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Timestamp: 2013-05-25 09:20:06
Document Index: 710462213

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Home > Archives > Part II: 2002 > 2002-02-27
Vol. 136, No. 5 — February 27, 2002
Registration SOR/2002-73 8 February, 2002
SPECIAL RETIREMENT ARRANGEMENTS ACT Regulations Amending the Retirement Compensation Arrangements Regulations,
P.C. 2002-192 8 February, 2002 Her Excellency the Governor General in Council, on the recommendation
of the President of the Treasury Board, pursuant to sections 10, 11, 13,
15 and 28 of the Special Retirement Arrangements Act (see
footnote a) , hereby makes the annexed Regulations Amending
the Retirement Compensation Arrangements Regulations, No. 1. REGULATIONS AMENDING THE RETIREMENT COMPENSATION
ARRANGEMENTS REGULATIONS, NO. 1 AMENDMENTS 1. (1) Paragraph (a)
of the definition "Minister" in section 2 of the Retirement
Compensation Arrangements Regulations, No. 1 (see
footnote 1) is replaced by
the following: (a) for the purposes of Parts I and II, the Minister of Public
Works and Government Services, (2) Section 2 of the Regulations is amended by adding the following
in alphabetical order: "Canadian Forces Pension Fund" has the same meaning as in subsection
2(1) of the Canadian Forces Superannuation Act; (Caisse de
retraite des Forces canadiennes) "Public Service Pension Fund" has the same meaning as in subsection
3(1) of the Public Service Superannuation Act; (Caisse de
retraite de la fonction publique) "Royal Canadian Mounted Police Pension Fund" has the same meaning as
in subsection 3(1) of the Royal Canadian Mounted Police Superannuation
Act; (Caisse de retraite de la Gendarmerie royale du Canada) 2. Paragraphs 4(b)
and (c) of the Regulations
are replaced by the following: (b) on or after December 15, 1994 is required to contribute
to the Canadian Forces Superannuation Account or the Canadian Forces Pension
Fund; (c) on or after December 15, 1994 is required to contribute
to the Royal Canadian Mounted Police Superannuation Account or the Royal
Canadian Mounted Police Pension Fund; 3. The headings before section 7 of the Regulations are replaced
by the following: Contributions and Benefits 4. Subsections 8(1) and (2) of the Regulations are replaced
by the following: 8. (1) Subject to subsection (2), a participant referred
to in paragraph 4(d) shall contribute to the Retirement Compensation
Arrangements Account at a rate equal to twice the applicable rate set
out in section 5 of the Public Service Superannuation Act, read
without reference to paragraph 5(6)(b) of that Act. (2) If the aggregate of the period of pensionable service of a participant
— consisting of pensionable service under the Public Service
Superannuation Act, other pensionable service as determined under
subsection 5(5) of that Act and the period specified by the participant
in an election under paragraph 11(1)(d) of the Act — exceeds
35 years, the participant shall contribute to the Retirement Compensation
Arrangements Account, in respect of the portion of the aggregate period
that exceeds 35 years, at a rate equal to twice the rate set out in subsection
5(3), (3.1) or (4) of the Public Service Superannuation Act,
as the case may be, read without reference to paragraph 5(6)(b)
of that Act. 5. Subsection 9(2) of the Regulations is replaced by the following: (2) If the aggregate of the period of pensionable service of a participant
in an election under section 14 of that Act as that section read immediately
before December 15, 1994 — exceeds 35 years, the participant shall
contribute to the Retirement Compensation Arrangements Account, in respect
of the portion of the aggregate period that exceeds 35 years, at a rate
equal to the rate established in respect of the participant under that
section as it read immediately before that date. 6. Subsection 13(3) of the Regulations is amended by striking
out the word "and" at the end of paragraph (d)
and by adding the following after paragraph (e): (f) the day the participant exercises an option for a transfer
value pursuant to section 13.01 of the Public Service Superannuation
Act, and (g) the day on which the participant dies. 7. The portion of subsection 14(2) of the Regulations before
paragraph (a) is replaced by
the following: (2) If a participant is entitled under the Canadian Forces Superannuation
Act, the Royal Canadian Mounted Police Superannuation Act or the Members of Parliament Retiring Allowances Act to a benefit,
other than a return of contributions, in respect of a period of service, 8. (1) Subsection 15(1) (see
footnote 2) of the Regulations is replaced by the following: 15. (1) Subject to section 15.1, a participant who
ceases to be required to contribute to the Retirement Compensation Arrangements
Account under this Part may opt to receive a benefit of the type that
the participant would otherwise be entitled to receive under section 13
of the Public Service Superannuation Act based on the participant's
age at the time of ceasing to be required to contribute under this Part
