Public Service Superannuation Regulations — 68
68 (1) The amount of the reduction of the monthly instalment of the immediate annuity, annual allowance or deferred annuity of a contributor who makes an election is equal to the amount determined as follows: (a) calculate the actuarial present value of the immediate annuity, annual allowance or deferred annuity to which the contributor is entitled under Part I of the Act immediately before the election, and the supplementary benefits payable in respect thereof under Part III of the Act taking into account (i) any amount that is or is to be deducted pursuant to subsection 11(2) of the Act, and (ii) the minimum death benefit payable in accordance with section 27 of the Act; (b) convert the amount determined in accordance with paragraph (a) into the following annuities, each of which has the same actuarial present value, namely, (i) an immediate single life annuity that is payable to the contributor by monthly instalments beginning on the first day of the month following the month in which the election is made, or, in the case of a contributor who is entitled to a deferred annuity that is not payable at the time the contributor makes the election, from the first day of the month in which the contributor reaches the age of 60 years, and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act, and (ii) a joint and survivor pension benefit that consists of (A) an immediate annuity that is payable, during the life of the contributor, by monthly instalments beginning on the first day of the month after the month in which the election is made, or, in the case of a contributor who is entitled to a deferred annuity that is not payable at the time the contributor makes the election, beginning on the first day of the month after the month in which the contributor reaches the age of 60 years, and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act, and (B) an annuity that is payable during the life of the surviving spouse, by monthly instalments beginning on the first day of the month after the month in which the contributor died and that is equal to 30, 40 or 50 per cent, in accordance with the election made by the contributor, of the annuity determined in accordance with clause (A), and that is determined taking into account the supplementary benefits payable under Part III of the Act, as if the annuity were a pension payable under Part I of the Act; and (c) subject to subsection (2), subtract the first monthly instalment of the annuity referred to in clause (b)(ii)(A) from the first monthly instalment of the annuity referred to in subparagraph (b)(i), and adjust the amount obtained to take into account (i) that the reduction is effective during the lesser of (A) the period of the life of the contributor, (B) the period of the life of the spouse, and (C) the duration of the marriage, (ii) that the reduction becomes effective in the month referred to in subsection 76(1), (2), (4) or (5), as the case may be, and (iii) that the increase in the reduction under section 69 will apply to the reduction in each year referred to in that section. (2) For the purposes of paragraph (1)(c), in determining the reduction for a contributor in respect of whom a death benefit pursuant to section 27 of the Act would be payable if the contributor were to die on the day on which the election is made, the actuarial present value that is converted in accordance with subparagraph (1)(b)(i) shall not take into account the amount of the death benefit payable in respect of that contributor. SOR/94-194, s. 1; SOR/94-278, s. 1; SOR/97-490, s. 8