1 [Repealed, SOR/2003-111, s. 2]

Defined Benefit Limit

2 For the purposes of paragraph (b) of the definition defined benefit limit in subsection 2(1) of the Act, the amount of the defined benefit limit in respect of the 1995 calendar year is $1,722.22 and, in respect of any subsequent calendar year, is determined in accordance with the definition defined benefit limit in subsection 8500(1) of the Income Tax Regulations.

Credits to Retiring Allowances Account and Compensation Arrangements Account

3 The amounts referred to in paragraphs 5(1)(a) and 28(1)(a) of the Act must be credited to the Retiring Allowances Account and the Compensation Arrangements Account, respectively, in the calendar month following the month in which the contributions referred to in paragraphs 4(1)(a) and 27(1)(a) of the Act are paid.

3.1 [Repealed, SOR/2020-180, s. 2]

4 For the purposes of subsection 63(2) of the Act, interest must be calculated at the rate of 4% compounded annually.

Payment of Allowances

• 5 (1) The monthly instalment of an allowance payable under the Act must be paid on the last day of that month.

• (2) When a member becomes entitled to an allowance after the first day of any calendar month, the amount of the instalment that is payable on the last day of that month is determined by prorating the instalment by the number of days in that month in respect of which the member is so entitled to the total number of days in that month.

• (3) When a person to whom an allowance is payable under the Act dies and the date of death is a day other than the last day of that month of death, the amount of the instalment that is payable for that month is determined by prorating the instalment by the number of days in that month prior to death, including the day on which the person dies, to the total number of days in that month.

6 If a recipient is incapable of managing their own affairs and there is no person entitled by law to act as their representative in respect of managing their affairs, the Receiver General may pay the allowance or other benefit payable under the Act to any person designated by the Minister to receive it on the recipient’s behalf.

Payment by Member

• 7 (0.1) For the purpose of subsection (1) and paragraph (3)(b), the actuarial valuation report is the one that was most recently laid before Parliament, in accordance with subsection 65(1) of the Act, before the day on which the member makes the election or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, the report that was laid before Parliament immediately before that report.

• (1) When a member has elected to pay in instalments in respect of any period of service for which they have elected to pay into the accounts,

  • (a) the first instalment is due and payable on the last day of the month in which the election made by the member is received by the Minister, and succeeding instalments are payable during the lifetime of the member in equal amounts, with the exception of the last instalment, which may be less in amount than the preceding instalments, all instalments to be fully paid within a period of 20 years from the day on which the member makes the election and to be calculated in accordance with the mortality rates used in the preparation of the actuarial valuation report with interest at

    • (i) the rate of 4% per annum, where the election is made before April 7, 1970 or after September 20, 2000, and

    • (ii) the rate of 8% per annum, where the election is made during the period beginning on April 7, 1970 and ending on September 20, 2000; and

  • (b) the member may from time to time amend their payment plan to provide for payment of the instalments still to be paid

    • (i) by a lump sum,

    • (ii) by larger monthly instalments on a basis similar to that described in paragraph (a) calculated as of the date of the amendment, or

    • (iii) by a lump sum and monthly instalments on a basis similar to that described in paragraph (a) calculated as of the date of the amendment and payable within the same or a lesser period than that previously arranged under paragraph (a), or

    • (iv) by smaller monthly instalments on a basis similar to that described in paragraph (a), calculated as of the date of the amendment and payable within a longer period than that previously arranged under paragraph (a), if they amend their payment plan in the time which they may elect under the Act to contribute in respect of previous sessions.

• (2) When a member has elected to pay a lump sum under paragraph 57(1)(a) of the Act and that sum has not been paid in full by the member within a period of 30 days after the day on which they make the election, the member is deemed to have elected to pay the amount owing by instalments calculated in accordance with subsection (1)(a).

• (3) When an allowance is payable to a person under the Act and they are in default in respect of any instalment payable by them under this section, recovery may be made at any time by deductions or set-off out of any amount payable to them, as they elect,

  • a) by lump sum immediately; or

  • b) by monthly instalments — calculated in accordance with the mortality rates used in the preparation of the actuarial valuation report with interest at the rate set out in subparagraph (1)(a)(i) or (ii), whichever is applicable — for the shorter of

    • (i) the lifetime of the person, or

    • (ii) the remainder of the period during which instalments under this section are to be paid.

