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

Marginal note:Amounts to be paid on basis of actuarial valuation report

• 44.3 (1) Following the laying before Parliament of any actuarial valuation report pursuant to section 45 that relates to the state of the Public Service Pension Fund, there shall be paid into that Fund, at the time and in the manner set out in subsection (2), the amount that in the opinion of the Minister will, at the end of the fifteenth fiscal year following the tabling of that report or at the end of a shorter period that the Minister may determine, together with the amount that the Minister estimates will be to the credit of the Public Service Pension Fund at that time, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that comes to the credit of contributors on or after April 1, 2000.

• Marginal note:Equal annual instalments

  (2) Subject to subsection (3), the amount required to be paid into the Public Service Pension Fund under subsection (1) shall be divided into equal annual instalments and the instalments shall be paid to the Public Service Pension Fund over a period of fifteen years, or a shorter period that the Minister may determine, with the first such instalment to be paid in the fiscal year in which the actuarial valuation report is laid before Parliament.

• Marginal note:Adjustments

  (3) When a subsequent actuarial valuation report is laid before Parliament before the end of the period applicable under subsection (2), the instalments remaining to be paid in that period may be adjusted to reflect the amount that is estimated by the Minister, at the time that subsequent report is laid before Parliament, to be the amount that will, together with the amount that the Minister estimates will be to the credit of the Public Service Pension Fund at the end of that period, meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that comes to the credit of contributors on or after April 1, 2000.

Marginal note:No more deposits if non-permitted surplus

• 44.4 (1) If, following the laying before Parliament of an actuarial valuation report pursuant to section 45 that relates to the state of the Public Service Pension Fund there is, in the Minister’s opinion, a non-permitted surplus in that Fund, no further amounts shall be deposited into the Fund under paragraph 44.2(3)(a) until the time that there is, in the Minister’s opinion, no longer a non-permitted surplus in the Fund.

• Marginal note:When non-permitted surplus

  (2) If, following the laying before Parliament of an actuarial valuation report pursuant to section 45 that relates to the state of the Public Service Pension Fund, there is, in the Minister’s opinion, a non-permitted surplus in that Fund,

  • (a) the contributions payable under section 5 may be reduced in the manner, at the times and for the period that the Treasury Board determines, on the Minister’s recommendation; or

  • (b) there may be paid out of the Public Service Pension Fund, and into the Consolidated Revenue Fund, the amount, at the time and in the manner, that the Treasury Board determines on the recommendation of the Minister.

• Marginal note:Minister’s recommendation

  (3) The Minister shall only make the recommendation referred to in paragraph (2)(b) after estimating, based on the report, that the amount that will be to the credit of the Public Service Pension Fund at the end of the fifteenth fiscal year following the tabling of that report or at the end of a shorter period that the Minister may determine, will not be less than the total of

  • (a) the amount that will be required in order to meet the cost of the benefits payable under this Part and Part III in respect of pensionable service that comes to the credit of contributors on or after April 1, 2000, and

  • (b) the amount of any surplus in the Public Service Pension Fund that does not constitute a non-permitted surplus.

• Marginal note:When surplus is not non-permitted surplus

  (4) If, following the laying before Parliament of an actuarial valuation report pursuant to section 45 that relates to the state of the Public Service Pension Fund, there is, in the Minister’s opinion, a surplus that is not a non-permitted surplus in that Fund, the contributions payable under section 5 or paragraph 44.2(3)(a) may be reduced in the manner, at the times and for the period that the Treasury Board determines, on the Minister’s recommendation.

• Marginal note:Non-permitted surplus

  (5) For the purposes of this section, a non-permitted surplus exists when the amount by which assets exceed liabilities in the Public Service Pension Fund, as determined by the actuarial valuation report referred to in section 45 or one requested by the Minister, is greater than 25 percent of the amount of liabilities in respect of contributors, as determined in that report.

• Marginal note:When reduction in contributions

  (6) For greater certainty, a reduction in contributions under paragraph (2)(a) or subsection (4) is not to be considered as changing the contribution rate that applied before the reduction in contributions.

