Retirement Compensation Arrangements Regulations, No. 1 (SOR/94-785)

Valuation

• 41.82 (1) Subject to subsections (2) and (3), the actuarial present value of the benefits accrued under this Part to the credit of the persons referred to in section 41.81 is calculated as of September 30, 2000 using the actuarial methods and assumptions contained in the Actuarial Report of March 31, 1996 on the Pension Plan for the public service of Canada, tabled in Parliament on March 18, 1998 by the President of the Treasury Board.

• (2) The actuarial assumptions contained in the Actuarial Report referred to in subsection (1) are varied as follows:

  • (a) the rate of interest for the period beginning on October 1, 2000 and ending on September 30, 2015 is equal to 1.95% per annum plus one-half of the rates of increase in the consumer price index for that period as set out in the Actuarial Report;

  • (b) the rate of interest for the period after September 30, 2015 is equal to 3.25% per annum;

  • (c) the rate of increase in salaries and the yearly maximum pensionable earnings is 3.9% per annum for the period beginning on October 1, 2000 and ending on September 30, 2001 and 4% per annum after that;

  • (d) the retirement rates are the rates set out in Schedule 1, multiplied by the percentage set out in Schedule 3, based on the projected number of salary level increases after October 1, 2000 set out in column 1 of Schedule 3 and the number of completed years of service after October 1, 2000 set out in column 2 of that Schedule;

  • (e) the termination rates are the rates set out in Schedule 2, multiplied by the percentage set out in Schedule 3, based on the projected number of salary level increases after October 1, 2000 set out in column 1 of Schedule 3 and the number of completed years of service after October 1, 2000 set out in column 2 of that Schedule;

  • (f) transfer values on termination of employment shall be calculated at twice the interest rates specified in paragraphs (a) and (b); and

  • (g) the Assumed Seniority and Promotional Salary Increase scale set out in Table 2A of the Actuarial Report is replaced by the probability distribution of rank at termination of employment set out in Schedule 4.

• (3) The amount calculated in accordance with subsection (1) shall be net of the present value of any instalment payments in respect of periods of service where such payments would have been due and payable into the Retirement Compensation Arrangements Account after September 30, 2000 by persons referred to in section 41.81 had those persons remained employed in the public service for the purposes of the Public Service Superannuation Act.

• (4) For the purpose of subsection (3), any instalment payment that is attributable to a period of leave of absence without pay is calculated as if it were due and payable on October 1, 2000.

• (5) For the purpose of subsection (3), the present value is calculated using an interest rate of 3.45% per annum.

Transfer of Funds

• 41.83 (1) The amount calculated in accordance with section 41.82, together with interest calculated in accordance with subsection (2), shall be paid by the President of the Treasury Board over a period not exceeding two years beginning on October 1, 2000.

• (2) Interest on each payment made by the President of the Treasury Board shall be calculated at a rate of 7.25% per annum from October 1, 2000 to the end of the day preceding each payment.

41.84 The amount calculated in accordance with section 41.82 together with interest calculated in accordance with subsection 41.83(2) shall be paid to the Supplementary Fund established under the Canada Post Supplementary Retirement Arrangement out of the Retirement Compensation Arrangements Account.

PART IIIParticipation Under the Canadian Forces Superannuation Act

42 Words and expressions used in this Part and not otherwise defined in the Act or in these Regulations have the same meaning as in the Canadian Forces Superannuation Act.

DIVISION IAdditional Pensionable Earnings

43 Any person who, on or after December 15, 1994, is required to contribute to the Canadian Forces Superannuation Account or the Canadian Forces Pension Fund and whose annual rate of pay is greater than the annual rate of pay determined under section 12.1 of the Canadian Forces Superannuation Regulations shall contribute to the Retirement Compensation Arrangements Account on the excess pay at the same rates and subject to the same conditions as are set out in section 5 of the Canadian Forces Superannuation Act.

• 44 (1) Contributions by a participant under section 43 shall be based on an annual rate of pay equal to the portion of the annual rate of pay of the participant that exceeds the annual rate of pay determined under section 12.1 of the Canadian Forces Superannuation Regulations.

• (2) Contributions by a participant under section 43 in respect of periods of service without pay shall be payable at the same rates and in the same manner as are specified in sections 11 and 12 of the Canadian Forces Superannuation Regulations, based on an annual rate of pay equal to the portion of the annual rate of pay of the participant that exceeds the annual rate of pay determined under section 12.1 of those Regulations.

