Canadian Forces Superannuation Regulations
14 (1) If, under paragraph 9(1)(b) of the Act, a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — has exercised an option to pay in instalments for pensionable service, those payments shall be made by reservation from pay and allowances or otherwise, for life or for a period of years not greater than for life, and are payable in the following manner:
(a) the first instalment is due and payable on the first day of the month immediately following the month of election and succeeding instalments monthly after that time during the term corresponding to the plan of payment selected by the contributor, computed in accordance with Canadian Life Table No. 2 (1941), Males four per cent or Females four per cent, as the case may be; and
(b) the contributor may amend the plan of payment to provide for payment of the instalments still to be paid in a lump sum or by larger monthly instalments on a basis similar to that described in paragraph (a), calculated as of the date of the amendment.
(2) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay in one lump sum, and subsequently the total amount to be paid in respect of the service for which the contributor elected to pay is verified as a greater amount than that on which the original lump sum payment was based, the contributor shall pay the difference either in one lump sum or by instalments, at the contributor’s option, on a basis similar to that described in subsection (1).
(3) If a contributor — other than a contributor who is a member of the reserve force or, in respect of a top-up election under section 14.2, a contributor who was a member of the reserve force — originally exercised an option to pay by instalments, and subsequently the total amount to be paid in respect of the service for which the contributor has elected to pay is verified as a greater or lesser amount than that on which the original instalments were based, the monthly instalment under subsection (1) shall be increased or decreased in accordance with the verified amount, but the instalment shall not be decreased by more than 5% of the original monthly instalment.
(4) Where a contributor originally exercised his option to pay by instalments for a period of years less than for life and undue financial hardship, which was unforeseen by him at the date of his election, may be caused to him if he is required to continue to pay those instalments, upon the application of that contributor the amount of the monthly instalment may be reduced to an appropriate lesser amount as approved by the Minister on a basis similar to that described in subsection (1), calculated as of the first day of the month following such approval, and every such application shall be made on Form CFSA 105 (Application for Reduction of Instalments), but such application shall be void unless the contributor has passed a medical examination similar to that described in section 10, within the period of 90 days before or after the date of the application or within such other period as the Minister may prescribe.
(5) Where a contributor, who has elected under the Act or Part V of the former Act to pay for any period of service and has undertaken to pay for that period by instalments, ceases to be a member of the regular force before all the instalments have been paid, the unpaid instalments shall be reserved from the benefits payable to him as follows:
(a) subject to paragraph (c), where the benefit payable is an annuity, the remaining instalments shall be reserved from that annuity;
(b) where the benefit payable is a cash termination allowance, the present value of the remaining instalments shall be reserved from that allowance to the extent that such allowance is not reduced below an amount equivalent to a return of contributions; or
(c) where during any period a pension granted under Part V of the former Act or an annuity granted under the Act is not payable or is reduced to an amount that is not sufficient to pay the instalments in full, the unpaid portion of the remaining instalments shall be reserved during such period from the pay and allowances or salary payable to the recipient or from any other amount payable to him by Her Majesty.
(6) Notwithstanding anything contained in this section, a contributor who, pursuant to subsection 9(3) of the Act, elects to surrender his right under subsection 56(2) of the former Act, to defer payment for his prior service in the regular force for which he was not required to pay until the date of his retirement, shall be required to pay the amount prescribed therein in the following manner:
(a) prior to his retirement, the whole or any part of the prescribed amount
(i) in a lump sum without interest, or
(ii) in monthly instalments of any amount without interest,
at his option; and
(b) upon his retirement, any balance remaining of the contributions required to be paid, in the same manner and subject to the same terms and conditions as would be applicable to an amount required to be paid in accordance with subsection 56(2) of the former Act.
(7) For the purpose of subsection 9(4) of the Act, where at the death of a contributor any amount payable by him into the Superannuation Account is due and payable but remains unpaid, the amount payable, with interest at four per cent per annum from the time it became due to the time of his death, shall be recovered from any allowance payable to the survivor or children as follows:
(a) in a lump sum from a cash termination allowance; or
(b) by monthly instalments from an annual allowance in an amount equal to 10 per cent of the net monthly allowance, but in any such case payment may be made by or on behalf of the survivor or children that will liquidate the amount at an earlier date.
- SOR/92-717, s. 10
- SOR/95-570, s. 10(F)
- SOR/2001-76, s. 9
- SOR/2007-33, s. 7
- Date modified: