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

• 39 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part or Part I of the Public Service Superannuation Act, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, a benefit of the type referred to in subsection 27(2) of that Act shall be paid to the beneficiary named by the participant under Part II of that Act or, if no beneficiary is named or the named beneficiary does not survive the participant, to the estate of the participant, subject to the same conditions as are specified in that Act for payment of such a benefit.

• (2) Subject to subsection (3), if five times the aggregate of the benefits referred to in paragraphs (a) and (b) is greater than the total of the participant’s contributions under this Part and Part I of the Public Service Superannuation Act, together with interest thereon calculated at the rate and in the manner set out in subsection 10(9) of that Act, the amount of a benefit payable under subsection (1) shall be five times the aggregate of

  • (a) the annual amount of any benefit payable to the participant under this Division, determined in accordance with subsection 35(2), or section 38.4 as that provision read immediately before the coming into force of this paragraph, not reduced on account of the age or period of pensionable service of the participant, and

  • (b) the amount of any annuity payable under the Public Service Superannuation Act, determined in accordance with subsection 11(1) of that Act.

• (3) The amount of the benefit referred to in subsection (2) shall be reduced by the following amounts paid to or in respect of the participant:

  • (a) any amount paid under this Part;

  • (b) any amount paid under Part I of the Public Service Superannuation Act, excluding any amount paid under subsection 13.01(2) of that Act, but including any amount paid under section 27 of that Act; and

  • (c) any amount paid under section 19 in respect of the pensionable service to the credit of the participant under Part I of the Public Service Superannuation Act.

• (4) If the amount determined under subsection (2) is less than the total of the participant’s contributions under this Part and Part I of the Public Service Superannuation Act together with interest calculated at the rate and in the manner set out in subsection 10(9) of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest calculated at the same rate and in the same manner, reduced by any amount paid to or in respect of the participant under this Part.

40 Where a participant or a recipient requests that a benefit under this Part be paid otherwise than in equal monthly instalments, or where the payment of a benefit in equal monthly instalments is not practicable for administrative reasons, the benefit may be paid in equal payments quarterly, semi-annually or annually in arrears, if payment in arrears would not result in the payment of an aggregate amount greater than the aggregate amount of equal monthly instalments that would otherwise be payable under this Part.

41 Where as a result of an election made under subsection 39(1) of the Public Service Superannuation Act the participant ceases to be entitled to benefits provided under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, any contributions paid by the participant under Part III or IV shall be considered to have been paid under this Part and the benefits to which the participant shall be entitled are those payable under this Part.

DIVISION IIAdditional Benefits

• 41.1 (1) Subject to subsection 36(1), a benefit shall be paid to a participant, to a survivor or child of a participant or to a beneficiary of an amount payable under subsection 27(2) of the Public Service Superannuation Act, as the case may be, in an amount equal to

  • (a) the amount by which an allowance payable to such a person under that Act is reduced as a result of the operation of the limit set out in subsection 30.6(1) or (2) of the Public Service Superannuation Regulations,

  • (b) the amount by which a benefit payable under subsection 27(2) of that Act is reduced as a result of the operation of the limit set out in subsection 30.8(1) of the Public Service Superannuation Regulations, and

  • (c) the amount by which an annuity or annual allowance payable to such a person under that Act is reduced as a result of the operation of the limit set out in subsection 80(1) or 80.1(1) of the Public Service Superannuation Regulations.

• (2) The benefit that represents the amount of a reduction referred to in subsection (1) is payable in the same manner and subject to the same terms and conditions as apply to the payment of the allowance, benefit, annuity or annual allowance referred to in paragraph (1)(a), (b) or (c), as the case may be, before the reduction.

• 41.2 (1) If a participant opts for a transfer value under section 13.01 of the Public Service Superannuation Act or becomes entitled to the payment of an amount under subsection 40.2(7) of that Act, a benefit shall be paid to the participant in the form of a lump sum equal to the amount by which the amount payable to the participant under subsection 13.01(2) of that Act is reduced as a result of the operation of the limits set out in any of subsections 30.6(1) and (2), 30.8(1) and 80.1(1) of the Public Service Superannuation Regulations together with interest, if any.

• (2) The interest shall be calculated in accordance with section 93 of those Regulations.

41.3 to 41.5 [Repealed, SOR/2003-12, s. 14]

DIVISION IIITransfers of Funds in Respect of Employees of Certain Corporations

General

• 41.6 (1) If an amount paid pursuant to subsection 40.2(3) of the Public Service Superannuation Act to an employer listed in Schedule 5 is reduced as a result of the operation of the limits set out in any of subsections 30.6(1) and (2), 30.8(1) and 80.1(1) of the Public Service Superannuation Regulations, the Minister shall transfer to an external retirement compensation arrangement established by that employer, an amount equal to the amount of the reduction, together with interest, if any.