Marginal note:Costs

44.5 The costs of the administration of this Act, as determined by the Treasury Board, with respect to benefits payable under this Act in respect of pensionable service that comes to the credit of contributors on or after April 1, 2000 shall be paid out of the Public Service Pension Fund.

Actuarial Report

Marginal note:Public Pensions Reporting Act

45 In accordance with the Public Pensions Reporting Act, a cost certificate, an actuarial valuation report and an assets report on the state of each of the Superannuation Account, the Public Service Superannuation Investment Fund and the Public Service Pension Fund shall be prepared, filed with the Minister designated under that Act and laid before Parliament.

Annual Report

Marginal note:Annual report

46 The Minister shall cause to be laid before each House of Parliament each year a report on the administration of this Part and Part III during the preceding fiscal year, including a statement showing the amounts paid into and out of the Superannuation Account, the Public Service Superannuation Investment Fund and the Public Service Pension Fund during that year, by appropriate classifications, the number of contributors and the number of persons receiving benefits under this Part and Part III, together with the additional information that the Governor in Council may by regulation require.

PART I.1Provisions That Apply to Canada Post Corporation

Marginal note:Definitions

46.1 The definitions in this section apply in this Part.

Corporation

Corporation means the Canada Post Corporation within the meaning of the Canada Post Corporation Act. (Société)

member

member means a person to whom the plans referred to in section 46.3 or 46.4 apply. (membre)

Marginal note:Deemed deletion

46.2 The repeal of subsection 13(2) of the Canada Post Corporation Act by section 227 of the Public Sector Pension Investment Board Act is deemed to constitute a deletion from Schedule I of the Corporation, within the meaning of subsection 42(4), on the day on which that section comes into force.

Marginal note:Establishment of pension plans

• 46.3 (1) Subject to subsections (2) and (3), the Corporation shall

  • (a) establish no fewer than one pension plan for the Chairman, President, officers and employees of the Corporation, or classes of those persons, no later than October 1, 2000, and be the administrator of those plans; and

  • (b) establish no fewer than one supplementary pension plan in the nature of a retirement compensation arrangement within the meaning of the Special Retirement Arrangements Act for those persons or classes no later than October 1, 2000, and be the administrator of those plans.

• Marginal note:Approval of plans

  (2) A plan that has been established under subsection (1) may only take effect after it has been approved by the Treasury Board.

• Marginal note:Criteria

  (3) The Treasury Board shall approve a plan when it is satisfied that

  • (a) each plan referred to in paragraph (1)(a) meets the requirements for registration under the Income Tax Act and the Pension Benefits Standards Act, 1985;

  • (b) when the plans referred to in paragraphs (1)(a) and (b) are established

    • (i) each member and survivor will be provided with pension benefits and lump-sum benefits — including supplementary benefits within the meaning of Part III — at least equal to those provided for him or her under this Act and the Retirement Compensation Arrangements Regulations, No. 1, made under the authority of the Special Retirement Arrangements Act, as those Acts and regulations read on the day before the effective date of the plans, and

    • (ii) each member will be required to contribute, by reservation from salary or otherwise,

      • (A) for the period beginning on the effective date of the plans and ending on December 31, 2003, at a rate equal to the rates specified in this Act on the day before that effective date, and

      • (B) for the period beginning on January 1, 2004, at the rate that the Board of Directors of the Corporation may fix from time to time, that Board being subject to the same restrictions in fixing the rate as is the Treasury Board under subsection 5(1.4), as it read on January 1, 2000;

  • (c) each plan referred to in paragraph (1)(a) provides that

    • (i) members who are employed by the Corporation on the effective date of the plans may elect to count, as pensionable service, service with the Corporation and the Post Office Department before that date that was not to their credit as pensionable service under this Act on the day before that date, and

    • (ii) members who become employed by the Corporation after the effective date of the plans may elect to count, as pensionable service, service with the Corporation or the Post Office Department;

  • (d) each plan referred to in paragraph (1)(a) includes a provision whereby pension transfer agreements within the meaning of this Act could be entered into between the Corporation and the President of the Treasury Board under subsection 40.2(2);

  • (e) when the plans referred to in paragraphs (1)(a) and (b) are established and at any time after that, each member and each survivor shall be placed in a situation at least as favourable as the one in which he or she would have been if the repeal referred to in section 46.2 had not occurred, with respect to the pension benefits and lump-sum benefits

