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

• 58 (1) A participant who makes an election under clause 6(b)(ii)(L), (O) or (P) of the Royal Canadian Mounted Police Superannuation Act shall pay to the Retirement Compensation Arrangements Account an amount equal to the difference between the amount to be paid that would be determined in accordance with section 9.09 of the Royal Canadian Mounted Police Superannuation Regulations if subparagraph 10(1)(b)(iii) of that Act and section 20.2 of those Regulations were taken into account and the amount to be paid that would be determined if those two provisions were not taken into account.

• (2) The participant shall pay the amount in the manner set out in subsection 8(5) of the Royal Canadian Mounted Police Superannuation Act. However, if the participant opts to pay in a lump sum, the participant shall ensure that the amount to be paid is received by the Commissioner within 30 days after the day on which the Commissioner sends notice to the participant of the amount to be paid.

• (3) The fact that a participant has opted to pay by instalments for a period of service referred to in subparagraph 6(b)(ii) of the Royal Canadian Mounted Police Superannuation Act and ceases to be a member of the Force before having paid all of the instalments constitutes a circumstance referred to in section 15 of the Act under which the contributor is required to contribute by reservation from any benefit referred to in that section. The unpaid amount shall be reserved in accordance with section 9.05 of the Royal Canadian Mounted Police Superannuation Regulations.

• (4) Any amount that may be recovered under subsection 24(1) of the Act shall bear simple interest at 4% per year and shall be recovered in accordance with section 9.08 of the Royal Canadian Mounted Police Superannuation Regulations.

59 A participant becomes subject to the retirement compensation arrangement on the later of

• (a) the day on which the participant’s annual rate of pay exceeds the annual rate of pay determined under section 8.1 of the Royal Canadian Mounted Police Superannuation Regulations, and

• (b) December 15, 1994.

60 A participant ceases to be required to contribute to the Retirement Compensation Arrangements Account under this Part on the day on which the participant ceases to be required to contribute under Part I of the Royal Canadian Mounted Police Superannuation Act.

Benefits

Annuity or Annual Allowance

• 61 (1) A benefit shall be paid under this Part to a participant who is entitled to an annuity or annual allowance under the Royal Canadian Mounted Police Superannuation Act as of the same day that the annuity or annual allowance becomes payable.

• (2) Subject to subsection 62(1), the benefit to which a participant is entitled shall be in an amount equal to

  • (a) the amount of the annuity or annual allowance that would be payable to the participant under Part I of the Royal Canadian Mounted Police Superannuation Act if paragraph 10(1)(b) of that Act applied without reference to the annual rate of pay fixed by or determined in accordance with the regulations referred to in subparagraph 10(1)(b)(iii) of that Act,

  less

  • (b) any annuity or annual allowance payable to the participant under that Act and any benefit payable under subsection 67.1(2), in respect of the period of pensionable service to the credit of the participant.

• (3) The benefit to which a participant is entitled is payable in the same manner and subject to the same conditions as the annuity or annual allowance payable to the participant under the Royal Canadian Mounted Police Superannuation Act.

• 62 (1) For the purposes of subsection 61(2), where a participant has made an election under section 14.1 of the Royal Canadian Mounted Police Superannuation Act in respect of a spouse married when the participant was over 60 years of age, the amount determined under paragraph 61(2)(a) shall be reduced by the same proportion, and for the same period, as the participant’s annuity or annual allowance is reduced under section 42 of the Royal Canadian Mounted Police Superannuation Regulations.

• (2) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction calculated under section 42 of the Royal Canadian Mounted Police Superannuation Regulations.

63 The benefit payable to the surviving spouse of a participant who has made an election under section 14.1 of the Royal Canadian Mounted Police Superannuation Act, where that spouse married the participant when the participant was over 60 years of age, is equal to the amount determined under subsection 61(2), read without reference to subsection 62(1), multiplied by the percentage of the participant’s annuity or annual allowance, calculated before any reduction is made under section 42 of the Royal Canadian Mounted Police Superannuation Regulations, that the spouse will receive as an allowance under section 51 of those Regulations.