• (4) Any amount payable under subsection 57(2) of the Act by a member or former member that remains unpaid at the time of their death and that is not paid within 30 days after the date of a demand by the Minister to the survivor of the member or former member, or if there is no such person, to the children of the member or former member to whom an allowance is payable, must be recovered by deductions as set out in subsections (4.1) to (4.4).

• (4.1) Deductions must be made over the period required to pay the amount in monthly instalments equal to 10% of the gross monthly amount of the allowance payable to the person in question under the Act.

• (4.2) Deductions must be made from the gross monthly amount of the allowance and the first deduction must be made in the month following the month in which the 30-day period referred to in subsection (4) ends.

• (4.3) A person in respect of whom deductions are made under this section may at any time

  • a) pay the amount then owing in a lump sum; or

  • b) arrange to pay the amount then owing by

    • (i) larger monthly instalments, or

    • (ii) a lump sum payment and monthly instalments within the period referred to in subsection (4.1) or with a shorter period.

• (4.4) If the person demonstrates that the monthly deductions referred to in subsection (4.1) would cause them financial hardship, the Minister may reduce the amount of deductions, and lesser monthly deductions may be made, commencing the month after the date of the notice of the Minister’s decision, but the deductions must not be less than 5% of the gross monthly amount of the allowance, or $10, whichever is greater.

• (5) Subject to subsection (6), when an amount that is payable by a member or former member is paid after the day on which it is due, the amount must bear interest at the rate set out in subparagraph (1)(a)(i) or (ii), whichever is applicable, from the due date to the date on which it is paid.

• (6) If a member or former member has authorized or directed that the amount payable by them under this section be deducted from moneys payable to them by or on behalf of Her Majesty and the member or the former member is in default because those deductions have not been made, interest is not payable under subsection (5) on the amount equal to the deductions that have not been made.

• (7) Nothing in this section prohibits a person from paying at any time before it is due any amount that is payable by them or that is deductible from their benefit under this section.

• (8) [Repealed, SOR/2020-180, s. 4]

• (9) [Repealed, SOR/2020-180, s. 4]

8 [Repealed, SOR/2020-180, s. 5]

Allowance to Child of Former Member

9 Where a child is born to a former member, the child is not entitled to an allowance under the Act unless,

• (a) where the member ceased to be a member because of death, the child is a posthumous child; and

• (b) where the member ceased to be a member for any reason other than death, it appears to the Minister that the child was born following a gestation period commencing prior to the date when the member ceased to be a member.

• 10 (1) For the purposes of the definition child in subsection 2(1) of the Act, the expression full-time attendance at a school or university means full-time attendance at a school, college, university or other educational institution that provides training or instruction of an educational, professional, vocational or technical nature.

• (2) For the purposes of the definition child in subsection 2(1) of the Act, a child is deemed to be or to have been in full-time attendance at a school or university substantially without interruption during a scholastic vacation in the following circumstances:

  • a) they begin or resume full-time attendance at a school or university at the beginning of the academic year following the vacation; or

  • b) because of any reasonable cause, they cannot begin or resume full-time attendance at a school or university at the beginning of that academic year but they do so during that academic year or the next academic year.

• (3) A child who is absent during the academic year because of any reasonable cause is deemed to be or to have been in full-time attendance at a school or university substantially without interruption

  • a) if, immediately after the absence, they begin or resume full-time attendance at a school or university during that academic year;

  • b) until the end of the academic year during which they are absent, if they begin or resume full-time attendance at a school or university during the next academic year; and

  • c) until their death, if they die during the academic year in which their absence commenced, or until the end of the academic year in which their absence commenced, if their death occurred after that academic year.

• (4) A child who is deemed to be or to have been in full-time attendance at a school or university must submit to the Minister

  • a) a signed declaration by a responsible officer of the relevant institution that the child is or has been in full-time attendance at a school or university; and

  • b) a signed declaration by the child is or has been in full-time attendance at a school or university.

11 [Repealed, SOR/2020-180, s. 7]