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

1 [Repealed, SOR/2016-156, s. 2]

Interpretation

2 In these Regulations,

Act

Act means the Special Retirement Arrangements Act; (Loi)

Canadian Forces Pension Fund

Canadian Forces Pension Fund has the same meaning as in subsection 2(1) of the Canadian Forces Superannuation Act; (Caisse de retraite des Forces canadiennes)

Canadian Forces Superannuation Account

Canadian Forces Superannuation Account means the account referred to in section 4 of the Canadian Forces Superannuation Act; (compte de pension de retraite des Forces canadiennes)

external retirement compensation arrangement

external retirement compensation arrangement means a retirement compensation arrangement within the meaning of subsection 248(1) of the Income Tax Act established by an approved employer or an eligible employer; (régime externe)

immediate benefit

immediate benefit means a benefit payable under section 15 to a participant who is entitled to a benefit payable immediately on ceasing to contribute under Division I that is not reduced on account of the age or period of pensionable service of the participant; (prestation immédiate)

Minister

Minister means

• (a) for the purposes of Parts I and II, the Minister of Public Works and Government Services,

• (b) for the purposes of Part III, the Minister of National Defence, and

• (c) for the purposes of Part IV, the Solicitor General of Canada; (ministre)

misconduct

misconduct[Repealed, SOR/2016-156, s. 3]

participant

participant means

• (a) for the purposes of Part I, a person referred to in paragraph 4(d) or (e),

• (b) for the purposes of Part II, a person referred to in paragraph 4(a),

• (c) for the purposes of Part III, a person referred to in paragraph 4(b), and

• (d) for the purposes of Part IV, a person referred to in paragraph 4(c); (participant)

public service

public service has the same meaning as in section 3 of the Public Service Superannuation Act; (fonction publique)

Public Service Pension Fund

Public Service Pension Fund has the same meaning as in subsection 3(1) of the Public Service Superannuation Act; (Caisse de retraite de la fonction publique)

retirement compensation arrangement

retirement compensation arrangement means the retirement compensation arrangement established under section 4; (régime)

Royal Canadian Mounted Police Pension Fund

Royal Canadian Mounted Police Pension Fund has the same meaning as in subsection 3(1) of the Royal Canadian Mounted Police Superannuation Act; (Caisse de retraite de la Gendarmerie royale du Canada)

Royal Canadian Mounted Police Superannuation Account

Royal Canadian Mounted Police Superannuation Account means the account referred to in section 4 of the Royal Canadian Mounted Police Superannuation Act; (compte de pension de retraite de la Gendarmerie royale du Canada)

Superannuation Account

Superannuation Account means the account referred to in section 4 of the Public Service Superannuation Act. (compte de pension de retraite)

supplementary death benefit

supplementary death benefit[Repealed, SOR/2000-242, s. 1]

2.1 In these Regulations, agreement means an agreement as amended from time to time.

Designation of Arrangement

3 For the purposes of section 15 of the Act, the retirement compensation arrangement is a designated arrangement.

Establishment of Arrangement

4 There is hereby established a retirement compensation arrangement for the payment of benefits to or in respect of any person who

• (a) on or after December 15, 1994 is required to contribute to the Superannuation Account or Public Service Pension Fund;

• (b) on or after December 15, 1994 is required to contribute to the Canadian Forces Superannuation Account or the Canadian Forces Pension Fund;

• (c) on or after December 15, 1994 is required to contribute to the Royal Canadian Mounted Police Superannuation Account or the Royal Canadian Mounted Police Pension Fund;

• (d) is or has been a deputy head, has to their credit under the Public Service Superannuation Act not less than 10 years of pensionable service and elects, in accordance with section 7, before they cease to be employed in the public service, to become subject to the retirement compensation arrangement; or

• (e) immediately before December 15, 1994 was deemed by section 14 of the Public Service Superannuation Act, as that section read at that time, to be employed in the public service.

PART IDeputy Heads

Application

5 This Part applies to persons described in paragraphs 4(d) and (e).

6 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 Public Service Superannuation Act.

Contributions and Benefits

7 An election by a person referred to in paragraph 11(1)(d) of the Act to become subject to the retirement compensation arrangement shall

• (a) be made in writing;

• (b) be signed and dated by the person;

• (c) state the person’s intention to participate in the retirement compensation arrangement under this Part;

• (d) state the period in respect of which the person intends to contribute to the retirement compensation arrangement; and

• (e) be delivered or mailed to the Minister within 60 days after the date referred to in paragraph (b).

• 8 (1) Subject to subsection (2), a participant who is referred to in paragraph 4(d) shall contribute to the Retirement Compensation Arrangements Account at a rate equal to twice the applicable rate referred to in subsection 5(2) of the Public Service Superannuation Act, read without reference to subsection 5(6) of that Act.

• (2) If the aggregate of the period of pensionable service of a participant — consisting of the period of pensionable service under the Public Service Superannuation Act and other pensionable service as defined in subsection 5(5) of that Act as well as the period specified in paragraph 7(d) by the participant in an election made under paragraph 11(1)(d) of the Act — exceeds 35 years, the participant shall contribute to the Retirement Compensation Arrangements Account, in respect of the portion of the aggregate period that exceeds 35 years, at a rate equal to twice the applicable rate referred to in subsection 5(3) of the Public Service Superannuation Act, read without reference to subsection 5(6) of that Act.

