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

Canadian Forces Superannuation Act and Royal Canadian Mounted Police Superannuation Act

Marginal note:Service that may be counted

• 39 (1) Any person who becomes a contributor under this Part, having been a member of the regular force but not having become entitled to an annuity, annual allowance or pension under the Canadian Forces Superannuation Act, or having been a member of the Force but not having become entitled to an annuity or annual allowance under the Royal Canadian Mounted Police Superannuation Act, is entitled to count as pensionable service, for the purposes of this Part, any period of service that, under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, he was entitled to count for pension purposes, if he elects, within one year of becoming a contributor under this Part, to pay for that service.

• Marginal note:Amount to be paid

  (2) Where a person elects to pay for a period of service under subsection (1), the amount required by this Part to be paid by that person for that service is,

  • (a) in the case of service for which, by the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, he was required to pay, any amount by which

    • (i) the total amount required by that Act to be paid by him for that service

    exceeds

    • (ii) the total amount actually paid by him for that service, minus any amount paid to him under that Act at any time before the making of the election,

    together with simple interest at four per cent per annum on any amount paid to him under that Act at any time before the making of the election, from the time when the payment was made until the first day of the month in which the election was made;

  • (b) in the case of service for which, by the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, he or she was not required to pay, an amount equal to the amount that he or she would have been required to pay had he or she, during the period of that service, been required to contribute

    • (i) if that period or any portion of it was before 1966, in the manner and at the rates set out in subsection 5(1) as it read on December 31, 1965, in respect of that service or that portion,

    • (ii) if that period or any portion of it was after 1965 but before January 1, 2000, in the manner and at the rates set out in subsection 5(1) as it reads on December 31, 1999 in respect of that service or that portion,

    • (iii) if that period or any portion of it was after 1999 but before January 1, 2004, in the manner and at the rates set out in subsection 5(1.1), as it read on December 31, 2003, in respect of that period or portion,

    • (iv) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.2), as it read on December 31, 2012, in respect of that period or portion, and

    • (v) if that period or any portion of it was after 2012, in the manner set out in subsection 5(2) and at the rates determined by the Treasury Board under that subsection, in respect of that period or portion,

    in respect of a salary at a rate equal to the rate authorized to be paid to him or her on the most recent occasion on which he or she became a contributor under this Part, together with interest, as defined in subsection 7(2); and

  • (c) notwithstanding paragraph (a), in the case of service for which, by the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, he or she was required to pay, and in respect of which he or she has received an amount by way of a return of contributions or a cash termination allowance, an amount equal to the amount that he or she would have been required to pay had he or she, during the period of that service, been required to contribute

    • (i) if that period or any portion of it was before 1966, in the manner and at the rates set out in subsection 5(1) as it read on December 31, 1965, in respect of that service or that portion,

    • (ii) if that period or any portion of it was after 1965 but before January 1, 2000, in the manner and at the rates set out in subsection 5(1) as it reads on December 31, 1999 in respect of that service or that portion,

    • (iii) if that period or any portion of it was after 1999 but before January 1, 2004, in the manner and at the rates set out in subsection 5(1.1), as it read on December 31, 2003, in respect of that period or portion,

    • (iv) if that period or any portion of it was after 2003 but before January 1, 2013, in the manner and at the rates determined under subsection 5(1.2), as it read on December 31, 2012, in respect of that period or portion, and

    • (v) if that period or any portion of it was after 2012, in the manner set out in subsection 5(2) and at the rates determined by the Treasury Board under that subsection, in respect of that period or portion,

    in respect of a salary at a rate equal to the rate authorized to be paid to him or her on the most recent occasion on which he or she became a contributor under this Part, together with interest, as defined in subsection 7(2).

