Former Members of Parliament Counting of Service Regulations (SOR/2016-76)

Election

Marginal note:Election

• 1 (1) A contributor may elect to count any period of service in respect of which they contributed to the Members of Parliament Retiring Allowances Account referred to in subsection 3(1) of the Members of Parliament Retiring Allowances Act as pensionable service for the purposes of Part I of the Royal Canadian Mounted Police Superannuation Act (the “Act”).

• Marginal note:Time limit

  (2) The contributor must make the election no later than the day on which they cease to be a member of the Force.

• Marginal note:Condition

  (3) In the case of a contributor who is entitled to a retirement allowance under the Members of Parliament Retiring Allowances Act in respect of the period of service, the election is conditional on the contributor surrendering that entitlement.

Marginal note:Form of election

• 2 (1) The contributor must make the election referred to in section 1 in writing and must sign and date the document.

• Marginal note:Day of election

  (2) The election is made on the day on which the document is signed.

• Marginal note:Sending

  (3) The contributor must send the document to the Commissioner of the Royal Canadian Mounted Police within one month after the day on which it is signed.

• Marginal note:Sending date

  (4) The document is sent on the day on which it is delivered or, if it is sent by mail, the day on which it is mailed, with the date of the postmark being evidence of that day.

• Marginal note:Contributor no longer member of the Force

  (5) Despite subsection 1(2), a contributor who is no longer a member of the Force who received, from an authorized advisor who normally gives information about these matters, erroneous or misleading information in respect of an election and who did not make the election while they were a member, may make the election within one year after the day on which the advisor sent them the corrected information or, if it is later, within one year after the day on which these Regulations come into force.

• Marginal note:Revocation of election

  (6) The contributor may revoke the election if they received, from an authorized advisor who normally gives information about these matters, erroneous or misleading information in respect of the election and

  • (a) failed to make the election and then made it within one year after the day on which the advisor sent them the corrected information or, if it is later, within one year after the day on which these Regulations came into force, and while they were a member of the Force; or

  • (b) failed to make the election while they were a member of the Force and then made it after having received the corrected information from an authorized advisor and having ceased to be a member.

• Marginal note:Same election

  (7) A contributor who revokes the election is deemed to have made the same election on the day after the day on which they received the erroneous or misleading information.

• Authorized advisor

  (8) For the purposes of this section, authorized advisor has the same meaning as in section 2 of the Royal Canadian Mounted Police Superannuation Regulations.

Marginal note:Paragraph 8(2)(c) of Act

• 3 (1) Paragraph 8(2)(c) of the Act does not apply to an election referred to in section 1.

• Marginal note:Annual rate of pay — full-time member

  (2) A contributor who makes the election is deemed to have received, during the period of service in respect of which the election is made, the annual rate of pay that they were receiving on the day on which they most recently became a contributor, if they make the election within one year after that day, or the annual rate of pay that they are receiving on the day on which the election is made, in any other case.

• Marginal note:Annual rate of pay — part-time member

  (3) For the purpose of subsection (2), if the contributor was a part-time member on the day on which they most recently became a contributor or on the day on which the election was made, the annual rate of pay is to be the annual rate of pay that would have been authorized to be paid to them if they had been a full-time member at that time or, if they had then been engaged to work concurrently in more than one position, it is to be the aggregate of the amounts calculated for each position in accordance with the formula

  A x B/C

  where

  A

  is the annual rate of pay that would have been authorized to be paid to the contributor if they had been a full-time member at that time;

  B

  is the weekly average of the hours of work for which the contributor was engaged; and

  C

  is the total of the weekly averages of the hours of work for which the contributor was engaged in all positions.

Withdrawal Allowance

Payment to the Royal Canadian Mounted Police Pension Fund

Marginal note:Amount to be paid

4 A contributor who was paid a withdrawal allowance under the Members of Parliament Retiring Allowances Act and who makes an election referred to in section 1 must pay the following amount to the Royal Canadian Mounted Police Pension Fund:

• (a) if they make the election within one year after the day on which they most recently became a contributor

  • (i) if the period in respect of which the withdrawal allowance was paid is before January 1, 2000, the amount that would have been payable under subsection 5(1) of the Act as it read on December 31, 1999,

  • (ii) if the period is after 1999 but before January 1, 2004, the amount that would have been payable under subsection 5(1) of the Act as it read on December 31, 2003,

  • (iii) if the period is after 2003 but before January 1, 2013, the amount that would have been payable under subsection 5(2) of the Act as it read on December 31, 2012, and

  • (iv) if the period is after 2012, the amount that would have been payable under subsection 5(1) of the Act; and

• (b) if they make the election more than one year after the day on which they most recently became a contributor, the amount that would have been payable if they had made the election within the time limit, together with interest, calculated on the annual rate of pay that they are deemed under subsection 3(2) to be receiving on the day on which the election is made.