and on the aggregate of the pensionable service to the credit of the participant
under that Act and the period of service in respect of which the participant
was required to contribute under this Part. (2) Subsection 15(3) of the Regulations is replaced by the following: (3) Subject to subsection 17(1), the amount of any benefit to which
a participant is entitled is an amount equal to (a) the amount that would be payable to the participant under
Part I of the Public Service Superannuation Act, as if (i) the period of pensionable service to the credit of the participant
is the total of the period in respect of which the participant was required
to contribute under this Part and the period of pensionable service to
the credit of the participant under that Act, not exceeding thirty-five
years, (ii) for the purpose of determining the average annual salary in subsection
11(1) of that Act, the salary of the participant while the participant
was required to contribute under this Part is that referred to in subsection
8(3) or 9(1), and (iii) the computation referred to in paragraph 11(1)(b) of that
Act is made without reference to the annual rate of salary fixed or determined
by the regulations referred to in subparagraph 11(1)(b)(iii)
of that Act, less (b) the aggregate of the following amounts, namely, (i) any annuity or annual allowance payable to the participant under the Public Service Superannuation Act in respect of the period of
pensionable service to the credit of the participant, (ii) any benefit payable under Part II to the participant in respect of
the period of pensionable service to the credit of the participant under
that Act, and (iii) any supplementary benefits payable with respect to amounts referred
to in subparagraphs (i) and (ii) accrued between the date the participant
ceased to be employed in the Public Service and the date the participant
ceased to be required to contribute under this Part. (4) Where a participant is entitled to an annuity or annual allowance
under the Public Service Superannuation Act and opts to receive
a benefit in the form of an annuity or annual allowance under this Part,
the benefit becomes payable on the same day as the participant's annuity
or annual allowance becomes payable under that Act. 9. Sections 18 to 19 (see
footnote 3) of the Regulations are replaced by the following: 18. On the death of a participant, a benefit shall
be paid to any survivor or child of the participant to whom an allowance
is payable under the Public Service Superannuation Act, subject
to the conditions set out in subsection 10(3) of that Act, in an amount
equal to (a) the allowance that would be payable to the survivor or
child of the participant under Part I of that Act, calculated as if (i) the period of pensionable service to the credit of the participant
the credit of the participant under that Act, not exceeding 35 years, (ii) for the purpose of determining the average annual salary referred
to in subsection 11(1) of that Act, the salary of the participant while
the participant was required to contribute under this Part is that referred
to in subsection 8(3) or 9(1), and
(iii) the maximum monthly amount that may be paid to a survivor or child
pursuant to subsections 30.6(1) and (2) of the Public Service Superannuation
Regulations do not apply, less (b) the aggregate of the following amounts, namely, (i) any allowance payable to the survivor, or to or on behalf of the child
of a participant, under the Public Service Superannuation Act in respect of the period of pensionable service to the credit of the participant, (ii) any benefit payable to the survivor, or to or on behalf of the child
of a participant, under Part II in respect of the period of pensionable
service to the credit of the participant under the Public Service
Superannuation Act, and (iii) any supplementary benefits payable with respect to amounts referred
ceased to be required to contribute under this Part. 18.1 (1) The survivor or child of the participant described
in subsection 15.1(1) who would otherwise be entitled to an allowance
payable under the Public Service Superannuation Act but for the
participant having exercised an option for a transfer value under section
13.01 of that Act is entitled to a benefit under this Part if the participant
opted or is deemed to have opted to receive a deferred annuity under this
Part. (2) Subject to the conditions set out in subsection 10(3) of the Public
Service Superannuation Act, the amount payable to the survivor or
child is an amount equal to the allowance that would be payable to the
survivor or child under Part I of that Act as if the period in respect
of which the participant was required to contribute under this Part were
a period of pensionable service to the participant's credit under that
Act and the salary in respect of which contributions were made under this
Part were the participant's salary for the purpose of that Act. 19. (1) A survivor of a participant who is not entitled
to the benefit set out in section 18 or 18.1 due to the application of