• Marginal note:Salary deemed to have been received

  (3) For the purposes of this Part, the salary deemed to have been received by a person to whom subsection (1) applies, during any period of service of the kind described in paragraph (2)(a), (b) or (c), is a salary at a rate equal to the rate of salary on the basis of which the amount required to be paid for that period of service

  • (a) by the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, in the case of service of the kind described in paragraph (2)(a), or

  • (b) by this Part, in the case of service of the kind described in paragraph (2)(b) or (c),

  was determined.

• Marginal note:Surrender of benefits on election

  (4) Notwithstanding anything in the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, on the making of any election under subsection (1), the person so electing and any person to whom any benefit might otherwise have become payable under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, in respect of that person, cease to be entitled to any benefit under that Act in respect of any service of that person to which that election relates.

• Marginal note:Right to retain pension

  (5) Any person who becomes a contributor under this Part, having been a member of the regular force and having become entitled to an annuity, annual allowance or pension under the Canadian Forces Superannuation Act, or having been a member of the Force and having become entitled to an annuity or annual allowance under the Royal Canadian Mounted Police Superannuation Act, is entitled, for the purposes of this Part, to retain that annuity, annual allowance or pension, but the period of service on which that annuity, annual allowance or pension was based may not be counted by that person for the purposes of any benefit to which he may become entitled under this Part by reason of having become a contributor hereunder.

• Marginal note:Election to surrender benefits

  (6) Notwithstanding subsection (5), any person to whom that subsection applies may elect, after becoming a contributor under this Part, to surrender the annuity, annual allowance or pension therein referred to, in which case, notwithstanding anything in the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, the person so electing and any person to whom any benefit might otherwise have become payable under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, in respect of that person, cease to be entitled to any benefit under that Act in respect of any service of that person described in subsections (1) and (2), and the person so electing shall be subject to subsections (1) and (2) in all respects as though he had not become entitled to an annuity, annual allowance or pension under that Act but had elected under subsection (1) to pay for the whole of that service.

• Marginal note:Repayment of certain benefits

  (7) If a person to whom subsection (5) applies elects, under subsection (6), to surrender the annuity, annual allowance or pension referred to in subsection (5), the person so electing shall pay an amount equal to the amount of the annuity, annual allowance, pension or supplementary benefit paid to him or her for any period commencing in any month commencing after he or she has been a contributor under this Part for one year, together with simple interest at four per cent per annum and the amount so paid shall be

  • (a) if the election is made before April 1, 2000, credited to the account maintained in the accounts of Canada pursuant to Part I of the Canadian Forces Superannuation Act or pursuant to the Royal Canadian Mounted Police Superannuation Act; or

  • (b) if the election is made on or after April 1, 2000, paid into the Canadian Forces Pension Fund within the meaning of the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Pension Fund within the meaning of the Royal Canadian Mounted Police Superannuation Act, or credited to one of the accounts referred to in paragraph (a), according to the fund or account from which the annuity, annual allowance, pension or supplementary retirement benefit was originally paid.

• Marginal note:Amount to be credited to Superannuation Account

  (8) On the making of an election under this section before April 1, 2000, by which the person so electing is required by this Part to pay for a period of service of the kind described in paragraph (2)(a), there shall be charged to the account maintained in the accounts of Canada pursuant to the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, and credited to the Superannuation Account in respect of that person, an amount equal to the amount determined under subparagraph (2)(a)(ii), and for the purposes of the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, the amount of any return of contributions or other lump sum payment that is or may become payable under that Act to or in respect of that person shall be deemed to be the amount otherwise determined in that Act minus the amount required by this subsection to be credited to the Superannuation Account on the making of the election.

• Marginal note:Amount to be paid

  (8.1) Subsection (8) applies, with any modifications that the circumstances require, to an election made on or after April 1, 2000, and a reference to “the account maintained in the accounts of Canada pursuant to the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act” shall be read as a reference to “the Canadian Forces Pension Fund or the Royal Canadian Mounted Police Pension Fund” in respect of contributions made by the person to that fund, and a reference to “the Superannuation Account” shall be read as a reference to the “Public Service Pension Fund”.

