Government Annuities Regulations (C.R.C., c. 879)

11 Where an annuity contract does not already so provide, the Minister may, upon the written application and consent of the purchaser received before the annuity becomes payable, enter into an agreement with the purchaser varying the terms of the contract

• (a) if the contract is for the life of one annuitant only, to provide an annuity for the life of the annuitant, or for a term of years certain not to exceed 20 years or the life of the annuitant, whichever period is longer, or

• (b) to have the annuity become payable on any future day before or after the day on which the annuity becomes payable under the contract

and the annuity or premiums shall be re-calculated to take into account the variation of such terms.

Minister May Vary Terms

• 12 (1) The Minister may enter into an agreement to vary the terms of a contract for the payment of an annuity entered into under the Act or other authority of Parliament, as follows:

  • (a) in any case where the contract for the payment of the annuity was not entered into pursuant to subsection 6(3) of the Act,

    • (i) where the person who entered into the contract applies therefor to the Minister, to vary the terms of the contract so that the annuitant shall be placed in the same position as if he were the purchaser,

    • (ii) where the purchaser of a deferred annuity under paragraph 4(a) of the Act applies to the Minister, before the annuity becomes payable, to vary the terms of the contract to provide for the payment of the annuity in monthly instalments payable for the period between the date of maturity of the contract and a date within two months immediately following the date the annuitant by reason of age could become eligible to receive a pension under the Old Age Security Act, provided the annuitant shall so long live,

    • (iii) where the person who entered into a contract to purchase a deferred annuity under paragraph 4(b) of the Act applies therefor to the Minister before the annuity becomes payable, to vary the terms of the contract so that the annuity will be payable on the life of one annuitant only,

    • (iv) where the remaining instalments of annuity are payable to the legal representatives of a deceased person, and the said legal representatives apply therefor to the Minister, to pay the remaining instalments of the annuity to a designated person and his legal representatives,

    • (v) where the purchaser of an annuity contract applies to the Minister, before the annuity becomes payable, to vary the terms of the contract to provide for an annuity the amount of which decreases on a specified day, and under which there may be paid an annuity greater than the maximum permitted under the Government Annuities Improvement Act and the Regulations made thereunder between the due date of the first instalment of annuity and the specified day, but in no case shall the annuity agreed to be paid exceed the actuarial equivalent of a constant annuity for the maximum amount so permitted in respect of the annuitant having the same date of commencement and the same term certain, if any, as the annuity payable under the contract,

    • (vi) where the purchaser of an annuity contract applies to the Minister to vary the terms of the contract to provide that if at any time the premiums held to the credit of the contract are not sufficient to purchase an annuity of $120 a year on the life of the annuitant for 20 years certain or for the life of the annuitant, whichever period is the longer, as of the original due date of the first instalment of annuity, as determined under the Act, the purchaser with the concurrence of the annuitant may surrender the rights of the purchaser and the annuitant under the contract in consideration of a single payment being made to the purchaser, without interest, for the period up to and including March 31, 1975 but with interest at the rate of seven per cent per annum for the period commencing April 1, 1975 or the date the premium was paid, whichever is later, to the date of repayment of the refund of the premiums paid under the contract, and

    • (vii) in any other case, in such manner as the Minister deems advisable and Treasury Board approves;

  • (b) where the contract was entered into pursuant to subsection 6(3) of the Act, to provide that the purchaser may, by instrument in writing received by the Minister before the day of commencement of an annuity payable to an annuitant or registered employee, elect

    • (i) that the annuity shall be payable in accordance with any optional type of annuity described in the contract,

    • (ii) that an annuity otherwise payable in accordance with paragraph 4(a) of the Act, shall be payable to the annuitant or registered employee in accordance with paragraph 4(b) of the Act,

    • (iii) that an annuity otherwise payable in accordance with paragraph 4(b) of the Act, shall be payable to the annuitant or registered employee in accordance with paragraph 4(a) of the Act,