• (3) Contributions under subsections (1) and (2) shall be based on the salary that the participant was receiving on the day that the participant was last employed as a deputy head, adjusted from time to time in accordance with any revisions to the participant’s salary range.

• 9 (1) Subject to subsection (2), every participant referred to in paragraph 4(e) shall contribute to the Retirement Compensation Arrangements Account at the rate, and in respect of the salary, established in respect of the participant under section 14 of the Public Service Superannuation Act as that section read immediately before December 15, 1994.

• (2) If the aggregate of the period of pensionable service of a participant — consisting of pensionable service under the Public Service Superannuation Act, other pensionable service as determined under subsection 5(5) of that Act and the period specified by the participant in an election under section 14 of that Act as that section read immediately before December 15, 1994 — exceeds 35 years, the participant shall contribute to the Retirement Compensation Arrangements Account, in respect of the portion of the aggregate period that exceeds 35 years, at a rate equal to the rate established in respect of the participant under that section as it read immediately before that date.

10 Every participant shall pay contributions to the Retirement Compensation Arrangements Account pursuant to section 8 or 9 monthly, quarterly, semi-annually or annually, by sending the amount payable in respect of that period to the Minister before the end of the period.

11 A participant may, at any time, by notice in writing to the Minister,

• (a) revoke an election made under paragraph 11(1)(d) of the Act or under section 14 of the Public Service Superannuation Act as it read immediately before December 15, 1994, in respect of the portion of the remainder of the period specified in the election in respect of which contributions have not been made by the participant; or

• (b) suspend an election referred to in paragraph (a) in respect of any portion of the remainder of the period specified in the election in respect of which contributions have not been made by the participant.

• 12 (1) Where an amount payable by a participant pursuant to section 8 or 9 is unpaid at the expiration of the period in respect of which an election applies and the participant has not revoked the election in respect of the period for which the amount payable is owing, the Minister shall notify the participant in writing of the amount payable and demand that the amount be paid within 60 days after the date of the notice.

• (2) If, at the expiration of the 60-day period, the amount payable has not been paid and the participant has not revoked the election, that amount shall be deducted,

  • (a) where the benefit is payable monthly,

    • (i) by reservation from the monthly benefit in approximately equal instalments equal to the lesser of

      • (A) the unpaid amount divided by the number of months in respect of which the contributions are unpaid, and

      • (B) 30 per cent of the gross monthly benefit, or

    • (ii) if the recipient so elects, in a lump sum at the time the benefit becomes payable; and

  • (b) in any other case, in a lump sum at the time the benefit becomes payable.

• 13 (1) A person referred to in paragraph 11(1)(d) of the Act becomes subject to the retirement compensation arrangement on the day on which the person ceases to be employed in the public service within the meaning of section 27 of the Public Service Superannuation Regulations.

• (2) A person referred to in paragraph 11(1)(e) of the Act becomes subject to the retirement compensation arrangement on December 15, 1994.

• (3) A participant shall contribute to the Retirement Compensation Arrangements Account until the day preceding the earliest of

  • (a) the day on which the participant attains the age of 60, if the participant is a group 1 contributor described in subsection 12(0.1) of the Public Service Superannuation Act, or the age of 65, if the participant is a group 2 contributor described in subsection 12.1(1) of that Act,

  • (b) the day of revocation of the participant’s election to become subject to the retirement compensation arrangement,

  • (c) the day the participant becomes re-employed in the public service and required to contribute to the Superannuation Account or Public Service Pension Fund under the Public Service Superannuation Act,

  • (d) the day the participant begins to receive an annuity or annual allowance under the Public Service Superannuation Act in respect of the participant’s periods of service under that Act,

  • (e) the expiration of the period specified in the participant’s election under paragraph 11(1)(d) of the Act or under section 14 of the Public Service Superannuation Act as that section read immediately before December 15, 1994,

  • (f) the day the participant elects to transfer his or her accrued pension benefits under the Public Service Superannuation Act to an eligible employer, and

  • (g) the day on which the participant dies.

• 14 (1) Benefits shall be paid under this Part to a participant only in respect of periods of service for which contributions have been made or are payable by that participant.

• (2) If a participant is entitled under the Canadian Forces Superannuation Act, the Royal Canadian Mounted Police Superannuation Act or the Members of Parliament Retiring Allowances Act to a benefit, other than a return of contributions, in respect of a period of service,

  • (a) no benefit shall be payable under this Part in respect of that period; and

  • (b) the participant is entitled to the return of his or her contributions under this Part in respect of that period, together with interest calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act.

• 14.1 (1) A person who opts for a transfer value under section 13.01 of the Public Service Superannuation Act is deemed to have never been subject to the retirement compensation arrangement under this Part.

• (2) The person shall be entitled to the return of his or her contributions under this Part together with interest, if any, calculated at the rate and in the manner set out in subsection 10(9) of the Public Service Superannuation Act.