• (2) For the purposes of subsection (1), interest shall be calculated at the same rate and in the same manner as provided in the agreement referred to in subsection 40.2(2) of the Public Service Superannuation Act with the employer.

• (3) The transfer of an amount under this section shall be made within the time limit for the payment of an amount to the employer provided for in the agreement or within 12 months after the day on which the name of the employer is added to Schedule 5, whichever is the later.

• 41.7 (1) If an amount is paid pursuant to subsection 40.2(3) of the Public Service Superannuation Act to an employer listed in Schedule 6 in respect of a participant other than a participant contemplated by section 38.4, the Minister shall pay to an external retirement compensation arrangement established by that employer an amount equal to the aggregate of

  • (a) an amount calculated by the Minister equal to the actuarial value of the liability accrued in respect of the participant under Division I and section 68 as of valuation date, if any, 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

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

• (2) If a division of a participant’s pension benefits is effected under section 8 of the Pension Benefits Division Act before the payment of an amount to an external retirement compensation arrangement under subsection (1), the amount 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.

• (3) The payment of an amount under this section shall be made within the time limit for the payment of an amount to the employer provided for in the agreement or within 12 months after the day on which the name of the employer is added to Schedule 6, whichever is the later.

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

Canada Post Corporation

Interpretation

41.8 The following definitions apply in this section and sections 41.81 to 41.84.

Canada Post

Canada Post means the Canada Post Corporation established by the Canada Post Corporation Act. (Postes Canada)

Canada Post Supplementary Retirement Arrangement

Canada Post Supplementary Retirement Arrangement means a supplementary pension plan that has been established by Canada Post under paragraph 46.3(1)(b) of the Public Service Superannuation Act and that has been approved by the Treasury Board under subsection 46.3(2) of that Act. (régime supplémentaire de retraite de Postes Canada)

Application

41.81 This Division applies in respect of the benefits accrued under this Part to persons who, by virtue of the coming into force of section 227 of the Public Sector Pension Investment Board Act, ceased to be employed in the public service for the purposes of the Public Service Superannuation Act on October 1, 2000 and

• (a) were employed by Canada Post and were contributors under the Public Service Superannuation Act on September 30, 2000, and

• (b) remain employed by Canada Post for at least one day following September 30, 2000.

Valuation

• 41.82 (1) Subject to subsections (2) and (3), the actuarial present value of the benefits accrued under this Part to the credit of the persons referred to in section 41.81 is calculated as of September 30, 2000 using the actuarial methods and assumptions contained in the Actuarial Report of March 31, 1996 on the Pension Plan for the public service of Canada, tabled in Parliament on March 18, 1998 by the President of the Treasury Board.

• (2) The actuarial assumptions contained in the Actuarial Report referred to in subsection (1) are varied as follows:

  • (a) the rate of interest for the period beginning on October 1, 2000 and ending on September 30, 2015 is equal to 1.95% per annum plus one-half of the rates of increase in the consumer price index for that period as set out in the Actuarial Report;

  • (b) the rate of interest for the period after September 30, 2015 is equal to 3.25% per annum;

  • (c) the rate of increase in salaries and the yearly maximum pensionable earnings is 3.9% per annum for the period beginning on October 1, 2000 and ending on September 30, 2001 and 4% per annum after that;

  • (d) the retirement rates are the rates set out in Schedule 1, multiplied by the percentage set out in Schedule 3, based on the projected number of salary level increases after October 1, 2000 set out in column 1 of Schedule 3 and the number of completed years of service after October 1, 2000 set out in column 2 of that Schedule;

  • (e) the termination rates are the rates set out in Schedule 2, multiplied by the percentage set out in Schedule 3, based on the projected number of salary level increases after October 1, 2000 set out in column 1 of Schedule 3 and the number of completed years of service after October 1, 2000 set out in column 2 of that Schedule;

  • (f) transfer values on termination of employment shall be calculated at twice the interest rates specified in paragraphs (a) and (b); and

  • (g) the Assumed Seniority and Promotional Salary Increase scale set out in Table 2A of the Actuarial Report is replaced by the probability distribution of rank at termination of employment set out in Schedule 4.

• (3) The amount calculated in accordance with subsection (1) shall be net of the present value of any instalment payments in respect of periods of service where such payments would have been due and payable into the Retirement Compensation Arrangements Account after September 30, 2000 by persons referred to in section 41.81 had those persons remained employed in the public service for the purposes of the Public Service Superannuation Act.

• (4) For the purpose of subsection (3), any instalment payment that is attributable to a period of leave of absence without pay is calculated as if it were due and payable on October 1, 2000.

• (5) For the purpose of subsection (3), the present value is calculated using an interest rate of 3.45% per annum.