26 If the new option or the new election results in the payment of an annuity or annual allowance and if the repayment by the contributor of the payment referred to in paragraph 24(1)(e) within the period specified in that paragraph will cause financial hardship to the contributor, the repayment shall be made in monthly instalments deducted from the annuity or annual allowance beginning the month after the date of the notice referred to in that paragraph. The deductions shall not be less than 10% of the gross monthly amount of the annuity or annual allowance.

Debit Balances in Pay Accounts

27 For the purposes of section 89 of the Act, any debit balance in the pay account of a former member of the regular force or of the reserve force shall be recovered

• (a) from any return of contributions or a transfer value to which the former member is entitled, in a lump sum; or

• (b) from any annuity or annual allowance to which the former member is entitled,

  • (i) by monthly instalments in an amount equal to 10% of their gross monthly annuity or allowance, or

  • (ii) by monthly instalments in an amount equal to 50% of their gross monthly annuity or allowance, if they have been convicted of an offence under the Criminal Code or the National Defence Act that led, directly or indirectly, to the debit balance.

Form and Manner of Certain Elections and Options

• 27.1 (1) When a contributor exercises an option under subsection 18(1) or 19(1) of the Act, section 67 of An Act to amend the Canadian Forces Superannuation Act and to make consequential amendments to other Acts, being chapter 26 of Statutes of Canada, 2003, or section 8.2 or 16.8 of these Regulations, or makes a top-up election under section 14.2 of these Regulations, it is valid only if it is

  • (a) exercised or made in writing, and signed and dated by the contributor; and

  • (b) sent to the Minister within one week after the date that it bears.

• (2) The option is exercised and the election is made on the date that it bears, except that an option exercised under subsection 19(1) of the Act before or on the day on which the contributor ceases to be a member of the regular force is exercised on the day after the day on which the contributor ceases to be a member of the regular force.

• (3) The date of the sending of the option or election 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.

• (4) A top-up election may be made only while the contributor is a member of the regular force.

27.2 In respect of a member of the reserve force who is a contributor and who makes an election under any of clauses 6(b)(ii)(A) to (F) and (I) to (L) of the Act and clauses 6(b)(ii)(G) and (H) of the Act, as adapted by subsection 12.2(2) of these Regulations, or under subsection 41(4) of the Act, as adapted by section 8.4 of these Regulations, subsection 8(1) of the Act is adapted as follows:

• 8 (1) When a contributor who is a member of the reserve force makes an election under any of clauses 6(b)(ii)(A) to (F) and (I) to (L) and clauses 6(b)(ii)(G) and (H), as adapted by subsection 12.2(2) of the Canadian Forces Superannuation Regulations, or under subsection 41(4), as adapted by section 8.4 of those Regulations, it shall be

  • (a) made in writing, and dated and signed by the contributor; and

  • (b) sent to the Minister, or to a person designated by the Minister, within one week after the date that it bears.

• (1.1) The election is made on the date that it bears.

• (1.2) The date of the sending of the election 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.

• (1.3) The election may be made only while the contributor is a member of the regular force.

Recovery of Amounts Paid in Error

• 28 (1) Where an amount has been paid in error under Part I of the Act to a person on account of any annuity or annual allowance and the Minister directs that the amount be repaid by way of deductions from any subsequent payments of that annuity or annual allowance, that person shall forthwith be notified of the amount that has been paid in error and the manner in which the amount is to be recovered.

• (2) The amount referred to in subsection (1) shall be recovered by monthly instalments deducted from any annuity or annual allowance payable to that person for a period equal to the lesser of

  • (a) the life expectancy of that person, and

  • (b) the period required to pay the amount in monthly instalments equal to 10 per cent of the gross monthly amount of the annuity or annual allowance

  calculated as of the date of the Minister’s direction, in accordance with Canadian Life Table Number 2 (1941), Males or Females, as the case may be.

29 A person from whose annuity or annual allowance deductions are being made pursuant to section 28 may, at any time, pay the amount then owing

• (a) in a lump sum;

• (b) by larger monthly instalments on a basis similar to that described in subsection 28(2); or

• (c) by a lump sum payment and by monthly instalments on a basis similar to that described in subsection 28(2) and payable within the same or a lesser period than that originally set out.

30 Where, pursuant to subsection 28(2), deductions are to be made from the annuity or annual allowance of a person by monthly instalments, the first deduction therefrom shall be made in the month in which the Minister specifies, and succeeding deductions shall be made thereafter in equal amounts, except with respect to the last deduction which may be less in amount than the preceding deductions.

31 Notwithstanding subsection 28(2), where deductions by monthly instalments referred to therein would, in the opinion of the Minister, cause financial hardship to the person to whom the annuity or annual allowance is payable, the Minister may direct that lesser monthly instalments be deducted, but such instalments shall not in any case be less than five per cent of the gross monthly amount of annuity or annual allowance, or $1, whichever is the greater.

