Government Annuities Regulations — 3
3 (1) The rate of interest to be used in the computation of values in tables for determining the values of annuities, shall be (a) in any case where a contract for the payment of an immediate annuity is entered into under paragraph 4(a) of the Act, (i) if the date of commencement of the annuity is earlier than the annuitant’s fifty-fifth birthday, four per cent, or (ii) if the date of commencement of the annuity is on or after the annuitant’s fifty-fifth birthday, 5 1/4 per cent; (b) in any case where a contract for the payment of a deferred annuity is entered into under paragraph 4(a) of the Act, (i) if the date of commencement of the annuity is deferred for more than five years from the effective date of the contract, four per cent, or (ii) if the date of commencement of the annuity (A) is deferred for five years or less from the effective date of the contract, and (B) is on or later than the annuitant’s fifty-fifth birthday, four per cent in respect of the period commencing on the effective date of the contract and terminating on the day immediately preceding the date of commencement of the annuity and five per cent thereafter; (c) in any case where the contract for the payment of an immediate annuity is entered into under paragraph 4(b) of the Act, (i) if the date of commencement of the annuity is earlier than the fifty-fifth birthday of one or both of the annuitants, four per cent, or (ii) if the date of commencement of the annuity is on or later than the fifty-fifth birthday of both of the annuitants, 5 1/4 per cent; (d) in any case where the contract for the payment of a deferred annuity is entered into under paragraph 4(b) of the Act, (i) if the date of commencement of the annuity is deferred more than five years after the effective date of the contract, four per cent, or (ii) if the date of commencement of the annuity (A) is deferred for five years or less from the effective date of the contract, and (B) is on or later than the fifty-fifth birthday of both of the annuitants, four per cent in respect of the period commencing on the effective date of the contract and terminating on the day immediately preceding the date of commencement of the annuity and five per cent thereafter; (e) in any case where a group contract for the payment of annuities is entered into under subsection 6(3) of the Act on or after April 1, 1953, five per cent from April 1, 1964; (f) in any case where an employee is registered on or after April 1, 1964, under a contract entered into under subsection 6(3) of the Act before April 1, 1953, four per cent; and (g) in the case of any other contract entered into under the Act on or after April 1, 1964, four per cent. (2) Where the date of commencement of a deferred annuity under a contract, the effective date of which is April 1, 1964 or later is changed, the rate of interest applicable to that contract shall be adjusted so that the interest rate payable in respect of the contract is the rate of interest that would have been applicable if the amended date of commencement had been used to determine the rate on the effective date of the contract. (3) Interest calculated in accordance with subsections (1) and (2) shall be compounded annually. (4) For the purposes of section 15 of the Government Annuities Improvement Act , the liability outstanding at the end of a fiscal year is, in respect of annuities, whether they have become payable or not, the present value of future payments on those annuities, taken at the end of that year based on a rate of interest of 7% per annum and the Annuity Table for 1983, as modified by Projection Scale G published in Transactions of the Society of Actuaries , Vol. XXXV (1983), at pages 882 and 883. SOR/97-495, s. 2