Public Service Superannuation Act (R.S.C., 1985, c. P-36)

Divestiture of Service

Marginal note:Divestiture of service

• 40.1 (1) Where Her Majesty in right of Canada transfers or otherwise divests Herself of the administration of a service to any person or body, this Act and the regulations made under this Act apply, in the manner and to the extent provided in any regulations made under paragraph 42.1(1)(u), to any contributor who, as a result of that transfer or divestiture, ceases to be employed in the public service and who, on or after that transfer or divestiture, becomes, directly or through an agent of that person or body, employed by the person or body to whom the service is transferred or divested.

• Marginal note:Transitional coverage

  (2) Notwithstanding the definition “public service” in subsection 3(1), the Treasury Board may, subject to the terms and conditions that may be prescribed by the regulations made under paragraph 42.1(1)(v.5), including the requirement of the person or body referred to in subsection (1) to pay into the Superannuation Account or the Public Service Pension Fund the amount determined in accordance with those regulations,

  • (a) direct that the person or body forms part of the public service during such period, not exceeding the period prescribed by the regulations, as is determined by the Treasury Board; and

  • (b) determine those classes of persons employed by the person or body who are not required to contribute under section 5.

• Marginal note:Deemed coming into force

  (3) Subsection (1), as enacted by section 79 of chapter 34 of the Statutes of Canada, 2001, is deemed to have come into force on December 1, 1996.

Transfer Agreements

Marginal note:Definition of eligible employer

• 40.2 (1) In this section, eligible employer means an employer for the benefit of whose employees there is a pension plan or retirement savings plan of a class prescribed by regulations made under paragraph 42.1(1)(v.6), and includes the administrator of any such pension plan or retirement savings plan.

• Marginal note:Authority to enter into agreement

  (2) The Minister may, on terms approved by the Treasury Board, enter into an agreement with any eligible employer that

  • (a) requires the Minister to pay to that employer, for the purpose of any plan referred to in subsection (1), an amount determined in accordance with subsection (3) in respect of any contributor who has ceased or ceases to be employed in the public service and is or becomes employed by that employer; and

  • (b) may provide that any eligible employer pay into the Superannuation Account or the Public Service Pension Fund an amount determined in accordance with the agreement in respect of any person who has ceased or ceases to be employed by that employer and is or becomes employed in the public service.

• Marginal note:Authority to transfer contributions

  (3) When a contributor ceases to be employed in the public service and is or becomes employed by any eligible employer with whom the Minister has entered into an agreement pursuant to subsection (2), there may be paid, subject to the terms and conditions that the agreement provides and if the agreement so provides, to that employer

  • (a) out of the Superannuation Account

    • (i) amounts equal in the aggregate to

      • (A) an amount not exceeding the value, actuarially calculated in accordance with the agreement, of all benefits accrued under this Part and Part III in respect of the pensionable service to the credit of the contributor before April 1, 2000, and

      • (B) an amount representing interest on the amount determined in accordance with clause (A) as of the date of payment to the eligible employer that the Minister determines, or

    • (ii) the benefits payable under this Part and Part III to or in respect of the contributor, as they become payable, in respect of the pensionable service to the credit of the contributor before April 1, 2000; and

  • (b) out of the Public Service Pension Fund

    • (i) amounts equal in the aggregate to

      • (A) an amount not exceeding the value, actuarially calculated in accordance with the agreement, of all benefits accrued under this Part and Part III in respect of the pensionable service of the contributor on or after April 1, 2000 or that comes to the credit of the contributor on or after that date, and

      • (B) an amount representing interest on the amount determined in accordance with clause (A) as of the date of payment to the eligible employer that the Minister determines, or

    • (ii) the benefits payable under this Part and Part III to or in respect of the contributor, as they become payable, in respect of the pensionable service to the credit of the contributor on or after April 1, 2000 or that comes to the credit of the contributor on or after that date.