Marginal note:Terms of payment

5 A contributor must pay the amount to be paid in monthly instalments or in a lump sum.

Payment in Monthly Instalments

Marginal note:When monthly instalments are payable

• 6 (1) Monthly instalments are payable on the first day of each month after the day on which the election referred to in section 1 is made until the earlier of

  • (a) the end of the period that is chosen by the contributor, which must be no later than the later of 20 years and the contributor’s 65th birthday, and

  • (b) the contributor’s death.

• Marginal note:Calculation of instalments

  (2) The instalments are payable in equal amounts that must not be less than $5.00, except the last one, and are calculated using the mortality rates used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the election is made or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report, and bear interest, compounded annually, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the report.

Marginal note:Prepayment

• 7 (1) A person may, at any time, do one or both of the following:

  • (a) prepay any amount that remains unpaid in respect of an election referred to in section 1;

  • (b) decrease the period of instalments by increasing the amount of the remaining instalments.

• Marginal note:Partial prepayment

  (2) A person who makes a partial prepayment may request that the period of instalments remain the same or be decreased.

• Marginal note:Adjustment

  (3) In all cases, the adjustment of the period of instalments and of the remaining instalments is to be made on the first day of the month after the day on which the request is made, in accordance with section 6, except that the actuarial valuation report is the one that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the request is made or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

Marginal note:Payment default

• 8 (1) A contributor who does not pay an instalment before or on the day on which it is due is in default of payment.

• Marginal note:Notice

  (2) Notice is to be sent to the contributor as soon as feasible after the default.

• Marginal note:Deferred notice

  (3) However, if the contributor is on leave without pay or if they have ceased to be a member of the Force and are entitled to an annual allowance or a deferred annuity that has not yet become payable, the notice is to be sent to them as soon as feasible after the day on which they return to work or the payment of the allowance or annuity begins.

Marginal note:Time limit for payment

• 9 (1) The contributor must, within 30 days after the day on which the notice of default is sent,

  • (a) pay the arrears, together with interest, in a lump sum; or

  • (b) opt to pay the arrears in monthly instalments over a period that corresponds to the period beginning on the day on which the contributor first defaults on the payment and ending on the day on which the notice is sent.

• Marginal note:Interest — arrears paid in lump sum

  (2) Arrears that are paid in a lump sum bear interest, compounded annually, beginning on the day of the payment default and ending on the day on which the notice of default is sent, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the notice is sent or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

• Marginal note:Interest — arrears paid in monthly instalments

  (3) Arrears that are paid in monthly instalments bear interest, compounded annually, beginning on the day of the payment default and ending on the day on which the payment is received by the Commissioner of the Royal Canadian Mounted Police, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the contributor exercises one of the options set out in subsection (1) or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

• Marginal note:When instalments are payable

  (4) The instalments are payable on the later of

  • (a) the first day of the month after the end of the period that was chosen under paragraph 6(1)(a); and

  • (b) the first day of the month after the day on which the contributor exercises the option.

Marginal note:Failure to exercise option

10 A contributor who does not exercise one of the options set out in subsection 9(1) within the time limit must pay the arrears, together with interest calculated in accordance with subsection 9(2), in monthly instalments that are

• (a) calculated using the mortality rates used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the notice of default is sent or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report, and that bear interest, compounded annually, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the report; and

• (b) payable on the first day of each month after the day on which the notice is sent, until the earlier of

  • (i) the end of the remainder of the period that was chosen under paragraph 6(1)(a), and

  • (ii) the contributor’s death.

Marginal note:Unpaid instalments when contributor no longer member of the Force

• 11 (1) The unpaid instalments referred to in subsection 8(6) of the Act are to be reserved

  • (a) if the contributor is entitled to a lump sum benefit, in a lump sum; or

  • (b) in any other case, in a lump sum or in monthly instalments equal to those that the contributor was paying before having ceased to be a member of the Force, at the contributor’s option.

• Marginal note:Reservations

  (2) The reservations are to begin in the month in which the pension benefit begins.

Marginal note:Financial hardship

• 12 (1) A contributor who establishes that undue financial hardship, which was unforeseen at the time the election referred to in section 1 was made, will be caused if the contributor is required to continue to pay the instalments may triple the length of the period that was chosen under paragraph 6(1)(a), up to a maximum of 15 years.

