Canadian Forces Superannuation Regulations (C.R.C., c. 396)

14.7 Section 14.1 applies to a top-up election made under section 14.2 as if any amount to be paid in respect of the election were an amount required to be paid under subsection 12.3(1).

14.8 At the request of a contributor, they are deemed to have opted, at the time of making the top-up election, for the total of the amounts received by the Minister as of the date of the request, if

• (a) they establish that financial hardship will be caused to them if they are required to continue to pay the instalments; or

• (b) at the commencement date of an annuity or annual allowance, the instalments are greater than the increase in the monthly amount of the benefits payable that results from the election.

• 14.9 (1) A contributor who made a top-up election is deemed not to have made it,

  • (a) in the case of an election in respect of a period after December 31, 1989, if the Minister of National Revenue refuses to issue a certification under paragraph 147.1(10)(a) of the Income Tax Act; or

  • (b) at the request of the contributor, if they received erroneous or misleading information in writing, with respect to the amount to be paid or the consequences of the election on their benefits, from a person whose normal duties include giving information about those matters and, in making the election, they acted on that information.

• (2) If a top-up election is deemed not to have been made, any amount received from a plan, fund or institution, of a type referred to in subsection 22(2) of the Act, in respect of that election, shall be transferred to a plan, fund or institution, of any type referred to in that subsection, at the direction of the contributor.

• (3) Despite the expiry of the period within which the election referred to in paragraph (1)(a) may be made, the contributor may make an election no later than 90 days after the date of the notice informing the contributor of the refusal by the Minister of National Revenue. In the case of another refusal, the contributor shall not make an election.

Re-enrolment

• 15 (1) Subject to subsection (2), if a contributor is retired from the regular force and within 60 days after their retirement they again become a member of the regular force, they are deemed, for the purposes of the Act, to have continued to be a member of the regular force despite their retirement.

• (2) Subsection (1) does not apply in any case if the contributor accepts payment at any time, in whole or in part, of a benefit under the Act in respect of their retirement.

• (3) If a contributor is deemed to have continued to be a member of the regular force, they are deemed to have continued to receive pay at a rate equal to the rate of pay authorized to be paid to them for the rank held immediately before their retirement.

• (4) [Repealed, SOR/2016-64, s. 21]

Benefits

Annuity for Certain Members

16 The following definitions apply in sections 16.1 and 16.2.

20-year intermediate engagement

20-year intermediate engagement means a fixed period of 20 continuous years of service in the regular force commencing on the day on which the contributor was transferred to, enrolled in or re-enrolled in the regular force. (engagement de durée intermédiaire de 20 ans)

25-year intermediate engagement

25-year intermediate engagement means a fixed period of 25 continuous years of service in the regular force commencing on the day on which the contributor was transferred to, enrolled in or re-enrolled in the regular force. (engagement de durée intermédiaire de 25 ans)

retirement age

retirement age, as applied to any rank of contributor, means the age determined under chapter 15 of the Queen’s Regulations and Orders for the Canadian Forces as the retirement age applicable to that rank. (âge de la retraite)

16.1 A contributor exercising the option referred to in subsection 19(1) of the Act is entitled to an immediate annuity if

• (a) they have completed a 20-year intermediate engagement that commenced before March 1, 2007 and are not serving on an indefinite period of service;

• (b) they have 10 or more years of regular force pensionable service and have reached retirement age;

• (c) they are not an officer and have at least 25 years of regular force pensionable service; or

• (d) they were a member of the regular force with 10 or more years of regular force pensionable service on March 1, 2007 and

  • (i) they have at least 20 years of regular force pensionable service, unless

    • (A) they have at any time served on a 25-year intermediate engagement and do not, at the time of ceasing to be a member of the regular force, have at least 25 years of regular force pensionable service,

    • (B) they have at any time refused an offer of a 25-year intermediate engagement unless, at the time of the refusal, they were serving on a 20-year intermediate engagement that commenced before March 1, 2007 or had completed a 20-year intermediate engagement that commenced before March 1, 2007, or

    • (C) at the time they cease to be a member of the regular force they are serving on an indefinite period of service, or

  • (ii) they have at least 19 years of regular force pensionable service, they are not serving on an intermediate engagement or an engagement for an indefinite period of service in the regular force, they have not at any time received an offer of a 25-year intermediate engagement and they are

    • (A) an officer who did not fail to accept an offer for an indefinite period of service in the regular force, or

    • (B) a contributor, other than an officer, who ceases to be a member of the regular force on the expiry of a period of engagement and who did not fail to accept an offer to re-engage in the regular force.

