Reserve Force Pension Plan Regulations (SOR/2007-32)

Marginal note:90-day time limit

• 31 (1) In respect of a transfer value earnings election, only payments received no later than 90 days after the date of the written notice advising the participant of the amount to be paid will be taken into account.

• Marginal note:Payment received late

  (2) Payments received no later than 120 days after the date of the notice will be taken into account if the participant establishes that they gave written instructions in a timely fashion to cause the payments to be received no later than 90 days after that date and that the payments were received after that time through no fault of the participant.

Marginal note:Crediting of earnings

• 32 (1) The transfer value earnings shall be counted as pensionable earnings in respect of each day that the participant earned them and in the same proportion as the payments taken into account in respect of a transfer value earnings election bear to the amount required to be paid under subsection 30(1).

• Marginal note:Date of crediting

  (2) The transfer value earnings shall come to the participant’s credit on the date of the election.

Marginal note:Election not made

• 33 (1) A transfer value earnings election is deemed not to have been made

  • (a) in the case of an election to count earnings as pensionable earnings from 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;

  • (b) at the request of the person who made the election 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; or

  • (c) if no payment is received by the Minister within the required time.

• Marginal note:Refund

  (2) Any payments received from a plan, fund, or institution of a type referred to in paragraph 61(1)(a) shall be transferred to a plan, fund, or institution, of any type referred to in that paragraph, at the direction of the person who made the election.

• Marginal note:New election

  (3) Despite the expiry of the period for making the election, the person may make an election no later than 90 days after the date of the notice informing the person of the refusal by the Minister of National Revenue. In the case of another refusal, the person shall not make an election.

Pensionable Service

Marginal note:Counting pensionable service

• 34 (1) There shall be counted as pensionable service

  • (a) any period during which a member is a participant;

  • (b) despite subsection (2), any period during which the participant has been deemed to have earnings in respect of which the participant has opted not to pay contributions under section 8; and

  • (c) any period that relates to earnings in respect of which an election was made under subsection 11(1).

• Marginal note:Not counted as pensionable service

  (2) There shall not be counted as pensionable service any period that relates to earnings that are not counted as pensionable earnings.

Marginal note:Date of crediting

35 The pensionable service shall come to the participant’s credit on the date of the election.

PART 2Benefits

Marginal note:Interpretation

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

  • (a) an individual is considered to be a child if the individual is a child or stepchild of — or an individual adopted either legally or in fact by — a participant or pensioner who, at the time of the participant’s or pensioner’s death, was dependent on that person for support; and

  • (b) an individual is considered to be a survivor if the individual is

    • (i) a person who was married to a participant or pensioner at the time of the death of the participant or pensioner, or

    • (ii) a person who establishes that he or she was cohabiting in a relationship of a conjugal nature with a participant or pensioner for at least one year immediately before the death of the participant or pensioner.

• Marginal note:Deemed date of marriage

  (2) When a participant or pensioner dies and, at the time of death, was married to a person with whom the participant or pensioner had been cohabiting in a relationship of a conjugal nature for a period immediately before the marriage, that person is deemed to have been married to the participant or pensioner on the day established as being the day on which the cohabitation began.

Marginal note:Wage measure

• 37 (1) The wage measure is

  • (a) for a year prior to 2007, the corresponding rate of pay shown in the schedule; and

  • (b) for a year after 2006, the greater of

    • (i) the standard basic rate of pay for a period of duty or training of six hours or more — before any retroactive adjustment — that was prescribed or established under the National Defence Act to be paid, on October 1 of the preceding year, to a member at the rank of Corporal (A), and

    • (ii) the wage measure of the previous year.

• Marginal note:Updated pensionable earnings

  (2) The updated pensionable earnings, for a calendar year, are the lesser of

  • (a) an amount determined by the formula

    A × B

    where

    A

    is the participant’s pensionable earnings for that year, and

    B

    is the result of the following formula, rounded to the nearest fourth decimal point:

    C/D

    where

    C

    is the average of the wage measures for five years consisting of the year the member most recently ceased to be a participant and the most recent years during which the member was a participant and, if necessary, the years preceding all of those years, and

    D

    is the wage measure for that calendar year, and

  • (b) the product calculated under paragraph 6(2)(a) for the year the member most recently ceased to be a participant.

