Retirement Compensation Arrangements Regulations, No. 2 (SOR/95-169)

Short Title

1 These Regulations may be cited as the Retirement Compensation Arrangements Regulations, No. 2.

Interpretation

• 2 (1) In these Regulations,

  deputy head

  deputy head has the same meaning as in subsection 11(4) of the Special Retirement Arrangements Act; (administrateur général)

  Executive Employment Transition Policy

  Executive Employment Transition Policy means the Executive Employment Transition Policy approved by the Treasury Board on August 24, 1992 and effective September 1, 1992, as amended from time to time; (Politique de transition dans la carrière pour les cadres)

  Governor in Council appointee

  Governor in Council appointee means a person who has been appointed by the Governor in Council to a position in the Public Service, which position

  • (a) in the case of a person employed in a portion of the Public Service referred to in Part I of the schedule, has been abolished during the period beginning on April 1, 1995 and ending on March 31, 1998, and who occupied the position at the time it was abolished, and

  • (b) in the case of a person employed in a portion of the Public Service referred to in Part II of the schedule, has been abolished during the period beginning on the day on which that portion was added to Part II of the schedule and ending on March 31, 1998, and who occupied the position at the time it was abolished; (personne nommée par le gouverneur en conseil)

  notice of surplus status

  notice of surplus status means a written notice given to a person employed in the Public Service by the appropriate deputy head, stating that the person’s services are no longer required by reason of lack of work, the discontinuance of a function or the transfer of work or a function to an employer outside the Public Service; (avis de statut d’excédentaire)

  participant

  participant means a surplus employee or Governor in Council appointee who meets the conditions set out in section 4 or 5, as the case may be; (participant)

  Public Service

  Public Service, except in subparagraphs 4(1)(f)(i) and 5(b)(i) and section 9, means a department or other portion of the Public Service, as defined in subsection 3(1) of the Public Service Superannuation Act, that is referred to in Part I or II of the schedule; (fonction publique)

  Superannuation Account

  Superannuation Account means the Superannuation Account referred to in section 4 of the Public Service Superannuation Act; (compte de pension de retraite)

  surplus employee

  surplus employee means a person referred to in section 2.1. (fonctionnaire excédentaire)

  Work Force Adjustment Directive

  Work Force Adjustment Directive means the Work Force Adjustment Directive issued on the recommendation of the National Joint Council of the Public Service and with the approval of the Treasury Board, which came into force on December 15, 1991, as amended from time to time. (Directive sur le réaménagement des effectifs)

• (2) Words and expressions used in these Regulations and not otherwise defined in the Special Retirement Arrangements Act or in these Regulations have the same meaning as in the Public Service Superannuation Act or the Public Service Superannuation Regulations.

• 2.1 (1) Subject to subsections (2) to (4), a surplus employee is

  • (a) in the case of a person employed in a portion of the Public Service referred to in Part I of the schedule, a person who has been given a notice of surplus status during the period beginning on April 1, 1995 and ending on March 31, 1998; and

  • (b) in the case of a person employed in a portion of the Public Service referred to in Part II of the schedule, a person who has been given a notice of surplus status during the period beginning on the day on which that portion was added to Part II of the schedule and ending on March 31, 1998.

• (2) A person who, at the time the person receives a notice referred to in subsection (1), occupies a position in the Public Service that was most recently occupied by a surplus employee is not a surplus employee.

• (3) A person who is given a notice referred to in subsection (1) after being deployed, appointed, assigned, seconded or otherwise transferred to the position of an employee in the Public Service in order to prevent that employee from receiving a notice of surplus status is not a surplus employee, unless

  • (a) that employee is also transferred to the person’s position and both transfers are effective on the same day; and

  • (b) the difference between the maximum rate of pay for the position from which the person is transferred and the maximum rate of pay for the position to which the person is transferred is not more than four per cent of the lower of those rates.

• (4) A person who is subject to the Executive Employment Transition Policy and who receives a notice of surplus status is not a surplus employee if the person is not eligible to receive benefits under that policy because the person does not meet the conditions added to the policy by the Treasury Board on August 15, 1995.