• Marginal note:Consent of contributor

  (4) No payment shall be made pursuant to subsection (3) except with the consent in writing of the contributor.

• Marginal note:Non-applicability of subsection 10(10)

  (5) Subsection 10(10) does not apply in respect of a payment made pursuant to subsection (3).

• Marginal note:No benefit payable in respect of transferred contributions

  (6) Subject to any regulations made under paragraph 42.1(1)(u), if, under paragraph (3)(a) or (b), the Minister makes a payment to an eligible employer in respect of an employee, that employee ceases to be entitled to any benefit under this Part or Part III in respect of the period of pensionable service to which that payment relates.

• Marginal note:Payment of difference to employee who was vested

  (7) Subject to subsection (8), where the amount paid by the Minister to an eligible employer pursuant to subsection (3) in respect of an employee is less than the transfer value that would be calculated in respect of that employee in accordance with section 13.01, whether or not the employee would otherwise be entitled to the transfer value, the Minister shall pay an amount equal to the amount of the difference to the employee in accordance with subsection 13.01(2).

• Marginal note:Payment of difference to employee who was not vested

  (8) If the amount paid by the Minister to an eligible employer under subsection (3) in respect of an employee is less than the return of contributions to which that employee would otherwise be entitled under any of sections 12 to 13.001, the Minister shall pay to the employee an amount equal to the amount of the difference.

• Marginal note:Service countable by employee entering public service

  (9) If an employee of any eligible employer with whom the Minister has entered into an agreement under subsection (2) has ceased to be employed by that employer and is or becomes employed in the public service, any service of that employee that, at the time of leaving that employment, the employee was entitled to count for the purpose of any plan referred to in subsection (1) established for the benefit of employees of that employer may, if the agreement so provides, be counted by the employee as pensionable service for the purposes of subsection 6(1), to the extent and subject to the terms and conditions provided in the regulations, if the employer pays into the Superannuation Account or the Public Service Pension Fund, the amount that is required under the agreement to be paid by that employer in respect of the employee.

Marginal note:Transitional

• 40.3 (1) No agreement may be entered into under subsection 40(2) on or after the day on which this subsection comes into force.

• Marginal note:Deemed termination of certain agreements

  (2) Any agreement entered into under subsection 40(2) before the day on which subsection (1) comes into force, other than an agreement prescribed by the regulations made under subsection (3), that has not been terminated within the three year period after that day is deemed to be terminated on the expiration of that period.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations prescribing the agreements made under subsection 40(2) that are to be excluded from the application of subsection (2).

Advisory Committee

Marginal note:Advisory committee established

• 41 (1) There is established a committee, to be known as the Public Service Pension Advisory Committee, the members of which are appointed by the Governor in Council in accordance with subsection (3), to advise and assist the Minister on matters arising in connection with the operation of this Act in accordance with subsection (2).

• Marginal note:Mandate

  (2) The mandate of the committee is to

  • (a) review matters respecting the administration, design and funding of the benefits provided under this Act and make recommendations to the Minister about those matters; and

  • (b) review any other pension-related matters that the Minister may refer to it.

• Marginal note:Membership

  (3) The membership of the committee shall consist of

  • (a) one member appointed from among contributors in receipt of an annuity or an annual allowance under this Act who are nominated for appointment by an association that, in the opinion of the Minister, represents such contributors;

  • (b) six members appointed from among persons who are nominated for appointment by that portion of the National Joint Council of the Public Service of Canada that represents employees; and

  • (c) six other members nominated by the Minister.

• Marginal note:Term

  (4) A member shall be appointed to hold office for a term not exceeding three years and is eligible for reappointment for one or more additional terms.

• Marginal note:Recommendation of candidates

  (5) The advisory committee shall recommend to the Minister candidates for appointment to the nominating committee established under section 10 of the Public Sector Pension Investment Board Act.