• (3) An election under section 6.1 of the Canadian Forces Superannuation Act in respect of a period of leave without pay constitutes an election not to contribute to the Retirement Compensation Arrangements Account in respect of the same period.

45 A participant who makes an election pursuant to paragraph 6(b) of the Canadian Forces Superannuation Act shall pay to the Retirement Compensation Arrangements Account, in respect of any portion of the participant’s annual rate of pay that exceeds the amount determined under section 12.1 of the Canadian Forces Superannuation Regulations, the amount that the participant would be required to contribute in respect of that portion pursuant to section 7 of that Act, in the same manner and subject to the same conditions as are set out in sections 8 and 9 of that Act.

46 A participant becomes subject to the retirement compensation arrangement on the later of

• (a) the day on which the participant’s annual rate of pay exceeds the annual rate of pay determined under section 12.1 of the Canadian Forces Superannuation Regulations, and

• (b) December 15, 1994.

47 A participant ceases to be required to contribute to the Retirement Compensation Arrangements Account under this Part on the day on which the participant ceases to be required to contribute under Part I of the Canadian Forces Superannuation Act.

• 48 (1) A benefit shall be paid under this Part to a participant who is entitled to an annuity under the Canadian Forces Superannuation Act as of the same day that the annuity becomes payable.

• (2) Subject to subsection 49(1), the benefit to which a participant is entitled shall be in an amount equal to

  • (a) the amount of the annuity that would be payable to the participant under Part I of the Canadian Forces Superannuation Act if paragraph 15(1)(b) of that Act applied without reference to the annual rate of pay fixed by or determined in accordance with the regulations referred to in subparagraph 15(1)(b)(iii) of that Act,

  less

  • (b) any annuity payable to the participant under the Canadian Forces Superannuation Act in respect of the period of pensionable service to the credit of the participant.

• (3) A benefit payable to a participant under subsection (1) is payable in the same manner and subject to the same conditions as is an annuity payable to the participant under the Canadian Forces Superannuation Act.

• 49 (1) For the purposes of subsection 48(2), where a participant has made an election under section 25.1 of the Canadian Forces Superannuation Act in respect of a spouse married when the participant was over 60 years of age, the amount determined under paragraph 8(2)(a) shall be reduced by the same proportion, and for the same period, as the participant’s annuity is reduced under section 66 of the Canadian Forces Superannuation Regulations.

• (2) The reduction in the benefit referred to in subsection (1) shall be effective on the same day as is the reduction calculated under section 66 of the Canadian Forces Superannuation Regulations.

50 The benefit payable to the surviving spouse of a participant who has made an election under section 25.1 of the Canadian Forces Superannuation Act, where that spouse married the participant when the participant was over 60 years of age, is equal to the amount determined under subsection 48(2), read without reference to subsection 49(1), multiplied by the percentage of the participant’s annuity, calculated before any reduction is calculated under section 66 of the Canadian Forces Superannuation Regulations, that the spouse will receive as an allowance under section 75 of those Regulations.

• 51 (1) Subject to subsection (2), a participant shall be entitled to a return of contributions made under this Part, together with interest calculated at the rate set out in the Canadian Forces Superannuation Act, if the participant is entitled to a return of contributions under that Act.

• (2) No return of contributions is payable to a participant under subsection (1) if the difference calculated under subsection 48(2) is nil.

• 52 (1) If a participant dies, leaving no survivor or child to whom a benefit may be paid under this Part or Part I of the Canadian Forces Superannuation Act, or if the persons to whom such a benefit may be paid die or cease to be entitled to the benefit, a benefit of the type referred to in section 39 of that Act shall be paid to the beneficiary named by the participant under Part II of that Act or, if no beneficiary is named or the named beneficiary does not survive the participant, to the estate of the participant, subject to the same conditions as are specified in that Act for payment of such a benefit.

• (2) Subject to subsection (3), if five times the aggregate of the benefits referred to in paragraphs (a) and (b) is greater than the total of the participant’s contributions under this Part and Part I of the Canadian Forces Superannuation Act together with interest thereon calculated at the rate and in the manner set out in section 13 of that Act, the amount of a benefit payable under subsection (1) shall be five times the aggregate of

  • (a) the annual amount of any benefit payable to the participant under this Division, determined in accordance with subsection 48(2) and not reduced on account of the age or period of pensionable service of the participant, and

  • (b) the amount of any annuity payable to the participant under the Canadian Forces Superannuation Act, determined in accordance with subsection 15(1) of that Act.

• (3) The amount of the benefit referred to in subsection (2) shall be reduced by the following amounts paid to or in respect of the participant:

  • (a) any amount paid under this Part; and

  • (b) any amount paid under Part I of the Canadian Forces Superannuation Act, including any amount paid under section 39 of that Act.

• (4) If the amount determined under subsection (2) is less than the total of the participant’s contributions under this Part and Part I of the Canadian Forces Superannuation Act together with interest thereon calculated at the rate and in the manner set out in section 13 of that Act, the benefit payable under subsection (1) shall be equal to the participant’s contributions under this Part together with interest thereon calculated at the same rate and in the same manner reduced by any amount paid to or in respect of the participant under this Part.

53 Section 22 of the Canadian Forces Superannuation Regulations applies to benefits under this Part in the same manner in which that section would apply to an annuity payable under the Canadian Forces Superannuation Act.

54 Where as a result of an election made under subsection 43(1) of the Canadian Forces Superannuation Act the participant ceases to be entitled to benefits provided under the Public Service Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, any contributions paid by the participant under Part II or IV shall be considered to have been paid under this Part and the benefits to which the participant shall be entitled are those payable under this Part.

DIVISION IIAdditional Benefits

• 54.1 (1) A benefit shall be paid to a survivor or child of a participant equal to the amount by which an allowance payable to that person under the Canadian Forces Superannuation Act is reduced as a result of the operation of the limits set out in subsections 19.2(1) to (5) of the Canadian Forces Superannuation Regulations, which limits apply, as provided in subsection 19.2(6) of those Regulations, to amounts payable in respect of a contributor who dies after the coming into force of this section.

• (2) The benefit referred to in subsection (1) is payable in the same manner and subject to the same terms and conditions as apply to the payment of the allowance before the reduction.

PART IVParticipation Under the Royal Canadian Mounted Police Superannuation Act

55 Words and expressions used in this Part and not otherwise defined in the Act or in these Regulations have the same meaning as in the Royal Canadian Mounted Police Superannuation Act.

DIVISION IAdditional Pensionable Earnings

Contributions

• 56 (1) Contributions by a participant to the Retirement Compensation Arrangements Account shall be on any amount of the participant’s annual pay that exceeds the amount determined under section 8.1 of the Royal Canadian Mounted Police Superannuation Regulations and shall be calculated at the rates and paid in the manner set out in subsection 5(1), (2), (5), (6) or (7) of the Royal Canadian Mounted Police Superannuation Act.

• (2) Contributions in respect of periods of leave without pay shall be calculated as set out in section 10 of the Royal Canadian Mounted Police Superannuation Regulations and shall be paid in the manner set out in sections 10.2 to 10.6 of those Regulations.

• (3) An election under section 6.1 of the Royal Canadian Mounted Police Superannuation Act in respect of a period of leave without pay constitutes an election not to contribute to the Retirement Compensation Arrangements Account in respect of that period.

• 57 (1) A participant who makes an election under any of clauses 6(b)(ii)(B) to (K), (M) and (N) of the Royal Canadian Mounted Police Superannuation Act shall pay to the Retirement Compensation Arrangements Account, in respect of the portion of the participant’s annual pay that exceeds the amount determined under section 8.1 of the Royal Canadian Mounted Police Superannuation Regulations, the amount that the participant would be required to contribute in respect of that portion under section 7 of that Act.

• (2) The participant shall pay the amount in the manner set out in subsection 8(5) of the Royal Canadian Mounted Police Superannuation Act. However, if the participant opts to pay for a period of service referred to in clause 6(b)(ii)(N) of that Act in a lump sum, the participant shall ensure that the amount to be paid is received by the Commissioner within 30 days after the day on which the Commissioner sends notice to the participant of the amount to be paid.

• (3) Sections 9.02 to 9.04 of the Royal Canadian Mounted Police Superannuation Regulations apply, with any necessary modifications, to a participant who makes an election referred to in subsection (1).

• (4) The fact that a participant has opted to pay by instalments for a period of service referred to in subparagraph 6(b)(ii) of the Royal Canadian Mounted Police Superannuation Act and ceases to be a member of the Force before having paid all of the instalments constitutes a circumstance referred to in section 15 of the Act under which the contributor is required to contribute by reservation from any benefit referred to in that section. The unpaid amount shall be reserved in accordance with section 9.05 of the Royal Canadian Mounted Police Superannuation Regulations.

• (5) Any amount that may be recovered under subsection 24(1) of the Act shall bear simple interest at 4% per year and shall be recovered in accordance with section 9.08 of the Royal Canadian Mounted Police Superannuation Regulations.