    • (iv) to be paid an annuity the amount of which decreases on a specified day and under which there may be paid an annuity greater that the maximum permitted under the Government Annuities Improvement Act and the regulations made thereunder between the due date of the first instalment of annuity and the specified day, but in no case shall the annuity agreed to be paid exceed the actuarial equivalent of a constant annuity for the maximum so permitted in respect of the registered employee having the same date of commencement and the same term certain, if any, as the annuity payable under the contract, or

    • (v) that an annuity otherwise payable in accordance with paragraph 4(a) of the Act shall provide for the payment thereof in monthly instalments payable for the period between the date when the annuity becomes payable under the contract and a date within two months immediately following the date the annuitant or registered employee by reason of age could become eligible to receive a pension under the Old Age Security Act, provided the annuitant or registered employee shall so long live;

  • (c) where the contract was entered into pursuant to subsection 6(3) of the Act, and the purchaser applies therefor to the Minister, to provide

    • (i) for a change in the commencement date of the annuity to be paid to an annuitant or registered employee,

    • (ii) for an increase or decrease in the premium payments to be made with respect to an annuitant or registered employee,

    • (iii) for a change in the conditions whereby premium payments are credited to the accounts of any or all annuitants or registered employees, or

    • (iv) that an annuitant or registered employee shall be placed in the same position with respect to the annuity payable or to become payable to him as if he were the purchaser,

  • (d) where the contract was entered into pursuant to subsection 6(3) of the Act, in any case not provided for in this section, in such manner as the Minister deems advisable and Treasury Board approves; and

  • (e) where, pursuant to section 8 of the Act, an annuity cannot be granted or issued for the reason that accumulated premiums and interest are not sufficient to purchase an annuity greater than $10 a year, to provide for the payment of interest, after April 1, 1975, on such premiums when refunded at the rate of seven per cent per annum to the date of refund.

• (2) Notwithstanding sections 3, 4 and 5, where an application to vary the terms of a contract pursuant to subparagraph (1)(a)(v) is received by the Minister on or after June 10, 1965, the tables set out in Schedule I shall be used to determine the additional annuity payable if the decrease in the amount of the annuity is to take place within two months immediately following the date the annuitant, by reason of age, could become eligible to receive a pension under the Old Age Security Act prior to attaining the age of 70 years.

• (3) Notwithstanding sections 3, 4 and 5, where a purchaser elects that an annuity be paid pursuant to subparagraph (1)(b)(iv), and the first instalment of annuity is paid on or after the date of the coming into force of this subsection, the tables set out in Schedule II shall be used to determine the additional annuity payable if the decrease in the amount of the annuity is to take place within two months following the date the annuitant or registered employee, by reason of age, could become eligible to receive a pension under the Old Age Security Act prior to attaining the age of 70 years.

13 The Minister may enter into an agreement to substitute another contract for a contract for the payment of an annuity entered into under the Act or other authority of Parliament, as follows:

• (a) in any case where the contract for the purchase of the annuity was not entered into pursuant to subsection 6(3) of the Act,

  • (i) where two persons have entered into the contract and those two persons apply to the Minister to delete the name of one of the purchasers from the contract, to substitute another contract for the original contract in the name of one purchaser bearing the same effective date as the original contract, and

  • (ii) in any other case, in such manner as the Minister deems advisable and Treasury Board approves; and

• (b) in any case where the contract was entered into pursuant to subsection 6(3) of the Act

  • (i) where the purchaser ceases to employ registered employees, either in whole or in part, by reason of having disposed of the whole or any part of his undertaking or business and any of the registered employees become employees of the person to whom the purchaser has disposed of his undertaking or business, to provide that the person to whom the purchaser has disposed of his undertaking or business shall stand in the stead of the purchaser and all the rights of the registered employees shall continue as if the undertaking or business or any part thereof had not been disposed of, and

  • (ii) in any other case, in such manner as the Minister deems advisable and Treasury Board approves.

14 The Minister may enter into a contract to provide for the payment of an annuity the amount of which decreases on a day specified in the contract and under which there may be paid an annuity greater than the maximum permitted under the Act between the due date of the first instalment of annuity and the said day, but in no case shall the annuity agreed to be paid exceed the actuarial equivalent of a constant annuity for the maximum amount so permitted in respect of the annuitant, having the same date of commencement and the same term certain, if any, as the annuity payable under the contract.