32 Where the Minister directs, pursuant to section 31, that lesser deductions be made, and where the person in respect of whom the lesser deductions are being made dies before the amount is paid in full, the amount remaining unpaid shall, if the Minister so directs, be retained from any further benefits payable under the Act in respect of that person.

Estate Tax and Succession Duties

• 33 (1) Where, upon the death of a contributor, any annual allowance becomes payable under the Act to a successor, application in writing may be made, by or on behalf of the successor, to the Minister for payment out of the Superannuation Account or Canadian Forces Pension Fund of the whole or any part of such portion of any estate, legacy, succession or inheritance duties or taxes payable by the successor that are attributable to the said allowance, and where the Minister directs, in accordance with the application, that the whole or any part of the duties or taxes so payable shall be paid out of the Superannuation Account or Canadian Forces Pension Fund, the maximum portion of the said duties or taxes that may be paid is the proportion that

  • (a) the value of the allowance payable to the successor

  is of

  • (b) the value of the whole estate,

  calculated for the purposes of determining the said duties or taxes payable in respect thereof.

• (2) Where the Minister gives a direction in accordance with subsection (1), if the annual allowance payable to the successor is payable in equal, monthly, quarterly or semi-annual instalments or in an annual amount, the allowance shall be reduced either for a term requested by the successor in the application made under subsection (1), or during the entire period for which the allowance is payable if the successor fails to make a request in the application under subsection (1) that the allowance be reduced for a term,

  • (a) where the allowance is payable in monthly instalments, by 1/12 of an amount,

  • (b) where the allowance is payable in quarterly instalments, by 1/4 of an amount,

  • (c) where the allowance is payable in semi-annual instalments, by 1/2 of an amount, and

  • (d) where the allowance is payable annually, by the whole of an amount,

  determined by dividing the amount of the said duties or taxes to be paid out of the Superannuation Account or Canadian Forces Pension Fund by the value of an annuity of $1 per annum, payable monthly, quarterly, semi-annually or annually, as the allowance is payable, to a person of the age of the successor at the date of payment of the said duties or taxes out of the Superannuation Account or Canadian Forces Pension Fund, calculated

  • (e) in the case of an allowance payable to the survivor of the contributor, in accordance with a(f) Ultimate Table, together with interest at the rate of four per cent per annum; and

  • (f) in the case of an allowance payable to a child of the contributor, at an interest rate of four per cent per annum and mortality shall not be taken into account.

• (3) Where the annual allowance of a successor was reduced under this section for a term and the annual allowance was suspended before the end of the term under section 27 of the Act as it read on June 28, 1989, if at any time the annual allowance is resumed it shall be reduced for a term equal to the term or the balance of the term, as the case may be, during which the annual allowance would have been reduced had it not been suspended and such reduction shall be made to the same extent and in the same manner as the annual allowance was reduced immediately prior to the suspension.

Canada Pension Plan

34 For the purposes of subsection 2(4) of the Act, the following employment as a member of the Canadian Forces is excepted employment for the purposes of the Canada Pension Plan:

• (a) employment on or after January 1, 1966, as a member of the Canadian Forces to whom the Defence Services Pension Continuation Act applies; and

• (b) employment in the reserve force as defined in subsection 2(1) of the National Defence Act from January 1, 1966 to December 31, 2006, other than employment

  • (i) on Continuous Duty or Class “C” Reserve Service, or

  • (ii) in excess of 30 days on Special Duty or Class “B” Reserve Service.

General

35 The chairman of the Service Pension Board may issue such instructions and prescribe such forms as he or she deems necessary to give effect to section 49 of the Act.

• 36 (1) For the purposes of paragraph 55(1)(b) of the Act, interest shall be calculated in respect of each quarter in each fiscal year as of the last day of June, September, December and March on the balance to the credit of the Superannuation Account on the last day of the preceding quarter.

• (2) The rate to be used for the purpose of calculating interest under subsection (1) in respect of any quarter is the rate that would yield an amount of interest equal to the amount of interest that the aggregate of the balances to the credit of the Superannuation Accounts maintained under the Public Service Superannuation Act, the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act would have yielded during that quarter if the quarterly excess were invested at,

  • (a) where the rate is to be used in respect of any quarterly excess after December 31, 1965, the average of the rates of interest that may be or have been determined by the Minister of Finance for the months in that quarter pursuant to subsection 111(2) of the Canada Pension Plan; and

  • (b) where the rate is to be used in respect of any quarterly excess before the quarter ending on March 31, 1966, the average of the rates of interest determined by the Minister of Finance for the months in that quarter as if subsection 111(2) of the Canada Pension Plan had been in force.