Regulations

Marginal note:Regulations

• 42 (1) The Governor in Council may make regulations

  • (a) prescribing the circumstances under which annuities and annual allowances are to be paid otherwise than in equal monthly instalments, and the manner in which they are to be paid in those circumstances;

  • (b) prescribing the rates at which and the manner in which the interest to be credited to the Superannuation Account in any fiscal year shall be calculated;

  • (c) designating the kind of service in the forces that, for the purposes of the definition active service in the forces in subsection 3(1), is active service;

  • (d) prescribing, notwithstanding sections 5 and 19, the rates at which, the manner in which and the circumstances under which persons who are or have been absent from the public service on leave of absence without pay shall contribute to the Superannuation Account or the Public Service Pension Fund in respect of that absence, prescribing the salaries those persons are deemed to have received during that absence and respecting any interest or other charges those persons shall pay into the Account;

  • (e) deeming, for the purposes of the definition salary in subsection 3(1), an amount in respect of allowances, special remuneration, payment for overtime or other compensation or gratuity, to be or to have been included in the basic rate of pay of a person;

  • (f) prescribing the basis of determining the portion that may be counted by a contributor, under subsection 6(1), of any period specified in clause 6(1)(a)(ii)(B), and the basis of determining the amount that is required by subsection 7(1) to be paid by the contributor in respect of the portion of any such period that is not included in the portion thereof determined by the Minister in accordance with the regulations made pursuant to this paragraph;

  • (g) specifying, notwithstanding subsection 6(1), the circumstances under which the pensionable service of a contributor shall be deemed not to include any period of service specified in clause 6(1)(a)(iii)(C);

  • (h) specifying the circumstances under which any service prior to becoming employed in the public service or to enlistment in the forces shall be deemed to be service immediately prior thereto;

  • (i) specifying the international organizations, service with which may be counted by a contributor as elective service, and describing the kinds of civilian war service that may be counted by a contributor as elective service for the purposes of clauses 6(1)(b)(iii)(D) and (E), respectively;

  • (j) specifying, for the purposes of clause 6(1)(b)(iii)(E), the circumstances under which any period of full-time civilian war service of a contributor shall be deemed to be continuous;

  • (k) specifying, for the purposes of subsection 5(5) and paragraph 8(2)(a), the kinds of superannuation or pension benefits referred to in those provisions;

  • (l) prescribing the circumstances under which and the terms and conditions on which an election under this Part may be revoked by any elector, either in whole or in part, and a new election made or deemed to be made thereunder;

  • (m) prescribing the methods by which and the bases on which the amount of any payment contemplated by subsection 8(4) is to be computed and the circumstances under which any such payment, whether made before, on or after April 1, 1969, may be refunded;

  • (n) prescribing the bases as to mortality and interest on which the instalment payments referred to in subsection 8(6) are to be computed, the terms on which a contributor may pay for any period of service in instalments, and the method of determining the amounts to be reserved from any amount payable to him by Her Majesty in right of Canada, including any annuity or other benefit payable to him under this Part, in respect of unpaid instalments;

  • (o) respecting the manner in which amounts referred to in subsection 8(8) or (9) may be recovered from any annuity, annual allowance or supplementary benefit payable under this Act;

  • (p) prescribing the circumstances under which and the terms and conditions on which an option under this Part may be revoked by any contributor and a new option exercised thereunder;

  • (q) respecting the determination, for the purposes of subsection 11(5), of the amount of any retirement or disability pension to which a person described therein is or would be entitled under the Canada Pension Plan or a provincial pension plan that is attributable to contributions made thereunder in respect of his employment in the public service, prescribing the manner of making any application referred to in that subsection and respecting the determination of the day from which the annuity payable to a contributor described therein shall be increased;

  • (r) prescribing, for the purposes of this Part, the methods by which and the bases on which the capitalized value of any annuity or annual allowance shall be computed;

  • (s) defining, for the purposes of this Act, the expression full-time attendance at a school or university as applied to a child of a contributor;

