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

Elections

Marginal note:Manner of making elections

• 8 (1) Every election made by a contributor under this Part shall be made by him while employed in the public service and shall be evidenced in writing, in the form prescribed by the Minister, and signed by the person making the election, and the original thereof shall be forwarded to the Minister in the manner prescribed by the regulations within the time prescribed by this Part for the making of the election or, in the case of an election that may be made by the contributor at any time before he ceases to be employed in the public service, within one month from the time of making the election.

• Marginal note:Void elections

  (2) An election under this Part is void in so far as it is an election to pay for

  • (a) any period of service on active service in the forces during World War I or World War II or any period of service in the public service or in pensionable employment that the elector is entitled to count for the purpose of any superannuation or pension benefit of a kind specified in the regulations, otherwise than under the provisions of this Part;

  • (b) any period of service in the public service before January 1, 1981 as a part-time employee, within the meaning of this Act as it read from time to time before that date, unless it is service that may be counted under clause 6(1)(b)(i)(B);

  • (b.1) any period of service in the public service after December 31, 1980 as a part-time employee, unless it is service that may be counted under this Part and the elector was, during that period, engaged to work on average at least twelve hours a week or such lesser number of hours a week as may be prescribed by the regulations;

  • (c) any period of service in the public service as an employee whose compensation for the performance of the regular duties of his position or office consisted of fees of office;

  • (d) any period of service of less than ninety days as defined by the regulations unless it is service that may be counted under clause 6(1)(b)(iii)(I); or

  • (e) any period of service that is after 1965, before the day on which that elector reached the age of eighteen years and before the day on which this paragraph comes into force.

• Marginal note:Right to elect for part of period

  (3) A contributor who is entitled under this Part to elect to pay for a period of service is entitled, unless a contrary intention appears, to elect to pay for part only of that period but only that part that is most recent in point of time.

• Marginal note:Right to amend or revoke election

  (4) An election under this Part may be amended by the elector, within the time prescribed by this Part for the making of the election, by increasing the period or periods of service for which he elects to pay, and is otherwise irrevocable except under such circumstances and on such terms and conditions, including payment by the elector to Her Majesty of such amount in respect of any benefit accruing to that elector during the subsistence of the election, as a consequence of his having so elected, as the Governor in Council by regulation prescribes.

• Marginal note:Election deemed valid

  (5) Notwithstanding this Act or the Superannuation Act, where the Governor in Council is of opinion that a person

  • (a) has made an election under either Act in purported compliance with such Act and the regulations made pursuant thereto and that the purported election was made in good faith and was invalid by reason only of circumstances not attributable to fault on the part of that person, or

  • (b) was treated in error as being deemed to have elected pursuant to paragraph 51(2)(b),

  that person shall be deemed to have made a valid election for the purposes of the relevant provisions of this Act or the Superannuation Act, as the case may be, on such date and subject to such terms and conditions as may be prescribed by the Governor in Council.

• Marginal note:Manner of payment

  (6) Subject to this section, any amount required by subsection 7(1) or (1.1) or 39(7) to be paid by a contributor in respect of any period of service for which the contributor has elected to pay shall be paid by the contributor into the Superannuation Account or as required by subsection 39(7), as the case may be,

  • (a) in a lump sum, at the time of making the election, or

  • (b) in instalments, on such terms and computed on such bases as to mortality and interest as the Governor in Council by regulation prescribes,

  at his option.

• Marginal note:Election after March 31, 2000

  (6.1) For the purposes of subsections (6) and 39(2), an amount required to be paid by a contributor pursuant to an election made after March 31, 2000 shall be paid into the Public Service Pension Fund.

• Marginal note:Unpaid instalments

  (7) Where a contributor who has elected under this Part or the Superannuation Act to pay for any period of service and has undertaken to pay for that period of service in instalments ceases to be employed in the public service before all the instalments have been paid, the unpaid instalments may be reserved, in accordance with the regulations, 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, until such time as all the instalments have been paid, or the contributor dies, whichever occurs first.

• Marginal note:Recovery of amounts due at time of death

  (8) When an amount payable by a contributor into the Superannuation Account or the Public Service Pension Fund by reservation from salary or otherwise has become due, but remains unpaid at the time of death, that amount, with interest at four per cent per annum from the time when it became due, may be recovered, in accordance with the regulations, from any allowance payable under this Part to the survivor or children of the contributor, without prejudice to any other recourse available to Her Majesty with respect to the recovery of it, and any amount so recovered shall be credited to the Superannuation Account or paid into the Public Service Pension Fund and is deemed, for the purposes of the definition return of contributions in subsection 10(1), to have been paid into that Account or Fund by the contributor.