subsection 26(1) of the Public Service Superannuation Act shall
be entitled to the benefit referred to in those sections if the survivor
married the participant or began cohabiting in a relationship of a conjugal
nature with the participant during the period in respect of which the
participant was required to contribute under this Part. (2) A person who is not entitled to the benefit set out in section 18
or 18.1 due to the application of subsection 26(2) of the Public Service
Superannuation Act shall be entitled to the benefit referred to in
those sections if the person became the child, within the meaning of "child"
in subsection 3(1) of that Act, of the participant during the period in
respect of which the participant was required to contribute under this
Part. (3) For the purpose of subsection (2), a child born posthumously to
a participant is entitled to a benefit under section 18 or 18.1 if the
child is born following a gestation period commencing before the date
when the participant ceased to be required to contribute under this Part. 10. Section 22 (see
footnote 4) of the Regulations is replaced by the following: 22. (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), (b) and (c)
is greater than the total of the participant's contributions under this
Part and Part II and under 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 Part, determined in accordance with subsection 15(3) or section
15.4 not reduced on account of the age or period of pensionable service
of the participant, (b) the annual amount of any benefit payable to the participant
under Part II, determined in accordance with subsection 35(2) or section
38.4 not reduced on account of the age or period of pensionable service
of the participant, and (c) the amount of any annuity payable to the participant 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 Division I and II of Part II, excluding
any amount paid under paragraph 38.1(1)(a) and section 41.5,
but including any amount paid under section 39; and (c) 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. (4) If the amount determined under subsection (2) is less than the total
of the participant's contributions under this Part and Part II and under
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 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. 11. Section 29 of the Regulations is replaced by the following: 29. (1) Any person who, on or after December 15, 1994,
is required to contribute to the Superannuation Account or the Public
Service Pension Fund and whose annual rate of salary is greater than the
annual rate of salary determined under section 5.1 of the Public Service
Superannuation Regulations shall contribute to the Retirement Compensation
Arrangements Account on the excess salary at the same rates and subject
to the same conditions as are set out in section 5 of the Public Service
Superannuation Act. (2) Any person employed in operational service within the meaning of
section 15 of the Public Service Superannuation Act who on or
after December 15, 1994 is required to contribute to the Superannuation
Account or Public Service Pension Fund and whose annual rate of salary
is greater than the annual rate of salary determined under section 5.1
of the Public Service Superannuation Regulations shall contribute
to the Retirement Compensation Arrangements Account on the excess salary
an additional amount at the rate set out in section 19 of that Act. (3) Any person employed in operational service within the meaning of
section 53 of the Public Service Superannuation Regulations who
on or after December 15, 1994 is required to contribute to the Superannuation
of those Regulations shall contribute to the Retirement Compensation Arrangements
Account an additional amount on the excess salary at the rate set out
in subsection 55(1) of those Regulations. (4) Any period during which a participant was required to contribute
to the Retirement Compensation Arrangements Account under Part I is to
be included in calculating years of pensionable service for the purposes
of determining applicable contribution rates pursuant to subsections (1)
to (3). 12. Section 34 of the Regulations is repealed. 13. Subsection 35(2) of the Regulations is replaced by the following: (2) Subject to subsection 36(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 Public Service Superannuation
Act if paragraph 11(1)(b) of that Act applied without reference
to the annual rate of salary fixed by or determined in accordance with
the regulations referred to in subparagraph 11(1)(b)(iii) of
that Act, less (b) any annuity or annual allowance payable to the participant
under the Public Service Superannuation Act in respect of the
period of pensionable service to the credit of the participant. 14. Section 39 (see
footnote 5) of the Regulations is replaced by the following: 39. (1) If a participant dies, leaving no survivor
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 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, excluding any amount paid
under section 41.5; (b) any amount paid under Part I of the Public Service
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 thereon 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 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, excluding any amount
paid to the participant under section 41.5. 15. The portion of subsection 41.1(1) (see
footnote 6) of the Regulations before paragraph (a)
is replaced by the following: 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 16. Subsection 41.3(1) (see
footnote 7) of the Regulations is replaced by the following: 41.3 (1) On the death of any participant who opted
to receive a deferred annuity under paragraph 38.1(1)(b) or is
deemed to have opted to receive a deferred annuity under subsection 38.2(2),
a benefit shall be paid to the survivor of the participant to whom an
allowance would be payable under the Public Service Superannuation
Act had the participant not exercised an option for a transfer value
under section 13.01 of that Act, subject to the same terms and conditions
that would apply if the survivor was the survivor of a contributor who
was entitled to a deferred annuity under Part I of that Act, in the form
of an immediate annual allowance in the amount of one half of the deferred
annuity determined in accordance with section 38.4 after that deferred
annuity has been increased in accordance with section 41.4. 17. The Regulations are amended by adding the following after
section 41.6: DIVISION III TRANSFERS OF FUNDS TO RETIREMENT COMPENSATION ARRANGEMENTS
ESTABLISHED BY CERTAIN CORPORATIONS General 41.7 Every person who has accrued benefits under this
Part that become payable under a retirement compensation arrangement of
a corporation to which a transfer of funds is effected under this Division
ceases to be entitled to any benefit under this Part in respect of those
accrued benefits. Canada Post Corporation Interpretation 41.8 The following definitions apply in this section
and sections 41.81 to 41.84. "Canada Post" means the Canada Post Corporation established by the Canada
Post Corporation Act. (Postes Canada) "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) remains 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
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. Transfer of Funds 41.83 (1) The amount calculated in accordance with
section 41.82, together with interest calculated in accordance with subsection
(2), shall be paid by the President of the Treasury Board over a period
not exceeding two years beginning on October 1, 2000. (2) Interest on each payment made by the President of the Treasury Board
shall be calculated at a rate of 7.25% per annum from October 1, 2000
to the end of the day preceding each payment. 41.84 The amount calculated in accordance with section
41.82 together with interest calculated in accordance with subsection
41.83(2) shall be paid to the Supplementary Fund established under the
Canada Post Supplementary Retirement Arrangement out of the Retirement
Compensation Arrangements Account. 18. The heading of Part III of the Regulations is replaced by
the following: PARTICIPATION UNDER THE CANADIAN FORCES SUPERANNUATION
ACT 19. Section 43 of the Regulations is replaced by the following: DIVISION I ADDITIONAL PENSIONABLE EARNINGS 43. Any person who, on or after December 15, 1994,
is required to contribute to the Canadian Forces Superannuation Account
or the Canadian Forces Pension Fund and whose annual rate of pay is greater
than the annual rate of pay determined under section 12.1 of the Canadian
Forces Superannuation Regulations shall contribute to the Retirement
Compensation Arrangements Account on the excess pay at the same rates
and subject to the same conditions as are set out in section 5 of the Canadian Forces Superannuation Act. 20. Subsection 48(2) of the Regulations is replaced by the following: (2) Subject to subsection 49(1), the benefit to which a participant
is entitled shall be in an amount equal to (a) the amount of the annuity that would be payable to the
participant under Part I of the Canadian Forces Superannuation Act if paragraph 15(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 15(1)(b)(iii) of that Act, less (b) any annuity payable to the participant under the Canadian
Forces Superannuation Act in respect of the period of pensionable
service to the credit of the participant. 21. Section 52 of the Regulations is replaced by the following: 52. (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 Canadian Forces Superannuation Act, or if the persons to whom
a benefit of the type referred to in section 39 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
I of the Canadian Forces Superannuation Act together with interest
thereon calculated at the rate and in the manner set out in section 13
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 48(2) not
reduced on account of the age or period of pensionable service of the
participant, and (b) the amount of any annuity payable to the participant under
the Canadian Forces Superannuation Act, determined in accordance