  • (t) respecting the circumstances under which attendance at a school or university shall be deemed, for the purposes of this Act, to be substantially without interruption;

  • (u) determining, in any case of doubt, the amount that is deemed for the purposes of this Part to be the salary of a contributor who is required to pay, out of his authorized salary, for the services of one or more assistants, or whose authorized salary includes any bonus or allowance of determinate or indeterminate amount;

  • (v) respecting, for the purposes of paragraphs 13(1)(d) and 13.001(1)(d) and subsections 13(6) and 13.001(7), the method by which the amount of any annuity or annual allowance payable to a contributor described in paragraph 13(1)(a), (c) or (d) or 13.001(1)(a), (c) or (d), as the case may be, shall be adjusted;

  • (w) determining, for the purposes of this Part, the amount that shall be deemed to be the salary of a contributor who is in receipt of more than one salary in respect of employment in the public service or whose salary during any period he was employed in the public service cannot be determined;

  • (x) specifying, for the purposes of section 23, the method by which the amount of any annuity or annual allowance payable to a contributor described in section 16 or 17 shall be adjusted;

  • (x.1) specifying, for the purposes of section 24.6, the method by which the amount of any annuity or annual allowance shall be adjusted;

  • (y) prescribing, in respect of a contributor who is receiving or will be entitled to receive a superannuation or pension benefit based on a portion of a period of service in pensionable employment that is prior to his becoming employed in the public service, the method of determining the portion of that period of service;

  • (z) specifying, for the purposes of this Part, the circumstances under which a person engaged otherwise than on a full-time basis shall be deemed to have been, while so engaged, employed in the public service, and respecting the determination, for any such purpose, of the salary of a person so engaged;

  • (aa) specifying, for the purposes of this Part, the circumstances under which a person’s service in the public service shall be deemed to be substantially continuous or substantially without interruption;

  • (bb) respecting the determination, for the purposes of this Part, of the effective date on which a person shall be deemed to have become or to have ceased to be employed in the public service;

  • (cc) respecting the determination of the effective date on which a person shall be deemed to have become or to have ceased to be employed in operational service, as defined in section 15;

  • (dd) specifying circumstances in which a person shall be deemed to have ceased otherwise than voluntarily to be employed in operational service, as defined in section 15;

  • (ee) respecting the evidence required to establish proof of age or marital status for the purposes of this Part, the time within which that evidence shall be provided and the consequences of any failure to provide that evidence within that time;

  • (ff) prescribing, in respect of persons who are not, or have not been, in receipt of a stated annual salary,

    • (i) the method of computing their salary in terms of an annual or monthly rate, or in terms of any other rate the computation of which is necessary for the purposes of this Part,

    • (ii) the times and the manner in which contributions are to be reserved from salary, and

    • (iii) the method of computing periods of service, having regard to the periods during which they are or have been laid off from work;

  • (gg) prescribing the evidence required to satisfy the Minister that a contributor has not become entitled to a pension described in paragraph 11(2)(b), the time and manner within which that evidence shall be provided and the form of that evidence;

  • (hh) providing, in respect of persons who are not, or have not been, in receipt of a stated annual salary, in any case where the rate of salary authorized to be paid to those persons at any time is within any range of rates established by the regulations, for the determination of the rate thereof for the purposes of this Part in terms of a specified rate within that range;

  • (ii) determining, for greater certainty, the portions of the federal public administration and the positions in the federal public administration that form or did form part of the public service or Civil Service, and providing for the amendment of Schedule I for that purpose by the addition to Part II or III of that Schedule of any of those portions;

  • (jj) specifying, for the purposes of subsection 26(2), the circumstances under which a child to whom that subsection applies shall be entitled to an allowance under this Part;

  • (kk) [Repealed, 1999, c. 34, s. 91]