• 16.2 (1) A contributor described in clause 16.1(d)(i)(A) or (B) is entitled to an immediate annuity that is reduced

  • (a) in the case of an officer, by 5% for every full year by which their years of age, on the day on which they cease to be a member of the regular force, are less than retirement age; and

  • (b) in any other case, by 5% multiplied by the lesser of

    • (i) the number of full years by which their years of age are less than retirement age, and

    • (ii) the number of full years by which their years of regular force pensionable service are less than 25.

• (2) A contributor described in clause 16.1(d)(i)(C) is entitled to an immediate annuity reduced in accordance with subsection (1), but, if the contributor completed a 20-year intermediate engagement that commenced before March 1, 2007, the amount of the annuity may not be less than an amount calculated as follows:

  A/50 × B

  where

  A

  is the number of years of pensionable service to the contributor’s credit after having completed the 20-year intermediate engagement; and

  B

  is the average annual pay received by the contributor during any five-year period of pensionable service selected by or on behalf of the contributor, or during any period so selected consisting of consecutive periods of pensionable service totalling five years.

• 16.3 (1) A contributor exercising the option referred to in subsection 19(1) of the Act with 10 or more years of regular force pensionable service on March 1, 2007, who has served continuously as a member of the regular force from March 1, 2007 until the day on which they cease to be a member of the regular force and who has less than 20 years of regular force pensionable service, is entitled to an immediate annuity reduced in accordance with subsection (2) if they cease to be a member of the regular force by reason of a workforce reduction.

• (2) The immediate annuity is to be reduced by the least of the following percentages:

  • (a) 30%,

  • (b) 5% for every full year by which the contributor’s full years of regular force pensionable service are less than 20, or

  • (c) 5% for every full year by which the contributor’s years of age are less than the retirement age applicable to the contributor’s rank.

• (3) The reduction is to cease when the contributor reaches 65 years of age.

Annuity Calculation — Reserve Force Service

16.4 For the purposes of paragraph 15(1)(a) of the Act, in the case of a contributor who is or was a member of the reserve force,

• (a) if the contributor’s pensionable service in a calendar year was service in the reserve force, and the contributor had no days of Canadian Forces service during that pensionable service, the amount of pay received by the contributor in respect of that service is deemed to be zero; and

• (b) if the pensionable service of a contributor in a calendar year, other than pensionable service referred to in paragraph (a), includes a period during which the number of days of Canadian Forces service is less than the number of days of pensionable service, the amount of pay received by the contributor in respect of the pensionable service in that calendar year shall be calculated as follows:

  A × B/(C + D)

  where

  A

  is the total amount of the pay received by the contributor for the portion of the calendar year that is pensionable service,

  B

  is the number of days of pensionable service of the contributor in the portion of the calendar year that is pensionable service,

  C

  is the number of days of Canadian Forces service of the contributor that are days of service in the reserve force in the portion of the calendar year that is pensionable service, calculated without reference to subsection 3(2), and

  D

  is the number of days of regular force service in the calendar year that are days of pensionable service.

16.5 If the pensionable service of a contributor in a calendar year includes a period that relates to earnings in respect of which a pensionable earnings election has been made or a period of service of a kind referred to in paragraph 12.2(1)(i) in respect of which the contributor has elected to pay, the amount of pay received by the contributor in respect of that period, for the purpose of calculating the average annual pay referred to in paragraph 15(1)(a) of the Act, is the amount that would be calculated as the updated pensionable earnings of a participant under subsection 37(2) of the Reserve Force Pension Plan Regulations for the calendar year if

• (a) the participant’s pensionable earnings for the calendar year was the contributor’s pay for that period; and

• (b) the year that the participant most recently ceased to be a participant was the year in which the election is made, or 2007 if the contributor has remained a participant or a member of the regular force from March 1, 2007 to the day of the election.