with subsection 15(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 Canadian Forces
Superannuation Act, including any amount paid under section 39 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 Canadian
Forces Superannuation Act together with interest thereon calculated
at the rate and in the manner set out in section 13 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. 22. The Regulations are amended by adding the following after
section 54: DIVISION II ADDITIONAL BENEFITS 54.1 (1) A benefit shall be paid to a survivor or child
of a participant equal to the amount by which an allowance payable to
that person under the Canadian Forces Superannuation Act is reduced
as a result of the operation of the limits set out in subsections 19.2(1)
to (5) of the Canadian Forces Superannuation Regulations, which
limits apply, as provided in subsection 19.2(6) of those Regulations,
to amounts payable in respect of a contributor who dies after the coming
into force of this section. (2) The benefit 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 before the reduction. 23. The heading of Part IV of the Regulations is replaced by
the following: PARTICIPATION UNDER THE ROYAL CANADIAN MOUNTED POLICE
SUPERANNUATION ACT 24. Section 56 of the Regulations is replaced by the following: DIVISION I ADDITIONAL PENSIONABLE EARNINGS 56. Any person who, on or after December 15, 1994,
is required to contribute to the Royal Canadian Mounted Police Superannuation
Account or the Royal Canadian Mounted Police Pension Fund and whose annual
rate of pay is greater than the annual rate of pay determined under section
8.1 of the Royal Canadian Mounted Police Superannuation Regulations shall contribute to the Retirement Compensation Arrangements Account on
the excess pay at the same rates and subject to the same conditions as
are set out in section 5 of the Royal Canadian Mounted Police Superannuation
Act. 25. Section 60 of the Regulations is replaced by the following: 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. 26. Subsection 61(2) of the Regulations is replaced by the following: (2) Subject to subsection 62(1), the benefit to which a participant
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 the Royal Canadian Mounted Police Superannuation Act in
respect of the period of pensionable service to the credit of the participant. 27. Section 65 of the Regulations is replaced by the following: 65. (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 Royal Canadian Mounted Police 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 section 22 of that Act shall
be paid to the beneficiary named by the participant under section 31 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
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
the Royal Canadian Mounted Police Superannuation Act, determined
in accordance with paragraph 10(1)(a) 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
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. 28. The Regulations are amended by adding the following after
section 67: DIVISION II ADDITIONAL BENEFITS 67.1 (1) A benefit shall be paid to a survivor or child
that person under the Royal Canadian Mounted Police Superannuation
Act is reduced as a result of the operation of the limits set out
in subsections 20.2(1) to (5) of the Royal Canadian Mounted Police
Superannuation Regulations, which limits apply, as provided in subsection
20.2(6) of those Regulations, to amounts payable in respect of a contributor
who dies after the coming into force of this section. (2) A benefit shall be paid to a participant equal to the amount by
which an annual allowance payable to that person under the Royal Canadian
Mounted Police Superannuation Act is reduced as a result of the operation
of the limit set out in subsection 52(1) of the Royal Canadian Mounted
Police Superannuation Regulations, which limit applies, as provided
in subsection 52(2) of those Regulations, to an annual allowance payable
in respect of a contributor who ceases to be employed after the coming
into force of this section. (3) The benefit referred to in subsection (1) or (2) is payable in the
same manner and subject to the same terms and conditions as apply to the
payment of the allowance or annual allowance referred to in that subsection,
as the case may be, before the reduction. 29. Section 68 of the Regulations is replaced by the following: 68. (1) Subject to subsection (2), supplementary benefits
shall be paid in respect of periodic payments payable under any of Parts
I to IV at the same rates and in the same manner as are specified under
the Supplementary Retirement Benefits Act for the payment of
supplementary payments. (2) Supplementary benefits in respect of benefits payable under Part
I shall be calculated in reference to the date on which the participant
ceases to be required to contribute to the Retirement Compensation Arrangement
Account under that Part. 30. (1) Clause 70(2)(b)(i)(B)
of the Regulations is replaced by the following: (B) the rate used in estimating an amount under paragraph 18(1)(a)