• (3) The President of the Treasury Board shall cause notice of the rate to be used in respect of each fiscal year for the purpose of calculating interest under subsection (1) to be published in the Canada Gazette.

• (4) In this section, quarterly excess means

  • (a) the total of the amounts credited to the Superannuation Accounts maintained under the Public Service Superannuation Act, the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act during any quarter of a fiscal year

  minus

  • (b) the payments charged to those Accounts during that quarter

  plus

  • (c) the total of any amounts credited to those Accounts less the payments charged to those Accounts during any quarter of a fiscal year that is a multiple of 20 years prior to the quarter referred to in paragraph (a).

Calculation of Interest on Return of Contributions for Any Period before 2001

• 36.1 (1) In this section, 1973 closing balance means the aggregate of all amounts referred to in paragraphs (a) and (b) of the definition return of contributions in section 10 of the Act that have been paid by the contributor into, or transferred to the credit of the contributor to, the Superannuation Account before January 1, 1974 and that have not been previously paid to the contributor as a return of contributions.

• (2) In this section, yearly contribution means the aggregate of all amounts referred to in paragraphs (a) and (b) of the definition return of contributions in section 10 of the Act that have been paid by the contributor into, or transferred to the credit of the contributor to, the Superannuation Account or the Canadian Forces Pension Fund during a calendar year and that have not been previously paid to the contributor as a return of contributions.

• (3) For the purposes of paragraph 13(a) of the Act, for any period before January 1, 2001, interest shall be calculated on

  • (a) the 1973 closing balance, from January 1, 1974, to the earlier of December 31 of the year immediately preceding the year in which the contributor ceased to be a member of the regular force and December 31, 2000; and

  • (b) each yearly contribution after 1973, from January 1 of the year following the year in which the contribution was made to the earlier of December 31 of the year immediately preceding the year in which the contributor ceased to be a member of the regular force and December 31, 2000.

Calculation of Interest on Return of Contributions for Any Period after 2000

• 36.2 (1) In this section, 2000 closing balance means the aggregate of all amounts referred to in paragraphs (a) and (b) of the definition return of contributions in section 10 of the Act that have been paid by the contributor into, or transferred to the credit of the contributor to, the Superannuation Account or the Canadian Forces Pension Fund before January 1, 2001 and that have not been previously paid to the contributor as a return of contributions, plus interest on that aggregate amount calculated in accordance with section 36.1.

• (2) For the purposes of paragraph 13(b) of the Act, for any period after December 31, 2000, interest shall be calculated and balances determined in accordance with this section and interest shall be calculated in respect of every quarter up to and including the quarter preceding the quarter in which the return of contributions is paid.

• (3) For the quarter ending March 31, 2001,

  • (a) if a return of contributions is paid during that quarter, interest shall be calculated and the balances determined in accordance with section 36.1; and

  • (b) in any other case, interest shall be calculated at the effective quarterly rate determined from an annual rate of four per cent on the 2000 closing balance.

• (4) For each quarter beginning after March 31, 2001 for which interest is being calculated, interest shall be calculated at the rate determined under subsections (5) and (6) for that quarter on

  • (a) the 2000 closing balance;

  • (b) the interest calculated in accordance with paragraph (3)(b) on the 2000 closing balance;

  • (c) the aggregate of all amounts referred to in paragraphs (a) and (b) of the definition return of contributions in section 10 of the Act that have been paid by the contributor into, or transferred to the credit of the contributor, to the Canadian Forces Pension Fund after December 31, 2000 but before the end of the quarter preceding the quarter for which interest is being calculated and that have not been previously paid to the contributor as a return of contributions; and

  • (d) interest calculated in accordance with this subsection as of the end of the quarter preceding the quarter for which interest is being calculated.

• (5) The rate of interest to be used for the purposes of subsection (4) is the effective quarterly rate determined from the annual rate of return of the Canadian Forces Pension Fund published in the previous fiscal year’s annual report for the Public Sector Pension Investment Board as laid before each House of Parliament under subsection 48(3) of the Public Sector Pension Investment Board Act.

• (6) If the rate of return referred to in subsection (5) is negative, the rate of interest shall be zero per cent.

Annual Report

36.3 Beginning with the fiscal year ending March 31, 2002, the annual report referred to in section 57 of the Act shall include the financial statements of the pension plan provided by the Act, prepared in accordance with the federal government’s stated accounting policies for the pension plan, which are based on generally accepted accounting principles.

Capitalized Value

37 Where, pursuant to Part I of the Act, it is necessary to determine the capitalized value of an annuity or annual allowance, the capitalized value shall be computed on the basis of the Canadian Life Table Number 2 (1941), Males or Females, as the case may be, together with interest at the rate of four per cent per annum.