• Marginal note:Adjustment of instalments

  (2) The remaining instalments are to be adjusted, in accordance with subsection 6(2), on the first day of the month after the day on which the request is made, except that the actuarial valuation report is the one that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the request is made or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

Marginal note:Interest not payable

13 An amount does not bear interest if

• (a) despite authorization, it was not reserved because of administrative reasons;

• (b) it is paid within 30 days after the day on which it became payable; or

• (c) a notice of default has been sent in respect of the amount, together with interest, and it is paid within 30 days after the day on which the notice is sent.

Marginal note:Amount payable by reservation on contributor’s death

14 The unpaid amount referred to in subsection 8(7) of the Act is to be recovered, at the option of the recipient,

• (a) by reservation of the total unpaid amount from the first monthly instalment of the allowance payable;

• (b) by reservation from the monthly instalments of the allowance of an amount equal to the monthly instalment paid by the contributor, up to a maximum of 30% of the monthly instalment of the allowance; or

• (c) if the recipient establishes that those terms of recovery will cause financial hardship, by reservation from the monthly instalments of the allowance of an amount not less than 15% of those monthly instalments.

Marginal note:Medical examination

15 Despite section 5, a contributor who makes an election referred to in section 1 more than one year after the day on which they most recently became a contributor may opt to pay in monthly instalments only if they pass a medical examination.

Marginal note:Time limit

• 16 (1) A contributor must undergo a medical examination within six months before or after the day on which the election is made.

• Marginal note:Extension

  (2) If, through no fault on the part of the contributor, the contributor is unable to undergo the medical examination before the end of that period, the period is to be extended by six months.

• Marginal note:Authorized physician

  (3) The medical examination must be performed by any physician who is authorized to practise medicine in the jurisdiction in which the examination is performed.

• Marginal note:Criterion for pass

  (4) The contributor passes the medical examination if the physician certifies in writing that the contributor has a life expectancy of at least five years.

Lump Sum Payment

Marginal note:Lump sum payment

17 A contributor who opts to pay in a lump sum under section 5 or who does not pass the medical examination required under section 15 must ensure that the lump sum is received by the Commissioner of the Royal Canadian Mounted Police within 30 days after the day on which the notice that advises the contributor of the amount is sent.

Marginal note:Interest

18 The lump sum bears interest, compounded annually, beginning on the first day of the month after the day on which the election is made and ending on the last day of the month that precedes the day on which the payment is received, at a rate equal to the projected rate of return of the Royal Canadian Mounted Police Pension Fund that was used in the preparation of the actuarial valuation report that was most recently laid before Parliament, in accordance with section 30 of the Act, before the day on which the payment is received or, if that report was laid before Parliament in the month in which that day falls or in the preceding month, of the report that was laid before Parliament immediately before that report.

Marginal note:Service counted in full

• 19 (1) If the full lump sum is received by the Commissioner of the Royal Canadian Mounted Police within the time limit set out in section 17, the period of service in respect of which the election was made is to be counted as pensionable service.

• Marginal note:Service counted in part

  (2) If the full lump sum is not received by the Commissioner within the time limit, the period of service in respect of which the election was made is to be counted as pensionable service, beginning with the part that is most recent in point of time, in the same proportion as the amount that is received by the Commissioner within that time limit bears to the lump sum.

Retirement Allowance

Repayment of Certain Benefits

Marginal note:Partial repayment

• 20 (1) A contributor who is entitled to a retirement allowance under the Members of Parliament Retiring Allowances Act and who makes an election referred to in section 1 must repay to the Royal Canadian Mounted Police Pension Fund the amount that they received in respect of that allowance beginning in the 13th month after the day on which they most recently became a contributor.

• Marginal note:Terms

  (2) The repayment must be made in accordance with the terms set out in sections 6 to 14, except that the amount bears simple interest at 4% per year.

• Marginal note:Election — section 10 of Members of Parliament Retiring Allowances Act

  (3) A contributor who made an election under section 10 of the Members of Parliament Retiring Allowances Act must pay to the Royal Canadian Mounted Police Pension Fund, in accordance with the terms that are applicable to that election, the amount that they were required to pay into the Consolidated Revenue Fund in accordance with section 11 of that Act, less any amount already paid.

Transfer of Certain Amounts to the Royal Canadian Mounted Police Pension Fund

Marginal note:Amount to be transferred

21 All amounts that the contributor has paid into the Members of Parliament Retiring Allowances Account referred to in subsection 3(1) of the Members of Parliament Retiring Allowances Act and all amounts credited to that Account in respect of the contributor are to be transferred to the Royal Canadian Mounted Police Pension Fund.

Repeal

22 [Repeal]

Coming into Force

Marginal note:Registration

23 These Regulations come into force on the day on which they are registered.