• Marginal note:Recovery of amount paid in error

  (9) Where any amount has been paid in error under this Part or Part III on account of any annuity, annual allowance or supplementary benefit, the Minister may retain by way of deduction from any subsequent payment of that annuity, allowance or supplementary benefit, in the manner prescribed by the regulations, an amount equal to the amount paid in error, without prejudice to any other recourse available to Her Majesty with respect to the recovery thereof.

Marginal note:Special procedures for certain elections

8.1 Where an election is made to count as pensionable service a period of service specified in clause 6(1)(b)(iii)(M) or (N), section 8 applies in the manner and to the extent set out in the regulations.

Marginal note:Calculation of time for making of certain elections

9 For the purposes of sections 6 and 39, the year within which a contributor may elect to count any service described in those sections as pensionable service for the purposes of this Part shall be deemed to end one year from the day on which written notice is sent by or on behalf of the Minister to that contributor informing him that he has become a contributor under this Part.

Benefits

Definitions, etc.

Marginal note:Definitions

• 10 (1) For the purposes of this Part,

  annuity

  annuity means an annuity computed in accordance with section 11; (pension)

  cash termination allowance

  cash termination allowance means an amount equal to one month’s pay for each year of pensionable service computed on the basis of the rate of salary authorized to be paid to the contributor

  • (a) at the time he or she ceases to contribute to the Public Service Pension Fund, or

  • (b) in the case of a contributor who continues to be employed in the public service after having ceased to contribute to the Public Service Pension Fund under subsection 5(2) or (3), at the time he or she ceases to be employed in the public service,

  minus an amount equal to the amount by which

  • (c) the total amount the contributor would have been required to contribute to the Superannuation Account or the Public Service Pension Fund up to the time he or she ceases to be employed in the public service, other than interest or charges for payments by instalments, in respect of service after 1965, if he or she had contributed on the basis of the rates set out in subsection 5(1) as it read on December 31, 1965,

  exceeds

  • (d) the total amount the contributor was required to contribute to the Superannuation Account or the Public Service Pension Fund up to the time he or she ceases to be employed in the public service, other than interest or charges for payments by instalments, in respect of service after 1965; (allocation de cessation en espèces)

  deferred annuity

  deferred annuity means an annuity that becomes payable to the contributor at the time he or she reaches 60 years of age, in the case of a Group 1 contributor described in subsection 12(0.1), or 65 years of age, in the case of a Group 2 contributor described in subsection 12.1(1); (pension différée)

  immediate annuity

  immediate annuity means an annuity that becomes payable to the contributor immediately on his becoming entitled thereto; (pension immédiate)

  recipient

  recipient means a person to whom any benefit is or is about to become payable under this Part or out of the Retirement Fund; (prestataire)

  return of contributions

  return of contributions means a return of

  • (a) the amount paid by the contributor into the Superannuation Account or the Public Service Pension Fund, but not including any amount so paid pursuant to subsection 24(6) of the Royal Canadian Mounted Police Superannuation Act,

  • (b) any amount to his or her credit in the Retirement Fund that has been transferred to the Superannuation Account, and

  • (c) any amount paid by him or her into any other account or fund, together with interest, if any, that has been transferred to the Superannuation Account or the Public Service Pension Fund,

  to the extent that the amount remains to his or her credit in the Superannuation Account or the Public Service Pension Fund, together with interest, if any, calculated pursuant to subsection (9); (remboursement de contributions)

  transfer value

  transfer value means a lump sum amount, representing the value of the contributor’s pension benefits, as determined in accordance with the regulations. (valeur de transfert)

• Marginal note:Duration of payment, etc., to contributor

  (2) Where an annuity or annual allowance becomes payable under this Part to a contributor, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, during the lifetime of the contributor and thereafter until the end of the month in which he dies, and any amount in arrears thereof that remains unpaid at any time after his death shall be paid as provided in subsection 25(1), in respect of a return of contributions.

• Marginal note:Duration of payment, etc., to survivor or child

  (3) When an annual allowance becomes payable under this Part to a survivor or child, it shall, subject to the regulations, be paid in equal monthly instalments in arrears and shall continue, subject to this Part, until the end of the month in which the recipient dies or otherwise ceases to be entitled to receive an annual allowance, and any amount in arrears that remains unpaid at any time after the death of the recipient shall be paid to the estate or succession of the recipient or, if less than one thousand dollars, as the Minister may direct.