Forms

38 The following forms are prescribed for the purposes of the applicable sections of the Act and these Regulations, as the case may be, referred to below:

• (a) Form CFSA 100 (Election to Pay for Prior Pensionable Service/Election to Repay Annuity or Pension Drawn during a Period of Elective Service) — paragraph 6(b) and subsections 42(1) and 43(1) of the Act and subsection 41(4) of the Act, as adapted by section 8.4 of these Regulations;

• (b) Form CFSA 103 (Election to Surrender Annuity or Annual Allowance Under Public Service Superannuation Act or Royal Canadian Mounted Police Superannuation Act) — subsection 46(2) of the Act; and

• (c) Form CFSA 106 (Surrender of Right to Count Pensionable Service Without Pay) — subsection 11(2.1) of these Regulations.

Transitional

39 For the purposes of paragraph 50(l) of the Act, any direction given by the Minister under subsection 62(1) of the former Act which is outstanding on February 1, 1968, shall continue to have full force and effect in the circumstances contemplated by that subsection but any such direction shall be subject to modification or suspension by the Minister on receipt of a recommendation from the Canadian Pension Commission.

Canadian Forces Supplementary Death Benefits

Contributions

• 40 (1) The contributions required to be paid by every participant shall be paid monthly by reservation from pay and allowances or otherwise, as specified in these Regulations.

• (2) [Repealed, SOR/92-717, s. 4]

40.1 In respect of a member of the reserve force who is considered to be a member of the regular force by virtue of subsection 8.1(1), paragraph (e) of the definition participant in subsection 60(1) of the Act is adapted as follows:

• (e) a person who has made an election under subsection 6.1(1), other than a member of the reserve force who is considered to be a member of the regular force by virtue of subsection 8.1(1) of the Canadian Forces Superannuation Regulations,

Participants Absent from Duty

41 The contribution required to be paid by a participant who is absent from duty is an amount equal to the amount that they would be required to pay if they were not so absent.

42 Where a participant is absent from duty with leave and receives pay and allowances during the period when they are so absent, the contributions required to be paid by them shall, during the period when they are absent, be paid in accordance with section 41.

• 43 (1) Where a participant is absent from duty with leave but does not receive pay and allowances for or in respect of the period, or any part thereof, during which they are so absent, they shall pay the contributions required to be paid by them at such times and in such manner as the Minister, from time to time, prescribes, and any part of the contributions not paid during their absence shall be paid by that participant when they return to duty by reservation from pay and allowances in accordance with subsection (2).

• (2) If a participant returns to duty after having been absent from duty with leave and has not paid the contributions required to be paid in respect of the period, or any part of it, during which the participant was absent, the contributions shall be recovered by monthly deductions from their pay during a period of not more than six months in amounts not less than the amounts that were required to be paid while they were absent.

• (3) Notwithstanding anything in this section, where a participant who has been absent from duty with leave and has returned to duty is paying the appropriate amount of contributions in respect of a period when they were so absent by reservation from their pay and allowances, they may pay, in one lump sum, at any time prior to the expiration of the period during which the contributions are to be recovered from pay and allowances, the amount payable by them in respect of the period during which they were so absent.

44 Where a participant is absent without authority for a period in excess of 21 consecutive days, they shall be deemed to have ceased to be a member of the regular force on the last day in the month in which the 22nd consecutive day on which they were so absent occurs, unless such absence ceases on or before the last day of the said month.

Elective Participants

• 45 (1) Subject to subsections (2) and (3), every elective participant, other than a participant who has made an election under section 64 of the Act, who, on ceasing to be a member of the regular force, is entitled to an immediate annuity under Part I of the Act, shall contribute $0.05 each month for every $250 of the salary of the participant at the time the participant ceases to be a member.

• (2) The salary in respect of which a contribution is calculated under subsection (1) is reduced by 10 per cent for each year in excess of 60 years of age that is attained by the participant, except that such a reduction may not reduce the salary to less than $2,500.

• (3) The contribution required under subsection (1) in respect of a participant who is 65 years of age or older is reduced by $0.50 per month, effective on the later of

  • (a) December 1, 1992, and

  • (b) the April 1 or October 1 that follows the day on which the participant attains 65 years of age, whichever is earlier.

• (4) Subject to subsection (5), a participant who contributed under subsection (1) during the period beginning on October 5, 1992 and ending on November 30, 1992 shall, in respect of the period beginning on December 1, 1992 and ending on March 31, 1993, contribute one half of the amount determined under subsection (1).

• (5) The contribution required under subsection (4) is reduced by $0.25 per month in respect of a participant who attained 65 years of age before October 1, 1992.

• (6) An elective participant who, on ceasing to be a member of the regular force, is entitled to an immediate annuity under Part I of the Act and who makes an election under section 64 of the Act shall contribute $0.50 per month until the participant attains 65 years of age.