of the Act in respect of that month less the applicable rate set out in
section 5 of the Public Service Superannuation Act, divided by
2, and (2) Clause 70(2)(b)(ii)(B)
of the Act in respect of that month. 31. The Regulations are amended by adding the following after
section 71: SCHEDULE 1
(Paragraph 41.82(2)(d)) RETIREMENT RATES
(Age Last Basis) MALE Age
(Paragraph 41.82(2)(e)) RATES OF TERMINATION (FOR REASONS OTHER THAN
DISABILITY OR DEATH) PRIOR TO AGE 50 WITH RIGHT TO A PENSION Completed years of service
RATES OF TERMINATION WITHOUT
RIGHT TO A PENSION Completed years of service
(Paragraphs 41.82(2)(d) and (e)) MODIFICATION OF RETIREMENT RATES AND TERMINATION RATES Column 1
SCHEDULE 4 (Paragraph 41.82(2)(g)) PROBABILITY DISTRIBUTION OF RANK AT TERMINATION OF EMPLOYMENT Current Rank
$63,777 to
$180,703 +
Years of Service as of October 1, 2000
32. The Regulations are amended by replacing the word "Division"
with the word "Part" wherever it occurs in the following provisions: (a) subsection 14(1); (b) paragraphs 14(2)(a)
and (b); (c) subsection 15.3(1); (d) subsection 20(1);
and (e) section 21. 33. The Regulations are amended by replacing the words "Superannuation
Account" with the words "Superannuation Account or Public Service Pension
Fund" wherever they occur in the following provisions: (a) paragraph 4(a);
and (b) paragraph 13(3)(c). COMING INTO FORCE 34. (1) Subject to subsection (2), these Regulations come into
force on the day on which they are registered. (2) Sections 17 and 31 of these Regulations are deemed to have
come into force on October 1, 2000. REGULATORY IMPACT
ANALYSIS STATEMENT (This statement is not part of the Regulations.) Description In order to receive special tax treatment, an employer-sponsored pension
plan must limit benefits in accordance with the provisions of the Income
Tax Act and regulations. The Income Tax Act allows for benefits
in excess of these limits to be provided for under a retirement compensation
arrangement, but the tax treatment of these arrangements is not as favourable
as that extended to pension plans. The Retirement Compensation Arrangements
Regulations, No. 1, were introduced in 1994 to provide for the payment
of benefits in excess of the Income Tax Act limits. These amendments: ensure that survivor benefits comply with requirements of the Income
Tax Act and regulations; make consequential amendments to the regulations to reflect changes
to the Public Service Superannuation Act, the Canadian
Forces Superannuation Act and the Royal Canadian Mounted Police
Superannuation Act that were enacted by the Public Sector Pension
Investment Board Act, S.C. 1999, c. 34; provide the terms and conditions for calculating the funds to be
transferred to the Supplementary Retirement Arrangement established
by the Canada Post Corporation in respect of the actuarial value of
the benefits accumulated in the Retirement Compensation Arrangements
Account by Canada Post employees who transferred from the Public
Service Superannuation Act (PSSA) to the Canada Post pension plans
on October 1, 2000; and amend certain provisions to provide for greater clarity. Alternatives As the registered pension plans for federal employees are contained
in statute, there is no alternative but to amend the regulations. Benefits and Costs The impact of these regulatory amendments will be seamless to those
individuals affected. The amount of an individual's benefit entitlement
remains the same; only the vehicle under which it is provided is altered. The regulations dealing with the calculation of the actuarial value
of benefits to be transferred to the Canada Post Supplementary Retirement
Arrangement have no impact on those Canada Post employees now covered
under the Corporation's pension plans. Benefits at least equivalent to
those that would have been available to those employees under the PSSA
and the Retirement Compensation Arrangements Regulations,
No. 1 are already provided for under the Corporation's registered
pension plan and supplementary retirement arrangement. Consultation During the development of these Regulations, there has been consultation
with Canada Post Corporation and its consultants, the Office of the Superintendent
of Financial Institutions, the Departments of Finance, National Defence,
Public Works and Government Services Canada and the Royal Canadian Mounted
Police. These Regulations were pre-published in the Canada Gazette,
Part I, on October 13, 2001. No comments were received. Compliance and Enforcement The normal legislative, regulatory and administrative compliance structures
will apply, including internal audits, the usual reports to Parliament,
and responses to inquiries received from Members of Parliament and affected
plan members. Contact Joan M. Arnold Director Pension Legislation Development
Treasury Board Secretariat Ottawa, Ontario
K1A 0R5 Telephone: (613) 952-3119 Footnote a S.C. 1992, c. 46, Sch. I Footnote 1 SOR/94-785 Footnote 2 SOR/97-252 Footnote 3 SOR/97-252 Footnote 4 SOR/97-520 Footnote 5 SOR/97-520 Footnote 6 SOR/97-520 Footnote 7 SOR/97-520 NOTICE: