Retirement Compensation Arrangements Regulations, No. 1 (SOR/94-785)

• 36 (1) For the purposes of subsection 35(2) and paragraph 41.1(1)(c), where a participant has made an election under section 13.1 of the Public Service Superannuation Act in respect of a spouse married after the participant ceased to be required to contribute to the Superannuation Account or to the Retirement Compensation Arrangements Account under this Division, the amount determined under paragraph 35(2)(a) or 41.1(1)(c) shall be reduced by the same proportion, and for the same period, as the participant’s immediate annuity, annual allowance or deferred annuity is reduced under section 68 of the Public Service Superannuation Regulations.

• (2) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction made under section 68 of the Public Service Superannuation Regulations.

37 The benefit payable to the surviving spouse of a participant who has made an election under section 13.1 of the Public Service Superannuation Act, where that spouse married the participant after the participant ceased to be required to contribute to the Retirement Compensation Arrangements Account under Division I of Part I is equal to the amount determined under subsection 35(2), read without reference to subsection 36(1), multiplied by the percentage of the participant’s annuity or annual allowance, calculated before any reduction is made under section 68 of the Public Service Superannuation Regulations, that the spouse will receive as an allowance under section 79 of those Regulations.

• 38 (1) Subject to subsection (2), a participant shall be entitled to a return of contributions made under this Part, together with interest calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act, if the participant is entitled to a return of contributions under that Act.

• (2) No return of contributions is payable to a participant under subsection (1) if the difference calculated under subsection 35(2) is nil.

• 38.1 (1) A participant who opts for a transfer value under section 13.01 of the Public Service Superannuation Act shall receive a lump sum amount in lieu of any other benefit under this Division.

• (2) The lump sum amount is equal to

  • (a) the transfer value that would be paid to the participant under section 13.01 of the Public Service Superannuation Act if paragraph 11(1)(b) of that Act applied without reference to the annual rate of salary fixed by or determined in accordance with the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

  less

  • (b) any amount paid or payable to the participant under that Act and section 41.2 in respect of the period of pensionable service of the participant to which the transfer value relates.

• (3) to (6) [Repealed, SOR/2003-230, s. 7]

38.2 Subsection 38.1(2) and sections 38.4, 38.5 and 41.3, as those provisions read immediately before the coming into force of this section, continue to apply in respect of a deferred annuity that a participant opted or was deemed to have opted to receive under paragraph 38.1(1)(b) or subsection 38.2(2), as those provisions read immediately before the coming into force of this section.

• 38.3 (1) Subject to subsections (2) and (3), a person who elects to pay for a period of service under clause 6(1)(b)(iii)(M) or (N) of the Public Service Superannuation Act shall pay to the Retirement Compensation Arrangements Account a lump sum amount that is equal to the aggregate of

  • (a) the amount by which the amount determined in accordance with subsection 103(1) of the Public Service Superannuation Regulations exceeds the amount that would be determined in accordance with that subsection if subparagraph 11(1)(b)(iii) of that Act and section 30.6 of those Regulations were not taken into account; and

  • (b) an amount representing interest on the amount determined under paragraph (a) calculated in the manner and at the rates referred to in subsection 103(2) of those Regulations.

• (2) If an adjustment is made under subsection 102(2) or (3) or 104(3) of the Public Service Superannuation Regulations to the period of pensionable service that is counted by the person under the election, the ratio that was used under that subsection of those Regulations to determine the period to be counted shall be applied to reduce the amount that is determined under subsection (1).

• (3) A person who had opted to receive or was deemed to have opted to receive a deferred annuity under paragraph 38.1(1)(b) or subsection 38.2(2), as those provisions read immediately before December 13, 2002, is not required to make a payment under subsection (1), and ceases to be entitled to that annuity.

• 38.4 (1) Subject to subsection (2), if an amount is paid to an eligible employer in respect of a participant pursuant to subsection 40.2(3) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to the aggregate of

    • (i) an amount calculated by the Minister equal to the actuarial value of the participant’s benefits accrued under this Division and section 68 as of valuation date based on the paid-up contributions of the participant under this Division, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40.2(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under clause 40.2(3)(a)(i)(A) of that Act, and

    • (ii) an amount representing interest after valuation date, if any, on the amount determined under subparagraph (i) calculated at the same rate and in the same manner as in the agreement with the employer, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (2) If the eligible employer has not established an external retirement compensation arrangement or has established an external retirement compensation arrangement but is not prepared to provide benefits under that arrangement in respect of the amount referred to in subsection (1), the Minister shall not transfer the amount to that employer, but shall pay to the participant

  • (a) in the case of a participant who on valuation date has two or more years of pensionable service to his or her credit under the Public Service Superannuation Act, a lump sum amount calculated in accordance with section 38.5; and

  • (b) in any other case, a lump sum amount equal to the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act.