• (7) Every elective participant who, on ceasing to be a member of the regular force, was not or is not entitled to an immediate annuity under Part I of the Act, shall contribute, for every $2,000 of the basic benefit of the participant

  • (a) during any period in which neither an annuity under Part I of the Act nor a pension under the Defence Services Pension Continuation Act is payable to the participant, the amount set out in Part I of Schedule I; and

  • (b) during any period in which an annuity under Part I of the Act or a pension under the Defence Services Pension Continuation Act is payable to the participant, the amount set out in Part II of Schedule I.

• (8) An elective participant referred to in subsection (7), other than a participant who made an election under section 64 of the Act, who, during the period beginning on October 5, 1992 and ending on November 30, 1992, paid monthly contributions in accordance with Schedule I, shall, in respect of the period beginning on December 1, 1992 and ending on March 31, 1993, contribute one half of the amount set out in Part II of Schedule I.

• (9) Contributions payable under paragraph (7)(a) shall be paid in a lump sum, in advance,

  • (a) in respect of a participant who ceased to be a member of the regular force before November 1, 1992, each year on or before the thirtieth day after the anniversary of the day on which the participant ceased to be a member of the regular force; and

  • (b) in respect of a participant who ceases to be a member of the regular force on or after November 1, 1992, on or before the thirtieth day after the day on which the participant ceases to be a member of the regular force and, in each succeeding year, on or before the thirtieth day after the anniversary of the day on which the participant ceased to be a member of the regular force.

• (10) [Repealed, SOR/2016-64, s. 37]

• (11) Contributions payable under subsections (1), (4) and (6) and paragraph (7)(b) shall be paid by reservation from the annuity or pension referred to in those subsections or that paragraph, as the case may be.

• (12) Where a person who is an elective participant has paid a contribution under Part II of the Act in respect of a period longer than one month and, before the expiration of that period, the person becomes, under the Act or under Part II of the Public Service Superannuation Act, a participant other than an elective participant, there shall be refunded to the participant an amount equal to the fraction of the last contribution paid, of which

  • (a) the numerator is the number of complete calendar months remaining until the participant’s next contribution would have been payable if the participant had continued to be an elective participant; and

  • (b) the denominator is the total number of calendar months in respect of which the contribution was paid by the participant.

Recoveries

• 46 (1) Where a participant ceases to be a member of the regular force and does not become a public service participant, any contributions payable by them on the day they cease to be a member of the regular force may be recovered in one lump sum, or by instalments, from any moneys payable to or in respect of them at any time by or on behalf of Her Majesty.

• (2) Where an elective participant dies, any contributions payable by them on the day of their death may be recovered from any moneys payable to or in respect of them at any time by or on behalf of Her Majesty.

Service Substantially Without Interruption

47 Where, during any relevant period, a person ceases to be a member of the regular force and within three months from the day on which they so cease to be a member they again become a member of that force, their service in the regular force during that period shall, for the purposes of Part II of the Act, be deemed to be substantially without interruption.

Retroactive Increases in Pay

48 For the purpose of Part II of the Act, where a retroactive increase is authorized in the pay of a participant, such increase shall be deemed to have commenced to have been received by them on the first day of the month in which

• (a) the Governor in Council or the Treasury Board, as appropriate, approved such increase; or

• (b) written approval of such increase was duly issued by the appropriate authority in a case where approval of the Governor in Council or the Treasury Board is not required.

Proof of Age

• 49 (1) For the purposes of Part II of the Act, proof of age shall, subject to subsection (2), be established by the following evidence:

  • (a) a birth certificate issued by an appropriate civil authority;

  • (b) a baptismal certificate, issued by an appropriate religious authority, indicating that the baptism took place within five years after the date of birth; or

  • (c) an official notification issued by an appropriate civil authority indicating that the birth is registered with that authority and stating therein the date of birth.

• (2) In the event that the evidence referred to in subsection (1) cannot be obtained by the participant, proof of their age may be established by

  • (a) a document made within five years of the date of birth of the participant showing their name and date of birth or their age, or a certified copy or extract thereof;

  • (b) a document, or a certified copy or extract thereof, showing the name and date of birth or age of the participant, that is at least 20 years old at the time that it is considered by the Minister for the purpose of establishing the age of the participant, and that, except where the document is a page from the Family Bible, is wholly or partly in print; or

  • (c) one of each or two of either of the following documents, showing the name and date of birth or age of the participant, and that agree as to the month and year of their birth, or certified copies or extracts thereof, namely,

    • (i) an affidavit or statutory declaration made by a parent, brother or sister of the participant, or some other person having knowledge of the pertinent facts of their birth, or

    • (ii) a document at least 10 years old at the time that it is considered by the Minister for the purpose of establishing the age of the participant;

  • (d) evidence relating to the inability to obtain either of the certificates referred to in subsection (1) in the form of

    • (i) a letter from an appropriate authority indicating that a search has been made for a certificate of birth but that such search was unsuccessful, or

    • (ii) a statement that satisfies the Minister as to why it would not be practical to conduct a search for any of the documents referred to in subsection (1); and

  • (e) a statement, in a form prescribed by the Minister, attesting to the validity of the evidence referred to in paragraphs (a) and (b) and sworn to or affirmed by the person submitting the evidence.