  • (ll) providing for the continuation in force of any outstanding direction by the Treasury Board under subsection 14(1) of the Superannuation Act, under the circumstances contemplated by that subsection and subject to modification or suspension by the Treasury Board for any reason that to the Board seems proper;

  • (mm) [Repealed, 1999, c. 34, s. 91]

  • (nn) respecting the medical examination of persons to whom section 31 applies, and respecting the certification of persons, on medical examination, in accordance with section 28;

  • (nn.1) respecting the determination of disability for the purposes of this Part and the conditions on which a cash termination allowance or an immediate annuity shall be paid or continue to be paid, including the initial assessment and subsequent periodic or other assessments of that disability;

  • (oo) prescribing, for the purposes of subsection 35(4), the amounts by which and the manner in which any benefit therein referred to shall be adjusted;

  • (pp) respecting the amount to be paid into the Superannuation Account or the Public Service Pension Fund by any Public Service corporation or other corporation referred to in section 37;

  • (qq) defining, for the purposes of this Act, the expressions employee engaged locally outside Canada, seasonal employee, sessional employee and part-time employee and the expression full-time as applied to any employee;

  • (rr) designating the kind of service that, for the purposes of the definition operational service in section 15, is operational service and specifying the periods of time away from operational service that are to be included within the meaning of operational service;

  • (ss) providing for the reduction of any allowance that may become payable under this Part to the survivor, children or other dependants of a person to whom Part III of the Superannuation Act applied, who, at the time of his or her election to become a contributor under Part I of that Act, failed to pay into the Consolidated Revenue Fund the amount referred to in subsection 31(2) of the Superannuation Act;

  • (tt) providing for payment out of the Superannuation Account or the Public Service Pension Fund, on the death of a contributor and on application to the Minister by or on behalf of a person to whom any annual allowance becomes payable under this Part, of the whole or any part of the portion of the estate, legacy, succession or inheritance duties or taxes that are payable by the person as is determined in accordance with the regulations to be attributable to that allowance, and prescribing the amounts by which and the manner in which any such allowance and any amount payable under section 27 in any such case shall be reduced;

  • (uu) [Repealed, 1992, c. 46, s. 21]

  • (vv) on the recommendation of the Speaker of the Senate or of the Speaker of the House of Commons, whichever is appropriate, prescribing categories of employees for the purpose of paragraph 3(2)(b);

  • (ww) respecting the non-application or modified application of any provision of this Act to persons described in subsection 3(2), where necessary for the purpose of ensuring the practical application of this Act in respect of those persons; and

  • (xx) generally, for carrying out the purposes and provisions of this Part.

• Marginal note:Regulations relating to leave of absence

  (2) For the purposes of this Part, a person who has contributed to the Superannuation Account or the Public Service Pension Fund in accordance with the regulations made by the Governor in Council under paragraph (1)(d), in respect of any period during which the person was absent from the public service on leave of absence without pay, is deemed to have contributed to the Superannuation Account or the Public Service Pension Fund in respect of that period in accordance with section 5.

• Marginal note:Additions to Schedule I

  (3) The Governor in Council may, by order, amend Schedule I by adding to Part I, III or IV thereof any board, commission or corporation or portion thereof that is or was an agent or servant of Her Majesty in right of Canada.

• Marginal note:Deletions from Schedule I

  (4) The Governor in Council may, by order, amend Schedule I by deleting therefrom any board, commission or corporation or portion thereof.

• Marginal note:Certain members not included

  (5) Notwithstanding the definition public service in subsection 3(1), a person who, being a member of any board, commission or corporation specified in Schedule I, was entitled as such under subsection 2(3) of the Superannuation Act to elect to become a contributor under that Act but did not so elect within the time prescribed therefor is not employed in the public service for the purposes of this Part.

