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

• 16.7 (1) The adjustment referred to in subsections 18(4) and 21(2) of the Act shall be made by deducting from the amount of the annuity or annual allowance an amount determined in accordance with the formula

  A × B

  where

  A 

  is 5% of the annual allowance that the contributor was receiving before again becoming a member of the regular force or before becoming entitled to a disability pension under the Canada Pension Plan or a provincial pension plan; and

  B 

  is the lesser of

  • (a) the number of years, rounded to the nearest 1/10, during which the contributor received the annual allowance, and

  • (b) if the amount of the allowance was determined under

    • (i) subsection 18(2) of the Act, 60 minus the contributor’s age in years, rounded to the nearest 1/10, at the time at which the allowance is payable, or

    • (ii) subsection 18(3) of the Act, the lesser of

      (A) 

      the number resulting from the calculation in subparagraph (i), and

      (B) 

      the greater of the numbers calculated under subparagraphs 18(3)(b)(i) and (ii) of the Act in the determination of the original allowance.

• (2) The amount to be deducted under subsection (1) shall not result in the contributor receiving less than the amount of the annual allowance that the contributor was receiving before the contributor again became a member of the regular force or before the contributor became entitled to the disability pension, less any amount that is deducted under subsection 15(2) of the Act.

• (3) The amount to be deducted under subsection (1) shall not exceed the total amount that was received as an annual allowance by the contributor before the contributor again became a member of the regular force or became entitled to the disability pension.

16.8 A contributor who is described in subsection 22(1) of the Act and has not reached 50 years of age may opt for the payment of the transfer value referred to in that subsection.

16.9 A contributor shall exercise the option for the payment of a transfer value no later than the later of one year after the day on which they cease to be a member of the regular force and March 1, 2008.

16.91 The option is deemed not to have been exercised if, before the transfer value has been paid, the contributor again becomes a member of the regular force.

16.92 The transfer value is an amount, together with interest calculated in accordance with section 16.98, equal to the greater of

• (a) the actuarial present value, on the date of the option, of the accrued pension benefits that would be payable to or in respect of the contributor, and

• (b) a return of contributions, calculated as of the date of the option as if the contributor had been entitled to a return of contributions on that date.