Establishment of Arrangement

3 There is hereby established a retirement compensation arrangement for the payment of benefits to or in respect of any surplus employee or Governor in Council appointee who

• (a) on April 1, 1995, was employed in a portion of the Public Service referred to in Part I of the schedule and was

  • (i) required to contribute to the Superannuation Account pursuant to subsection 5(1) of the Public Service Superannuation Act,

  • (ii) contributing to the Superannuation Account pursuant to an election made under section 5.2 of that Act, or

  • (iii) on leave of absence without pay and could make or had made an election under subsection 5.3(1) of that Act; or

• (b) was employed in a portion of the Public Service referred to in Part II of the schedule on the day on which that portion was added to Part II of the schedule and, on that day, was

  • (i) required to contribute to the Superannuation Account pursuant to subsection 5(1) of the Public Service Superannuation Act,

  • (ii) contributing to the Superannuation Account pursuant to an election made under section 5.2 of that Act, or

  • (iii) on leave of absence without pay and could make or had made an election under subsection 5.3(1) of that Act.

Benefit Entitlement

• 4 (1) A surplus employee referred to in paragraph 3(a) is entitled to an annual benefit calculated in accordance with subsection 7(1) on condition that the employee

  • (a) elects, not later than 60 days after the date of the first notice of surplus status given to the employee after April 1, 1995, to receive that annual benefit;

  • (b) ceases to be employed within a period of six months after the date of the first notice of surplus status given to the employee after April 1, 1995 or not later than the end of such longer period, determined by the deputy head, as is required in order to meet operational requirements;

  • (c) has not, before ceasing to be employed, received

    • (i) in the case of an employee who is subject to the Work Force Adjustment Directive, a reasonable job offer within the meaning of that Directive, or

    • (ii) in the case of an employee who is subject to the Executive Employment Transition Policy, an offer of alternative employment in a portion of the Public Service referred to in Part I of the schedule;

  • (d) where the employee’s services are no longer required by reason of the transfer of work or a function to an employer outside the Public Service, has not received an offer of contiguous employment from that employer as a consequence of the transfer;

  • (e) has not elected to receive

    • (i) in the case of an employee referred to in subparagraph (c)(i), a payment under a program respecting early departure incentives arising from the budget tabled in Parliament on February 27, 1995, or a payment under the Civilian Reduction Program arising from the budget tabled in Parliament on February 22, 1994, and

    • (ii) in the case of an employee referred to in subparagraph (c)(ii), a negotiated settlement under the Executive Employment Transition Policy; and

  • (f) at the time the employee ceases to be employed,

    • (i) has been employed in the Public Service, within the meaning of subsection 3(1) of the Public Service Superannuation Act, on a full-time basis as described in clause 13(1)(c)(ii)(C) of that Act for a period of or for periods totalling at least 10 years,

    • (ii) has reached the age of 50 years but has not reached the age of 55 years, and

    • (iii) has exercised the option to receive an annual allowance in accordance with clause 13(1)(c)(ii)(B) or (D) of the Public Service Superannuation Act.

• (2) For greater certainty, subsection (1) applies in respect of a surplus employee referred to in paragraph 3(a) whose surplus status ceases but who, during the period beginning on April 1, 1995 and ending on March 31, 1998, receives another notice of surplus status and, for the purposes of paragraph (1)(b), the period of six months referred to in that paragraph shall be calculated from the date of the subsequent notice.

• (3) A surplus employee referred to in paragraph 3(b) is entitled to an annual benefit calculated in accordance with subsection 7(1) on condition that the employee

  • (a) elects, not later than 60 days after the date of the first notice of surplus status given to the employee after the applicable day referred to in paragraph 3(b), to receive that annual benefit;

  • (b) ceases to be employed within a period of six months after the date of the first notice of surplus status given to the employee after the applicable day referred to in paragraph 3(b) or not later than the end of such longer period, determined by the deputy head, as is required in order to meet operational requirements;

  • (c) does not, before ceasing to be employed, receive an offer of alternative employment in the portion of the Public Service in which the employee is employed; and

  • (d) meets the conditions set out in paragraphs (1)(d) and (f).

• (4) For greater certainty, subsection (3) applies in respect of a surplus employee referred to in paragraph 3(b) whose surplus status ceases but who, during the period beginning on the applicable day referred to in that paragraph and ending on March 31, 1998, receives another notice of surplus status and, for the purposes of paragraph (3)(b), the period of six months referred to in that paragraph shall be calculated from the date of the subsequent notice.