DIVISION 1Member’s Benefits

Participant Who Has Less Than Two Years of Pensionable Service

Marginal note:Return of contributions

• 38 (1) A member who ceases to be a participant and has to their credit less than two years of pensionable service is entitled to a return of any amounts paid by the member into the Fund and remaining to the member’s credit, together with interest, if any, these amounts and the interest constituting a return of contributions.

• Marginal note:Entitlement extinguished

  (2) This entitlement shall be extinguished if, before the return of contributions is paid, the member is required to contribute to the Canadian Forces Pension Fund.

Marginal note:Interest calculation

39 Interest shall be calculated, for every quarter following the first quarter during which the member makes contributions, up to and including the quarter preceding the quarter in which the return of contributions is made, on the total of

• (a) amounts paid by the member into the Fund and remaining to the member’s credit as of the end of the quarter preceding the quarter in which the calculation is being made, and

• (b) the interest calculated for all quarters preceding the quarter in which the calculation is being made.

Marginal note:Setting of rate of interest

• 40 (1) The rate of interest is equal to 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.

• Marginal note:Negative rate of return

  (2) If the rate of return is negative, the rate of interest shall be zero per cent.

Participant Who Has Not Less Than Two Years of Pensionable Service

Immediate Annuity, Deferred Annuity, Annual Allowance and Bridge Benefit

Marginal note:Amount of annuity

41 The amount of an annuity to which a member may become entitled is an amount equal to 1.5 per cent of the greater of the member’s total pensionable earnings and total updated pensionable earnings.

Marginal note:Days of Canadian Forces service

• 42 (1) For the purposes of paragraph 43(1)(a), days of Canadian Forces service are

  • (a) in the regular force, days of service for which pay — excluding allowances provided under the Act — 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 — excluding allowances provided under the Act — 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 shall be considered to be ½ of a day,

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

    • (iii) in the proportion of ¼ of a day for each day, days in a period before April 1, 1999, where 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 — excluding allowances provided under the Act — was authorized to be paid.

• Marginal note:Augmentation

  (2) Each day of service for which pay — excluding allowances provided under the Act — was authorized to be paid during which the member was 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.

• Marginal note:Maternity or parental leave

  (3) The proportion in which days in a period of exemption or leave referred to in paragraph 2(b) shall count as days of Canadian Forces service shall be determined by the formula

  A/B

  where

  A

  is the number of the member’s days of Canadian Forces service in the 364 days prior to the period; and

  B

  is the number of days in the 364 days that the member was a member of the Canadian Forces.

• Marginal note:Rounding up

  (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.

Marginal note:Immediate annuity

• 43 (1) A member who ceases to be a participant and has to their credit not less than two years of pensionable service is entitled to an immediate annuity, if

  • (a) they have completed not less than 9,131 days of Canadian Forces service;

  • (b) they have reached 60 years of age;

  • (c) they have reached 55 years of age and have to their credit not less than 30 years of pensionable service;

  • (d) they are disabled by reason of suffering from a physical or mental impairment that

    • (i) prevents the member from engaging in any employment for which the member is reasonably suited by virtue of education, training or experience, and

    • (ii) can reasonably be expected to last for the remainder of the member’s lifetime; or

  • (e) they cease, otherwise than voluntarily, to be a member because of a reduction in the maximum number of officers or non-commissioned members authorized by the Governor in Council under subsection 15(4) of the National Defence Act, and

    • (i) they have reached 55 years of age and have to their credit not less than 10 years of pensionable service, or

    • (ii) they have to their credit not less than 20 years of pensionable service.

• Marginal note:Commencement of immediate annuity

  (2) The commencement date of the annuity is the day following the last day on which the member is a participant.