• (3) A record of service in the Canadian Forces or any form prescribed by the Minister under the Act shall not be considered as evidence relating to proof of age.

• (4) A participant shall, upon demand by the Minister, file evidence as to proof of age.

Elections

• 50 (1) An election under section 62 of the Act shall be made in writing, dated and signed and sent to the Minister, or to a person designated by the Minister, within one week after the date that it bears.

• (2) An election is made on the date that it bears.

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

Effective Dates of Becoming and Ceasing To Be a Member of the Regular Force

51 For the purposes of Part II of the Act,

• (a) the day on which a person becomes a member of the regular force is,

  • (i) the day on which they enrol in that force,

  • (ii) the day on which they report for continuous full-time duty after termination of a leave without pay and allowances for personal reasons if a member is granted leave with effect on the day on which they enrol in that force or on the day immediately following that day,

  • (iii) the day on which they cease to be absent without authority, if they are deemed to have ceased to be a member of the force under section 44, or

  • (iv) the first day of the month following the month in which the continuous period of full-time service mentioned in subsection 41(2) or (3) of the Act expired, if they are deemed under that subsection to have become re-enrolled in the regular force; and

• (b) the effective day on which a person, other than a person who is an elective participant, ceases to be a member of the regular force is the last day in the month in respect of which they are or were required to contribute to the Regular Force Death Benefit Account; and

• (c) the day on which a member described in paragraph (b) of the definition participant in subsection 60(1) of the Act ceases to be a participant is the last day of the month during which they cease to fall within that definition.

Benefits

52 The times when the reductions referred to in the definition basic benefit in subsection 60(1) of the Act shall be made are as follows:

• (a) in the case of an elective participant who ceased to be a member of the regular force and to whom an annuity or pension is not payable under the Act or the Defence Services Pension Continuation Act, each reduction shall be made on each anniversary of the day (that is on or that follows the 61st birthday of the participant, whichever occurs first), on which an annual contribution under the Act is payable; and

• (b) in any case, other than the case mentioned in paragraph (a), each reduction shall be made on the first day of April or the first day of October whichever date immediately follows each anniversary of the birthday of the participant commencing with their 61st birthday.

53 The Minister may direct that a part or all of a payment payable under Part II of the Act be paid

• (a) to any person, group or association of persons towards the payment of any reasonable expenses incurred by such person, group or association of persons for the maintenance, medical care or burial of the participant; or

• (b) to the Receiver General towards the payment of any reasonable expenses incurred by Her Majesty in right of Canada for the maintenance, medical care or burial of a participant.

Designation of Beneficiaries

• 54 (1) Subject to the provisions of this section, a participant may, for the purposes of Part II of the Act, name a beneficiary under Part II of the Act or substitute a new named beneficiary or cancel the naming of any beneficiary.

• (2) The naming of a beneficiary or the substitution or cancellation of a named beneficiary by a participant referred to in subsection (1) shall be evidenced in writing in a form prescribed by the Minister, dated, witnessed and forwarded to the Minister.

• (3) The naming of a beneficiary or the substitution or cancellation of a named beneficiary by a participant referred to in subsection (1) shall be effective on the date the participant executes the form referred to in subsection (2) if the completed form is received by the Minister prior to the death of the participant.

• (4) For the purposes of Part II of the Act, a beneficiary may be

  • (a) the participant’s estate;

  • (b) any person over the age of 18 years on the date of the naming;

  • (c) any charitable organization or institution;

  • (d) any benevolent organization or institution; or

  • (e) any eleemosynary religious or educational organization or institution.

Miscellaneous

55 Commencing with the quarter of the fiscal year ending March 31, 1974, interest shall be credited to the Regular Force Death Benefit Account in respect of each quarter in each fiscal year on the last day of June, September, December and March, calculated at the rate referred to in subsection 36(2) of these Regulations on the balance to the credit of the Account on the last day of the preceding quarter.

• 56 (1) There shall be issued to each elective participant, as evidence that they are a participant under the Act, a document

  • (a) in Form 1 of Schedule II in the case of an elective participant who ceases to be a member of the regular force and to whom an immediate annuity or pension is payable under the Act or the Defence Services Pension Continuation Act; and

  • (b) in Form 2 of Schedule II in all cases other than the case mentioned in paragraph (a).