• Marginal note:Capitalization

  (4) When a person who is a contributor or survivor has become entitled under this Part to an annuity or annual allowance the amount of which would be less than two per cent of the Year’s Maximum Pensionable Earnings within the meaning of subsection 11(3) in respect of the year in which the request is made, there may be paid to that person, on request by that person, to the Minister in writing within three months from the day on which written notice is sent by the Minister informing the person of the amount of the annuity or annual allowance, an amount determined in accordance with the regulations to be the capitalized value of the annuity or annual allowance, which payment shall be in lieu of any other benefit under this Part and Part III.

• Marginal note:Options

  (5) When, under any of sections 12 to 13.001, a contributor is entitled to a benefit specified in that section at his or her option,

  • (a) if he fails to exercise the option within one year from the time he became so entitled, he shall be deemed to have exercised it in favour of a benefit other than a lump sum payment as described in the definitions “cash termination allowance” and “return of contributions” in subsection (1);

  • (b) if, without having exercised or been deemed to have exercised the option, he becomes a contributor under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, he shall be deemed to have exercised the option immediately before becoming a contributor under that Act in favour of a benefit other than a lump sum payment as described in the definitions “cash termination allowance” and “return of contributions” in subsection (1); and

  • (c) if, without having exercised or been deemed to have exercised the option, he or she becomes re-employed in the public service, he or she ceases to be entitled to exercise the option until the time that he or she ceases to be so re-employed, unless before that time he or she becomes a contributor under this Part, in which case the period on which that benefit was based, except any such period specified in clause 6(1)(a)(iii)(C) or (E), shall be counted as pensionable service for the purposes of subsection 6(1).

• Marginal note:Revocation of option

  (6) When, under any of sections 12 to 13.001, a contributor is entitled to a benefit specified in that section at his or her option, the option may be revoked and a new option exercised by the contributor, under the circumstances and on the terms and conditions that the Governor in Council by regulation prescribes.

• Marginal note:Contributor re-employed before payment of return of contributions

  (7) If a contributor who is entitled under any of sections 12 to 13.001 to a return of contributions becomes re-employed in the public service and a contributor under this Part before those contributions have been paid to him or her, the period of pensionable service to which those contributions relate (except any such period specified in clause 6(1)(a)(iii)(C) or (E)) shall be counted as pensionable service for the purposes of this Part, and the amount of those contributions shall, in lieu of being paid to him or her, be applied in payment of or on account of the amount required by this Part to be paid by him or her for that service.

• Marginal note:Annuity in respect of locked-in contributions

  (8) A contributor who has to his or her credit a period of pensionable service in respect of which no amount can, by virtue of subsection 40(9), be paid to an approved employer is entitled in respect of that service, on ceasing to be employed in the public service, to a benefit specified in whichever of sections 12 to 13.001 that applies to him or her, other than a cash termination allowance or a return of contributions.

• Marginal note:Interest on return of contributions

  (9) For the purposes of the definition “return of contributions” in subsection (1), interest shall be calculated in the manner that the regulations provide and on the balances that are determined in accordance with the regulations,

  • (a) at the rate of four per cent, compounded annually, for any period before January 1, 1997;

  • (b) at the rates established in the regulations made under paragraph 44(1)(c), compounded quarterly, for any period on or after January 1, 1997 and before April 1, 2000; and

  • (c) at the rates established in the regulations made under paragraph 42.1(1)(v.3), compounded quarterly, for any period beginning on or after April 1, 2000.

• Marginal note:Benefits not assignable, etc.

  (10) Subject to Part II of the Garnishment, Attachment and Pension Diversion Act and to the Pension Benefits Division Act,

  • (a) a benefit under this Part or Part III is not capable of being assigned, charged, anticipated or given as security and any transaction that purports to assign, charge, anticipate or give as security any such benefit is void;

  • (b) a benefit to which a contributor, survivor or child is entitled under this Part or Part III is not capable of being surrendered or commuted during the lifetime of that person except under subsection (4), section 13.01 and subsection 25(5) and any transaction that purports to so surrender or commute any such benefit is null and void; and

  • (c) a benefit under this Part or Part III is exempt from attachment, seizure and execution, either at law or in equity.