• 15 (1) The Minister may enter into an agreement with the purchaser to vary the terms of a contract or to include a term in a contract entered into pursuant to subsection 6(3) of the Act, to provide that, where an employee has retired or has otherwise ceased to be employed by his employer and the premiums then held for his account are not sufficient to purchase, pursuant to such options as are available to him, an annuity on his life of $120 a year commencing at normal retirement date, the employee may, at a time stipulated in the agreement, surrender his rights to receive the whole or part of his annuity under the contract in consideration of a single payment being made to him, without interest, of an amount that bears the same ratio to the amount of premiums unconditionally held for his account as the portion of the annuity being surrendered bears to the whole annuity.

• (2) Where an agreement is entered into in accordance with subsection (1), it shall provide that an employee shall not be permitted to make an election thereunder where such election would result in a forfeiture of any employer premiums which would otherwise vest in him at retirement.

• (3) The rate or rates of interest to be used in calculating the annuity that the premiums held for the employee’s account are sufficient to purchase shall be the rate or rates of interest applicable to the annuity contract pursuant to the Act.

• (4) Notwithstanding subsection (1), interest at seven per cent per annum for the period commencing April 1, 1975 or the date the premium was paid, whichever is later, will be added to the premiums being refunded, such interest to be calculated to the date the refund is made.

• (5) The provisions of subsections (3) and (4) shall be made provisions of every contract to which subsection (1) applies.

Conversion of Contract

• 16 (1) Notwithstanding anything in these Regulations, where the Minister has under the Act entered into a contract, the effective date of which is later than May 31, 1920, for payment of a deferred annuity

  • (a) to two persons during their joint lives with continuation to the survivor, or

  • (b) to one person during his lifetime with continuation to another person, if surviving, during his lifetime,

  and one of them dies before the annuity becomes payable, such contract shall, on application in writing by the survivor received by the Minister, be converted into a contract for the payment of an annuity to the said survivor of an amount not exceeding the maximum that might have been paid to him under the original contract.

• (2) Where conversion of a contract is made under subsection (1), the premium shall be recalculated in accordance with the rate of interest and the mortality tables that were in effect at the time the contract was entered into and that would have been applied if the survivor had been the sole annuitant thereunder.

• (3) The conversion of a contract under subsection (1) may be effected by endorsement written upon or attached to the original contract and executed in accordance with section 6.

• (4) Notwithstanding anything in this section, subsection (1) does not apply to contracts designated or engrossed as a deferred last survivor annuity contract, Plan B.

Surrender of Rights and Benefits

• 17 (1) In this section “public service employer” means a Crown corporation as defined in section 76 of the Financial Administration Act (except any such corporation specified in Part I of Schedule A of the Public Service Superannuation Act), the Bank of Canada and the government of a province.

• (2) Where an employee registered under a contract entered into pursuant to subsection 6(3) of the Act becomes

  • (a) a contributor under the Public Service Superannuation Act, or

  • (b) a participant in a superannuation or pension fund or plan for employees of a public service employer,

  he may, with the concurrence of the Minister and the purchaser, surrender all or part of his rights and benefits under the contract in consideration of having an amount that bears the same ratio to the total of the employee premiums and accrued interest and such employer premiums and accrued interest as may be unconditionally held for his account as the portion of the annuity rights and benefits being surrendered bears to the whole annuity transferred to his credit to the Superannuation Account or to the superannuation or pension fund or plan of the public service employer concerned.

• (3) The Minister shall not concur with a surrender mentioned in subsection (1) by a contributor under the Public Service Superannuation Act unless he is satisfied that the contributor will be entitled, upon surrendering all his rights and benefits in accordance with subsection (2) to make a valid election under the Public Service Superannuation Act to count thereunder as pensionable service his service with the purchaser.

• (4) The Minister shall not concur with a surrender mentioned in subsection (1) by a participant in a superannuation or pension fund or plan for employees of a public service employer unless he is satisfied that the participant is eligible to count and does count his service with the purchaser as pensionable service under such superannuation or pension fund or plan.