• (2) Every document issued to an elective participant under subsection (1) shall be signed by the Chief of the Defence Staff or by a person authorized by him or her to sign such documents on his or her behalf.

• (3) The signature on each document issued to elective participants under subsection (1) may be printed, painted, engraved, lithographed, photographed or represented or reproduced by any mode of representing or reproducing the signature in a visible form.

Election in Respect of Surviving Spouse Benefits

57 For the purposes of sections 58 to 75,

election

election means an election under section 25.1 of the Act; (choix)

level of reduction

level of reduction means, in respect of an annuity, one of the three amounts determined pursuant to section 66, where levels one, two and three correspond to a reduction that provides a surviving spouse with an immediate annual allowance that is equal to 30, 40 or 50 per cent, respectively, of an annuity referred to in clause 66(1)(b)(ii)(A), if paragraph 66(1)(b) were read without reference to supplementary benefits payable under Part III of the Act; (niveau de réduction)

spouse

spouse means a spouse referred to in section 25.1 of the Act. (conjoint)

58 For the purposes of section 25.1 of the Act, a contributor may make an election to reduce the amount of the contributor’s annuity not later than one year after the later of

• (a) the day on which this section comes into force, and

• (b) the day on which the contributor and the spouse are married.

• 59 (1) Notwithstanding section 58, a contributor may make an election after the expiration of the period provided for in that section where the contributor has received in writing, from a member of the Canadian Forces or person employed in the public service whose ordinary duties include the giving of advice respecting the election,

  • (a) erroneous or misleading information regarding the period during which the contributor could make an election; or

  • (b) materially erroneous or misleading information regarding the amount of the reduction of the contributor’s annuity or the amount of the immediate annual allowance to which the spouse would be entitled.

• (2) An election may be made under subsection (1) not later than three months after the day on which a written notice containing the correct information is sent to the contributor.

60 An election shall be made in writing and shall

• (a) indicate the level of reduction in respect of the contributor’s annuity;

• (b) indicate the date of birth of the contributor’s spouse and the date of the spouse’s marriage to the contributor; and

• (c) be signed and dated by the contributor and signed by a witness other than the contributor’s spouse.

• 61 (1) An election shall be delivered to the Minister, or to a person designated by the Minister, within the period referred to in section 58 or subsection 59(2), as the case may be.

• (2) An election is made on the day on which the election is placed in the course of delivery in accordance with subsection (1).

62 The contributor, or a person acting on behalf of the contributor, shall, within one year after the day on which an election is made, send to the Minister or to a person designated by the Minister

• (a) a document that is evidence of the date of birth of the spouse;

• (b) a document that is evidence of the marriage of the contributor and the spouse; and

• (c) where the name of the spouse as indicated on a document referred to in paragraph (a) is not the same as the name of the spouse as indicated on a document referred to in paragraph (b), any other document that confirms that the evidence of the birth and the marriage relates to the spouse, or a statutory declaration by which the spouse declares that the documents are in respect of the spouse.

• 63 (1) Notwithstanding section 49, for the purposes of section 25.1 of the Act, proof of age of the contributor’s spouse is established, subject to subsections (2) and (3), by a birth certificate issued by a civil authority.

• (2) Where a birth certificate referred to in subsection (1) cannot be obtained, proof of age of the spouse is established

  • (a) by a statutory declaration of the spouse in which the spouse attests to the spouse’s date of birth and explains the reasons why the birth certificate cannot be obtained; and

  • (b) by a document that was created

    • (i) within five years after the date of birth of the spouse and that indicates the name of the spouse and the date of birth or age of the spouse, or

    • (ii) at least 20 years before the day on which the election is made and that indicates the date of birth of the spouse, which document is accompanied by a statutory declaration by which a person, other than the contributor or the spouse, attests that the date stated in the document is the correct date of birth of the spouse.

• (3) Where a document or statutory declaration referred to in paragraph (2)(b) is to be submitted but cannot be obtained, the statutory declaration referred to in paragraph (2)(a) shall set out the reasons why the document or statutory declaration cannot be obtained.

• 64 (1) Subject to subsection (2), proof of the marriage between the contributor and the spouse is established by a marriage certificate issued by a civil authority.

• (2) Where a marriage certificate referred to in subsection (1) cannot be obtained, proof of the marriage between the contributor and the spouse is established by

  • (a) a statutory declaration by which the contributor or the spouse attests to the date of the marriage and explains the reasons why the marriage certificate cannot be obtained; and

  • (b) a document that is similar to a marriage certificate and is issued in relation to the marriage ceremony, or a statutory declaration by a person who attended the marriage ceremony, other than the contributor or the spouse, attesting to the person’s knowledge of the marriage.