• Marginal note:Amount to be credited to Superannuation Account

  (9) On the making of an election under this section before April 1, 2000, under which the person so electing is required to pay for any period of service of the kind described in paragraph (2)(c), there shall be charged to the account maintained in the accounts of Canada pursuant to the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, as the case may be, and credited to the Superannuation Account in respect of that person, an amount equal to the amount of any return of contributions received by that person under that Act.

• Marginal note:Amount to be paid

  (10) Subsection (9) applies, with any modifications that the circumstances require, to an election made on or after April 1, 2000, and a reference to “the account maintained in the accounts of Canada pursuant to the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Act” shall be read as a reference to “the Canadian Forces Pension Fund or the Royal Canadian Mounted Police Pension Fund” in respect of the portion of the return of contributions that was paid from that fund, and a reference to “the Superannuation Account” shall be read as a reference to the “Public Service Pension Fund”.

Reciprocal Transfer Agreements

Marginal note:Definition of approved employer

• 40 (1) In this section, approved employer means an employer for the benefit of whose employees there is an established superannuation or pension fund or plan approved by the Minister for the purposes of this Part, and includes the administrator of any such superannuation or pension fund or plan established for those employees.

• Marginal note:Authority to enter into agreement

  (2) The Minister may, with the consent of the Governor in Council and on terms approved by the Treasury Board, enter into an agreement with any approved employer under which, in consideration of the agreement of that employer to pay into the Superannuation Account or the Public Service Pension Fund an amount determined in accordance with the agreement in respect of any employee of that employer who becomes or has become employed in the public service, the Minister will pay to that employer, for the purpose of any superannuation or pension fund or plan established for the benefit of employees of that employer, an amount determined in accordance with subsection (3) or (4) in respect of any contributor who has ceased or ceases to be employed in the public service to become employed by that employer.

• Marginal note:Authority to transfer contributions

  (3) If, before October 15, 2000, a contributor ceases to be employed in the public service to become employed by an approved employer with whom the Minister has entered into an agreement pursuant to subsection (2), the Minister may, subject to subsection (9) and if the agreement so provides, pay to that employer out of the Superannuation Account or the Public Service Pension Fund,

  • (a) an amount equal to the total amount paid into the Superannuation Account and the Public Service Pension Fund in respect of that employee, except any portion of the amount so paid by Her Majesty in right of Canada;

  • (b) the amount paid into the Superannuation Account and the Public Service Pension Fund in respect of that employee by Her Majesty in right of Canada that the Minister determines; and

  • (c) the amount representing interest that the Minister determines.

• Marginal note:Idem

  (4) Where a contributor has ceased or ceases to be employed in the public service to become employed by any approved employer as a result of a transfer of the administration of any service from Her Majesty in right of Canada to the approved employer and the Minister has entered into an agreement with the approved employer pursuant to subsection (2), the Minister may, subject to subsection (9) and if the agreement so provides, pay to that employer out of the Superannuation Account

  • (a) amounts equal in the aggregate to

    • (i) the value, actuarially calculated in accordance with and as of the effective date of the agreement, of all benefits accrued under this Part in respect of the pensionable service of the contributor, and

    • (ii) such amount representing interest as the Minister determines, or

  • (b) the benefits payable under this Part and Part III to or in respect of the contributor, as they become payable,

  less any amounts previously paid in respect of the contributor under subsection (12).

• Marginal note:Consent of contributor

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

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

  (6) Subsection 10(10) does not apply in respect of a payment made pursuant to subsection (3) or (4).

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

  (7) Subject to any regulations made under paragraph 42.1(1)(u), where, pursuant to subsection (3) or paragraph (4)(a), the Minister makes a payment to an approved 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 balance to contributor

  (8) When

  • (a) the amount paid by the Minister to an approved employer pursuant to subsection (3) in respect of an employee,

  together with

  • (b) the amount determined by the Minister as having being paid into the Superannuation Account and the Public Service Pension Fund in respect of that employee and in respect of which that employee is or may become entitled to a benefit under this Part or Part III,

  is less than

  • (c) the amount determined by the Minister as being the total amount paid into the Superannuation Account and the Public Service Pension Fund by and in respect of that employee,

  the Minister may pay to that employee an amount not exceeding that difference.