    • (i) to which he or she is or may become entitled under this Act and the regulations referred to in subparagraph (b)(i) as they read on the day before the effective date of the plans, and

    • (ii) in respect of periods of pensionable service within the meaning of this Act that were to the credit of the member before that date;

  • (f) when the plans referred to in paragraphs (1)(a) and (b) are established or at any time after that, the plans provide that the Corporation may decide to use any surplus amounts that are in the plans after a transfer under subsection (6) for benefit improvements or for reductions in the contributions made by the members or the Corporation; and

  • (g) when the plans referred to in paragraphs (1)(a) and (b) are established, the Corporation has informed all the employees and representatives of employees of the changes that the plans would make to their pension arrangements and given them the opportunity to make their views and interests known with respect to the changes.

• Marginal note:No benefits except under the plans

  (4) On and after the effective date of the plans referred to in paragraphs (1)(a) or (b), no member or member’s survivor is entitled to any benefit under this Act or the regulations referred to in subparagraph (3)(b)(i), except benefits under the plans.

• Marginal note:No liability for matters arising before effective date

  (5) The Corporation is not liable with respect to any matter attributable to a period that ended before the effective date of the plans, other than in respect of obligations set out in this Act.

• Marginal note:Transfer of accrued benefits

  (6) Notwithstanding any other provision of this Act, the value of benefits that have accrued to the members who are contributors under this Act on the day before the effective date of the plans, calculated in accordance with this Act and the regulations referred to in subparagraph (3)(b)(i), shall be transferred to the plans in accordance with any regulations made under paragraph 42.1(1)(v.7).

• Marginal note:Pension plans not to affect accrued benefits

  (7) The provisions of the pension plans referred to in this section respecting the benefits that had accrued to a member under this Act before the effective date of the plans shall not be the subject of collective bargaining under Part I of the Canada Labour Code and shall not be altered in a way that would reduce those benefits.

• Marginal note:Period beginning on January 1, 2013

  (8) Each plan referred to in paragraph (1)(a) that was approved under subsection (3) is deemed to have included a provision indicating that, despite clause (3)(b)(ii)(B), each member will be required to contribute, by reservation from salary or otherwise, for the period beginning on January 1, 2013, at the rate that the Board of Directors of the Corporation may fix from time to time, which rate must not result in a total amount of contributions that would exceed 50% of the current service cost for the portion of the period in respect of the benefits payable under the plan.

Marginal note:Establishment of group life insurance plan

• 46.4 (1) The Corporation shall, no later than the date referred to in subsection 46.3(1), establish no fewer than one group life insurance plan for persons referred to in that subsection.

• Marginal note:Benefits, etc., equal to public service regime

  (2) The plans must provide for benefits for the members and their beneficiaries at least equal to those provided under Part II, as it read on the day before the effective date of the plans, at a contribution rate no greater than the contribution rate under that Part as it read on that day.

• Marginal note:Benefits to former employees

  (3) A person has the same rights as a member under subsection (2) if

  • (a) he or she ceases to be employed by the Corporation after the effective date of the plans; and

  • (b) at the time he or she ceases to be so employed, he or she has an entitlement to an immediate pension benefit, other than a lump-sum benefit, under a plan referred to in subsection 46.3(1).

Marginal note:No alteration of plans before October 1, 2001

• 46.5 (1) The terms of the plans referred to in sections 46.3 and 46.4 shall not be the subject of collective bargaining — and shall not be modified with respect to employees not represented by a bargaining agent within the meaning of Part I of the Canada Labour Code — for any period that ends before October 1, 2001.

• Marginal note:Alteration of plans

  (2) The provisions of the plans referred to in subsection (1), other than those referred to in subsection 46.3(7), may be the subject of collective bargaining if notice to bargain collectively is given within the meaning of section 49 of that Act on or after October 1, 2001.

Marginal note:No longer a participant under Part II

46.6 Notwithstanding section 51, a person ceases to be a participant for the purposes of Part II on the day on which section 227 of the Public Sector Pension Investment Board Act comes into force.