• 16.6 (1) In respect of a contributor who has been a member of the reserve force, the number of years of pensionable service referred to in subparagraph 15(1)(a)(i) or (b)(i), paragraph 15(2)(d) or subsection 25(1) of the Act shall be adjusted in accordance with subsection (2) in respect of any calendar year or portion of a calendar year of pensionable service that

  • (a) came to the contributor’s credit by reason of an election for a period of service in the reserve force of a kind referred to in paragraph 12.2(1)(i) if the contributor opted for a lesser amount under paragraph 12.3(1)(g);

  • (b) came to the contributor’s credit under section 10.2, other than service described in paragraph (c), if the contributor did not make the top-up election or opted to pay a lesser amount on the date of the election;

  • (c) came to the contributor’s credit by reason of a pensionable earnings election if the contributor

    • (i) opted at the time of making the election to pay a lesser amount,

    • (ii) failed to make the top-up election under paragraph 14.2(b) in respect of that service, or

    • (iii) made the top-up election but opted to pay a lesser amount under subsection 14.6(2);

  • (d) is service in the reserve force during which the member was considered to be a member of the regular force by virtue of section 8.1;

  • (e) came to the contributor’s credit by reason of an election for a period of service in the reserve force of a kind referred to in paragraph 12.2(1)(i) if the contributor did not opt for a lesser amount when making the election;

  • (f) came to the contributor’s credit by reason of a pensionable earnings election if the contributor chose to pay the full amount at the time of the election and in respect of which the contributor later made the top-up election under paragraph 14.2(b) and paid the full amount; and

  • (g) is referred to in paragraph 14.2(a) if the contributor made the top-up election and chose to pay the full amount.

• (2) The adjustment shall be made by subtracting from the total number of years of pensionable service the total of the values determined by the following formula for each calendar year or portion of a calendar year of pensionable service:

  A/365 × [1 - (B/A × C)]

  where

  A

  is the lesser of 365 and the number of days of pensionable service in the calendar year or portion of it;

  B

  is the lesser of 365 and the number of days of Canadian Forces service completed by the contributor in the calendar year or portion of it;

  C

  is

  • (a) in respect of pensionable service described in paragraph (1)(a), the ratio of the lesser amount to the full amount determined under subsection 12.4(2),

  • (b) in respect of pensionable service described in paragraph (1)(b), the value determined by the formula

    (D + E)/(E + F)

    where

    D

    is

    • (i) where the top-up election was made, the value determined by the formula:

      K × (L/M)

      where:

      K

      is the full amount that would have been calculated under paragraph 14.6(3)(a) in respect of a top-up election made on the first day on which that election could have been made,

      L

      is the lesser amount for which the contributor opted under subsection 14.6(2), and

      M

      is the full amount calculated under subsection 14.6(3),

    • (ii) otherwise, zero,

    E

    is the total of the amounts determined to be the value of A in paragraph 14.6(3)(a) that would have been calculated in respect of a top-up election exercised on the first day on which the contributor would have been entitled to make the election, and

    F

    is the full amount that would have been calculated under paragraph 14.6(3)(a) in respect of a top-up election made on the first day on which that election could have been made,

  • (c) in respect of pensionable service described in paragraph (1)(c), the value determined by the formula

    G/H × (G + I)/(G + J)

    where

    G

    is, if the contributor opted for a lesser amount at the time of making the pensionable earnings election, that amount, or otherwise the amount determined to be the value of H,

    H

    is the full amount determined by the formula in subsection 15(2) of the Reserve Force Pension Plan Regulations,

    I

    is

    • (i) where the top-up election was made and the contributor opted under subsection 14.6(2) for a lesser amount, the value determined by the formula

      N × (O/P)

      where

      N

      is the full amount that would have been calculated under paragraph 14.6(3)(b) in respect of a top-up election made on the first day on which that election could have been made,

      O

      is the lesser amount for which the contributor opted under subsection 14.6(2), and

      P

      is the full amount calculated under subsection 14.6(3);

    • (ii) if the top-up election was not made, zero, or

    • (iii) otherwise, the amount calculated as the value of N in subparagraph (i), and

    J

    is the full amount that would have been calculated under paragraph 14.6(3)(b) in respect of a top-up election made on the first day on which that election could have been made, and

  • (d) in respect of pensionable service described in paragraphs (1)(d) to (g), one.