• Marginal note:Prohibition on transfer of certain contributions

  (9) No amount paid into the Superannuation Account or the Public Service Pension Fund in respect of any period of service of a person described in subsection (11) or (13)

  • (a) that, at the time that person ceased to be employed by an approved employer or the administration of any service in which he or she was employed was transferred to Her Majesty in right of Canada, he or she was entitled to count for the purpose of any superannuation or pension fund or plan established for the benefit of persons employed by that employer or in that service, and

  • (b) in respect of which the Pension Benefits Standards Act, 1985 or a provincial law required the vesting of benefits or the locking-in of contributions

  shall be paid out of the Superannuation Account or the Public Service Pension Fund to an approved employer for the purpose of any superannuation or pension fund or plan established for the benefit of employees of that employer if that fund or plan is not subject to the Pension Benefits Standards Act, 1985 or a provincial law.

• Marginal note:Definition of provincial law

  (10) For the purposes of subsection (9), provincial law means a law of a province that, in the opinion of the Minister, is substantially similar to the Pension Benefits Standards Act, 1985.

• Marginal note:Service countable by employee entering public service

  (11) When an employee of an approved employer with whom the Minister has entered into an agreement pursuant to subsection (2) has ceased to be employed by that employer to become employed in the public service and becomes a contributor before April 1, 2000, any service of that employee that, at the time he or she left that employment, he or she was entitled to count for the purpose of any superannuation or pension fund or plan established for the benefit of employees of that employer may, if the agreement so provides, be counted by him or her as pensionable service for the purposes of subsection 6(1) without contribution by him or her except as specified in the agreement if, within one year from the time when he or she becomes a contributor under this Part or within the further time that is specified in the agreement, the employer pays into the Superannuation Account the amount that is required under the agreement to be paid by that employer in respect of the employee.

• Marginal note:Service countable by employee entering public service

  (11.1) If an employee of an approved employer with whom the Minister has entered into an agreement pursuant to subsection (2) has ceased to be employed by that employer to become employed in the public service, and becomes a contributor, on or after April 1, 2000, subsection (11) applies, with any modifications that the circumstances require, and a reference to “the Superannuation Account” shall be read as a reference to “the Public Service Pension Fund” in respect of any period of pensionable service on or after April 1, 2000.

• Marginal note:Transfer of past contributions

  (12) The Minister may pay to any approved employer with whom he has entered into an agreement pursuant to subsection (2), in respect of any employee of that employer who, having been a contributor under this Part or Part I of the Superannuation Act, ceased to be employed in the public service prior to the day on which the agreement was entered into to become employed by that employer and has not at any time received any withdrawal allowance or other benefit under this Part or the Superannuation Act, such amount out of the Superannuation Account, not exceeding the total amount paid into or credited to that Account in respect of that employee, as is determined by the Minister, having regard to the terms of the agreement.

• Marginal note:Pensionable service in service transferred to Her Majesty

  (13) Where the administration of any service is or has been transferred to Her Majesty in right of Canada, every person who becomes or has become employed in the public service as a result of that transfer may, notwithstanding any previous election made under this Act, count as pensionable service for the purpose of subsection 6(1) any period of service prior to that transfer that he was entitled to count for the purpose of any superannuation or pension fund or plan established for the benefit of persons employed in that service, subject to such terms and conditions as the Treasury Board may prescribe.

• Marginal note:Amounts paid into S.R.B. Account

  (14) Where, in this section, reference is made to amounts paid into the Superannuation Account by or in respect of an employee, the reference shall be deemed to include amounts paid into or credited to that Account by or in respect of that employee pursuant to Part III.