5 A Governor in Council appointee referred to in section 3 is entitled to an annual benefit calculated in accordance with subsection 7(1) on condition that the appointee

• (a) ceases to be employed within six months after the day on which the appointee’s position is abolished;

• (b) at the time the appointee ceases to be employed,

  • (i) has been employed in the Public Service, within the meaning of subsection 3(1) of the Public Service Superannuation Act, on a full-time basis as described in clause 13(1)(c)(ii)(C) of that Act for a period of or for periods totalling at least 10 years, and

  • (ii) has reached the age of 50 years but has not reached the age of 55 years;

• (c) elects, not later than 30 days after ceasing to be employed, to receive that annual benefit;

• (d) exercises, not later than 30 days after ceasing to be employed, the option to receive an annual allowance in accordance with clause 13(1)(c)(ii)(B) or (D) of the Public Service Superannuation Act; and

• (e) has not received a lump sum termination settlement.

6 The annual benefit referred to in sections 4 and 5 is payable to a participant in the same manner and subject to the same conditions as an annual allowance payable under the Public Service Superannuation Act.

Amount of Benefit

• 7 (1) The amount of the annual benefit to which a participant is entitled is the difference between

  • (a) the amount of the annuity that would be payable to the participant under paragraph 11(1)(a) of the Public Service Superannuation Act if that paragraph applied to all of the participant’s pensionable service, and

  • (b) the amount of the annual allowance to which the participant is entitled under clause 13(1)(c)(ii)(B) or (D) of that Act plus the amount of any benefit to which the participant is entitled under section 35 of the Retirement Compensation Arrangements Regulations, No. 1.

• (2) The annual benefit shall be paid to a participant as of the same day that the annual allowance referred to in subparagraph 4(1)(f)(iii) or paragraph 5(1)(d) becomes payable.

• 8 (1) Where a participant has made an election under section 13.1 of the Public Service Superannuation Act in respect of a person who became the participant’s spouse after the participant ceased to be employed in the Public Service, the amount of the annual benefit determined under subsection 7(1) shall be reduced by the same proportion, and for the same period, as the participant’s annual allowance is reduced under section 68 of the Public Service Superannuation Regulations.

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

• (3) Where the surviving spouse of a participant is entitled to an immediate annual allowance under subsection 13.1(3) of the Public Service Superannuation Act, the spouse is entitled to an annual benefit equal to the amount determined under subsection 7(1), multiplied by the percentage of the participant’s annual allowance, calculated before any reduction is made under section 68 of thePublic Service Superannuation Regulations, that the spouse will receive as an allowance under section 79 of those Regulations.

Changes in Entitlement

• 9 (1) A participant receiving an annual benefit under these Regulations shall cease to be entitled to receive that benefit on the day on which the participant is re-employed in the Public Service, within the meaning of subsection 3(1) of the Public Service Superannuation Act, and becomes a contributor within the meaning of section 64 of that Act.

• (2) Where a participant’s entitlement to an annual benefit under these Regulations ceases as described in subsection (1), that entitlement will not recommence where the participant subsequently ceases to be employed in the Public Service, within the meaning of subsection 3(1) of the Public Service Superannuation Act.

• 10 (1) Where a participant becomes entitled to an immediate annuity under subparagraph 13(1)(d)(ii) of the Public Service Superannuation Act, the participant ceases to be entitled to an annual benefit under these Regulations.

• (2) Where a participant who ceases to be entitled to an annual benefit as described in subsection (1) becomes entitled to a deferred annuity under section 28 of the Public Service Superannuation Act, the participant shall again become entitled to an annual benefit under these Regulations if the participant exercises the option to receive an annual allowance in accordance with clause 13(1)(c)(ii)(B) or (D) of that Act.

Supplementary Benefits

11 Supplementary benefits shall be paid in respect of periodic payments payable under these Regulations at the same rates and in the same manner as are supplementary retirement benefits under the Supplementary Retirement Benefits Act.

Recovery of Overpayments

12 Where, under these Regulations, an amount has been paid in error to a person, an amount equal to the amount paid in error shall be recovered in the same manner as that specified in section 20 of the Retirement Compensation Arrangements Regulations, No. 1, with such modifications as the circumstances require.

Administration

13 The Minister of Supply and Services shall provide all administrative services necessary for the administration of the retirement compensation arrangement established by section 3.

Time Limitation on Entitlement

14 Notwithstanding anything in these Regulations, a participant is not entitled to an annual benefit under section 4 or 5 unless that participant ceases to be employed in the Public Service on or before October 1, 1998.