Non-compliance with Requirements to Submit Evidence

65 An election is considered not to have been made where any document or statutory declaration that is required by any of sections 62 to 64 is not submitted within one year after the day on which the election is made.

Calculation of the Reduction

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

  • (a) calculate the actuarial present value of the annuity 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 15(2) of the Act, and

    • (ii) the minimum death benefit payable in accordance with section 38 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 following 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

    • (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 a pension 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 72(1) or (2), as the case may be, and

    • (iii) that the increase in the reduction under section 67 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 minimum death benefit in respect of that contributor.

Indexation

• 67 (1) Subject to subsection (2), the amount of the reduction determined in accordance with section 66 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 66 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 a member of the regular force.

Actuarial Assumptions

• 68 (1) For the purposes of sections 66 and 67, the following are the only demographic assumptions on which the actuarial values are to be based:

  • (a) the rate of mortality for any contributor 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 56 of the Act, taking into account the mortality projection factors set out in that 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, where

    • (i) the rates of mortality for contributors who receive benefits in relation to a disability are the weighted averages of the rates for disabled officers and disabled non-commissioned members, for all ages as set out in the report, where the weighting is in accordance with the aggregate pay of officers and non-commissioned members in continuing, full-time military service, and

    • (ii) the rates of mortality for contributors who receive benefits that are not in relation to a disability are the weighted averages of the rates for non-disabled officers and non-disabled non-commissioned members, as set out in the report, where the weighting is the same as in subparagraph (i);

  • (b) the rates of mortality of surviving spouses are those set out for spouses in the actuarial valuation report laid before Parliament in accordance with section 56 of the Act, taking into account the mortality projection factors set out in the report; and

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

• (2) For the purposes of subsection (1), the actuarial valuation referred to in that subsection is the most recent actuarial valuation report, or, where the most recent actuarial valuation report was tabled less than two months before the day on which the contributor made an election, the previously tabled report.

69 For the purposes of the determinations referred to in sections 66 and 67, the rates of interest set out in the Recommendations for the Computation of Transfer Values from Registered Pension Plans, published by the Canadian Institute of Actuaries, effective September 1, 1993, shall be the rates in respect of fully indexed pensions.

Revision or Revocation of the Election

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

  • (a) the contributor received, in writing, from a member of the Canadian Forces or person employed in the public service whose ordinary duties included the giving of advice respecting the election, materially erroneous or misleading information regarding the amount of the reduction of the contributor’s annuity or the amount of the immediate annual allowance to which the spouse would be entitled; or

  • (b) the amount of the annuity 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 received materially erroneous or misleading information referred to in paragraph (1)(a); or

  • (b) the amount of the annuity 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 or the revocation of the election shall be in writing and shall be delivered to the Minister or to the person designated by the Minister

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

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

• (4) A revision of the level of reduction or a revocation of the election is effective on the day on which it is placed in the course of delivery in accordance with subsection (3).

71 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.

Effective Dates of Reduction

• 72 (1) Subject to subsection (2), the amount of the reduction of a contributor’s annuity, calculated in accordance with section 66, shall be subtracted from the monthly instalments of the annuity 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 70(1), the revised amount of the reduction shall be subtracted from the monthly instalments of the annuity payable to the contributor, effective on the first day of the month after the month in which the revision was made.

Revocation

73 For the purposes of subsection 25.1(4) of the Act, an election made by a contributor is deemed to be revoked on the day on which the contributor is required to contribute to the Superannuation Account pursuant to subsection 5(1) of the Act.

Termination of Reduction

74 Where an election is revoked pursuant to subsection 70(2), ceases to have effect pursuant to section 71, or is deemed to be revoked pursuant to section 73, the reduction ceases on the first day of the month in which the election is revoked or ceases to have effect.

Surviving Spouse Allowance

75 The immediate annual allowance to which a spouse is entitled on the death of the contributor who had made an election is equal to an amount determined in accordance with clause 66(1)(b)(ii)(B), if paragraph 66(1)(b) were read without reference to supplementary benefits payable under Part III of the Act.

Reconsideration Under Subsection 93(1) of the Act

• 76 (1) A request for a reconsideration under subsection 93(1) of the Act shall be made in writing to the Minister and shall set out

  • (a) the name and service or pension number of the member or former member of the regular force or of the reserve force in respect of whose service the benefit or entitlement to benefit arises;

  • (b) details of the decision to be reconsidered; and

  • (c) a statement of the facts that form the basis of, and the grounds for, the request.

• (2) If the person making the request has failed to provide sufficient information to enable the Minister to reconsider the decision, the Minister may request additional information.

• (3) The person shall provide the requested information no later than 30 days after the date of the request.

• (4) The Minister shall allow a reasonable extension of the time period if the person is able to establish that they were unable to provide the requested information within the time period due to circumstances beyond their control.