• (3) If the amount transferred under subsection (1) is less than the lump sum amount that would be paid to the participant under subsection (2), the Minister shall pay to the participant an amount equal to the difference.

• (4) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which the transfer or payment is effected, the amount transferred or paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (5) The transfer or payment of an amount under this section shall be made within the time limit for the payment of an amount to an eligible employer provided for in the agreement with that employer or within 12 months after the coming into force of this subsection, whichever is the later.

• (6) When all amounts under this section have been transferred or paid, as applicable, the participant shall cease to be entitled to any benefit under this Division or under section 68 in respect of the period of service to which the transfer or payment relates.

• (7) For the purposes of this section and section 38.5, valuation date has the same meaning as in the agreement with the eligible employer.

38.5 The lump sum amount referred to in paragraph 38.4(2)(a) is equal to

• (a) the transfer value that would be paid to the participant under section 13.01 of the Public Service Superannuation Act as of valuation date, whether or not the participant would otherwise be entitled to a transfer value, if paragraph 11(1)(b) of that Act applied without reference to the annual rate of salary fixed by or determined in accordance with the regulations referred to in subparagraph 11(1)(b)(iii) of that Act,

and

• (b) interest after valuation date, if any, on the amount referred to in paragraph (a) calculated in accordance with section 93 of the Public Service Superannuation Regulations, with any modifications that the circumstances require,

less the sum of

• (c) any amount paid or payable to or in respect of the participant under that Act and section 41.2 in respect of the period of pensionable service to the credit of the participant under that Act,

and

• (d) an amount equal to the interest, if any, that would be calculated in accordance with section 93 of those Regulations, with any modifications that the circumstances require, on the amounts referred to in paragraph (c) from the date of payment of those amounts to the date to which interest is calculated under paragraph (b).

38.51 Any amount transferred by an eligible employer from the employer’s external retirement compensation arrangement in respect of a participant, in accordance with an agreement made under subsection 40.2(2) of the Public Service Superannuation Act that provides for its payment to the Retirement Compensation Arrangements Account, shall be credited to that account.

• 38.6 (1) Subject to subsection (3), if an amount is paid to an approved employer in respect of a participant pursuant to subsection 40(3) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to twice the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (2) Subject to subsection (3), if an amount is paid to an approved employer in respect of a participant pursuant to subsection 40(4) of the Public Service Superannuation Act, the Minister shall transfer to an external retirement compensation arrangement established by that employer the lesser of

  • (a) an amount equal to the greater of

    • (i) an amount equal to the aggregate of

      • (A) an amount calculated by the Minister equal to the actuarial value of the participant’s benefits accrued under this Division and section 68 as of valuation date based on the paid-up contributions of the participant under this Division, using the same actuarial assumptions and determined in the same manner as set out in the agreement referred to in subsection 40(2) of that Act with the employer, except that the rate of interest shall be one-half the rate of interest used in calculating an amount under subparagraph 40(4)(a)(i) of that Act, and

      • (B) an amount representing interest after valuation date, if any, on the amount determined under clause (A) calculated at the same rate and in the same manner as in the agreement with the employer, and

    • (ii) an amount equal to twice the sum of the contributions that the participant has made under this Division plus interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of that Act, and

  • (b) an amount calculated by the employer as being the amount required to provide benefits under its external retirement compensation arrangement with regard to the accrued benefits of the participant under this Division and section 68.

• (3) If the approved employer has not established an external retirement compensation arrangement or has established an external retirement compensation arrangement but is not prepared to provide benefits under that arrangement in respect of the amount referred to in subsection (1) or (2), the Minister shall not transfer the amount to the employer, but shall pay to the participant a lump sum amount equal to the sum of the contributions that the participant has made under this Division plus interest calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act.

• (4) If the amount transferred under subsection (1) or (2) is less than the lump sum amount that would be paid to the participant under subsection (3), the Minister shall pay to the participant an amount equal to the difference.

• (5) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the date on which the transfer or payment is effected, the amount transferred or paid shall be reduced to take into account the adjustment to the participant’s pension benefits made in accordance with section 21 of the Pension Benefits Division Regulations.

• (6) The transfer or payment of an amount under this section shall be made within 12 months after the coming into force of this subsection.

• (7) When all amounts under this section have been transferred or paid, as applicable, the participant shall cease to be entitled to any benefit under this Division or under section 68 in respect of the period of service to which the transfer or payment relates.

• (8) For the purposes of subparagraph (2)(a)(i), valuation date means the date referred to in subparagraph 40(4)(a)(i) of the Public Service Superannuation Act.