Return of Contributions

• 64 (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 set out in the Royal Canadian Mounted Police 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 61(2) is nil.

Transfer Value

• 64.1 (1) A participant who opts for a transfer value under section 12.1 of the Royal Canadian Mounted Police Superannuation Act on or after September 1, 2003 shall receive a lump sum amount in place of any other benefit under this Division.

• (2) The lump sum amount is equal to the amount by which the amount referred to in paragraph (a) is greater than the amount referred to in paragraph (b):

  • (a) the amount of the transfer value that would be paid to the participant under section 12.1 of the Royal Canadian Mounted Police Superannuation Act on valuation day if paragraph 10(1)(b) of that Act applied without reference to the annual rate of pay referred to in subparagraph 10(1)(b)(iii) of that Act;

  • (b) any amount paid or payable to or in respect of the participant under that Act and section 67.2 in respect of the period of pensionable service to which the transfer value relates.

Death

• 65 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, there shall be paid to the beneficiary of the benefit referred to in subsection 22(2) of the Royal Canadian Mounted Police Superannuation Act, subject to the same conditions as are specified in that Act for the payment of such a benefit, a benefit calculated in accordance with subsections (2) to (4).

• (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 under Part I of the Royal Canadian Mounted Police Superannuation Act, together with interest thereon calculated at the rate and in the manner set out in subsection 9(6) 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 61(2), not reduced on account of the age, period of pensionable service or period of service in the Force of the participant, and

  • (b) the amount of any annuity payable to the participant under the Royal Canadian Mounted Police Superannuation Act, determined in accordance with subsection 10(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; and

  • (b) any amount paid under Part I of the Royal Canadian Mounted Police Superannuation Act, including any amount paid under section 22 of that 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 Royal Canadian Mounted Police Superannuation Act together with interest thereon calculated at the rate and in the manner set out in subsection 9(6) of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest thereon 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.

Manner of Payment

66 Section 22 of the Royal Canadian Mounted Police Superannuation Regulations applies to benefits under this Part in the same manner in which that section would apply to an annuity or annual allowance payable under the Royal Canadian Mounted Police Superannuation Act.

Contributions Paid Under Part II or III

67 Where as a result of an election made under section 24 of the Royal Canadian Mounted Police Superannuation Act the participant ceases to be entitled to benefits provided under the Public Service Superannuation Act or the Canadian Forces Superannuation Act, any contributions paid by the participant under Part II or III 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.

Payment to an Eligible Employer

• 67.01 (1) Subject to subsection (2), if an amount is paid to an eligible employer in respect of a participant under subsection 24.1(3) of the Royal Canadian Mounted Police 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 day, that value being determined on the basis of the paid-up contributions of the participant under this Division and in the same manner and using the same actuarial assumptions as set out in the agreement referred to in subsection 24.1(2) of that Act with the employer, except that the rate of interest shall be one half of the rate of interest referred to in paragraph 63(1)(b) of the Royal Canadian Mounted Police Superannuation Regulations, and

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

  • (b) an amount calculated by the employer as being the amount that is required in order to pay to the participant, under the external retirement compensation arrangement, the benefits that accrued to 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 that arrangement does not provide for the payment of benefits in consideration for the amount to be transferred, the Minister shall not transfer the amount to that employer’s external retirement compensation arrangement, but shall pay to the participant

  • (a) if, on valuation day, the participant has two or more years of service in the Force to the participant’s credit under the Royal Canadian Mounted Police Superannuation Act, the lump sum amount calculated in accordance with section 67.02; 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 calculated at the rate and in the manner set out in subsection 9(6) 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 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 day on which this section comes into force, whichever is the later.

• (6) When all amounts referred to in this section have been transferred or paid, the participant shall no longer 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 67.02, valuation day has the same meaning as in the agreement with the eligible employer.