• Marginal note:Where board, etc., has separate pension plan

  (6) Notwithstanding anything in this Part, the Governor in Council may by regulation provide

  • (a) that the service of an employee of any board, commission or corporation specified in Schedule I that may be counted by that employee for the purposes of any pension plan established for the benefit of employees of that board, commission or corporation may, to such extent and subject to such conditions as the regulations may prescribe, be counted by that employee as pensionable service for the purposes of this Part;

  • (b) for payment out of the Superannuation Account or the Public Service Pension Fund of any pension granted under a plan described in paragraph (a), subject to the terms and conditions that the regulations may prescribe; and

  • (c) for the transfer to the Superannuation Account or the Public Service Pension Fund of any contributions made under a plan described in paragraph (a), including any contributions by or on behalf of the board, commission or corporation and any accrued interest.

• Marginal note:Definition of employee

  (7) For the purposes of subsection (6), employee includes, with reference to any board, commission or corporation, an officer or member thereof.

• Marginal note:Members of Parliament and Senators

  (8) Notwithstanding anything in this Part, the Governor in Council may by regulation

  • (a) provide that the service of a former member of the House of Commons or a former Senator in respect of which he or she made contributions under the Members of Parliament Retiring Allowances Act may, to the extent and subject to the conditions that may be prescribed by the regulations, be counted by that former member or former Senator as pensionable service for the purposes of this Part; and

  • (b) provide for the transfer to the Superannuation Account or the Public Service Pension Fund of amounts in the Retiring Allowances Account, within the meaning of that Act, in respect of him or her.

• Marginal note:Counting of service for benefit of Crown

  (9) The Governor in Council may make regulations

  • (a) respecting the counting as pensionable service, for the purposes of this Part, of any period, not otherwise countable as such, during which a person, before becoming a contributor under this Part, performed on a full-time basis duties of a kind specified in the regulations for the benefit of the Crown in right of Canada; and

  • (b) providing, except in the case of a person who has ceased to be employed in the public service, for which case the regulations may otherwise provide, that this Part shall apply as though the period were a period of service in a portion of the federal public administration that was added to Schedule I on a day specified in the regulations.

• Marginal note:Erroneous advice respecting counting of service

  (10) The Governor in Council may make regulations prescribing, in the case of a contributor who in the opinion of the Minister was one of a class of persons who, pursuant to erroneous advice received by one or more persons of that class, from a person in the public service whose ordinary duties included the giving of advice respecting the counting of service under this Act or the Superannuation Act, that a period of service of such a person before the time he became a contributor thereunder could not be counted by him under that Act, failed to elect under that Act within the time prescribed therefor to pay for that service, the circumstances under which and the manner and time in which the contributor may elect to pay for that service, and the circumstances under which and the terms and conditions (including conditions respecting interest) on which any election made by him to pay for that service, or any election made by him under paragraph 6(1)(b) to pay for that service as a period of service described in clause 6(1)(b)(iii)(K), shall be deemed to have been made by him under this Act or the Superannuation Act, as the case may be, within the time prescribed therefor by that Act.

• Marginal note:Idem

  (11) The Governor in Council may make regulations prescribing, in the case of a contributor who in the opinion of the Minister was one of a class of persons who, pursuant to erroneous advice received by one or more persons of that class, from a person in the public service whose ordinary duties included the giving of advice respecting contributions for service under the Superannuation Act or this Part, that a period of service of such a person before or after the time he became a contributor under the Superannuation Act or this Part could be counted by him under that Act or this Part without contribution by him therefor, failed to elect, or failed to elect within the time prescribed therefor by that Act or this Part, to pay for that service, the circumstances under which and the manner and time in which the contributor may elect to pay for that service and the circumstances under which and the terms and conditions, including conditions as to interest, on which any such election made by him to pay for that service, or any election made by him under paragraph 6(1)(b) to pay for that service as a period of service described in clause 6(1)(b)(iii)(K), shall be deemed to have been made by him under the Superannuation Act or this Part at a time prescribed by the regulations or within the time prescribed therefor by that Act or this Part.

• (12) [Repealed, 1992, c. 46, s. 21]